AIXTRON SE (ADR) (AIXG), bebe stores, inc. (BEBE): Friday’s Top Upgrades & Downgrades

Why? Well, the high-profile announcement that Ann Inc (NYSE:ANN) had managed to cut its carbon emissions by 20% in just a few years, largely by installing LED lighting in its stores, may have perked up companies’ interest in LEDs recently. In theory, at least, this should result in greater demand for the widgets and greater demand for the machines that make the widgets, which AIXTRON SE (ADR) (NASDAQ:AIXG) itself manufacturers as well.

Still, it seems a tad optimistic to be upgrading AIXTRON SE (ADR) (NASDAQ:AIXG) on theory and hope, what with the stock still deeply unprofitable, burning cash , and priced at a staggering 59 times the profits it might earn next year. Northland might think the stock’s down as far as it will go, and that it’s time to stop selling.

Me, I’m not convinced.

Has bebe hit bottom?
Speaking of stocks in search of a bottom, investment banker Janney Montgomery Scott upped its rating on bebe stores, inc. (NASDAQ:BEBE) to buy today. StreetInsider.com has the analyst pointing to “increased confidence” in management, “improved product,” better “inventory management” as signs of better days ahead for bebe. Meanwhile, Janney sees bebe stores, inc. (NASDAQ:BEBE)’s big bank account limiting “downside risk” to the stock.

In general, the analyst thinks “the worst is behind for bebe stores, inc. (NASDAQ:BEBE), and we expect trends to improve moving forward.” But once again, I’m not so sure Wall Street is right about this.

On the one hand, sure, bebe stores, inc. (NASDAQ:BEBE) has a fair amount of cash in the bank — $157 million in greenbacks and not a lick of debt. On the other hand, though, at last report the company was still burning through its cash at the rate of $48 million a year. Revenues are still falling. Profits have proven elusive at bebe stores, inc. (NASDAQ:BEBE), and most analysts see losses continuing into 2014 at least.

Long story short, while it’s certainly high time for a turnaround at bebe, I’m not seeing any evidence that it’s happening just yet.

The article Friday’s Top Upgrades (and Downgrades) originally appeared on Fool.com is written by Rich Smith.

Fool contributor Rich Smith has no position in any stocks mentioned, and neither does The Motley Fool.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.