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Investment Analysts’ downgrades for Friday, June 20th:

Amazon.com (NASDAQ:AMZN) was downgraded by analysts at Zacks from an outperform rating to a neutral rating. They currently have $343.00 target price on the stock. Zacks’ analyst wrote, “Amazon.com is one of the largest online retailers in the world. Amazon’s first quarter earnings exceeded the Zacks Consensus Estimate by a penny. However, the business is getting more competitive and margins even thinner. The forward guidance was in line with seasonality, but below street estimates. Aggressive pricing actions are expected to continue as Amazon goes all out to attract consumers to its platforms. We remain encouraged by the company’s strong cash flow generation. We believe that current investments are supported by a strong balance sheet but growing uncertainty about when current investments may be recovered lead us to downgrade the shares to Neutral.”

Central Garden (NASDAQ:CENT) was downgraded by analysts at Zacks from an outperform rating to a neutral rating. They currently have $9.50 target price on the stock.

Capstone Infrastructure (TSE:CSE) was downgraded by analysts at RBC Capital to a sector perform rating.

DryShips (NASDAQ:DRYS) was downgraded by analysts at Zacks from a neutral rating to an underperform rating. The firm currently has $3.25 price target on the stock. Zacks’ analyst wrote, “DryShips reported somber financial results for the first quarter of 2014 as both the top and the bottom line missed the corresponding Zacks Consensus Estimate. Despite witnessing strong revenue growth across all its segments, DryShips faces considerable risks as a major portion of its contracts are currently under the volatile spot rate market. Moreover, the ongoing tensions in Ukraine and Iraq may severely hurt the company’s profitability moving forward. In addition, higher debt levels and the cyclical nature of the shipping industry may act as headwinds for the company. Meanwhile, the stock price of DryShips has soared a whopping 113% in the last year. We do not find any near-term growth catalyst for the company. Thus, we downgrade our recommendation on DryShips to Underperform.”

EverBank Financial Corp (NASDAQ:EVER) was downgraded by analysts at Sterne Agee to a buy rating. Sterne Agee currently has $21.00 target price on the stock, up from their previous target price of $18.00. The analysts wrote, “We are reiterating our Buy rating on EVER and raising our PO to $24 from $21 following BofA-Merrill Lynch hosted investor meetings with management. “We continue to view the stock as an undervalued growth story in banks, as the market appears to be assigning a lower multiple to the stock (13.3x 2015 P/E vs. smid-cap banks under coverage of 15.5x) given the higher concentration of mortgage banking revenues (32% of total). We think the market undervalues the rest of the bank, and believe both the market multiple and consensus estimates could expand as EVER delivers loan growth that is similar to what peer ‘high growth’ banks have and are posting. “Moreover, for long-term investors, we have done some work in this report that suggests that while EVER’s absolute deposit costs will always be higher than the industry, its pass-through (or deposit beta) in a rising rate environment could actually be in-line or lower than industry – a notion that we think would surprise the market to the upside. Our $1.20 estimate for 2014 is 8% above the Street.”

First Connecticut Bancorp (NASDAQ:FBNK) was downgraded by analysts at S&P Equity Research from a buy rating to a hold rating. The analysts wrote, “First Connecticut Bancorp (FBNK) has been downgraded by TheStreet Ratings from buy to hold. The company’s strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.”

Guanwei Recycling (NASDAQ:GPRC) was downgraded by analysts at TheStreet from a hold rating to a sell rating. The analysts wrote, “Guanwei Recycling (GPRC) has been downgraded by TheStreet Ratings from hold to sell. The company’s weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.”

Hercules Offshore (NASDAQ:HERO) was downgraded by analysts at Iberia Capital from an outperform rating to a sector perform rating.

Isle of Capri Casinos (NASDAQ:ISLE) was downgraded by analysts at TheStreet from a hold rating to a sell rating. The analysts wrote, “Isle of Capri Casinos (ISLE) has been downgraded by TheStreet Ratings from hold to sell. The company’s weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.”

Kaman Corp. (NASDAQ:KAMN) was downgraded by analysts at Sidoti from a buy rating to a neutral rating.

Lazard (NYSE:LAZ) was downgraded by analysts at Zacks from an outperform rating to a neutral rating. Zacks currently has $54.00 target price on the stock. Zacks’ analyst wrote, “We are downgrading our long-term recommendation on Lazard to Neutral based on increased operating expenses in first-quarter 2014, despite cost savings initiatives. However, the company’s adjusted earnings significantly surpassed the Zacks Consensus Estimate and compared favorably with the prior-year quarter figure. Strong top-line growth and higher assets under management (AUM) were the positives. We believe that the company’s diverse footprint and cost containment initiatives position it favorably in the long run. Moreover, Lazard’s capital deployment efforts are expected to further enhance investors’ confidence in the stock. Yet, the sluggish macroeconomic environment and stringent regulations will likely put Lazard’s profitability under pressure in the near term. “

SM Energy (NYSE:SM) was downgraded by analysts at Johnson Rice from a focus list rating to an overweight rating.

Vale SA (NASDAQ:VALE) was downgraded by analysts at Itau BBA Securities to a market perform rating.

Washington Federal (NASDAQ:WAFD) was downgraded by analysts at Zacks from an outperform rating to an underperform rating. Zacks currently has $20.00 target price on the stock. Zacks’ analyst wrote, “We are downgrading our recommendation on Washington Federal to Underperform due to its mounting operating expenses. The company’s fiscal second-quarter (ended Mar 31) 2014 earnings were in line with the Zacks Consensus Estimate. Rise in revenues and benefit from provisions were offset by higher expenses. Steady capital deployment activities, inorganic growth strategy and balance sheet restructuring initiatives are expected to benefit the company’s financials in the long run. However, the company’s deposit re-pricing effort will likely be challenged once the interest rates start rising. Also, significant exposure to risky loan portfolio makes us apprehensive.”

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