The Upgrades: SanDisk, Arch Coal and Marsh&McLennan (NASDAQ:SNDK),(NYSE:ACI),(NYSE:MMC)

Today’s upgrades are presented by various analysts for SanDisk Corporation (NASDAQ:SNDK), Arch Coal, Inc. (NYSE:ACI) and Marsh & McLennan Companies, Inc. (NYSE:MMC).  Read on for more information and stock price discussion.

Caris & Company upgraded SanDisk Corporation (NASDAQ:SNDK) from Average to Buy and set a price target of $37 for the stock price.  That is a significant amount over the last trade of $31.82, setting the stage for a potential 16% return if the target is met.  Lately the stock has been on a tear as price has run up from $20 to the current $31 level over the past 5 trading weeks.  The stock only had a minor gap up open to $30.76 from yesterday’s close of $30.59 (+$0.17/+0.56%).  Reviewing the chart, the stock seems a little extended and should be due for a pull back, possibly to the $28 level.  Stranger things have happened in the market, but the quick run up of the stock may result in a shakeout to pull stock away from the antsy investors holding shares…  That would be when you want to pick up some shares if you are interested in investing in SanDisk. 

Arch Coal, Inc. (NYSE:ACI) gets an upgrade today from UBS as they raise their outlook on the stock from Neutral to Buy.  UBS set a price target of $28 per share, which is only 9% above the current share price $25.78.  The small gap between the price target and current price is largely due to the gap up open of the stock’s price to $25.38 from yesterday’s close of $24.56, which equated to a +3.34% gain overnight.  Studying the chart for Arch Coal, the price is in the middle of trading channel and the jump in price today broke the $25 resistance level set back on October 21, 2009.  Buying Arch Coal should be a reasonable purchase, but the volatility of the stock might put you on the emotional roller coaster as shares can make 5-point swings as evidenced between October and December of 2009.

Marsh & McLennan Companies, Inc. (NYSE:MMC) received an upgrade today from FBR Capital, as they raised outlook on the stock from Market Perform to Outperform, pegging a price target of $27.  That is bold move by FBR as the stock has been deadlocked in a downtrend ever since mid October, and the $27 represents a +23% change from current share price of $21.95.  However, two things about this…  The current trading price of $21.95 represents a decent support on the stock’s chart from the gap up open back on August 5, 2009, and  second the upgrade may breathe some life back into the stock at its current cheap levels after the Oct-Dec selloff.  The saying goes, “buy low, sell high” and MMC might be a great candidate for that.  Aside from that, if the stock breaks support at current share price level of roughly $22, shares could tumble to the next support at $18.50 and that would be a rough one to swallow. 

Disclosure: No positions.