Commodity Revenue for Investment Banks Plunges in 2012

Revenue for investment banks from commodities dropped in 2012, with intrusive regulations and increased capital requirements resulting in less interest from clients. Another factor was volatility for the year was relatively low, also affecting interest in the sector.

The drop was a huge 25 percent from 2011, with revenue coming in at $6 billion for 2012, down significantly from the $8 billion in revenue generated the year before.

Ten banks were by consultant Coalition, including Bank of America/Merrill Lynch (BAC), Barclays (BCS), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), JP Morgan (JPM), RBS (RBS), Goldman Sachs (GS), Morgan Stanley (MS) and UBS (UBS).

A report released by Coalition said, "Low volatility and reduced client activity led to a 24 per cent drop in revenues. Energy, investor products and precious metals options businesses were notably affected.

"Performance was also subdued by ongoing concerns about increased regulation and capital sensitivity, pushing banks to re-evaluate their commodities strategies."

In its quarterly results last month, Morgan Stanley said the commodity revenue for the fourth quarter was the lowest since 1995.

Vale (VALE) (MUR) (YZC) (NSU) (CMK) (KMP) (CRK) Ratings Changes and Initiations

Vale (VALE), Murphy Oil (MUR), Yanzhou Coal Mining (YZC), Nevsun Resources Ltd (NSU), Cline Mining (CMK), Kinder Morgan Energy Partners LP (KMP) and Comstock Resources (CRK) had analysts change or initiate ratings on them.

Brean Murray upgraded Murphy Oil (MUR) from a "Hold" rating to a "Buy" rating, while Societe Generale downgraded Murphy Oil from a "Buy" rating to a "Hold" rating. They have a price target of $60.00 on the company.

Citigroup (C) downgraded Yanzhou Coal Mining (YZC) from a "Buy" rating to a "Sell" rating.

Zacks downgraded Vale (VALE) from a "Neutral" rating to an "Underperform" rating. They have a price target of $17.00 on the company.

Haywood Securities downgraded Nevsun Resources Ltd (NSU) from an "Outperform" rating to a "Sector Perform" rating.

Dundee Securities downgraded Cline Mining (CMK) from a "Buy" rating to a "Neutral" rating.

Imperial Capital downgraded Kinder Morgan Energy Partners LP (KMP) from a "Buy" rating to a "Sell" rating.

Brean Murray initiated coverage on Comstock Resources (CRK). They placed a "Hold" rating on the company.

Peabody (BTU) (CNE) (CNX) (PGH) (TIE) (WLT) Downgraded by Analysts

Peabody Energy Corp. (BTU), Canacol Energy Ltd. (CNE), CONSOL Energy Inc. (CNX), Pengrowth Energy Trust (PGH), Titanium Metals (TIE) and Walter Energy (WLT) were all downgraded by analysts.

Nomura downgraded Peabody Energy Corp. (BTU) from a "Neutral" rating to a "Reduce" rating.  $22.00

CIBC downgraded Canacol Energy Ltd. (CNE) from a "Sector Perform" rating to a "Underperform" rating.
 
Credit Agricole downgraded CONSOL Energy Inc. (CNX) from an "Outperform" rating to a "Sell" rating.

Credit Suisse (CS) downgraded Pengrowth Energy Trust (PGH) from a "Neutral" rating to an "Underperform" rating.

Citigroup (C) downgraded Titanium Metals (TIE) from a "Buy" rating to a "Neutral" rating. They have a price target of $13.00 on the company.

Credit Agricole downgraded Walter Energy (WLT) from an "Outperform" rating to a "Sell" rating. They have a price target of $30.00 on the company.

Alpha (ANR) (CLR) (ENRC) (OGE) (CMLP) (AAUKY) Ratings

Alpha Natural Resources (ANR), Continental Resources, Inc. (CLR), Eurasian Natural Resources (ENRC), OGE Energy Corp. (OGE), Anglo American plc (AAUKY) and Crestwood Midstream Partners LP (CMLP) had ratings on them adjusted or initiated.

Howard Weil upgraded Continental Resources, Inc. (CLR) from a "Market Perform" rating to an "Outperform" rating. They have a price target of $99.00 on the company.

