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Equity Brief: Ratings Changes for November 12th: ACI, ANFI, ANR, ARE, BBT, BMY, CARB, CAT, CELG


A number of stocks were upgraded and downgraded by equities research analysts today, as reported by Analyst Ratings Network (http://bit.ly/equitybriefdaily) and Equity Brief:

BMO Capital Markets upgraded shares of Arch Coal, Inc. (NYSE: ACI) from an underperform rating to a market perform rating. BMO Capital Markets now has a $8.00 price target on the stock. They wrote, "[We] are upgrading ACI to Market Perform from Underperform and increasing the target price to US$8 assuming mid-cycle multiples. The primary reason for the upgrade is improving met coal fundamentals. Spot pricing for benchmark met coal has rebounded 14% since August due to a combination of global met coal production cuts and better Chinese demand. Central Appalachian thermal coal fundamentals remain very challenging, but higher margins in met coal may more than make up for continued weakness in domestic thermal. BMO Research continues to prefer coal equities without exposure to high-cost Central Appalachian production, such as Peabody (BTUNYSE; US$26.17, Outperform) and Teck Resources (TCK.B-TSX, C$32.81, Outperform)."

UBS AG initiated coverage on shares of Amira Nature Foods Ltd (NASDAQ: ANFI). They issued a buy rating on the stock.

BMO Capital Markets upgraded shares of Alpha Natural Resources (NYSE: ANR) from an underperform rating to a market perform rating.

Bank of America downgraded shares of Alexandria Real Estate Equities, Inc. (NYSE: ARE) from a buy rating to a neutral rating.

Bank of America upgraded shares of BB&T (NYSE: BBT) from a neutral rating to a buy rating. Bank of America now has a $32.00 price target on the stock.

BMO Capital Markets downgraded shares of Bristol Myers Squibb Co. (BMY) from an outperform rating to a market perform rating. Their analysts now have a $37.00 price target on the stock.

JPMorgan Chase reiterated its overweight rating on shares of Carbonite (CARB). They have a $13.00 price target on the stock. They wrote, "We believe CARB currently trades at less than the value of the future cash flow from its current subscriber base alone. If it were never to add any new subscribers, we value CARB's shares at about $11 based on the NPV of expected future cash flow from its existing subscriber base. Recognizing the potential secular issues with the stock, we do believe that CARB will continue to grow and is excessively undervalued at current share levels. Maintain Overweight with a December 2013 price target of $13 based on Scenario 3 of our DCF."

JPMorgan Chase downgraded shares of Caterpillar Inc. (CAT) from an overweight rating to a neutral rating. They wrote, "We have been Overweight CAT since April 2009 on the thesis that increased demand for hard commodities, supported by positive global GDP, and the beginning of a U.S. construction cycle uniquely favored CAT's business mix. While these catalysts remain in place we cannot overlook the continued pressure the mining sector is facing to reduce capex, as well as the reelection of President Obama and the impact this could have on the U.S. coal and energy sectors. These, coupled with CAT's company specific inventory issues, make it difficult to justify why the stock should outperform its peers on a relative basis in the near term, and as a result we believe it is prudent to revise our rating from Overweight to Neutral."

Cantor Fitzgerald raised its price target on shares of Celgene (CELG) from $82.00 to $96.00. They have a buy rating on the stock.

Citigroup raised its price target on shares of Celgene (CELG) from $87.00 to $93.00. They have a buy rating on the stock.

Citigroup upgraded shares of Comerica (CMA) from a sell rating to a neutral rating. Citigroup now has a $28.00 price target on the stock. They wrote, "[We] are upgrading CMA from Sell to Neutral. CMA is down ~11% since early April versus its peer group average which is roughly flat over that period. At ~0.9 P/TBV, we see limited downside for CMA barring a material market sell-off. Our Sell rating on CMA had been premised on valuation. From a fundamental perspective, although the outlook remains challenging for all banks, we believe that CMA is doing what it can to navigate through tough conditions. It remains highly asset sensitive and is not locking in long duration earning assets at low rates. Also, it does not face an earnings cliff from declining mortgage fee income when the current refi wave ultimately abates. As such, if CMA were to selloff further, we would revisit it as a possible long candidate."

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