AON Corporation (NYSE: AON) Cut to Neutral at Citigroup.
AstraZeneca (NYSE: AZN) Cut to Underperform at BofA/ML.
Cisco Systems, Inc. (NASDAQ: CSCO) Reiterated Outperform with $26 target at Credit Suisse.
Digital Realty (NYSE: DLR) Started as Sell at Cantor Fitzgerald.
Digital River Inc. (NASDAQ: DRIV) Cut to Hold at Argus.
Henry Schein, Inc. (NASDAQ: HSIC) Cut to Neutral at Credit Suisse.
International Business Machines Corporation (NYSE: IBM) Started as Buy with $230 target at Stern Agee.  (LINK: FULL DETAILS)
Pep Boys-Manny, Moe & Jack Inc. (NYSE: PBY) Cut to Hold at Argus.
Salesforce.com (NYSE: CRM) named Bear of the Day at Zacks.
Senior Housing Properties Trust (NYSE: SNH) Cut to Hold at Stifel Nicolaus.
Seaspan Corporation (NYSE: SSW) Cut to Market Perform at Wells Fargo.
Sirius Satellite Radio, Inc. (NASDAQ: SIRI) Started as Underweight at Barclays.
Sohu.com Inc. (NASDAQ: SOHU) downgraded to Hold at RBS and Cut to Neutral at Susquehanna.
Sunoco Logistics, LP (NYSE: SXL) named as Bull of the Day at Zacks.
Thor Industries, Inc. (NYSE: THO) named Value stock of the day at Zacks.
Urban Outfitters Inc. (NASDAQ: URBN) Cut to Sell at Brean Murray.
Zoltek Companies, Inc. (NASDAQ: ZOLT) Cut to Underperform at Needham (LINK: FULL SUMMARY).

If you enjoyed the top analyst calls, you can sign up in the box below to join our morning email list to receive news directly in your inbox each morning. We include major analyst upgrades and downgrades, IPO and M&A news, special situation developments, observations on Warren Buffett and key market gurus, as well as special exclusive feature stories.

JON C. OGG

The unofficial closing bells put the DJIA down nearly 7 points to 12,653.5 (-0.05%), the NASDAQ fell more than 4 points (-0.16%) to 2,811.94, and the S&P 500 fell -0.25% or more than 3 points to 1,313.02.

There were several analyst upgrades and downgrades today, including Kellogg Co. (NYSE: K) cut to ‘neutral’ at JP Morgan; Staples Inc. (NASDAQ: SPLS) cut to ‘sell’ at Goldman Sachs; Time Warner Inc. (NYSE: TWX) cut to ‘equal-weight’ at Barclays; Advance Auto Parts Inc. (NYSE: AAP) and Autozone Inc. (NYSE: AZO) both raised to ‘buy’ at Goldman Sachs; and JPMorgan Chase & Co. (NYSE: JPM) maintained as ‘buy’ but removed from Conviction Buy List at Goldman Sachs.

Earnings reports since markets closed last Friday have led to some price changes as of the last half hour of trading today: Gannett Co. Inc. (NYSE: GCI) is down -6.77% at $14.19; Sify Technologies Ltd. (NASDAQ: SIFY) is down -5.4% at $4.74; The Wendy’s Co. (NYSE: WEN) is down -3.03% at $5.05; and Old National Bancorp. (NYSE: ONB) is down -1.90% at $11.86.

Other standouts from today include the following stocks:

GTX Inc. (NASDAQ: GTXI) is up nearly 49% at $5.86. The drug maker’s shares have been given a new price target of $19/share from Citigroup. We have more coverage here.

Pep Boys – Manny, Joe and Jack (NYSE: PBY) is up more than 23.5% at $14.92 after posting a new 52-week high of $15 earlier in the day. The auto parts retailer has agreed to an acquisition at $15/share. See more of our coverage here.

Thomas & Betts Corp. (NYSE: TNB) is up 13.33% at $71.28 after posting a new 52-week high of $71.80 earlier today. The electrical components maker has agreed to an acquisition by ABB Ltd. for $3.9 billion.

