Benzinga's Top Downgrades With Color for May 1, 2012

Listed below are today's Top Downgrades at Benzinga:

DA Davidson Downgrades Plum Creek Timber (NYSE: PCL) to Neutral:

DA Davidson writes, "As has been the case in previous quarters, the choppy timing of land sales contributed to the shortfall in earnings, with some of the deferred land sales being pushed out into future quarters. With Plum Creek reiterating its full year guidance, we are adjusting our quarterly estimates slightly but maintaining our full year outlook in what remains a slow but steady demand environment.As has been the case in previous quarters, the choppy timing of land sales contributed to the shortfall in earnings, with some of the deferred land sales being pushed out into future quarters. With Plum Creek reiterating its full year guidance, we are adjusting our quarterly estimates slightly but maintaining our full year outlook in what remains a slow but steady demand environment."

Dougherty & Company Downgrades Hologic (NASDAQ: HOLX) to Neutral:

Dougherty commented, "Hologic reported F2Q:12 sales of $471.2MM (vs. our $473.0MM; Street $474.0MM) and EPS of $0.33 (vs. our $0.34; Street $0.33)—we note that the Breast Health business was surprisingly weaker than expected at $218.6MM (vs. our $225.4MM; Street $222.0MM). We would have expected a healthier Breast Health business, given the Dimensions Tomosynthesis Year-2 rollout. Ultimately, we ponder whether the Gen-Probe transaction is a smoke-screen for a weaker base business."

Deutsche Bank Downgrades Costco (NASDAQ: COST) to Hold:

Deutsche Bank said, "Since launching coverage on COST last Fall shares have risen ~ 12% and have now reached our $89 price target. As a result, we have decided to move to the sidelines as both the Bull and Bear case seem evenly distributed at this juncture. Moreover, within our Barbell Strategy and Shades of Grey Portfolio we favor stocks with positive catalysts on the horizon, secular tailwinds (i.e. Health & Wellness) and strong traffic/SSS momentum. While Costco remains a best-in-class operator, we think other stocks offer better upside NT."

Deutsche Bank Downgrades Verifone (NYSE: PAY) to Sell:

Detusche Bank said in the report, "After further analyzing PAY's organic growth, we believe the 11.8% organic growth stated on the 1Q12 earnings call significantly exaggerates the "true" flat 1Q12 organic growth. In our view, organic growth is being inflated through acquisitions. Additionally, we believe the likelihood of a strong EMV upgrade cycle has been overstated and mobile payments bring significant risk to the model. Given poor financial disclosures, lower true organic growth, future business risks and rich valuation, we are no longer comfortable recommending investors hold PAY shares."

Citigroup Downgrades Duke Realty (NYSE: DRE) to Neutral:

Citi said, "Our Buy thesis on DRE has largely played out and the stock has outperformed this year (+24%YTD). We had been attracted to (1) a repositioning of the portfolio, (2) the lease-up of vacancy, (3) an improving balance sheet and cost of capital, and (4) the narrowing of what had been a wide discount to NAV and sum of the parts. These catalysts have either transpired or are now better reflected in valuation."

View all of Benzinga's Analyst Ratings news here.