) to buy from neutral.
Analyst William Chappell says the upgrade follows the appointment of Herbert Baum as new Executive Chairman. He views this as the latest in a series of management changes over the past year, which, in his view, should enable the company to dramatically improve operations and profitability in 2006. He notes the upgrade is not based on heightened expectations for the third quarter, which is due out tomorrow.
Chappell continues to view this as a transitional year, and is more focused on the potential for fiscal year 2006 (September) improvement than actual third-quarter results. He initiates a $15 12-month price target.