Cell Therapeutics Inc. (NASDAQ: CTIC) is down nearly -18% at $1.10. The drug maker has withdrawn its application with FDA for approval of its non-Hodgkin’s lymphoma treatment.

Pharmerica Corp. (NYSE: PMC) is down nearly -12% at $12.64. The pharmacy services provider has expressed its wish that a hostile takeover bid from Omnicare Inc. (NYSE: OCR) will be withdrawn, following a Federal Trade Commission suit to block the deal. More coverage here.

Stay tuned for Tuesday. We have noted the following events on the schedule (all times Eastern):

• 8:30 a.m. – Employment cost index
• 9:00 a.m. – Case-Shiller housing price index
• 9:45 a.m. – Chicago purchasing managers index (PMI)
• 10:00 a.m. – Consumer confidence index
• 3:00 p.m. – Farm prices report

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Paul Ausick

Shares of Thomas & Betts are up nearly 23% in early trading this morning on a $3.9 billion buyout offer from ABB Ltd. (NYSE: ABB). Nearly 12 million shares have been traded so far today, compared with a 3-month daily average of about 330,000.

Another big winner this morning has been Pep Boys, also up about 23% following a $1 billion buyout from private equity firm Gores Group. More than 11 million shares have traded this morning, compared with a 3-month daily average of around 500,000. More coverage here.

Amylin up about 19% on news that its new diabetes drug has gained regulatory approval. Nearly 12 million shares have traded this morning, compared with a 3-month daily average of about 2.3 million.

GTX is up about 38% at $5.15 on nearly 2.5 million shares traded compared with a daily average of about 188,000. The drug maker’s shares have been given a new price target of $19/share from Citigroup. We have more coverage here.

Gannett is down more than -7% at $14.14, with nearly 4.6 million shares traded this morning, compared with a 3-month daily average of about 4 million shares. The newspaper publisher reported a -33% drop in quarterly profit and newspaper ad revenue fell -7.1%.

Paul Ausick

After the first half-hour of trading, GTX Inc. is up more than 30% at $5.15. Volume is about 8x the daily average of about 188,000 shares traded. The drug maker’s shares have been given a new price target of $19/share from Citigroup.

Pep Boys is up nearly 23% at $14.85 after posting a new 52-week high of $15.00 earlier. Volume is already more than 13x the daily average of about 500,000 shares traded. The auto parts retailer has agreed to an acquisition at $15/share. See more of our coverage here.

Thomas & Betts is up more than 22% at $71.00 after posting a new 52-week high of $71.30 earlier. Volume is already 20x the daily average of about 330,000 shares traded. The electrical components maker has agreed to an acquisition by ABB Ltd. for $3.9 billion.

Cell Therapeutics is down nearly -17% at $1.11. Volume already more than double the daily average of 1.8 million shares traded. The drug maker has withdrawn its application with FDA for approval of its non-Hodgkin’s lymphoma treatment.

Pharmerica is down nearly -13% at $12.49. Volume is already more than double the daily average of nearly 400,000 shares traded. The pharmacy services provider has expressed its wish that a hostile takeover bid from Omnicare Inc. (NYSE: OCR) will be withdrawn, following a Federal Trade Commission suit to block the deal. More coverage here.

Paul Ausick

Pep Boys has been the weakest performer in the auto parts retail business for the past year. It’s share price has fallen by more than -13% in the past 12 months, while competitors Autozone Inc. (NYSE: AZO), Advance Auto Parts Inc. (NYSE: AAP), and O’Reilly Automotive Inc. (NASDAQ: ORLY) have risen by 38%, 17%, and 46%, respectively.

Under terms of the agreement, Pep Boys has a 45-day period in which it is free to seek other offers. The deal is expected to close in the second quarter.

Pep Boys has suspended its quarterly dividend and will file a quarterly report with the SEC, but has cancelled its conference call.

GM and Ford have both had median target prices lowered in the past month, and GM stock is trading down more than -7% today compared to its price on November 9th. GM’s median target price is now $33.00, and at today’s price of $21.28, the potential upside is 55%. Ford’s median target price is $15.00, and at today’s price of $11.04, its implied gain is nearly 36%. Battery fires in the Chevy Volt have weighed on GM shares, and Ford is being weighed down by uncertainty about a successor to its current CEO. Ford did reinstate a $0.05/share dividend recently, which gave the shares a bit of a boost.

