Stock upgrades and downgrades are a controversial part of Wall Street. Despite regulations, many banks and firms still have a positive bias toward current clients and companies desired as future clients. In addition, Wall Street analysts are straight-up biased to the buy side. The percentage of sell recommendations is normally below 15 percent!
Regardless, upgrades and downgrades move stocks in the short-term. They fall into our CHEAT SHEET framework category ‘C = Catalyst for a Stock?s Movement’. Here are catalysts you must know today:
Johnson & Johnson (NYSE:JNJ): JPMorgan Chase downgraded its rating on this company from Overweight to Neutral and changed its price target from $77.00 to $83.00.
L-3 Communications (NYSE:LLL): JPMorgan Chase downgraded its rating on this company from Neutral to Underweight.
Lufkin Industries (NASDAQ:LUFK): Barclays Capital downgraded its rating on this company to Underweight.
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