Stock Ratings

A sampling of new or revised stock ratings issued Monday on Wall Street: * Cardinal Health (CAH; $44.31, up 81 cents) was named "top pick" by Donaldson Lufkin & Jenrette, with a target of $65. * Neuberger Berman (NEU; $28.31, down 69 cents) was rated "recommended list" by Goldman Sachs. * Park Place Entertainment (PPE; $13.38, up 25 cents) was rated "market outperform" in new coverage by Goldman Sachs, with a target of $16.

Two of Los Angeles' many Asian American banks ranked near the top of analysts' national lists of bank stocks that investors should buy, a signal of economic strength in local immigrant communities. Financial information provider SNL Financial ranked BBCN Bancorp second of all bank stocks nationally, with six of seven analysts, or 87%, rating Koreatown's largest bank a "buy" or "outperform. " Only the parent of South Carolina Bank and Trust had a more positive endorsement from analysts.

Investors in Facebook may finally be getting a break. The social media giant's stock has climbed more than 16% over the last five trading days to nearly $32. It marks a big turnaround from the weeks following the botched initial public offering in which shares plunged. Increased confidence in Facebook's revenue growth may now be giving the stock a lift, according to analysts. And investors are betting that the stock will continue its run in coming days as analysts at major Wall Street banks initiate coverage of the company.

Stock analysts are not known for being a rebellious sort. Their jobs generally involve writing up dry technical reports on public companies. But Mike Mayo is not your typical stock analyst. Since joining the industry nearly 25 years ago, Mayo has shaken up the financial world with his bold and forthright analysis of the banks he researches. In 1999, he told investors to sell all bank stocks. In 2007, he was ahead of the pack in downgrading Bear Stearns Cos. and Citigroup Inc. Perhaps predictably, this hasn't earned him a lot of love, given that he has worked at banks himself and that his employers wanted to do business with many of the banks he was analyzing.

Yahoo Inc. was downgraded Wednesday by Merrill Lynch & Co. analyst Lauren Rich Fine because of the stock's recent gains and concern over competition from Google Inc. Fine lowered her rating on Yahoo shares to "neutral" from "buy" in a note to clients. Yahoo is losing market share in Internet search to Google and the run-up of Yahoo's stock price may limit further gains, she wrote.

Gateway Inc. stock fell after Piper Jaffray cut its investment rating on the computer maker to "underperform." Shares of the Irvine company fell 29 cents to $2.73. In a research report, Piper Jaffray analyst Les Santiago said he cut his rating from "market perform" because his assessment of Gateway's turnaround had been "put into question." Santiago, who set a $1.

Capping a week of losses, shares of Genentech Inc. plunged again Wednesday after an analyst downgraded the stock because of concerns about sales of a key drug. The company's stock fell $4.24, or 7.5%, to $52.30 on the New York Stock Exchange, after Sanford C. Bernstein analyst Geoffrey C. Porges lowered his rating on the shares to "market perform" from "out perform."

Schwab Soundview analyst Jordan Rohan cut his rating on Yahoo Inc. to "neutral" from "outperform" out of concern that Yahoo Japan was overpriced. Trading at 87 times earnings, excluding certain costs, Yahoo Japan is the world's most expensive Web stock, Rohan said. Yahoo owns 34% of Yahoo Japan, and it could suffer if shares of the Japanese unit tumble, he said. Yahoo shares fell $1.22 to $48.77 on Nasdaq. Sunnyvale, Calif.-based Yahoo reports first-quarter earnings today.

SG Cowen Securities Corp. became the second investment research firm in a week to eliminate "buy" and "sell" ratings on individual stocks, saying the confusion associated with ratings outweighed the benefits. "Beginning March 1, we will abolish our rating system and communicate with our clients the old-fashioned way, using the full richness of the English language," Director of Research Barry Tarasoff wrote in a letter to clients released by the company Monday.

Several major brokerages Monday implemented previously announced changes to their stock ratings systems, seeking to answer criticism that Wall Street research picks are confusing and overly bullish. The firms, including Salomon Smith Barney, Bear Stearns, Merrill Lynch & Co. and Credit Suisse First Boston, cut the number of possible stock ratings and, in some cases, simplified their terminology.

Merrill Lynch & Co., scrambling to repair its image with investors, said Friday that it will simplify its stock ratings and overhaul the way it pays analysts. The big securities firm will introduce a three-tiered rating system--labeling stocks either "buy," "neutral" or "sell"--to make the recommendations more understandable to small investors. The firm also said it will base analysts' pay on stock-picking ability rather than investment-banking work.