Upgrades and Downgrades Ahead of the Opening Bell (AGAM, A, AOS, BHP, CAT, DXCM, EQT, PODD, JPM, MRCY, MTD, ONNN, OSK, PKI, POWI, REN, SIAL, SM, TMO, WAT)

Published on Wednesday, 16 June 2010 07:27 Written by Danny Miller

New York, June 16^th (TradersHuddle.com) – Following are some of the top changes in analysts’ ratings before the market open.

Research Firms Initiate:

AGA Medical Holdings (NASDAQ:AGAM), the maker of medical devices for the treatment of structural heart defects and vascular diseases, was initiated with a Buy at Maxim and a $18 price target. The firm believes AGA Medical is well positioned for the ongoing shift to minimally invasive techniques and the comparative effectiveness mandate. With AGA Medical's more mature franchise (81% of revenue) growing in the mid-to-high single digits, a US approval of its latest product, PFO occluder, should reinvigorate growth

Agilent (NYSE:A), the chemical analysis instrument maker, was initiated with a Buy at Credit Agricole and a $48 target price.

AO Smith (NYSE:AOS), the maker of electrical motors and water heating equipment, was initiated with a Buy at Maxim. The analysts set a $60 target price, citing that Wall Street is underestimating AO Smith’s move to higher-end markets, its restructuring efforts toward leaner manufacturing, and cutting-edge energy efficient products.

Caterpillar (NYSE:CAT), the largest earthmoving equipment maker in the world, was initiated with a Buy at Jefferies and a $75 target price.

DexCom (NASDAQ:DXCM), the developer of glucose monitoring systems for people with diabetes, was initiated with a Buy at Capstone and $13.50 target price.

EQT (NYSE:EQT), the integrated energy company with emphasis on Appalachian area natural-gas supply, was initiated with an Outperform at BMO Capital and a $50 price target.

Insulet (NASDAQ:PODD), the maker of insulin infusion systems, was initiated with a Buy at Capstone and an $18 price target.

JPMorgan Chase (NYSE:JPM), the second largest U.S. lender, was initiated with an Outperform at FBR Capital. The analysts at the firm set a $45 target price. Despite clear risks and uncertainty from regulatory reform, FBR Capital believes JPMorgan's universal bank model enables it to mitigate such pressures better than peers through capital redeployment opportunities. The analysts see current valuation pricing in worst-case scenarios, in their view, they think JPMorgan is positioned to outperform peers on both a relative and absolute basis. Given credit stabilization in most of the bank’s loan portfolios.

Mercury Computer Systems (NASDAQ:MRCY), the real-time digital signal processing computer systems maker, was initiated with a Buy at Merriman. Firm notes Mercury's digital signal and image processing systems are on many key Department of Defense platforms including radars for the F-16, F-22, F-35, Global Hawk, Predator and Reaper. These platforms are continually upgraded, providing a solid stream of business. Firm believes market growth in the mid to low single digits is likely as U.S. and international forces upgrade and growth takes place in unmanned vehicles.

Mettler-Toledo International  (NYSE:MTD), the maker of weighing instruments for use in laboratory, industrial, and food retailing applications, was initiated with an Underperform at Credit Agricole and a $114 target price.

Oshkosh (NYSE:OSK), the maker of specialty commercial and military trucks, was initiated with a Hold at Jefferies. The analysts set a target price of $38 a share.

PerkinElmer (NYSE:PKI), the technology provider to the academic, diagnostics and research markets, was initiated with an Outperform at Credit Agricole and a $27 target price.

Resolute Energy (NYSE:REN), the producer of crude oil and natural gas, was initiated with a Market Perform at BMO Capital and a $14 target price.

Sigma-Aldrich (NASDAQ:SIAL), the chemical and biochemical maker and distributor, was initiated with an Underperform at Credit Agricole and a $57 target price.

SM Energy (NYSE:SM), the independent natural gas and crude oil producer, was initiated with an Outperform at BMO Capital and a $55 target price.

Thermo Fisher Scientific (NYSE:TMO), the scientific instruments and laboratory equipment maker, was initiated with an Outperform at Credit Agricole and $61 target price.

Waters Corp. (NYSE:WAT), the high-performance liquid chromatography products and services provider, was initiated with a Buy at Credit Agricole and an $84 price target.

Upgrades:

ON Semiconductor (NASDAQ:ONNN), the provider of analog, standard logic, and discrete chips for data and power management, was upgraded to Outperform from Market Perform at BMO Capital, with analysts maintaining their $9 price target.

Power Integrations (NASDAQ:POWI), the provider of analog integrated circuits for use in alternating current (AC) to direct current (DC) power conversion, was upgraded to Outperform from Market Perform at BMO Capital.

Downgrades:

BHP Billiton Ltd. (NYSE:BHP), the global mining company, was downgraded to Underweight from Neutral at JP Morgan.