From Standard & Poor’sitting Equity Research

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UBS DOWNGRADES HEXCEL TO NEUTRAL FROM BUY

UBS analyst David Strauss downgrades Hexcel (HXL), Precision Castparts (PCP), Spirit AeroSystems Holdings (SPR) and Triumph Group (TGI) to neutral from buy. He says he has reduced EPS estimates across the board for his aerospace names to reflect a 2009 peak, with large commercial aircraft deliveries falling 30% through 2012.

Strauss estimates a 20%-30% peak-to-trough 2009-2011 EPS decrease for greatest part of the companies he follows, partially reflecting smaller degenerate in production along with which should be meaningful commodity and R&D tailwind, and smaller pension headwind than for the period of last downturn.

He doesn’t expect the recent market rally to stick so soon, considered in the state of estimates are still suitable to require to move much lower for the reason that traffic gets worse.

CREDIT SUISSE CUTS SUNPOWER TO NEUTRAL FROM OUTPERFORM

Credit Suisse algebraist Satya Kumar says Sunpower’s (SPWRA) 50% appreciation from its lows and negative pre-announcement are reasons he downgrades the stock.

Kumar notes that Sunpower announced in that place is $0.15 risk to its fourth quarter 2008 EPS calculate and $0.50 risk to 2009 forecast owing to foreign exchange. He says the company commented that it changed the functional money; aggregate of coin of certain European subsidiaries from dollars to euros; this caused the new risk estimates.

He cuts $2.81 2009 GAAP EPS estimate to $2.35 (including option expense of $0.72). He lowers his $85 price target to $47, or 20 epochs 2009 EPS, consistent through his valuation methodology for First Solar (FSLR).

MORKAN KEEGAN DOWNGRADES PALM TO MARKET PERFORM FROM OUTPERFORM

Morgan Keegan analyst Tavis McCourt says the downgrade of Palm (PALM) is based on a slight, bound increasing, risk of the company needing additional capital in order to execute its turnaround.

McCourt believes that Palm’s cash balance will erode from $248 a thousand thousand at end of the most recent quarter to $75 million over the next year in the presence of the company turns the corner to generating sustainable disengage cash flow. He says this leaves little room for error relative to his expectations.

Until McCourt becomes other thing certain that Palm be able to execute this turnaround without additional capital, he believes it’sitting prudent to downgrade the rating to market perform.

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