3.7%

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Deutsche Bank said it is upgrading UST to Buy from Hold based on valuation following recent selloff. See shares undervalued relative to improved profit growth and competitive position. Although consumer weakness remains a risk, see continued steady cash flow and 2% growth in smokeless volume. Target at $58.

UST (UST) was downgraded at UBS. Rating lowered to Neutral from Buy. Price target lowered to $57 from $63. 2008 EPS estimates lowered to $3.64 from $3.71.

Cramer recommended tobacco-maker UST (UST) as the second in his "Catch Up" series of stocks that are under-performing against their peers. UST is attractive, Cramer says, because it has done well in the smokeless tobacco space while several of its largest competitors have tried, and failed, to gain marketshare. Cramer also likes UST for its huge stock repurchase program. The company has the authorization to buy up to 14.6% of the total shares outstanding, with 21.9 million shares still left to go in the program.

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Goldman Sachs said it is downgrading UST (UST) to Neutral from Buy based on limited upside relative to tobacco peers (MO and PM). Remain constructive on stock as premium brand trends remain strong and company steps up share repurchases. Price target at $62.

UST Inc., which makes of smokeless tobacco products and produces wine, said Tuesday it increased its stock buyback plan to $350 million for the fourth quarter.

In all, the company now plans to buy back $600 million in stock for the year.
The company also raised its 2007 earnings guidance, citing strong third-quarter results.

The stock trades for 9x cash flow.

Goldman Sachs said it is upgrading UST (UST) to Buy from Neutral based on better earnings expectations and valuation. Believe market is mispricing shares due to overly severe concern over increased competition. See company increasing return to shareholders with another dividend increase and step-up in the share buyback program. Maintained Buy rating.