Barclays Capital initiated coverage on Eurasian Natural Resources (ENRC). They placed an "Equalweight" rating on the company.

Jefferies Group upgraded OGE Energy Corp. (OGE) from a "Hold" rating to a "Buy" rating. $58.50 $63.50

Nomura downgraded Alpha Natural Resources (ANR) from a "Buy" rating to a "Neutral" rating.  $8.00

HSBC downgraded Anglo American plc (AAUKY) from an "Overweight" rating to a "Neutral" rating.

Citigroup (C) initiated coverage on Crestwood Midstream Partners LP (CMLP). They placed a "Neutral" rating and price target of $24.00 on the company.

Silver Could Hit $100 Says Citigroup (C) Analyst

Citigroup (NYSE: C) analyst Tom Fitzpatrick said in an interview with King World News that the price of silver could jump to around $100 an ounce if gold prices continue to soar and people turn to silver as an alternative to higher-priced gold.

Fitzpatrick said this:

When we get a weekly close through both of those critical levels ($1,791 for gold and $37.48 for silver), we anticipate that will give us an acceleration which will take us up toward the targets on gold to the $2,055 area, and silver back to the old highs near $50. However, on a longer-term basis we believe we have a setup here which suggests that gold could continue to go higher for some time to come.

We’ve always been of the view, and are still of the view that gold is first and foremost a hard currency more so than it is a commodity. So the building blocks are there for gold to continue to go higher, not just against the dollar but against all of the other paper currencies as well.

Given the dynamics that we have in the background, the similarities that we to the 70s, we would argue the combination of the similarities, and the major difference which is the money printing being exercised by all of the developed world’s central banks, we can see gold continue to follow a trend equal in magnitude to what we saw in the 70s.

Fitzpatrick sees a direct correlation between the price move of gold and the response of silver investors to that.

If we see gold move to the $3,400 level, it is not inconceivable that we may see silver closer to $100. Investors have to remember that at the end of the 70s the gold price doubled in a mere five or six weeks. If 3 to 5 years down the line we see that the base policy of the developed world is to continue printing money, then the gloves are off in terms of what levels gold and silver could actually go to.

It's highly probably that central banks around the world will continue to print money for years because they continue to hold to the flawed Keynesian view.

That's also sure to happen because corrupt politicians refuse to take the needed austerity measures to rein in out of control spending. They will continue to kick the can down the road until the global economy blows up in their faces.

With that as a backdrop, every investor should have a portion of their assets in gold and silver at minimum, and keep an eye on other commodities which will benefit from the endless printing of money.

Outside of silver and gold, investors should look at commodities that are trading at lower levels in comparison to their peers.

Apache (APA) (PGH) (KFT) (P) (NSRGY) (GGP) (ZION) Ratings, Price Targets

Apache (APA), Pengrowth Energy Trust (PGH), Kraft Foods Inc. (KFT), Pandora Media (P), Nestle (NSRGY), General Growth Properties (GGP) and Zions Bancorporation (ZION) had ratings and price targets on them adjusted by analysts.

Global Hunter Securities initiated coverage on Apache (APA). They placed a "Buy" rating and price target of $130.00 on the company.

BMO Capital Markets upgraded Pengrowth Energy Trust (PGH) from a "Market Perform" rating to a "Outperform" rating.

Jefferies Group downgraded Kraft Foods Inc. (KFT) from a "Buy" rating to a "Hold" rating.

Citigroup (C) downgraded Pandora Media (P) from a "Buy" rating to a "Neutral" rating.

BNP Paribas upgraded Nestle (NSRGY) from a "Neutral" rating to a "Outperform" rating.

Citigroup initiated coverage on General Growth Properties (GGP). They placed a "Neutral" rating on the company.

Roth Capital initiated coverage on Zions Bancorporation (ZION). They placed a "Buy" rating on the company.

CF (CF) (RRC) (WY) (ATW) (COST) (END) (GWRE) Ratings, Price Targets

CF Industries Holdings (CF), Range Resources (RRC), Weyerhaeuser (WY), Atwood Oceanics, Inc. (ATW), Costco (COST), Endeavour International Co. (END) and Guidewire Software (GWRE) had ratings and price targets on them adjusted by analysts.

