Equities Research Analysts’ upgrades for Tuesday, July 18th:

BorgWarner (NYSE:BWA) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “High organic net sales growth expectations are likely to aid BorgWarner going forward. Huge business opportunities in Asia, the Americas and Europe in the next three years are anticipated to contribute to a major portion of growth. Also, a healthy balance sheet and ample cash flows help the company return capital to shareholders and undertake acquisitions. Moreover, BorgWarner is poised to benefit from its expansion strategy. BorgWarner has outperformed the Zacks categorized Auto/Truck Original Equipment industry in the last three months. However, the company is facing foreign currency headwinds and pressure from original equipment manufacturers (OEM) to reduce prices, which might pose a threat to the company. Due to foreign currency fluctuations it might face a negative impact of upto $310 million in fiscal 2017.”

Celgene Corporation (NASDAQ:CELG) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $151.00 target price on the stock. According to Zacks, “Celgene’s key growth driver, Revlimid, continues to outperform on the back of market share gains and increased duration. Celgene continues to progress with its label expansion efforts and pipeline development. Revlimid was approved as a single agent for maintenance therapy in adult patients with NDMM following ASCT both in the U.S. and EU. Celgene’s NDA for Idhifa for relapsed and/or refractory acute myeloid leukemia was granted Priority Review with a PDUFA action date of Aug 30, 2017. Label expansion of drugs would boost revenues significantly. Moreover, shares of Celgene have outperformed the industry in the past one year. However, Celgene is highly dependent on Revlimid. Otezla sales in the first quarter were impacted by managed care dynamics that drove lower total marketplace prescriptions for psoriasis therapies although the pressure should ease as the year goes.”

Vesuvius Plc (NASDAQ:CKSNY) was upgraded by analysts at BNP Paribas from a neutral rating to an outperform rating.

Continental AG (NASDAQ:CTTAY) was upgraded by analysts at Natixis from a neutral rating to a buy rating.

First Horizon National Corporation (NYSE:FHN) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “First Horizon’s shares have underperformed the Zacks categorized Southeast Banks industry over the last one year. The company surpassed the Zacks Consensus Estimate in second-quarter 2017 on increasing net interest income and loans. Further, its focus on cost control and efforts to strengthen its core Tennessee banking franchise bodes well for the long term. Also, the Fed rate hikes have eased the pressure on margins to some extent. Moreover, though lesser regulations on lending and capital levels are not expected any time soon, they are likely to reduce costs of compliance significantly and allow banks to grow lending. However, higher legal costs resulting from numerous litigations are likely to weigh on the company’s profitability.”

Fifth Street Finance Corp. (NASDAQ:FSC) was upgraded by analysts at National Securities from a neutral rating to a buy rating. National Securities currently has $7.00 target price on the stock, up from their previous target price of $4.00. The analysts wrote, “• Fifth Street Asset Management (NASD: FSAM – NR – $4.20), the external manager of both FSC and Fifth Street Senior Floating Rate (NASD: FSFR – NR – $8.97) has agreed to be acquired by Oaktree Capital Group, LLC (NYSE: OAK – NR – $47.75). The transaction is expected to close in the quarter ended 12/31/17. While both boards have unanimously approved of the transaction, this is still subject to a shareholder vote. We think that the risk of shareholders voting “no” is very, very minimal and would be like a case of Stockholm Syndrome.

• FSAM has run both public BDCs in a manner that is nothing short of egregious, as we have stated with regards to FSC for quite some time now. Fees have been too high and detached from the severe underperformance of the companies; rather than a credit investor, FSAM has behaved as an asset gatherer to generate fees, as we see it.

• OAK will lower the base fee to 1.50% from 1.75% and lower the incentive fee on both income and capital gains to 17.5% from 20.0%. Additionally, OAK has $100 billion of AUM as of 3/31/17 and is not going to get rich off the BDCs (like some FSAM executives have) and has no incentive to run the BDCs in an asset gathering fashion, in our opinion.

• We expect significant multiple expansion as a result of getting rid of FSAM and all board members except for one and having a strong external manager in Oaktree. Accordingly, we are maintaining our fiscal 2017 NII/share estimate of $0.55 and are revising our fiscal 2018 NII/share estimate to $0.54 from $0.50.”

First Solar (NASDAQ:FSLR) was upgraded by analysts at Zacks Investment Research from a hold rating to a strong-buy rating. The firm currently has $49.00 price target on the stock. According to Zacks, “First Solar continues to focus on retaining its competitive edge and aims to further consolidate its position in the market. Its constant product innovation efforts will continue to attract customers and expand its revenue stream. Again, the booming solar market in the U.S. will propel its top-line growth. Moreover, the company outperformed the Zacks categorized Solar industry in the last one year. However, President Trump’s recent walk out from the landmark Paris deal, apart from boosting coal production has kept the entire solar industry under immense pressure.”

Gol Linhas Aereas Inteligentes (NYSE:GOL) was upgraded by analysts at Zacks Investment Research from a hold rating to a strong-buy rating. Zacks Investment Research currently has $17.00 price target on the stock. According to Zacks, “Shares of GOL Linhas have outperformed the Zacks categorized Tansportation-Airline industry in the last six months on the back of multiple tailwinds. After issuing a bullish guidance for full-year 2017 last month, the carrier unveiled an encouraging outlook for the second quarter, earlier this month. Detailed results should be out on Aug 9. Additionally, the carrier's June traffic report was very encouraging as load factor improved substantially. We expect the company’s focus on capacity discipline to result in increasing yields in the near term. Moreover, we are positive on the steps taken by the carrier to overcome its struggles. In fact, the company's efforts to modernize its fleet are also impressive. However, GOL is highly dependent on the products of certain big suppliers and operates in a competitive Latin American airline space.”

