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Starbucks and FedEx Get Bullish Calls While ConAgra Gets Downgrade

TheStreet 1:50 mins

Bullish calls on Starbucks (SBUX) from UBS and FedEx (FDX) from RBC, and a bearish call on ConAgra (CAG) from Bank of America/Merrill Lynch. UBS is making a bullish call on the coffee chain, upgrading the name to Buy from Neutral and raising the target price to $87 from $80. UBS believes the industry is facing much more upside than downside at this point and Starbucks' same store sales will increase. The name has been under-performing lately, which creates a good entry point for anyone who wants to pick up more shares. RBC is upgrading FedEx to Sector Perform from Underperform and is raising the target price to $155 from $125. Although the management's fiscal year 2015 guidance appears aggressive to RBC, RBC believes the company is doing a good job at reducing costs. The company can also continue to repurchase shares if necessary and the analyst expects higher dividend. Bank of America/Merrill Lynch is making a bearish call on ConAgra Foods, downgrading the name to Underperform from Buy, moving to the other end of the ratings spectrum. They are also lowering the target price to $30. The company issued new guidance on Tuesday and convinced Bank of America/Merrill Lynch the turnaround thesis is no longer relevant. It still has potential to deliver high quality food items to the shelves efficiently, but they believe the road to recovery just got longer.

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