Citi Updates 6/16

Citi made a number of updates in a research report published today. Solar Capital SLRC has been downgraded from Hold to Buy. At the same time, Citi reduced its price target on the companies stock from $28 to $26. In the report, Citi states, "We are downgrading the shares of SLRC to a Hold (2H) from a Buy (1H) due to 1) less attractive risk/reward given the strong stock outperformance over the past 15 months (SLRC total return +47% vs S&P 500 +14%), 2) the end of QE2 leaves credit markets & risk assets vulnerable to a pull back, in our view and 3) we see signs of increased competition in middle market lending." On Wednesday, Solar Capital added 0.4% to its value to close the day at $24.85. FedEx FDX had its rating maintained at Buy and its price target reiterated at $110. The report states, "With FedEx set to report F4Q11 EPS next Wednesday, focus will be on results relative to expectations and the company's established $1.66 - $1.83 EPS range (consensus is $1.73)... While consensus remains fairly constructive at $6.43 (assumes 31% YOY growth), it appears that buyside expectations have been revised down toward the low-$6 per share range... We remain a bit more optimistic, but are reigning in our estimates slightly for F4Q and F2012 and expect a target range of $6.00-$6.40 for F2012." On Wednesday, FedEx closed the day at $86.49. Citi initiated a coverage on Catalyst Health Solutions CHSI with a Buy rating and a price target of $74. The report states, "We are initiating coverage of Catalyst Health Solutions with a Buy rating and target price of $74. Catalyst is a leading mid- market PBM that differentiates itself by providing local, customized solutions backed by a company with strong national capabilities. We believe Catalyst is well positioned to benefit from the growing demand for transparent and customized PBM services, and that synergies from recent acquisitions could drive positive EPS revisions in 2012." On Wednesday, Catalyst Health added 2.05% to its value to close the day at $54.14. American Superconductor Corporation AMSC had its rating maintained at Hold. The report states, "With the stock now back near where we thought it could go even post the big negative pre- announcement (worst case downside to ~$8 on 1x tangible book, and just about back to where it was before it bought Windtec (in other words, largely superconductors)), downside from here seems limited. That said, given the potential legal battles (both w/ Sinovel and shareholders) and strained liquidity, we see the stock as side-lined for the foreseeable future. Maintain Hold (2S)." On Wednesday, American Superconductor lost 2.71% of its value to close the day at $7.91. Capital One Financial COF had its rating maintained at Buy. The report states, "Overall, May results were solid with further improvement in credit and stabilization in US Card balances. The stock was weak yesterday around the M&A headlines. We reiterate our Buy as credit continues to improve and the company is well positioned to compete in the card business. We recommend buying on weakness." On Wednesday, Capital One closed at $47.87. Ford Motors F had its rating maintained at Buy and its price target reiterated at $18. The report states, "We are refreshing our model to account for Q2 mix pressures and incremental guidance from Ford's Investor Day. Our 2011E EPS is trimmed to $1.88 from $1.96 (mostly on mix), 2012E remains unchanged and 2013E is actually raised to $1.90 from $1.80 in-line with Ford's recent outlook. Affirm $18 target." On Wednesday, Ford closed the day at $13.15. Its shares lost 0.68% of their value in today's pre-market trading, however, and are trading around $13.06. Finisar FNSR had its rating maintained at Hold. At the same time, Citi lowered its price target on the company's stock from $25.50 to $16.50. The report states, "Despite 16% after-hours downdraft that put FNSR shares 68% below mid-Feb 52 week high, we maintain our Hold/Speculative rating on FNSR. Our Street low FY12 (Apr 12) estimate is reduced significantly due to weak outlook on both revenues/GM% and higher op ex; we expect significant reductions to consensus also." On Wednesday, Finisar lost 6.68% of its value to close the day at $17.73. Its shares continued to plunge in today's pre-market trading, plummeting 16.81% to $14.75.