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:
Lufkin Industries (NASDAQ:LUFK): Citigroup downgraded its rating on this company from Buy to Sell.
McDermott International (NYSE:MDR): Zacks downgraded its rating on this company to Sell.
Abiomed (NASDAQ:ABMD): Piper Jaffray downgraded its rating on this company from Overweight to Neutral.
Alumina Limited (NYSE:AWC): Credit Suisse downgraded its rating on this company from Neutral to Underperform.
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