Continuing to Presage Major Positive Research Actions from Goldman Sachs and Other Sell Side Institutions

Updated on January 25.

We have noted on numerous occasions that it is not uncommon for stocks that appear in our model portfolios or our weekly ranking updates to presage major ratings actions by sell side firms. See our “Nostradamus Report” and “Getting in Before Sell Side Institutions Follow” for more details.

By systematically ranking and measuring the quality of stocks using four key factors — 1) Relative Value; 2) Operating Momentum; 3) Analyst Revision Momentum; and 4) Fundamental Quality) — we are able to generate strong stock ideas, many of which end up in our long-only model portfolio based on real trade data, including all of the stocks below.

Below is a non-comprehensive list of 31 sell side actions on stocks that have been in our model portfolios since at least December 31, 2011, including 8 upgrades that occurred on January 10, 2011.

1/25/2011 — Lam Research Corp. (LRCX) –UBS raises LRCX price target to $60 from $59, and raises targets for AMAT, KLAC, NLVS, VSEA and TER as well.

1/25/2011 — LyondellBasell Industrives NV (LYB) — UBS initiates with a Buy rating and $42 price target.

1/25/2011 — Huntsman Corporation (HUH) – UBS initiates the stock with a Buy rating and $21 price target.

1/24/2011 — Waddell & Reed Financial, Inc. (WDR) — Bank of America/Merrill Lynch upgraded the stock to Buy from Neutral and its price target was raised to $44 from $35.  According to TheFlyOnTheWall.com, “the firm believes the company's operating leverage is accelerating and that it should benefit from a rotation into equities.”

1/21/2011 — Parker-Hannifin Corp (PH) — Citigroup raises target to $100 from $94, citing recent sell off as a buying opportunity.

1/20/2011 — Macy's, Inc. (M) – Credit Suisse names the stock its top pick for 2011 after previously upgrading on 1/11.

1/20/2011 — TRW Automotive Holdings Corp. (TRW) — Soleil raised its price target to $71 from $59 “to reflect higher build assumptions and new business wins.”

1/19/2011 — Avnet Inc. (AVT) — UBS raises price target to $42 from $40.

1/19/2011 — Waddell & Reed Financial, Inc. (WDR) — Stifel Nicolaus raises rating to Buy from Hold

1/18/2011 — Avnet Inc. (AVT) — Longbow upgrades to Buy from Neutral with a $41 price target.

1/14/2011 — Lam Research Corp. (LRCX) –Deutsche Bank upgrades to Buy from Hold.

1/14/2011 — Freeport McMoRan Copper & Gold (FCX) — Dahlman Rose raises price target to $160 from $125.

1/14/2011 — Lam Research Corp. (LRCX) – Bank of America/Merrill Lynch raises price target to $50 from $40.

1/13/2011 — Parker Hannifin Corp (PH) — JP Morgan upgrades the stock to Overweight from Neutral.

1/13/2011 — Huntsman (HUN) — Jefferies raises price target to $21 from $18 maintaining Buy rating.

1/13/2011 — Albemarle Corp. (ALB) – Jefferies raises price target to $75 from $61 and maintains Buy rating.

1/12/2011 –Albemarle Corp. (ALB) — named a long Tactical Research Idea by Morgan Stanley.

1/12/2011 — Lear Corp. (LEA) — Credit Suisse raises Lear target price to $142 from $133 and maintains Outperform rating.

1/12/2011 — PNC Financial Services Group Inc (PNC) –Wells Fargo upgrades bank sector to Overweight from Neutral and names PNC Financial one of five bank stocks (BAC, JPM, GS, CMA, PNC) as a top idea for 2011.

1/11/2011 — Waddell & Reed Financial, Inc. (WDR) — Barclays raises price target to $43 from $41.

1/11/2011 — T. Rowe Price Group, Inc. (TROW) — Barclays raises price target to $71 from $69.

1/11/2011 — Macy's, Inc. (M) – Credit Suisse upgrades to Outperform from Neutral and raised its price target to $27 from $25.  The analyst expects shareholders to benefit from the ongoing pay down of debt.

1/10/2011 — Freeport McMoRan Copper & Gold (FCX) – Stifel Nicolaus upgraded the stock to Buy from Hold based on expected leverage to rising commodity prices.

1/10/2011 — United Continental (UAL) – Soleil raised estimates and its price target for UAL to $35 from $33 based

1/10/2011 — LyondellBasell (LYB) – BWS Financial raised its price target for LYB to $40 from $35.  Also, FMR Corp. reported a 10.18% passive stake in the company.

1/10/2011 — Lam Research (LRCX) – Morgan Stanley added the name as a long Research Tactical Idea.

1/10/2011 — Lear Corp. (LEA) – Barclays upgrades the stock to Overweight from Equal weight.

1/10/2011 — Freeport McMoRan Copper & Gold Inc. (FCX) — Stifel Nicolaus upgrades the stock to Buy from Hold.

1/10/2011 — Westlake Chemical Corp. (WLK) — Goldman Sachs upgrades stock to Neutral from Sell and removes from its Americas Sell List.  According to Reuters, Goldman upgraded raised a number of ratings and price targets in the chemical industry given the group's “improved outlook, higher growth prospects and attractive valuation” and that the group “…should see another year of outperformance primarily driven by continued estimate increases.”

1/10/2011 — Parker-Hannifin Corporation (PH) — Goldman Sachs upgrades stock to Buy from Neutral and raises stock price target to $105 from $92.

1/10/2011 — Dover Corporation (DOV) – Goldman Sachs increased its price target to $72 from $65, removed the stock from the Conviction Buy List and kept it rated Buy.

1/7/2011 — T. Rowe Price Group, Inc. (TROW) — Deutsche Bank raises price target to $65 from $58.

1/7/2011 — East West Bancorp Inc. (EWBC) – Goldman Sachs initiated with a Buy rating and $24.50 price target.

1/7/2011 — Freeport McMoRan Copper & Gold Inc. (FCX) – Canaccord upgrades to Buy from Hold, raising target to $135 from $98.

1/6/2011 — PNC Financial Services Group Inc (PNC) — UBS names the stock a short-term Buy.

1/6/2011 — PNC Financial Services Group Inc (PNC) – Nomura initiates coverage of the stock with a Buy rating and $73 target.