Analysts’ opinions on stocks in the news Monday

From Standard & Poor’s Equity Research

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S&P UPGRADES OPINION ON HARTFORD FINANCIAL TO HOLD FROM SELL, ON VALUATION (HIG 14.70):

With shares down almost 83% year-to-date, we believe the issues weighing upon the body HIG are reflected in current price levels. While we believe the crew’s balance sheet is more susceptible to further impairments than various peers, we find some comfort in HIG’s projection of about $2 billion of excess capital at year-end. Until volatility in the capital markets subsides, we see upside in shares limited by lack of transparency touching future deferred acquisition costs and investing. losses. We are raising our 12-month target cost by $2 to $16, roughly 0.6 times our 2008 book value estimate. -B. Howlett

S&P UPGRADES OPINION ON SHARES OF GOODYEAR TIRE & RUBBER TO BUY FROM HOLD (GT; 9.78):

Before special items, GT posts third part quarterEPS from continuing operations $0.38, vs. $0.68, below our $0.44 estimate. Despite the approval of the transfer responsibility for union healthcare benefits to the union, that we expect will save GT $100 million in 2009, and other costs savings efforts, we are cutting our 2009 EPS calculate by $0.68 to $1.95, given weakening tire demand in the U.S. and abroad for renovated and replacement tires, with expected higher article of merchandise costs into 2009. We are furthermore lowering our 12-month target recompense by dint of. $5 to $14, 7.2 times our 2009 EPS calculation, based steady p-e analysis. -E. Levy-CFA

S&P REITERATES HOLD OPINION ON SHARES OF FORD MOTOR (F; 2.18):

Ford’s year-to-year October sales fell 30% from a year ago. With gas prices off their highs, and amid a push to be in possession of old models abroad the door, F-150 small commodities sales knock down just 16%, compared to declines of 27% for cars, 39% for crossover UVs and 54% for SUVs. As a possible bright spot, Ford believes it gained sell in small quantities marketshare. Even so, it has each unusually subdued near-term outlook as monthly perseverance auto sales likely malicious below 900,000 units. Economic and market concerns have do harm to the industry, along with harsher merit terms. We do not observe near-term help for Ford or its depressed shares. -E. Levy-CFA

S&P REITERATES STRONG BUY OPINION ON SHARES OF AMERICAN TOWER (AMT; 32.76):

AMT reports third quarter EPS, before one-time items, of $0.15 vs. $0.15, $0.02 ahead of our appraise. On the outperformance we are raising our 2008 EPS forecast by $0.02 to $0.52 and 2009’s by $0.02 to $0.72. We believe that AMT continues to lo strong demand in tower leasing and is starting to form new towers in India at a firm manner of walking. Additionally, we believe the company is experiencing strong demand in Brazil and is benefiting from an increase in customer competition. We raise our 12-month target price by $3 to $51, based on 27 times our 2009 free cash flow estimate. -J. Moorman, CFA

S&P MAINTAINS HOLD RECOMMENDATION ON SHARES OF OSHKOSH CORP. (OSK; 8.29):

September-quarter EPS of $0.72, vs. $1.14, on revenue growth of 6%, exceeds our $0.65 estimate. Revenue rose on demand for defense, offscouring collection and fire utensils products, partly branch by weaker demand for access equipment. We are encouraged that OSK continues to focus on cost ascendency and production efficiencies to meet demand in its current end-markets; still, we believe it remains vulnerable to U.S. Defense Dept. spending, its largest customer (21% of financial year 2007 revenue). We continue our fiscal year 2009 (September) EPS estimate of $2.75, but trim our target price by $2 to $11 on revised DCF worth. -A. Compton

S&P MAINTAINS STRONG BUY OPINION ON SHARES OF JP MORGAN CHASE (JPM; 41.25):

JPM says it will modify terms for up to 400,000 homeowners, accounting for roughly $70 billion of its loans. We believe a large portion of the loans are connected to Washington Mutual, what one. JPM acquired in late September. The move, which comes without interruption the heels of the FDIC modification of more IndyMac loans, and a similar lend modification by Bank of America (BAC; 24.00), should help to reduce foreclosures. The FDIC is also working without interruption a new program for loan modification. All together, we believe that charge-offs will ease off of levels they would have reached without these programs. -S. Plesser

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