If US sales rise as predicted in December, the potential upsides to these two stocks could close quickly. Toyota today lowered its earnings forecast for the fiscal year ending in March by more than 50%, citing supply problems due to the floods in Thailand. If there are buyers out there, GM and Ford could benefit from Toyota’s continuing troubles.

The car rental firms are all trading lower today than they were a month ago, and the implied gains for Hertz, Avis, and Zipcar are all above 80%. It might be best to think of those as signs of further deterioration in share prices and targets rather than any sort of implied upside.

The best performers have been the dealers. AutoNation has burst through its target price, and CarMax and America’s Car-Mart both have had their target prices raised in the past month. CarMax has the highest implied upside of the three, at 11%, while America’s Car-Mart’s potential upside is about 3%. Recent strength among these dealers should continue through this month, and this looks the one sector of the auto-related industry that stands to gain the most.

The parts stores have also performed well, with O’Reilly also busting through its median target price of $80 and posting a new 52-week high today at $81.24. AutoZone posted weak earnings earlier this week, which has pushed the share price down. But the company’s implied upside to a raised target price of $360.00 is about 9%. The Pep Boys have an implied upside of about 45%, based on a target price of $16.00 and current share price of $11.00. The company’s recent weak earnings report could indicate that the target price needs to come down, not that the share price is on its way up.

The search for a value play among these stocks would probably point to either GM or Ford, both of which appear to be undervalued and to be poised on the verge of a very good sales month. While the dealers and the parts stores have performed better recently, these stocks are pretty fully valued now. The implied gains of greater than 80% among the rental car companies is not a hopeful sign.

Paul Ausick

The unofficial closing bells put the DJIA up more than 52 points to 12,150.13 (0.43%), the NASDAQ fell more than 6 points (-0.23%) to 2,649.56, and the S&P 500 rose 0.11% or nearly 5 points to 1,258.47.

There were several analyst upgrades and downgrades today, including Altria Group Inc. (NYSE: MO) started as ‘buy’ at Deutsche Bank. Other ratings action include Verizon Communications Inc. (NYSE: VZ) reiterated as ‘buy’ with a $44 price target at Argus; Tesoro Corp. (NYSE: TSO) cut from ‘outperform’ to ‘neutral’ with a $34 price target at Credit Suisse; LinkedIn Corp. (NASDAQ: LNKD) raised to ‘overweight’ at JPMorgan; and General Electric Co. (NYSE: GE) raised to ‘outperform’ by Berstein.

Here are today’s post-earnings news reactions with prices during the last half-hour of trading: Chesapeake Granite Wash Trust (NYSE: CHKR) is up 0.7% at $19.94; Blyth, Inc. (NYSE: BTH) is down -0.05% at $66.33; Pep Boys-Manny, Joe, and Jack (NYSE: PBY) is down -5.5% at $11.21; Uranium Energy Corp. (AMEX: UEC) is up 0.66% at $3.06; AutoZone Inc. (NYSE: AZO) is down -0.12% at $338.56; Darden Restaurants Inc. (NYSE: DRI) is down -12% at $41.95; Toll Brothers Inc. (NYSE: TOL) is up nearly 3% at $21.37; and Liquidity Services Inc. (NASDAQ: LQDT) is up nearly 5.5% at $36.74, after posting a new 52-week high of $37.05 earlier in the day. Earnings releases coming after markets close today include Diamond Foods Inc. (NASDAQ: DMND); SAIC Inc. (NYSE: SAI); and Vera Bradley Inc. (NYSE: VRA).

Several other standouts from today are as follows…

Frontline Ltd. (NYSE: FRO) is up more than 19%, to $4.23. The oil tanker company has been suffering from low day rates and lack of cargoes, but today’s injection of $500 million from a Norwegian bank controlled by the company’s major shareholder, John Fredriksen, has pumped up interest in the stock.

Cell Therapeutics, Inc. (NASDAQ: CTIC) is up 14%, at $1.31. The drug-maker received notice from the FDA that its new drug application for a treatment for non-Hodgkins lymphoma is complete.

