As the U.S. opened the week's trading on a positive note, several stocks were either upgraded or downgraded by analysts and rating agencies. Some notable stocks are discussed here.
Netflix Inc. (Nasdaq: NFLX), a leading provider of subscription-based internet services for TV shows and movies in the U.S., is upgraded to Neutral from Sell by analysts at Janney Montgomery Scott with a price target of $102. The former retreated from a decision to split its mail-order DVD service from its internet streaming business and will continue to run both from a single website. Shares of Netflix gained 7.76 percent, or $9.09, to trade at $126.30.
Analysts at Janney Montgomery Scott raised the rating of Bally Technologies Inc. (NYSE: BYI), which operates as a diversified gaming company, to Buy from Neutral with a revised price target of $36.50, up from $33. The latter recently joined hands with Mohegan Sun to make its gaming machines more interactive. Bally Technologies' shares gained 4.56 percent, or $1.34, to trade at $30.70.
Micron Technology Inc. (Nasdaq: MU), engaged in the manufacture and marketing of semiconductor devices, is upgraded to Buy from Hold by analysts at Citigroup. The former reached an agreement with Samsung Electronics Co. Ltd. to create a consortium to collaborate on a product it says represents a dramatic random-access memory device. Shares of Micron rose 5.66 percent, or $0.28, to trade at $5.23.
Analysts at Deutsche Bank downgrade the rating of Southwest Airlines Co. (NYSE: LUV), a passenger airline that provides scheduled air transportation in the U.S., to Hold from Buy, while lowering its price target to $9 from $16. They state that a lower multiple is more suitable for Southwest shares given the increased execution risk associated with the acquisition. Shares of Southwest Airlines were up 0.13 percent, or $0.01, to trade at $7.70.
Sprint Nextel Corp. (NYSE: S), which offers wireless and wireline communications products and services, is lowered to Overweight from Neutral by analysts at JP Morgan Chase. At the same time, it is downgraded to Outperform from Strong Buy by analysts at Raymond James. Sprint Nextel faces the downgrade after its saying it needs to raise more money to upgrade its network, sparking concerns about its financial stability. Shares of Sprint Nextel fell 4.98 percent, or $0.12, to trade at $2.29.