From Standard & Poor’s Equity Research

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COWEN DOWNGRADES MASTERCARD, VISA, PAYCHEX

Cowen analyst Moshe Katri says he downgrades MasterCard (MA) and Visa (V) to underperform from outperform. He cuts MasterCard on expectations of tougher comps for purchase volume growth impacting revenue and EPS advancement. He cuts Visa adhering expectations of increasingly tougher comps for debit, credit purchase fulness growth.

In addition, Katri cuts Paychex (PAYX) to underperform from neutral from small quantity in non-farm payrolls, potential for significant increase in unemployment, larger-than-expected increases in failure of small businesses, prolonged recession, further drops in floating mass income, and premium valuations.

WEDBUSH DOWNGRADES ELECTRONIC ARTS

Wedbush analyst Michael Pachter downgrades Electronic Arts (ERTS) to purchase from strong buy. He says in the same proportion that ERTS stock hovers near a 7-year deep and the company continued its recent history of disappointment and significantly cut fiscal year 2009 (March) leadership onward weaker-than-expected sales across the board.

Pachter notes, while ERTS plans to further reduce its require to be paid form and headcount, he’s no longer confident that the body is seizing the steps necessary to work out its fiscal year 2011 goals of $6 billion in revenue and $1.5 billion in operating be of use.

He cuts $1.40 fiscal year 2009 EPS estimate to $0.75 and $2.10 fiscal year 2010 EPS to $1.50. He also lowers his $38 target to $25.

MORGAN KEEGAN DOWNGRADES ADC TELECOMMUNICATIONS TO MARKET PERFORM

Morgan Keegan analyst Simon Leopold downgrades ADC Telecommunications (ADCT) to market perform from outperform.

Leopold says fourth quarter results are fine with sales of $352 million vs. his $356 million estimate and the Street’s $347 million; $0.19 EPS is in our teeth of his $0.11 and the Street’s $0.13. He notes lower operating expenses and other income provided the boost.

But he says poor foremost quarter forecast on this account that sales of $255-$290 million with $0.06 loss to $0.06 EPS vs. consensus estimates for $317 million and $0.09 EPS are pleasing pressuring the stock. He also notes that the collection’s release and 8-K lacked typical detail and reduced disclosures add to his concern.

He cuts $0.66 fiscal year 2009 (October) EPS estimate to $0.32.

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