Citigroup downgraded CF Industries Holdings (CF) from a "Buy" rating to a "Neutral" rating.

Stephens upgraded Range Resources (RRC) from a "Equal Weight" rating to an "Overweight" rating.

BMO Capital Markets upgraded Weyerhaeuser (WY) from a "Underperform" rating to a "Market Perform" rating.

Wells Fargo & Co. upgraded Atwood Oceanics, Inc. (ATW) from a "Market Perform" rating to an "Outperform" rating.

William Blair upgraded Costco (COST) from a "Market Perform" rating to an "Outperform" rating.

Sidoti upgraded Endeavour International Co. (END) from a "Neutral" rating to a "Buy" rating.

Citigroup initiated coverage on Guidewire Software (GWRE). They placed a "Neutral" rating on the company.

ICF (ICFI) (IPSEY) (IRIS) (ITVPF) (LLY) (MSI) (MTZ) Ratings, Price Targets

ICF International, Inc. (ICFI), IPSEN SA S/ADR (IPSEY), IRIS International, Inc. (IRIS), ITV PLC ORD SHS (ITVPF), Eli Lilly & Co. (LLY), Motorola Solutions (MSI) and MasTec, Inc. (MTZ) had ratings and price targets adjusted on them by analysts.

Stifel Nicolaus upgraded ICF International, Inc. (ICFI) from a "Hold" rating to a "Buy" rating. They have a price target of $36.00 on the company.

Citigroup upgraded IPSEN SA S/ADR (IPSEY) from a "Sell" rating to a "Neutral" rating.

Benchmark Co. upgraded IRIS International, Inc. (IRIS) from a "Hold" rating to a "Buy" rating. They have a price target of $12.50 on the company.

BNP Paribas upgraded ITV PLC ORD SHS (ITVPF) from an "Underperform" rating to a "Neutral" rating.

JPMorgan Chase & Co. upgraded Eli Lilly & Co. (LLY) from an "Underweight" rating to a "Neutral" rating.

Credit Suisse upgraded Motorola Solutions (MSI) from a "Neutral" rating to an "Outperform" rating.

Maxim Group upgraded MasTec, Inc. (MTZ) from a "Hold" rating to a "Buy" rating. They have a price target of $25.00 on the company.

Mosaic (MOS) (RIGL) (URBN) (URS) (BCS) (CASC) Ratings, Price Targets

The Mosaic Company (MOS), Rigel Pharmaceuticals, Inc. (RIGL), Urban Outfitters, Inc. (URBN), URS Co. (URS), Cascade Co. (CASC) and Barclays Capital (BCS) had ratings and price targets on them adjusted by analysts.

The Mosaic Company (MOS) was upgraded by Canaccord Genuity from a "Hold" rating to a "Buy" rating.

Rigel Pharmaceuticals, Inc. (RIGL) was upgraded by Citigroup (C) from a "Neutral" rating to a "Buy" rating.

Urban Outfitters, Inc. (URBN) was upgraded by BMO Capital Markets from a "Market Perform" rating to an "Outperform" rating.

URS Co. (URS) was upgraded by Robert W. Baird from a "Neutral" rating to an "Outperform" rating. They raised their price target from $40.00 to $55.00 on the company.

Barclays Capital (BCS) was downgraded by Macquarie from a "Neutral" rating to an "Underperform" rating

Cascade Co. (CASC) was downgraded by Global Hunter Securities from a "Buy" rating to an "Accumulate" rating.

Altria (MO) (RAI) (LOPE) (ITRI) (AAWW) (BASFY) Ratings, Price Targets

Altria (MO), Reynolds American (RAI), Grand Canyon Education (LOPE), Itron (ITRI), Atlas Air Worldwide (AAWW) and BASF AG (BASFY.PK) had ratings and price targets on them adjusted by analysts.

Jefferies (NYSE:JEF) initiated coverage on Altria (MO). They placed a "Hold" rating on the company.

Jefferies (NYSE:JEF) initiated coverage on Reynolds American (RAI). They placed a "Hold" rating on the company.