Comstock Resources Inc. (NYSE: CRK) is up nearly 15%, at $19.39. The oil & gas E&P company has acquired new acreage in the Delaware Basin of west Texas and reported that it had drilled five new producing wells in its Eagle Ford shale acreage.

Vonage Holdings Corp. (NYSE: VG) is down nearly -5%, at $2.52. The VoIP provider did not report any significant news, but the stock has been quite volatile over the past month.

Hecla Mining Co. (NYSE: HL) is up more than 9%, at $6.57. The miner benefited from today’s investors’ interest in gold mining stocks.

Stay tuned for Wednesday. We have noted Federal Reserve Governor Sarah Bloom Raskin moderating a panel on grass-roots participation at Baltimore branch of Richmond Fed. Here are other noteworthy events scheduled for Tuesday (all times Eastern):

• 7:00 a.m. – Mortgage Bankers Association purchase applications
• 10:30 a.m. – EIA weekly petroleum status report
• 3:00 p.m. – Report on outstanding consumer credit

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Paul Ausick

The unofficial closing bells put the DJIA up more than 78points to 12,097.83 (0.65%), the NASDAQ rose nearly 29 points (1.10%) to 2,655.76, and the S&P 500 rose 1.03% or nearly 13 points to 1,257.08.

There were several analyst upgrades and downgrades today, including Alcoa, Inc. (NYSE: AA) cut to ‘buy’ from ‘hold’at Goldman Sachs. Other ratings action include Chicago Bridge & Iron Co. (NYSE: CBI) removed from ‘Conviction Buy List’ at Goldman Sachs, but maintained at ‘buy’; Autodesk Inc. (NASDAQ: ADSK) cut to ‘sell’ from ‘neutral’ at Goldman Sachs; Cablevision Systems Corp. (NYSE: CVC) cut to from ‘outperform’ to ‘market perform’ at Wells Fargo; and Time Warner Cable Inc. (NYSE: TWC) raised to ‘outperform’ from ‘market perform’ at Wells Fargo. We include Cablevision and Time Warner in our story today about tomorrow’s release of new software for the Xbox from Microsoft Corp. (NASDAQ: MSFT).

Here are today’s post-earnings news reactions with prices during the last half-hour of trading: Dollar General Corp. (NYSE: DG) is up more than 1.6% at $40.59, after posting a new 52-week high earlier today of $41.25; and Hi-Tech Pharmacal Co. Inc. (NASDAQ: HITK) is down more than -9% at $38.75, after posting a new 52-week high this morning of $44.58. Earnings releases have slowed significantly this month, but there are some noteworthy reports coming after markets close today: Chesapeake Granite Wash Trust (NYSE: CHKR), Blyth, Inc. (NYSE: BTH), Pep Boys-Manny, Joe, and Jack (NYSE: PBY), and Uranium Energy Corp. (AMEX: UEC).

Several other standouts from today are as follows…

SuccessFactors, Inc. (NASDAQ: SFSF) is up more than 51%, at $39.71. The cloud-based software maker is being acquired by SAP AG (NYSE: SAP) for about $3.4 billion ($40/share). We have more coverage on this story here.

Athersys, Inc. (NASDAQ: ATHX) is up more than 27%, at $2.11. The stem-cell research firm, which uses adult cells not embryonic cells, is apparently back in favor after falling to a 52-week low of $1.00 just over two weeks ago.

Taleo Corp. (NASDAQ: TLEO) is up more than 21%, at $39.99, after posting a new 52-week high of $41.23. Another cloud-based solution supplier, Taleo is one of a number of cloud developer stocks jumping today on the halo effect from SAP’s acquisition of SuccessFactors.

Tenet Healthcare Corp. (NYSE: THC) is up more than 11%, at $4.66. The health care facilities operator fell more than -10% on Friday, when investors over-reacted to some downgrades in the entire sector; today’s gains are just a reaction to last week’s over-reaction.

Recovery Energy, Inc. (NASDAQ: RECV) is up more than 22%, at $5.34. This small oil & gas E&P holds 137,000 net acres in the Denver-Julesberg basin in northwestern Colorado, and began trading on the Nasdaq just about one month ago.