J P Morgan Chase & Co (NYSE:JPM) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $103.00 target price on the stock. According to Zacks, “JPMorgan's shares have outperformed the Zacks categorized Major Regional Banks industry over the last six months. The company’s second-quarter 2017 earnings handily outpaced the Zacks Consensus Estimate, mainly driven by higher interest rates, loan growth, a rise in investment banking fees and lower credit cost. The bank's efforts to control expenses through streamlining and branch consolidation are commendable. It should continue to benefit from the improved rate scenario, potential lesser regulations and rising loan demand, despite facing a persistent fee income growth challenge. Moreover, the enhanced capital deployment activities reflect the bank's strong balance sheet position.”

PNC Financial Services Group, Inc. (The) (NYSE:PNC) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $142.00 price target on the stock. According to Zacks, “PNC Financial’s shares outperformed the Zacks categorized Regional Banks-Major industry, over the last six months. The company’s second-quarter 2017 earnings beat the Zacks Consensus Estimate on higher revenues aided by loan growth. Though expenses escalated in the quarter, we remain encouraged by the company’s efforts to generate positive operating leverage through its cost-saving initiatives. Further, its deal to acquire the commercial and vendor finance business of ECN Capital is anticipated to be marginally accretive to earnings in 2017. Also, ease of regulations is likely to support profitability.  In addition, the company increased its prime lending rate to 4.25% following the latest Fed rate hike with easing margin pressure. Notably, following Fed's approval of 2017 capital plan, the company hiked its quarterly dividend by 36%.”

Tenaris (NYSE:TS) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. Zacks Investment Research currently has $37.00 target price on the stock. According to Zacks, “Tenaris Sa, a corporation organized in Luxembourg, is a leading manufacturer and supplier of seamless steel pipe products and associated services to the oil and gas, energy and other industries. Tenaris’s operating subsidiaries include eight established steel pipe manufacturers: AlgomaTubes, Confab, Dalmine, NKKTubes, Siat, Siderca, Tamsa and Tavsa. “

Ubisoft Entertain (NASDAQ:UBSFY) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “Ubisoft Entertainment operates in parts of Europe, Canada and the United States and its primary activities are the production, publishing and distribution of interactive entertainment products. Products include video games, educational and cultural software, cartoons, literary, multimedia, audio-visual products, cinematographic and television works. Some of its brands are Driver, Anno, Endwar and Tom Clancy. “

Ultra Clean Holdings (NASDAQ:UCTT) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $25.00 target price on the stock. According to Zacks, “ULTRA CLEAN HOLDINGS, INC. is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean offers its customers an integrated outsourced solution for gas delivery systems and other subassemblies, improved design-to-delivery cycle times, component neutral design and manufacturing and component testing capabilities. Ultra Clean’s customers are primarily original equipment manufacturers for the semiconductor capital equipment, flat panel, solar and medical device industries. Ultra Clean is headquartered in Menlo Park, California. “

UGI Corporation (NYSE:UGI) was upgraded by analysts at Zacks Investment Research from a sell rating to a hold rating. According to Zacks, “UGI Corporation is a holding company that operates propane distribution, gas and electric utility, energy marketing and related businesses through subsidiaries. Our majority-owned subsidiary, AmeriGas Partners, L.P., a Delaware limited partnership, conducts one of the nation’s largest retail propane distribution businesses through its subsidiary AmeriGas Propane, L.P. “

Vitamin Shoppe (NYSE:VSI) was upgraded by analysts at Zacks Investment Research from a strong sell rating to a hold rating. According to Zacks, “Vitamin Shoppe is a specialty retailer and direct marketer of nutritional products. It primarily sells vitamins, minerals, nutritional supplements, herbs, sports nutrition formulas, homeopathic remedies, green living products and health and beauty aids. Based in North Bergen, New Jersey, the company is recognized as an innovator in providing product information, associate training, and customer education. Information is available to consumers through unprecedented outlets including television, radio, friends, family, health practitioners, and the internet. It offers consumers the opportunity to take charge of their own health and wellness requirements, and supplement where necessary. At each store location, consumers can find a comprehensive Learning Center which offers free access to vital information about key health concerns and products. The Vitamin Shoppe is a strong supporter of health and wellness campaigns including Life Supplemented sponsored by the Council for Responsible Nutrition. “

WebMD Health Corp (NASDAQ:WBMD) was upgraded by analysts at Zacks Investment Research from a hold rating to a buy rating. They currently have $62.00 price target on the stock. According to Zacks, “WebMD announced today that is has signed an agreement to acquire Conceptis Technologies Inc., a Montreal-based provider of online and offline medical education and promotion aimed at physicians and other healthcare professionals. Conceptis has been successful in developing a strong online presence in the cardiology community and is highly respected for the depth and breadth of content contained on its flagship. With the combination of two of the leading cardiology channels on the Internet, Medscape Cardiology and www.theheart.org, WebMD is well positioned to further its lead and penetration in this high value segment of medical marketing. “

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