Equity Brief: Ratings Changes for November 1st: JCI, JOY, LGCY, LLOY, LSTR, LXK, MCRS, MDSO, MM

Thu Nov 1, 2012 10:13am EDT

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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:

Needham & Company downgraded shares of Johnson Controls, Inc. (JCI) from a buy rating to a hold rating.

Morgan Stanley upgraded shares of Joy Global Inc. (JOY) from an equal weight rating to an overweight rating. They wrote, "Mining weakness is priced in with the stock 40% off its highs. We expect multiple expansion on our above-consensus EPS, with a met coal rally and reversal of coal-to-gas switching as catalysts. The 60% aftermarket mix should benefit from recent record OEM sales and offers a powerful buffer. Longer term, we see Joy as a beneficiary of secular mining strength and potential industry consolidation."

Global Hunter Securities upgraded shares of Legacy Reserves (LGCY) from an accumulate rating to a buy rating. Global Hunter Securities now has a $31.00 price target on the stock.

Canaccord Genuity reiterated its hold rating on shares of Lloyds Banking Group PLC (LLOY). They have a $0.56 price target on the stock.

Goldman Sachs initiated coverage on shares of Landstar System, Inc. (LSTR). They issued a neutral rating on the stock and set a $50.00 price target.

Zacks reiterated its neutral rating on shares of Lexmark International, Inc. (LXK). They have a $22.00 price target on the stock. Zacks' analyst wrote, "Lexmark posted modest third quarter 2012 results with the bottom line surpassing the Zacks Consensus Estimate, but revenue missing the same. Guidance for the fourth quarter was deterring, too, reflecting slowing demand. Though new products launched during the quarter could win back lost market share, their impact on results could still be some way off. Also, stiff competition from key players such as Hewlett-Packard Company, Canon Inc., Epson and Samsung, advent of digital technology and e-commerce and board-based weakness in the printing market are major concerns. But due to a favorable position in MPS market and expected synergies from back-to-back software acquisitions, we maintain our Neutral recommendation on the stock."

Zacks reiterated its neutral rating on shares of Micros Systems Inc (MCRS). They have a $49.00 price target on the stock. Zacks' analyst wrote, "MICROS reported diluted earnings per share of $0.57 in the first quarter of fiscal 2013 versus $0.48 in the prior-year quarter. This surpassed the Zacks Consensus Estimate of $0.54. Revenues were $299.9 million, up 16.9% year over year but down 0.9% sequentially. The annual rise in the revenue was driven by the company's organic growth as well as its recent acquisition of Torex Retail. Although, the company's contract-wins and share repurchase initiative is laudable, the rising competitive pressure, foreign currency fluctuation and global economic turmoil caused us to retain our Neutral recommendation on the stock."

Piper Jaffray upgraded shares of Medidata Solutions, Inc. (MDSO) from a neutral rating to an overweight rating. They wrote, "We've always viewed the cloud as a better model for health care, but initially we failed to see the implications for the clinical trials market. We get it now. And because Medidata has the only cloud-based EDC application on the market, we believe the current sales momentum is sustainable. Growing at this rate is no easy task, it will take added investments to support an accelerating top line growth rate. We're fine with that. This is a SaaS model that we believe will grow 20% top line next year with a 99% retention rate, and huge opportunities to cross-sell and grow market share."

Piper Jaffray initiated coverage on shares of Millennial Media, Inc. (MM). They issued a neutral rating on the stock.

Credit Suisse downgraded shares of Magellan Midstream (MMP) from an outperform rating to a neutral rating. Their analysts now have a $46.00 price target on the stock, up previously from $44.50.

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