Stay tuned for Tuesday. We have noted Federal Reserve Governor Daniel Tarullo scheduled to testify before the Senate Banking Committee on the Dodd-Frank bill. Here are other noteworthy events scheduled for Tuesday (all times Eastern):

• 7:45 a.m. – International Council of Shopping Centers/Goldman Sachs weekly sales report
• 8:55 a.m. – International Council of Shopping Centers Redbook

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Paul Ausick

The automakers, General Motors and Ford, have remained essentially flat. GM’s report earlier today beat consensus estimates, but the outlook for the rest of the fourth quarter was lowered. If GM’s forecast comes true, the company could miss fourth quarter EPS estimates by as much as $0.50. The company earns profits only a bit better than Ford’s on sales that are about 10% higher. That means there are still costs to wring out of GM’s manufacturing. And the company’s China sales are not growing at the pace they were a year ago either.

GM’s target price remains at $42.00, which implies an 83% upside potential. Ford’s target price also remained the same, at $16, for an implied gain of 43% above today’s price. Neither target price is realistic in today’s economy.

Among the car rental companies, both Avis and Zipcar have had target prices cuts. Avis now has a target price of $24.50, down from $27 on October 20th. The potential upside has dropped from 133% to 87%.

The current share prices at Hertz and Avis are 12% and 13% higher, respectively, than they were on October 20th. Hertz’s implied gain at today’s stock price is 81%, and Avis’s is 87%. It is impossible to imagine a scenario in which either company makes a gain of that size. Far more likely are further target price cuts.

At Zipcar, the target price has dropped from $31.25 to $30.50, and upside potential has fallen from 80% to a shade above 70%. The company’s forward P/E also fell from an outrageous 273 to a more modest 149. Maybe someday the number will return to reality. Until then, target price cuts could be expected.

Among the auto dealerships, AutoNation got a boost to its median target price, from $32 to $32.50. The stock is trading today at $34.43, about 6% above its target price. But it’s share price is down from $37.06, a drop of about -7%. AutoNation reported a 6% sales gain year-over-year in October, with the biggest gain in its luxury car sales, which were up 27%.

Both CarMax and Car-Mart are trading higher than they were on October 20th, but there has been no change to the target price for either company. Car-Mart’s current price is only 11% below its target price, setting the stage for a boost if the company posts good numbers at its earnings report next week.

The largest change in the auto sector stocks we covered in October came in the parts suppliers group. O’Reilly’s median target price was raised from $68 to $80, and the shares are trading today at $77.74, a scant 3% below the new target. Shares posted a new high today at $77.94, on a day when the markets are down more than -2%.

Neither AutoZone nor Pep Boys was able to match that, as both have put up new 52-week lows since our October report.

All data from Yahoo! Finance and current prices were gathered at about noon today.

Paul Ausick

Competition plays a critical role in car rental agencies as well. We’ve gathered some data on Hertz Global Holdings Inc. (NYSE: HTZ) and Budget Group Inc. (NYSE: CAR), who were battling over Dollar Thrifty until earlier this month. We’ve also included Zipcar Inc. (NASDAQ: ZIP) in our review because there is evidence that its short-term rental model is about to get competition from both the big rental companies and the new car makers themselves.

Finally, we’ve looked at parts suppliers O’Reilly Automotive, Inc. (NASDAQ: ORLY), AutoZone, Inc. (NYSE: AZO), and Pep Boys – Manny, Joe, and Jack (NYSE: PBY). As car owners hold onto their cars longer, parts suppliers stand to profit.

All data from Yahoo! Finance and current stock prices were gather just before noon today.

General Motors Co. (NYSE: GM) has a median target price of $42.00 from 17 brokers. Shortly before noon today, shares are trading today at $22.78, for an implied gain of $19.22, or 84%. GM’s forward P/E is 5.24 and the company does not pay a dividend. The stock’s 52-week trading range is $19.05-$39.48, and at today’s price that’s about 20% above its 52-week low and 42% below the 52-week high.

