MORNING COFFEE

Greece and Spain Recapitalize Banks.  Greece has provided over €18B to its four largest banks in an attempt to recapitalize them and prevent a collapse of their banking system. The recapitalization came from the European Financial Stability Facility rescue fund and will go to prop up Alpha Bank, Eurobank, National Bank and Piraeus Bank.  Additionally, former Prime Minister Papademos warned that unless the Greek June 17^th election can produce a stable government, Greece’s finances could collapse.

In Spain Bankia will issue new debt to recapitalize, versus injecting bonds into the company. Prime Minister Rajoy yesterday said he had ruled out an external bank rescue even as Spain is "finding it very difficult to finance itself." 

Upgrades

Gulfport Energy (GPOR): RBC Capital Markets raised their rating from Sector Perform to Outperform.

Cracker Barrel (CBRL): Argus raised their rating from Hold to Buy and placed a target price of $72.00 on the company.

Salesforce.com (CRM):Oppenheimer raised their rating from Perform to Outperform and placed a target price of $180.00 on the company. Pre-market: 147.80 +0.80 (0.54%)

Jack In The Box (JACK): Wedbush raised their rating from Underperform to Neutral and raised their target price from $21.00 to $25.00.

L-3 Communications (LLL): Oppenheimer raised their rating from Underperform to Perform.

ConocoPhillips (COP): Citigroup raised their rating from Neutral to Buy and raised their target price from $64.80 to $67.00. Pre-market: 52.89 +0.78 (1.50%)

Foot Locker (FL): Deutsche Bank raised their rating from Hold to Buy and raised their target price from $32.00 to $48.00. Pre-market: 33.30 +0.88 (2.71%)

Downgrades

Viacom (VIAB): Caris & Company lowered their rating from Buy to Above Average and lowered their target price from $58.00 to $56.00.

NetApp (NTAP): Argus lowered their rating from Buy to Hold. Pre-market: 28.93 +0.32 (1.12%)

Tenet Healthcare (THC): CRT Capital lowered their rating from Buy to Fair Value. Pre-market: 4.75 0.00 (0.00%)

Coverage Initiated

Facebook (FB): CLSA initiated coverage with a Buy rating and target price of $40.00. Pre-market: 31.50 -0.41 (-1.28%)

Tilly’s (TLYS): William Blair initiated coverage with an Outperform rating.

Tilly’s (TLYS): Piper Jaffray initiated coverage with an Overweight rating and target price of $20.00.

Adidas (ADDYY): JPMorgan initiated coverage with a Neutral rating.

Markets: 
Futures at 8:34: Dow +0.66%. S&P +0.60%. Nasdaq +0.67%. Crude +0.30% to $91.13. Gold +0.09% to $1574.40. 

Europe: London +0.33%. Paris +0.73%. Frankfurt +0.88%. 

Asia: Japan +0.74%. Hong Kong +1.35%. China +1.20%. India +0.13%.