Each morning of the week we pull the top analyst upgrades, downgrades, and initiations from Wall Street research reports.  It turns out that some research calls were far more important or far more impacting than others and many have ramifications that will last for quite some time.  These make “The Analyst Calls of the Week.”  This week’s top research calls were in the following: American International Group, Inc. (NYSE: AIG); AECOM Technology Corp. (NYSE: ACM); ARM Holdings plc (NASDAQ: ARMH); Bed Bath & Beyond, Inc. (NASDAQ: BBBY); Berkshire Hathaway Inc. (NYSE: BRK-A); Boston Scientific (NYSE: BSX); Cisco Systems, Inc. (NASDAQ: CSCO); The Coca-Cola Company (NYSE: KO); Cree Inc. (NASDAQ: CREE); First Solar Inc. (NASDAQ: FSLR); HomeAway, Inc. (NASDAQ: AWAY); LM Ericsson Telephone Co. (NASDAQ: ERIC); ; Magnum Hunter Resources Corp. (NYSE: MHR); and SLM Corporation (NYSE: SLM).

We have highlighted the calls individually with the rating and target, along with an implied impact.  Color has also been added if applicable.

American International Group, Inc. (NYSE: AIG) could use all the friends it can get.  One of the most hated companies in America was Raised to Market Perform at KBW on Tuesday and the call actually helped it close higher on the week from when it was made.  Shares went from $22.58 to close out the week at $23.13, even if this was down from $25.10 the prior Friday.

AECOM Technology Corp. (NYSE: ACM) will not sound like much because it was just Reiterated as a Buy rating at Argus on Tuesday.  It was the $33 price target objective that implies some 60% upside or so.  It turns out that the consensus target is still above $32.00 and the trick here is understanding the upside when so much core infrastructure business is at risk in the age of austerity.

ARM Holdings plc (NASDAQ: ARMH) rallied on Friday even though the ADR was cut from Buy down all the way to Underperform at BofA/Merrill Lynch.  This company has grown massively with the smartphone and mobile web explosion and BofA sees the competition coming on strong now.  What is so interesting is that Goldman Sachs added the mobile chip and processor outfit to the prized Conviction Buy List at the same time.  At $25.65, the 52-week range is $14.16 to $32.18.

Bed Bath & Beyond, Inc. (NASDAQ: BBBY) is one that you rarely get big pullback buying opportunities because its customer base buys the housing needs there whether times are good or bad.  On Friday this retailer was raised to Outperform from Perform by Oppenheimer and the price target was raised from $59 to $63 in the call.  Shares had briefly dipped under $53 during the peak selling this week and the 52-week range is $26.50 to $57.90.  The call seems late, but the highlight is that you rarely get big opportunities here in Bed Bath & Beyond.

Berkshire Hathaway Inc. (NYSE: BRK-A) does not have much of an analyst following for its size due to so many moving parts and due to a lock-down of information to the outside.  So when you see two big research calls you have to wonder.  Mr. Buffett and friends saw Berkshire Raised to Outperform at Keefe Bruyette & Woods and also was Raised to Overweight by Barclays.  Very rare to see two in a week.

Boston Scientific (NYSE: BSX) needs all the research help it can get.  The turnaround medical devices company was Raised to Outperform on Tuesday by Zacks, but more important was the additional “Bull of the Day” assignment along with it.  Shares were at $6.00 before the call and the stock closed out the week at $6.41 for nearly a 7% gain.

Cisco Systems, Inc. (NASDAQ: CSCO) is the “Balls to the Wall” call of the week.  The stock was Raised to Buy at Gleacher & Co. based upon earnings and valuation, but the real gutsy call was made on Wednesday morning when the earnings were due that afternoon.  That can be a career-killing opportunity.  It was the right call as the one day change after earnings was $15.92 versus $13.73 before earnings.  After the report we also saw upgrades from Morgan Stanley, Wunderlich, and Stifel Nicolaus.

The Coca-Cola Company (NYSE: KO), a Buffett favorite as well, has been trying to challenge highs for some time and has been a top defensive stock.  This last Monday it was Raised to the prized Conviction Buy List at Goldman Sachs with a $77 price target.  Coke seemed an odd fit for that prized list, but as you will see that list may be preparing for herder or more volatile times.

Cree Inc. (NASDAQ: CREE) was raised on Wednesday to Buy at Canaccord Genuity on what appeared to be so-so earnings.  The troubled LED company is still down by 50% from highs and this call helped Cree rack up big gains for the week.  Morgan Stanley upgraded Cree a day later as well.  At $36.76, this one was under $30 before its report and the 52-week range is $26.60 to $72.85.

First Solar Inc. (NASDAQ: FSLR) may have seen a total twist of fate on Wednesday and the upgrade to Buy from Hold at Jefferies may have given some value buyers a thought of hope.  The $115 price target was raised to $132 and this was after First Solar stock had dipped down under the key $100 psychological level.

HomeAway, Inc. (NASDAQ: AWAY) saw its quiet period end after its IPO and the online real estate rental site scored almost all positive analyst backing:

• Started as Hold at Stifel Nicolaus;
• Started as Overweight at JPMorgan;
• Started as Overweight at Morgan Stanley;
• Started as Buy at Goldman Sachs;
• Started as Neutral at Lazard.

LM Ericsson Telephone Co. (NASDAQ: ERIC) only has a mild gain of 0.8% Friday to $11.29 for its ADR.  Still, when was the last time you saw an Ericsson phone?  It is that infrastructure business value apparently that has some value because the ADR was raised to “Buy” from “Underperform” by BofA/Merrill Lynch on Friday.  The 52-week range is $9.62 to $15.44.

Magnum Hunter Resources Corp. (NYSE: MHR) may not be the sexiest oil and gas exploration company to some but don’t tell that to Canaccord Genuity.  The stock is at $4.79 now but the asset value here was called too cheap in price versus the asset base and against its growth opportunities.  The firm reiterated its Buy rating, but the $10.00 price target after this one lost a third of its value is what remains impressive.  If the firm is right, Magnum Hunter has almost 110% upside for investors today.

SLM Corporation (NYSE: SLM) has been mentally left for dead by Wall Street now that the student loan market has been radically changed so much.  This week on Friday came an upgrade where the stock was Raised to Outperform as the prized “Bull of the Day” with a $16 price target by Zacks.  Shares still closed down 2% at $13.89 and the 52-week trading range is $10.92 to $17.11.

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JON C. OGG

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