Stock Upgrades to Consider (BA, C, CTXS, DNA, GOOG, RIMM, SBUX)

The following is a list of recent stock upgrades I believe are worth a look:

Boeing "overweight"

Analyst Byron Callan of Prudential Financial reiterates his "overweight" rating on Boeing Co (BA). The target price is set to $92.

In a research note published yesterday, the analyst mentions that the company would be taking a charge of about $615 million related to its tentative legal settlement with the US government. Boeing would also record a charge of $300-$500 million related to an increase in costs for an airborne surveillance programme, the analyst says. Prudential Financial expects the margins and market share of the company’s Commercial Airplane division to expand going forward.

BA 1-yr chart:

Citigroup "overweight"

Analyst Michael L Mayo of Prudential Financial maintains his "overweight" rating on Citigroup Inc (C). The target price is set to $60.

In a research note published yesterday, the analyst mentions that the company’s stock has outperformed Prudential's Citigroup Proxy Index through June 28. Proxy categories have delivered another weak month in June, with results adversely impacted by poor results from Asia, Latin America, and Western Europe and in investment banking, US consumer banking and credit cards, the analyst says. The company appears on track to outperform the Proxy for the fourth month, Prudential Financial adds.

C 1-yr chart:

Citrix Systems "outperform" target price raised

Analysts at RBC Capital Markets reiterate their "outperform" rating on Citrix Systems Inc (CTXS), while raising their estimates for the company. The target price has been raised from $44 to $46.

In a research note published this morning, the analysts mention that the company is likely to outperform its 2Q revenue and EPS guidance. Recent checks indicate that several large deals are being signed in the healthcare, government and financial sectors, the analysts say. Citrix Systems' performance in Europe has been healthy so far in the quarter, RBC Capital Markets adds. The EPS estimates for 2006 and 2007 have been raised from $1.36 to $1.38 and from $1.52 to $1.60, respectively.

CTXS 1-yr chart:

Genentech "buy"

Analysts at Lazard Capital maintain their "buy" rating on Genentech Inc (DNA). The target price is set to $113.

In a research note published yesterday, the analysts mention that Avastin and Herceptin sales are progressing ahead of the 2Q estimates. IMS has reported Herceptin sales of $103.2 million in May itself, ahead of the $294.9 million US sales estimate for 2Q. IMS has posted sales of $129.3 million for Avastin, ahead of the $475.2 million US sales estimate for 2Q.

DNA 1-yr chart:

Google "overweight"

Analyst Mark J Rowen of Prudential Financial maintains his "overweight" rating on Google Inc (GOOG). The target price is set to $500.

In a research note published yesterday, the analyst mentions that the company has launched Checkout, a payment processing service that is easy to use and is well integrated with the merchant checkout process. Google is offering as much as a 20% discount on search advertising in order to boost market acceptance of the Checkout service, Prudential Financial adds. Checkout is unlikely to significantly affect eBay's Paypal service in the near term, the analyst says.

GOOG 1-yr chart:

Research in Motion "buy"

Analysts at UBS reiterate their "buy" rating on Research in Motion Limited (RIMM). The target price is set to $110.

In a research note published this morning, the analysts mention that the company has reported robust F1Q revenues and EPS, ahead of the estimates and the consensus. The upside was driven by better-than-anticipated hardware revenues from higher-than-expected hardware ASPs due to healthy hardware upgrade demand and a favourable product mix, the analysts say.

RIMM 1-yr chart:

Starbucks "buy"

Analyst Dan Geiman of McAdams Wright Ragen maintains his "buy" rating on Starbucks Corp (SBUX). The 12-month target price is set to $44.

In a research note published yesterday, the analyst mentions that the company is likely to report its June comparable store sales growth at 7%-8%. The main drivers of this growth are likely to have been robust sales in the seasonal and core espresso beverage division and the continued expansion of Starbucks’ food programme, the analyst says.

SBUX 1-yr chart: