Each morning 24/7 Wall St. issues a summary list of key analyst upgrades, downgrades, and initiations issued by Wall Street research firms. We review these calls and other calls made throughout the week to see which stand out the most. Some are great calls that were full of insight, while others were total flops. After reviewing and filtering all of these research reports, we end up with the top analyst calls of the week.
We had many key calls that stood out this week in shares of the following: Alcatel-Lucent SA (NYSE: ALU); Amazon.com Inc. (NASDAQ: AMZN); Apple Inc. (NASDAQ: AAPL); Cisco Systems Inc. (NASDAQ: CSCO); Computer Sciences Corporation (NYSE: CSC); Corrections Corporation of America (NYSE:CXW); Dean Foods Company (NYSE: DF); Enterprise Products Partners LP (NYSE: EPD); Genworth Financial Inc. (NYSE: GNW); Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR); Groupon, Inc. (NASDAQ: GRPN); The Home Depot Inc. (NYSE: HD); Melco Crown Entertainment Ltd. (NASDAQ: MPEL); Pier 1 Imports, Inc. (NYSE: PIR); SurModics Inc. (NASDAQ: SRDX); Teva Pharmaceutical Industries (NASDAQ: TEVA); Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX); and YRC Worldwide. Inc. (NASDAQ: YRCW).
We have broken each of these calls out and added in color where applicable.
Alcatel-Lucent SA (NYSE: ALU) can’t get off the floor and it keeps disappointing. Shares even closed at $1.99 after seeing a year low of $1.92 on Friday. Alcatel’s chart looks almost the same as the chart of late-2008, but it cannot blame the market this time. We saw three downgrades worth noting this last week: Cut to Sell at Citigroup; Cut estimates and target at Argus; and Cut to Neutral at BofA/Merrill Lynch.
Amazon.com Inc. (NASDAQ: AMZN) had two big calls this last week. The main call was on Friday when Nomura issued a very unenthusiastic NEUTRAL rating. The other call came on Thursday when Zacks added it to the STRONG SELL list. With valuations still very high and with profit margins running razor-thin, it seems that at least some caution should prevail unless the holiday season is going to blow the doors of the hinges here.