Raymond James Ups Primerica, Commerce Bancshares; Downgrades Lincoln National, Manhattan Associates

Analysts at Raymond James on Wednesday made several rating adjustments.

Upgrading Primerica To Strong Buy

Shares of Primerica, Inc. (NYSE: PRI) were upgraded to Strong Buy from Market Perform with a newly established $54 price target.

Analyst Steven Schwartz discussed both the bull/bear thesis regarding the DOL conflict of interest.

According to Schwartz, a best case scenario assumes that the current regulatory regime remains unchanged, while the worst case scenario assumes the DOL rules make commission-based sales impossible and similar rules are adopted by other regulatory authorities across the U.S. and Canada.

Schwartz said that his $54 price target is "based on a scenario that the DOL conflict of interest proposal is adopted as is combined with our associated assumptions regarding investment product sales, fees, and expense levels."

Upgrading Commerce Bancshares To Market Perform

Shares of Commerce Bancshares, Inc. (NASDAQ: CBSH) were upgraded to Market Perform from Underperform with no assigned price target.

Analyst David Long noted that the upgrade follows the company's second quarter earnings per share beat, which included a better-than-expected loan growth, operating expenses and credit metrics. The analyst also added the company's TIPS portfolio "drove a rebound" in its NIM.

However, despite an improving fundamental outlook, Long argued that shares are fairly valued relative to its peers.

Lincoln National Downgraded To Outperform

Shares of Lincoln National Corporation (NYSE: LNC) were downgraded to Outperform from Strong Buy with an unchanged $67 price target.

Schwartz stated that the revised rating still reflects the company's "strong presence" in most of the major insurance product markets, excellent distribution capabilities through wholesaling and wholly-owned channels, and strong capital generation ability.

However, Schwartz also noted that the upside potential to his $67 price target represents a 14 percent return. As such, the upside no longer warrants the highest investment rating.

Downgrading Manhattan Associates To Outperform

Shares of Manhattan Associates, Inc. (NASDAQ: MANH) were downgraded to Outperform from Strong Buy with a price target that was actually boosted to $69 from a previous $63.

Analyst Terry Tillman stated that he continues to expect strong upside performance after the company's second quarter print next Tuesday. He is also anticipating positive revisions to consensus estimates when the company updates its 2015 outlook.

Tillman also noted that his checks indicate "significant" revenue monetization around supply chain modernization and omni-channel investments.

Despite the positive outlook, Tillman pointed out that shares have gained "significantly" year-to-date (53 percent). As such, a Strong Buy rating is "less justified" but investors should maintain a "positive bias" on shares as the company is still expected to generate double-digit revenue and 20 percent plus earnings per share growth.

Bottom line, shares are currently trading at a 39x 2016 non-GAAP earnings per share estimate of $1.60. As such, shares aren't "particularly cheap" but the company's "steady growth" justifies a 43x 2016 earnings per share multiple.