Grand Canyon Education (LOPE) was upgraded by Citigroup (NYSE:C) from a "Neutral" rating to a "Buy" rating.

Itron (ITRI) was upgraded by Robert W. Baird from a "Neutral" rating to an "Outperform" rating. They have a price target of $53.00 on the company.

Atlas Air Worldwide (AAWW) was downgraded by Dahlman Rose from a "Buy" rating to a "Hold" rating. T

BASF AG (BASFY) was downgraded by WestLB from a "Buy" rating to an "Add" rating.

Oracle (ORCL) (TRIP) (OCR) (BMR) (AAUKY) (ARB) Ratings, Price Targets

Oracle (NASDAQ:ORCL), TripAdvisor (NASDAQ:TRIP), Omnicare (NYSE:OCR), BioMed Realty (NYSE:BMR), Anglo American (OTC:AAUKY) and Arbitron (NYSE:ARB) had ratings and price targets on them adjusted by analysts.

Piper Jaffray (NYSE:PJC) initiated coverage on TripAdvisor (TRIP). They placed a "Neutral" rating on the company.

Omnicare (OCR) was upgraded by Credit Suisse (NYSE:CS) from a "Neutral" rating to an "Outperform" rating.

BioMed Realty (BMR) was upgraded by Stifel Nicolaus from a "Hold" rating to a "Buy" rating. They placed a price target of $21.00 on the company.

Oracle (ORCL) was downgraded by Caris & Company from a "Buy" rating to an "Above Average" rating.

Anglo American (AAUKY) was downgraded by Citigroup (NYSE:C) from a "Buy" rating to a "Neutral" rating.

Arbitron (ARB) was downgraded by Deutsche Bank (NYSE:DB) from a "Buy" rating to a "Hold" rating.

Ariad (ARIA) (BIIB) (RHHBY) (WSM) (ATHN) (CBOE) Ratings, Price Targets

Ariad Pharmceuticals (NASDAQ:ARIA), Biogen Idec (NASDAQ:BIIB), Roche Holding (OTC:RHHBY), Williams-Sonoma (NYSE:WSM), AthenaHealth (NASDAQ:ATHN) and CBOE Holdings (CBOECBOE) had ratings and price targets on them adjusted by analysts.

RBC Capital Markets initiated coverage on Ariad Pharmceuticals (ARIA). They placed an "Outperform" rating on the company.

Wells Fargo (NYSE:WFC) initiated coverage on Biogen Idec (BIIB). They placed a "Market Perform" rating on the company.

Roche Holding (RHHBY) was downgraded by Citigroup (NYSE:C) from a "Buy" rating to a "Neutral" rating.

Williams-Sonoma (WSM) was upgraded by Citigroup from a "Neutral" rating to a "Buy" rating.

AthenaHealth (ATHN) was downgraded by Leerink Swann from an "Outperform" rating to a "Market Perform" rating.

CBOE Holdings (CBOE) was downgraded by Credit Suisse (NYSE:CS) from an "Outperform" rating to a "Neutral" rating.

Tranzyme (TZYM) (UPS) (VAR) (MED) (CYN) (GTXI) Ratings, Price Targets

Tranzyme (NASDAQ: TZYM), United Parcel Service, Inc. (NYSE: UPS), Varian Medical Systems (NYSE: VAR), Medifast, Inc. (NYSE: MED), City National Co. (NYSE: CYN) and GTx, Inc. (NASDAQ: GTXI) ratings and price targets.

Canaccord Genuity reiterated its "Buy" rating on Tranzyme (TZYM).

Citigroup (NYSE:C) reiterated its rating United Parcel Service, Inc. (UPS). They have a price target of $80.00 on the company.

Barrington Research reiterated its "Market Perform" rating on Varian Medical Systems (VAR).

Standpoint Research initiated coverage on Medifast, Inc. (MED). They placed a “Buy” rating and a price target of $24.00 on the company.

City National Co. (CYN) had its price target lowered by Compass Point from $42.00 to $40.00. They have a “Neutral” rating on the company.

GTx, Inc. (GTXI) had its price target raised by Citigroup from $8.00 to $19.00.

