Today's noteworthy upgrades include: Communications Sales & Leasing (CSAL) upgraded to Overweight at Morgan Stanley... FedEx (FDX) upgraded on upcoming positive catalysts at Stifel... Mediaset (MDIUY) upgraded to Buy from Hold at HSBC... Melco Crown (MPEL) upgraded to Hold from Sell at Deutsche Bank... NuVasive (NUVA) upgraded to Buy at Canaccord... SJM Holdings (SJMHY) upgraded to Hold from Sell at Deutsche Bank... Select Medical (SEM) upgraded on expected EBITDA jump at Wells Fargo... Smart & Final Stores (SFS) upgraded to Overweight from Equal Weight at Barclays... Springleaf (LEAF) upgraded to Outperform from Market Perform at Keefe Bruyette... Tanger Factory (SKT) upgraded to Neutral from Underperform at BofA/Merrill.

JPMorgan analyst DS Kim raised the firm's price target on SJM Holdings to HK$3 from HK$2.50 and keeps a Neutral rating on the shares. "Divergence" is how the analyst characterizes Macau's setup, both for stocks and operations. The firm continues to seek alpha by focusing on bottom-up opportunities given a lack of sector catalysts. It thinks Melco and Galaxy can be used as funding sources over the next two to three months, given consensus estimate risks.

Seaport Research initiated coverage of SJM Holdings with a Sell rating and HK$2.50 price target. The firm initiated coverage on the global casinos and gaming industry with its initial work focused on the three global U.S. casino operators and the six operators in Macau. The group has generally underperformed the broader market even while fundamentals in Macau continue ramp up strongly following three years of COVID shutdowns and 2024 is set to deliver positive growth in revenue and profitability, the analyst tells investors in a research note. The firm says there are headwinds for the U.S. casino industry due to uncertainty around the economic slowdown. It expects Macau to deliver strong results in 2024 and into 2025, while the U.S. industry will potentially see some headwinds that could limit growth relative to last year. However, the longer term secular prospects for both Asia and the U.S. look strong, says Seaport. Its top pick on valuation is Melco Resorts & Entertainment (MLCO). Its top pick overall based on risk/reward and fundamental outlook is Las Vegas Sands (LVS).