Today's noteworthy upgrades include: AK Steel (AKS) upgraded to Neutral from Underperform at Credit Suisse... Akamai (AKAM) upgraded to Buy from Hold at Deutsche Bank... BRF S.A. (BRFS) upgraded to Buy from Neutral at BofA/Merrill... Brightcove (BCOV) upgraded to Buy from Neutral at B. Riley... Cameron (CAM) upgraded to Overweight from Equal Weight at Morgan Stanley... Canadian National (CNI) upgraded to Outperformer from Sector Performer at CIBC... Capella Education (CPLA) upgraded on growth outlook, competitive advantages at Stifel... Celadon Group (CGI) upgraded to Overweight from Equal Weight at Stephens... CyrusOne (CONE) upgraded to Overweight from Equal Weight at Stephens... Edison International (EIX) upgraded to Buy from Neutral at UBS... Eli Lilly (LLY) upgraded to Buy with $100 target at Citigroup... GoPro (GPRO) upgraded to Outperform from Market Perform at Raymond James... Helen of Troy (HELE) upgraded to Overweight from Neutral at Piper Jaffray... Independent Bank (IBTX) upgraded to Overweight from Equal Weight at Stephens... Intrepid Potash (IPI) upgraded to Buy from Outperform at CLSA... Lexmark (LXK) upgraded to Market Perform from Underperform at Raymond James... LogMeln (LOGM) upgraded at Needham... MSA Safety (MSA) upgraded to Accumulate from Neutral at Global Hunter... Pinnacle Financial (PNFP) upgraded to Buy from Hold at Wunderlich... Select Income REIT (SIR) upgraded to Outperform from Sector Perform at RBC Capital... Stratasys (SSYS) upgraded to Buy from Hold at Craig-Hallum... Sunoco (SUN) upgraded to Buy from Neutral at UBS... Twitter (TWTR) upgraded to Buy from Hold at Pivotal Research... UPS (UPS) upgraded to Buy from Neutral at BofA/Merrill... Vodafone (VOD) upgraded to Buy from Hold at Berenberg... Volvo (VOLVY) upgraded to Neutral from Sell at Goldman.

Loop Capital raised the firm's price target on UPS to $161 from $158 and keeps a Hold rating on the shares after its "not as bad as feared" Q1 earnings. Year One of the new Teamsters contract in conjunction with the very weak freight economy has left UPS with a big profitability and earnings hole to climb out of, though labor cost inflation should "dramatically decelerate" in the August quarter while macro conditions hopefully create a path for normalizing freight demand, the analyst tells investors in a research note.

Sees FY25 revenue $1.965B-$2.025B, consensus $2.04B. FY25 revenue view implies a decline of 2.0% to growth of 1.0%. The sales outlook reflects the Company's view of lingering inflation and further consumer spending softness, especially in certain discretionary categories. In the aggregate, the Company believes retail inventory on hand is at healthy levels and expects that sell-in will be generally in line with sell-through during FY25. The Company's fiscal year net sales outlook reflects the following expectations by segment: Home & Outdoor net sales growth of 1.0% to 4.0%; and Beauty & Wellness net sales decline of 4.5% to 1.5%, which includes a year-over-year headwind of approximately 1.0% related to the expiration of an out-license relationship in Wellness. Sees FY25 adjusted EBITDA $324M-$331M, which implies a decline of 3.6%-1.6%, as benefits from Project Pegasus and other gross profit improvements are reinvested for growth. The Company's outlook reflects a year-over-year increase in growth investment spending of approximately 100 basis points, a year-over-year headwind of approximately 50 basis points from the expiration of an out-license relationship in Wellness, and some margin compression from incremental operating expense related to enterprise technology initiatives included in the Elevate for Growth strategic plan that are beginning in FY25. Sees FY25 free cash flow $255M-$275M and its net leverage ratio to end FY25 at 1.25x to 1.00x. In terms of the quarterly cadence of sales, the Company expects a decline of approximately 7% to 5% in the Q1, and a range of flat to 3% growth for each of the remaining quarters. The Company expects a slight decline in adjusted diluted EPS for the first half of FY25, with a decline of approximately 15% to 20% in the first quarter and nearly offsetting growth in the second quarter. The Company expects an adjusted EPS range of flat to 5% growth in the second half FY25.

Piper Sandler downgraded Independent Bank to Underweight from Neutral with a price target of $38, down from $48. The bank's deposit costs were up another 19 basis points in Q1 and the expected net interest margin inflection was pushed out another quarter, the analyst tells investors in a research note. The firm believes Independent Bank "looks poised to underperform peers" from an overall profitability perspective. It thinks the shares will lag over the next 12 months until investors get some certainty into a Q4 of 2025 run-rate and the 2026 earnings potential of the franchise.

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The company said, "CN reaffirms its 2024 outlook and expects to deliver adjusted diluted EPS growth of approximately 10% and expects to invest approximately C$3.5 billion in its capital program, net of amounts reimbursed by customers. The Company also expects return on invested capital (ROIC) to be within the targeted range of 15%-17%. CN reiterates its longer-term financial perspective and continues to target compounded annual diluted EPS growth in the range of 10%-15% over the 2024-2026 period driven by growing volumes more than the economy, pricing above rail inflation and incrementally improving efficiency, all of which assumes a supportive economy."

Reports Q1 revenue C$4.25B vs. C$4.31B last year. "Our team of railroaders delivered to plan in the first quarter and our scheduled operating model continued to enhance our service to customers. Looking forward, we are confident for 2024. We are seeing the expected improvements in the economy, and our CN-specific growth opportunities are materializing. We remain committed to delivering on our growth agenda and powering the economy," Tracy Robinson, president and CEO, CN.

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Unusual total active option classes on open include: ImmunityBio (IBRX), Halliburton (HAL), Redfin (RDFN), Nokia (NOK), Matterport (MTTR), General Motors (GM), UPS (UPS), Philip Morris (PM), PepsiCo (PEP), and General Electric (GE).

UPS says it is early in the process and will share progress on pension considerations when appropriate.

For 2024, UPS reaffirms its full-year, consolidated financial targets: Consolidated revenue to range from approximately $92.0 billion to $94.5 billion; Consolidated adjusted operating margin to range from approximately 10.0% to 10.6%; Capital expenditures of approximately $4.5 billion.