CF (DF) (MSFT) (C) (TEN) (OMC) (PFS) Ratings, Price Targets

CF Industries (NYSE:CF), Microsoft (NASDAQ:MSFT), Citigroup (NYSE:C), Tenneco (NYSE:TEN), Omnicom (NYSE:OMC) and Provident Financial (NYSE:PFS) ratings and price targets.

Microsoft (MSFT) was upgraded by Atlantic Equities from a "Neutral" rating to an "Overweight" rating.

Goldman Sachs (NYSE:GS) upgraded Citigroup (C) from a "Neutral" rating to a "Buy" ratings.

Tenneco (TEN) was upgraded by Wells Fargo (NYSE:WFC) from a "Market Perform" rating to an "Outperform" rating.

CF Industries (DF) was downgraded by Dahlman Rose from a "Buy" rating to a "Hold" rating. They have a price target of $180.00 on the company.

Omnicom (OMC) was downgraded by BMO Capital from an "Outperform" rating to a "Market Perform" rating.

Provident Financial (PFS) was downgraded by Janney Montgomery Scott from a "Buy" rating to a "Neutral" rating.

Inergy (NRGY) (WLL) (SD) (CNX) (SN) (MUR) (GGC) (NUE) (STLD) (RIG) Ratings, Price Targets

Inergy (NASDAQ: NRGY), Whiting Petroleum Co. (NYSE: WLL), SandRidge Energy Inc. (NYSE: SD), CONSOL Energy Inc. (NYSE: CNX), Sanchez Energy (NYSE: SN), Murphy Oil (NYSE: MUR), Georgia Gulf (NYSE: GGC), Nucor Co. (NYSE: NUE), Steel Dynamics, Inc. (NASDAQ: STLD) and Transocean (NYSE: RIG) ratings and price targets.

Inergy (NRGY) was downgraded by Raymond James (NYSE:RJF) from a “Market Perform” rating to an “underperform” rating.

Citigroup (NYSE:C) initiated coverage on Whiting Petroleum Co. (WLL). They placed a “Buy” rating on the company.

Citigroup initiated coverage on SandRidge Energy Inc. (NYSE: SD). They placed a “Buy” rating on the company.

CONSOL Energy Inc. (CNX) had its “Market Perform” rating reiterated by BMO Capital Markets. They have a price target of $40.00 on the company.

Cowen initiated coverage on Sanchez Energy (SN). They placed an “Outperform” rating on the company.

Murphy Oil (MUR) had its price target raised by Scotia Capital to $60.00.

Georgia Gulf (GGC) was downgraded by UBS AG (NYSE:UBS) from a “Buy” rating to a “Neutral” rating.

Nucor Co. (NUE) was downgraded by Deutsche Bank (NYSE:DB) from a “Buy” rating to a “Hold” rating.

Steel Dynamics, Inc. (STLD) was downgraded by Credit Agricole from a “Buy” rating to an “Outperform” rating.

Transocean (RIG) was upgraded by Capital One to a “Neutral” rating.

NVIDIA (NVDA) (YHOO) (AAPL) (BRCM) (C) (RVBD) Ratings, Price Targets

NVIDIA (NASDAQ: NVDA), Yahoo! Inc. (NASDAQ: YHOO), Apple, Inc (NASDAQ: AAPL), Broadcom (NASDAQ: BRCM), Citigroup (NYSE: C) and Riverbed Technology, Inc. (NASDAQ: RVBD) ratings and price targets.

NVIDIA (NVDA) EPS estimates were cut by UBS AG. They have a “Neutral” rating and a price target of $15.50 on the company.

Yahoo! Inc. (YHOO) EPS estimates were cut by Goldman Sachs (NYSE:GS). They have a “Sell” rating and a price target of $14.00 on the company.

Apple (AAPL) had its price target raised by Piper Jaffray (NYSE:PJC) from $607.00 to $670.00.

Broadcom (BRCM) had its “Buy” rating reiterated by Nomura (NYSE:NMR).

Citigroup (C) had its “Buy” rating reiterated by Nomura.

Riverbed Technology, Inc. (RVBD) is now covered by at Northland Securities. They placed an “Outperform” rating and a price target of $35.00 on the company.

