Analyst Comments

J.D. Power and Associates said on Friday that auto sales in March will rise 23 percent from a year earlier, as customers are drawn in by company incentives.

The market research firms is forecasting that 1.1million vehicles will be sold in March, up from the 856,137 units sold last year in the same month, while estimating that the U.S. sales will reach an annualized pace of 12 million cars and light trucks.

This would be the highest level for the industry since the automakers benefited from the government backed "cash for clunkers" stimulus program last August.

"Buyers are starting to feel better," said J.D. Power's director of forecasting, Jeff Schuster. "While the incentives helped this month, we are looking for strong sales to continue throughout the year as access to credit and leasing continues to grow."

Toyota Motor Corp. (NYSE: TM) is leading the incentive based charge in March, after suffering a black-eye on its reputation of quality. Toyota, which usually does not offer incentives on a large scale, has sought to bring customer back to showrooms with zero-percent financing, cash rebates and subsidized leases.

Ford Motor Co. (NYSE: F), General Motors Co. and Chrysler Group LLC have also offered similar incentive packages to lure customers in. The big three U.S. automakers are also making moves on the customer that are fleeing from Toyota following its massive recalls.

"While this may lead to a temporary increase in sales momentum, it could also potentially slow the pace of long-term recovery," Shuster added.

Broadpoint.AmTech maintains a Buy rating on GameStop (NYSE: GME), raises price target from $21 to $24.

Broadpoint analyst says, "Our bullish call on GME continues to be focused on its long-term cash generation potential, and that story remains intact. Importantly, GME expects to generate $600mil in cash flow from operations in CY'10 and end the year with $900mil in cash on its balance sheet. Investors would clearly like to see more of that cash returned to shareholders, and we believe that is possible, most likely via another share buy-back or debt repurchases (management expects to finish its $300mil buy-back by the end of 1Q)...After yesterday's call, we are also incrementally more positive on the near-term fundamentals for GME...Additionally, we are more bullish than most on GME's in-store digital initiatives...Finally, we are generally more positive on near-term industry catalysts as monthly NPD figures should turn positive for the next few months and Microsoft (Nasdaq: MSFT)/Sony (NYSE: SNE)'s motion sensor peripherals will likely get a big marketing push."

"Our FY 2010 GAAP EPS estimate increases to $2.66 from $2.64 on increased confidence in our new and used software growth estimates. Our FY 2011 GAAP EPS estimate is unchanged."

To see all the upgrades/downgrades on shares of GME, visit our Analyst Ratings page.

GameStop Corp. (GameStop) is a retailer of video game products and personal computer (PC) entertainment software.

UBS reiterates a 'Sell' on Palm (Nasdaq: PALM), lowers price target from $4.50 to $4.00.

UBS lowering FY10/FY11 revenue/EPS estimates to $1.17bn/$(1.73) and $1.11bn/$(1.94), respectively, from $1.24bn/$(1.51) and $1.36bn/$(1.28).

To see all the upgrades/downgrades on shares of PALM, visit our Analyst Ratings page.

Palm, Inc. (Palm) is a provider of mobile products for individual users and business customers worldwide. Palm’s products for consumers, mobile professionals and businesses include Palm Pre, Treo and Centro smartphones, as well as software, services and accessories.

UBS maintains a 'Neutral' on Caterpillar (NYSE: CAT), price target to $54 to $61.

UBS analyst sees challenges in retail sales as consistent with our selective call on Machinery...see risks from continued weakness in key end markets. UBS maintains 2010 EPS estimate of $2.50 and 2011 EPS estimate of $3.50.

To see all the upgrades/downgrades on shares of CAT, visit our Analyst Ratings page.

Caterpillar Inc. (Caterpillar) provides construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.

UBS maintains a 'Neutral' rating on Baldor Electric (NYSE: BEZ), raises price target from $25 to $36.
UBS raises 2010 EPS estimates from $1.20 to $1.42, 2011 EPS estimates from $1.75 to $2.05.

UBS analyst says at current valuation is somewhat stretched considering the shares are up 40% since BEZ's last report.

To see all the upgrades/downgrades on shares of BEZ, visit our Analyst Ratings page.

Baldor Electric Company (Baldor) is a marketer, designer, and manufacturer of industrial electric motors, mechanical power transmission products, drives, and generators, supplying over 10,000 customers in more than 200 industries.