Ford Motor Co. (NYSE: F) has a median target price of $16.00 from 15 brokers. Shares are trading today at $11.61, for an implied gain of $4.39, or 38%. Ford’s forward P/E is 6.59 and the company does not pay a dividend. The stock’s 52-week trading range is $9.05-$18.97, and at today’s price that’s about 28% above its 52-week low and 39% below the 52-week high.

Hertz Global Holdings Inc. (NYSE: HTZ) has a median target price of $21.00 from 5 brokers. Shares are trading today at $10.37, for an implied gain of $10.63 or 133%. Hertz’s forward P/E is 6.43 and the company does not pay a dividend. The stock’s 52-week trading range is $7.80-$17.64, and at today’s price that’s about 33% above its 52-week low and 41% below the 52-week high.

Avis Budget Group Inc. (NYSE: CAR) has a median target price of $27 from 5 brokers. Shares are trading today at $11.61, for an implied gain of $15.39, or 133%. Avis’s forward P/E is 8.95 and the company does not pay a dividend. The stock’s 52-week trading range is $8.45-$19.49, and at today’s price that’s about 37% above its 52-week low and 40% below the 52-week high.

Zipcar, Inc. (NASDAQ: ZIP) has a median target price of $31.25 from 4 brokers. Shares are trading today at $17.38, for an implied gain of $13.87, or 80%. Hertz’s forward P/E is an astronomical 273 as the company has yet to show a profit since its IPO in April. The company does not pay a dividend. The stock’s 52-week trading range is $16.50-$31.50, and at today’s price that’s about 5% above its 52-week low and 45% below the 52-week high.

AutoNation, Inc. (NYSE: AN) has a median target price of $32 from 8 brokers. Shares are trading today at $37.06, about 5% above its consensus target price. AutoNation’s forward P/E is 17.55 and the company does not pay a dividend. The stock’s 52-week trading range is $22.28-$41.55, and at today’s price that’s about 66% above its 52-week low and 10% below the 52-week high.

CarMax Inc. (NYSE: KMX) has a median target price of $33 from 13 brokers. Shares are trading today at $27.76, for an implied gain of $5.24, or 19%. CarMax’s forward P/E is 14.06 and the company does not pay a dividend. The stock’s 52-week trading range is $22.77-$37.02, and at today’s price that’s about 22% above its 52-week low and 25% below the 52-week high.

America’s Car-Mart, Inc. (NASDAQ: CRMT) has a median target price of $37 from 5 brokers. Shares are trading today at $29.89, for an implied gain of $7.11, or 24%. Car-Mart’s forward P/E is 8.86 and the company does not pay a dividend. The stock’s 52-week trading range is $22.77-$37.50, and at today’s price that’s about 31% above its 52-week low and 20% below the 52-week high.

O’Reilly Automotive, Inc. (NASDAQ: ORLY) has a median target price of $68 from 19 brokers. Shares are trading today at $70.16, about 2% above its consensus target price. O’Reilly’s forward P/E is 17.12 and the company does not pay a dividend. The stock’s 52-week trading range is $52.97-$72.00, and at today’s price that’s about 32% above its 52-week low and 3% below the 52-week high.

AutoZone, Inc. (NYSE: AZO) has a median target price of $350 from 17 brokers. Shares are trading today at $326.17, for an implied gain of $23.83, or 7.3%. AutoZone’s forward P/E is 12.59 and the company does not pay a dividend. The stock’s 52-week trading range is $229.84-$337.23, and at today’s price that’s about 42% above its 52-week low and 3% below the 52-week high.

Pep Boys – Manny, Joe, and Jack (NYSE: PBY) has a median target price of $16 from 5 brokers. Shares are trading today at $10.95, for an implied gain of $5.05, or 46%. The Pep Boys’s forward P/E is 9.43 and the company pays a dividend yield of 1.1%. The stock’s 52-week trading range is $7.86-$15.96, and at today’s price that’s about 39% above its 52-week low and 31% below the 52-week high.

As you can see, there are some of the auto-related stocks that are close to or are now fully valued.  Still, there remains massive upside if the consensus analyst targets can be met.  Some upside targets are still so high that you have to wonder if they have been updated to reflect the new reality or if they are even really attainable.

Paul Ausick