Riverbed Technology, Inc. (RVBD), Tesla Motors Inc (TSLA), Spectra Energy Corp. (SE): Three Upgrades Worth Noting on Wednesday

Spectra Energy Corp. (NYSE:SE) is currently trading higher by 10% after dropping its assets. So far, three different analysts have upgraded the stock, including Deutsche Bank from Hold to Buy.

The firm specifically notes the improvements to cash flow that will be created. It states that Spectra Energy Corp. (NYSE:SE) will receive 50% of the incremental cash from the drop-downs, yet gets to remove the overhang. As a result, Spectra will be boosting the percentage of its cash flows from its MLP from 8% to over 50%!

In other words, Spectra Energy Corp. (NYSE:SE) is going to becoming much more efficient, with much higher profits. This is a stock trading at 23 times earnings, and with margins about to rise, I can’t help but to agree with Deutsche Bank and the other analysts who are upgrading the stock.

Conclusion

Honestly, I think that each of these analysts made good calls – but I think Lazard’s “Buy” on Riverbed Technology, Inc. (NASDAQ:RVBD) is by far the very best of the day.

“When assessing an upgrade/downgrade you want to see more than just stock movement and a price target. You want to see reasons for the call, and those reasons should include channel checks, conversations with management, and conversations with those who are close to the company such as suppliers.”Taking Charge With Value Investing (McGraw-Hill, 2013)

The Riverbed Technology, Inc. (NASDAQ:RVBD) upgrade included a conversation with management, macro analysis, and forward looking expectations based on current market conditions. Thus, the notes alone had all the main components of a good call. Then, you incorporate the weakness in shares of the stock, and I believe it could a good investment opportunity.

The article 3 Upgrades Worth Noting on Wednesday originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols has no position in any stocks mentioned. The Motley Fool recommends Riverbed Technology, Spectra Energy., and Tesla Motors. The Motley Fool owns shares of Riverbed Technology and Tesla Motors. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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