We won’t bother telling you what hard week this was, but we will tell you that at least some smart-money investors are out looking for bargains right now since stocks have sold off so much and since they can’t make any money in bonds now. We cover about 15 analyst upgrades, downgrades, and initiations each morning that are moving stocks. After going through these and filtering the noise out, we often find some very smart calls and very intuitive calls that offer great upside. Unfortunately we also sometimes find some just awful research calls. These become the Top Analyst Calls of the Week.
This week’s top analyst upgrades, downgrades, and initiations were seen in shares of the following: Bank of America Corporation (NYSE: BAC); Best Buy Co., Inc. (NYSE: BBY); Biogen Idec Inc. (NASDAQ: BIIB); Blue Coat Systems Inc. (NASDAQ: BCSI); Google Inc. (NASDAQ: GOOG); Lexmark International Inc. (NYSE: LXK); Motorola Mobility Holdings Inc. (NYSE: MMI); Nokia Corporation (NYSE: NOK); Office Depot, Inc. (NYSE: ODP); Oracle Corporation (NASDAQ: ORCL); Pan American Silver Corp. (NASDAQ: PAAS); Research-in-Motion Ltd. (NASDAQ: RIMM); Riverbed Technology, Inc. (NASDAQ: RVBD); Sprint Nextel Corporation (NYSE: S); Starbucks Corporation (NASDAQ: SBUX); Teva Pharmaceutical Industries Limited (NASDAQ: TEVA); Verisk Analytics, Inc. (NASDAQ: VRSK); and Visa, Inc. (NYSE: V).
In this week’s calls we have pointed out the summary, the price action, an impact elsewhere, and have added color in on some of the summaries.
Bank of America Corporation (NYSE: BAC) may have been defended a week before by Dick Bove of Rochdale, but the stock slid further to close the week out at $6.97. Investors better hope that Credit Suisse knows something that no one else knows. On Wednesday, after a $7.40 close the day before, Credit Suisse maintained its Buy rating but lowered target to $14.00. This was a downgrade light, but frankly that is a double over the next year “IF” the call is accurate.
Best Buy Co., Inc. (NYSE: BBY) is trying to stabilize now that shares are down another 20% or so from the post-earnings reaction. The valuation is dirt cheap here when you consider its recent guidance, even if a sensible analysis would say that the estimates might need to come in some more. It trades at less than 8-times earnings. S&P Equity Research said “enough is enough” late on Thursday and raised the rating to “Buy” due to dirt cheap valuation and too much of a sell-off.