BB&T (BBT) (BIG) (BLK) (COF) (EQT) (FITB) Ratings, Price Targets

BB&T (NYSE: BBT), Big Lots (NYSE: BIG), BlackRock (NYSE: BLK), Capital One (NYSE: COF), EQT Corp. (NYSE: EQT) and Fifth Third Bancorp (NASDAQ: FITB) ratings and price targets.

BB&T (BBT) had its price target raised by Citigroup (NYSE:C) to $29.00. They have a “Neutral” rating on the company.

Big Lots (BIG) had its price target raised by Deutsche Bank (NYSE:DB) to $45.00.

BlackRock (BLK) had its price target raised by Bank of America (NYSE:BAC) to $229.00. They have a “Buy” rating on the company.

Capital One (COF) had its price target lowered by Citigroup to $58.00. They have a “Buy” rating on the company.

EQT Corp. (EQT) had its price target lowered by Citigroup to $52.00. They have a “Neutral” rating on the company.

Fifth Third Bancorp (FITB) had its price target raised by Citigroup to $14.00. They have a “Neutral” rating on the company.

Quicksilver (KWK) (MOS) (NFX) (CF) (STLD) (MCP) Ratings, Price Targets

Quicksilver Resources Inc. (NYSE: KWK), The Mosaic Company (NYSE: MOS), Newfield Exploration Co. (NYSE: NFX), CF Industries Holdings Inc. (NYSE: CF), Steel Dynamics, Inc. (NASDAQ: STLD) and Molycorp, Inc. (NYSE: MCP) ratings and price targets.

Quicksilver Resources Inc. (KWK) was downgraded by Raymond James (NYSE:RJF) from a “Market Perform” rating to an “Underperform” rating.

The Mosaic Company (MOS) was downgraded by Citigroup (NYSE:C) from a “Buy” rating to a “Neutral” rating.

Newfield Exploration Co. (NFX) was downgraded by Raymond James from a “Market Perform” rating to an “Underperform” rating.

CF Industries Holdings Inc. (CF) was upgraded by Citigroup from a “Neutral” rating to a “Buy” rating.

Steel Dynamics, Inc. (STLD) was upgraded by Bank of America from a “Neutral” rating to a “Buy” rating.

Molycorp, Inc. (MCP) had its “Buy” rating reiterated by Dahlman Rose.

Citigroup (C) (VMW) (HAL) (ANF) (COH) Price Targets Changed

Citigroup (NYSE: C), VMware, Inc. (NYSE: VMW), Halliburton (NYSE: HAL), Abercrombie & Fitch (NYSE: ANF) and Coach (NYSE: COH) had their price targets adjusted by analysts.

VMware, Inc. (VMW) had its price target raised by Goldman Sachs (NYSE:GS) to $120.00.

Citigroup (C) had its price target lowered by Morgan Stanley (NYSE:MS) to $45.00.

Halliburton (HAL) had its price target lowered by FBR Capital from $65.00 to $60.00. They have an “Outperform” rating on the company.

FBR Capital initiated coverage on Abercrombie & Fitch (ANF). They placed an “Outperform” rating on the company.

Macquarie initiated coverage on Coach (COH). They placed an “Outperform” rating and a price target of $72.00 on the company.

NRG (NRG) (BEAM) (CLI) (PPDI) (DFS) Ratings, PT Changes

NRG Energy, Inc. (NYSE: NRG), Beam (NASDAQ: BEAM), Mack-Cali Realty Corp. (NYSE: CLI), Pharmaceutical Product (NASDAQ: PPDI) and Discover Financial Services (NYSE: DFS) had numbers changes by analysts.

Barclays Capital initiated coverage on Beam (BEAM). They placed an “Overweight” rating on the company.

Mack-Cali Realty Corp. (CLI) was downgraded by Stifel Nicolaus from a “Hold” rating to a “Sell” rating.

Pharmaceutical Product (PPDI) was downgraded by First Analysis from an “Overweight” rating to an “Equal Weight” rating.

NRG Energy, Inc. (NRG) had its price target lowered by Citigroup (NYSE:C) to $22.00.

Discover Financial Services (DFS) had its price target raised by

Jefferies (NYSE:JEF) to $28.00.