Sell - Price 20.96 on Feb. 9 by Standard & Poor's Equity Research Lowered to Sell from Hold. EV's acquisition of the tax-advantaged bond assets of M.D. Sass will support average assets, but the low-fee products will likely contribute to an unfavorable asset mix. EV had 66% of its assets in equity accounts at the end of the October quarter, leaving [its] average asset balances more exposed than most peers' to equity-market declines -- which [we see] pressuring revenue throughout fiscal year '09 (Oct.). We are lowering our FY09 [earnings-per-share] estimate to 70 cents from $1.48 and cutting our target by $2 to 16, a premium to peers at 22.9 times forward estimates. Market cap: $2.3 billion.

Sell - Price 8.10 on Feb. 10 by Brean Murray Carret & Co. Elan reported [4Q08] revenue from [multiple-sclerosis treatment] Tysabri of $152 million, [versus] 3Q08 revenue of $165 million. During [partner] Biogen Idec's recent 4Q08 conference call, management disclosed that a fifth patient [has] developed [a rare brain infection] after 12 months' [Tysabri treatment]. Applying a revenue multiple of 6 times and an earnings multiple of 25 times to our 2013 revenue and EPS estimates of $1.2 billion and 29 cents, respectively, and a discount rate of 25%, we get a $4 target, which we view as generous, given the problems. Market cap: $3.8 billion.

Market Perform - Price 18.81 on Feb. 10 by Morgan Keegan [WIRE makes copper electrical building wire and cable for residential and commercial buildings.] WIRE reported [EPS of] 72 cents for 4Q08 on revenue of $180.2 million; we expected 19 cents on revenue of $164 million; in 4Q07, WIRE reported a loss of 5 cents a share on revenue of $282 million. For '08, WIRE earned $1.70 a share on revenue of $1.081 billion, versus $1.30 on $1.184 billion in '07. Revenue declined 36%, to $180.2 million from $281.9 million in 4Q07, [due to] a 21% decline in price and a 19% decline in volume...[in] 3Q08, WIRE saw a 6% increase in selling price and a 9% volume decrease on a year-over-year basis. Market cap: $433 million.

Outperform - Price 16.54 on Feb. 11 by Baird Securities FIS has core processing and technology relationships with 41 of the top 50 global banks and all of the top 10. Our 20 target reflects 11 times 2010E-EPS. We use 11 to 13 times for others in the group, but given generally solid outlooks across the group, our bias is to raise our target multiples over the next several months. Market cap: $3.2 billion.

Sell - Price 55.88 on Feb. 10 by Sandler O'Neill Target: 48. BEN reported total [assets under management] of $402 billion as of Jan. 31, down 4% year-to-date, versus a 1% decrease for Invesco. Aside from market depreciation, we think the sequential decline also reflected net outflows and [foreign-exchange] losses. BEN [appears to have] suffered overall net outflows of $1 billion to $2 billion in January (a 3% to 5% annualized decay rate). Assuming our estimate proves accurate, BEN continues to lose retail-market share... An Investment Company Institute [estimate] puts industry net inflows into long-term mutual funds at $19 billion ($4 billion, equities; $15 billion, fixed income) in January, a 4% organic growth rate. Despite the uptick...ongoing net redemptions across BEN's higher-fee equities and hybrid portfolios seemingly more than offset modest inflows for the fixed-income platform. Market cap: $13 billion.

Buy - Price 17.77 on Feb. 10 by Sterne Agee & Leach [Operating in the U.S. and U.K., the insurer and investment manager] LNC reported 4Q08 operating EPS of minus-48 cents, versus our [estimate of] 7 cents and First Call's consensus 10 cents. The miss was driven by higher [deferred acquisition-cost] charges... of $77 million, or 30 cents a share, which were not in our estimate. Market cap: $4.2 billion.

Outperform - Price 17.74 on Feb. 10 by Pacific Crest Target: 28. Our interview with Tami Reller, client-division chief financial officer, reinforced our thesis that Windows 7 could be more material to Microsoft than is currently expected. Price increases related to Windows 7 could add 8 cents to EPS. Increased demand for Windows 7 could drive an additional 10 cents, and incremental demand for Microsoft Office could add another 6 cents. As a result, MSFT is positioned to outperform in second-half '09 as the stock starts to reflect...the Windows 7 [benefits]. MSFT also trades at a historic discount, even though it is about to embark [on a] dramatic new product cycle....Our 28 target is based on 14 times F2010E EPS of $2. Market cap: $173 billion.

Underperform - Price 8.43 on Feb. 10 by Raymond James Stone reported proved reserves totaling 519 billion cubic feet of natural-gas equivalent (58% gas, 77% developed) at year-end '08, falling short of its December guidance near 600 Bcfe. The predominant factor: a conservative cut to the proved reserves acquired through the Bois d'Arc Energy deal.... The deterioration in oil and gas prices relative to December '07 levels drove revisions. Stone also anticipates recording a $1.3 billion noncash impairment charge and a write-off of its entire goodwill balance....Stone posted all-in-reserve replacement of over 300%. It spent more than $1.3 billion of capital during the year, with most relating to the Bois d'Arc acquisition....Our proved [net-asset-value] per share estimate falls by over 30% to $32.20....While the impairment causes Stone's debt-to-cap ratio to rise above 50%, it has no impact on debt covenants. Market cap: $300 million.