Tuesday’s Top Upgrades (and Downgrades): Acme Packet, Inc. (APKT), Oracle Corporation (ORCL), Cree, Inc. (CREE)

In short, Benchmark may be right about AS&E not growing as fast as Wall Street thinks it will. Fortunately, the stock doesn’t have to grow anywhere near that fast to give investors a good bargain.

Packing it in on the Acme Packet, Inc. (NASDAQ:APKT) short
And finally, a bit of good news for long-suffering Acme Packet shareholders. Even after yesterday’s price spike in response to Oracle (NASDAQ:ORCL)‘s buyout offer, your shares may still be down 15% over the past year — but at least it shouldn’t get any worse.

This morning, one of the bears who’ve been chewing on Acme through its long downturn finally turned around, and upgraded the stock. Why? Acme may still cost 360 times earnings, and may be dreadfully overpriced as a stand-alone company, but according to Mizuho, the fact that Oracle has signed on to put Acme shareholders out of their misery means the stock can’t fall any farther.

Mizuho is declaring victory, closing out its short call, and upgrading Acme to neutral. It’s an obvious call, sure, but probably still a welcome relief for Acme fans.

Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Acme Packet. The Motley Fool owns shares of Oracle.

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

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