Top Analyst Upgrades and Downgrades: Himax, Ocwen, RetailMeNot, Tenet and More

August 5, 2014 by Jon C. Ogg

Stocks are indicated lower on Tuesday, after having found some stabilization on Monday. Investors still want upside, even if the bull market seems a bit tired. Some investors are even looking for stocks that may now be bargains after selling off. Each morning of the week 24/7 Wall St. reviews dozens of analyst research reports for new investment and trading ideas. Some analyst reports are about stocks to buy, while others cover stocks to sell or to avoid.

These are this Tuesday’s top analyst upgrades, downgrades and initiations from Wall Street analysts.

Five9 Inc. (NASDAQ: FIVN) fell more than 20% among our top after-hours movers on Monday, and Pacific Crest downgraded the stock to Sector Perform from Outperform. Canaccord Genuity said management has to do something to avoid a downgrade, but they cut the price target to $7 from $9.

Fresenius Medical Care A.G. (NYSE: FMS) was raised to Buy from Neutral at UBS.

Himax Technologies Inc. (NASDAQ: HIMX) was raised to Buy from Neutral and the price target was raised to $7.60 from $7 (versus a $6.41 close) at Bank of America Merrill Lynch. The firm lowered earnings estimates but said the core business is in recovery.

ITT Educational Services Inc. (NYSE: ESI) tanked on really awful news on Monday, and William Blair downgraded the stock to Market Perform from Outperform. Merrill Lynch downgraded it to Underperform from Neutral, after having just cut its price target to $16 from $19 on Monday. It’s new target is $7.

Kite Realty Group Trust (NYSE: KRG) was raised to Strong Buy from Outperform at Raymond James, and the price target is now $7 (versus a $6.03 closing price).

Mueller Water Products Inc. (NYSE: MWA) was raised to Buy from Hold at Brean Capital with a $10 price target (versus a $7.81 close).

Ocwen Financial Corp. (NYSE: OCN) was downgraded to Perform from Outperform at Oppenheimer.

RetailMeNot Inc. (NASDAQ: SALE) made the most active after-hours stocks after posting light revenues. RBC Capital Markets downgraded the stock to Sector Perform from Outperform and the price target was slashed to $24 from $42. Credit Suisse maintained its Neutral rating but cut its target to $32 from $43.

ServiceMaster Global Holdings Inc. (NYSE: SERV) was started as Buy at Jefferies and started as Outperform at Baird. Piper Jaffray also started it as Overweight.

Telephone & Data Systems Inc. (NYSE: TDS) was raised to Strong Buy from Outperform at Raymond James, with the price target rising to $39 from $37 (versus a $23.47 close).

Tenet Healthcare Corp. (NYSE: THC) was raised to Neutral from Negative at Susquehanna.

U.S. Cellular Corp. (NYSE: USM) was raised to Strong Buy from Outperform at Raymond James, and the price target was raised to $47 from $44 (versus a $33.61 close).

ALSO READ: 13 Analyst Stock Picks Under $10 With Massive Upside

In case you missed Monday’s top analyst upgrades and downgrades, they included Alcatel-Lucent, AEP, Chevron, Chubb, Enterprise Products, Halcon, Occidental, U.S. Steel and a dozen or so more.

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