Sell - Price 10.53 on Feb. 24 by Singular Research GE is overleveraged, with net tangible book value [at] only 1% of total assets. [GE Capital Services'] nonearning assets increased 19.5% sequentially in Q408. The delinquency rate increas[ed throughout] '08. Low interest coverage and declining earnings per share create risk...[of a] credit-rating cut and dividend cut...in '09. We forecast a revenue decline of 5% in '09 and EPS down 63.8%. Slowing industrial orders and charge-offs at GECS [are driving] EPS lower. Target: $7.50. Market cap: $96.5 billion.

Underperform - Price 10.31 on Feb. 24 by Raymond James Unit inventory declined [in '08] due to HD's production cuts -- but retail sales declined [faster]. We estimate that HD dealers held 127.3 days' inventory at 2008's end, up from 122.5 in '07....With its Feb. 12 debt downgrade by Fitch, HD [is] no longer eligible to participate in the Fed's Commercial Paper Funding Facility....Market cap: $2.4 billion.

Buy - Price 18.71 on Feb. 24 by Rochdale Securities HD reported Q408 EPS of 19 cents...three cents better than our estimate. The beat versus forecast was driven by better-than-expected same-store sales (minus-9.2% versus our estimate of minus-10.7%), and outstanding [sales, general and administrative] management. While [competitor Lowe's] gross margin dropped by more than 100 basis points in Q4, HD's fell by only 19....Despite the earnings beat, we are trimming our estimates as follows: Q109 E-EPS to 32 cents, from 41 cents; and '09 E-EPS to $1.32, from $1.43. We are reducing our target to 28, from 30. Market cap: $31.6 billion.

Hold - Price 32.52 on Feb. 24 by W.M. Hambrecht MORN's 4Q08...revenue was $119.3 million ...EPS was 39 cents, both lower on a linked-quarter basis and below our and consensus expectations. Organic revenue was 3.2% below 3Q08 results, primarily due to lower revenue from assets under advisement. Given the continued decline in equity values...along with our belief that any market rebound will be long and protracted, we are lowering our '09 guidance...Our fiscal-year '09 revenue expectation: $491 million, 2.3% below FY08; E-EPS is $1.80, 4.4% lower year-over-year. Market cap: $1.6 billion.

Outperform - Price 23.23 on Feb. 24 by Baird Securities We [recently] met with senior management at their offices, along with institutional clients...The NCC deal appears on track, and we look for PNC to rebuild TCE [tangible common equity] as the year progresses. 2009 and 2010 E-EPS estimates remain unchanged at $3.20 (operating) and $5, respectively. Market cap: $10.3 billion.

Market Outperform - Price 5 on Feb. 24 by JMP Securities Cloud computing, [which spreads computing tasks across connected hardware and software, is]... likely to see investment in the downturn...To capitalize on this opportunity, Rackspace needs to simplify and rebrand its current cloud services, several the result of recent acquisitions. If Rackspace succeeds...it could add 3 cents and 12 cents to '09 and '10 non-GAAP EPS. For now, we maintain our '09 EPS estimate of 20 cents, versus consensus 17 cents, and a 2010 EPS estimate of 32 cents, versus consensus 25 cents. Our 9 target implies '09 EV/revenue multiple of 1.9 times, in line with the peer-group median. Market cap: $585 million.

Hold - Price 23.57 on Feb. 24 by Jefferies & Co. Economic concerns are likely to pressure RS ... near term ...but we believe it should have solid '09 performance. EPS of 90 cents [was far] ahead of consensuses...4Q revenue of $2.1 billion increased 26% compared to a year ago, reflecting PNA Group acquisition. Market cap: $1.7 billion

Hold - Price 27.38 on Feb. 24 by Standard & Poor's Equity Research January-quarter EPS of 81 cents... misses our estimate by a penny, on higher bad-debt expense. We look for TGT to do a better job of communicating its strong value proposition to consumers in FY10 (Jan.). But on [our] view that demand for its higher-margin-merchandise categories will likely remain weak, we trim our FY10 EPS estimate by 10 cents to $2.35. On peer ratios of enterprise value to Ebitda [earnings before interest, taxes, depreciation and amortization], we keep our 12-month target at 29. Market cap: $21.4 billion.