Today’s Movers and Shakers: EBay and Southwest Airlines Get an Upgrade and More

Cubist Pharmaceuticals (CBST: NYSE) is being bought by Merck and Co. (MRK: NYSE) for $102 per share and cash. The total deal is worth $8.4 billion and is a 34 percent premium over Cubist’s close on Friday.

Southwest Airlines (LUV: NYSE)has gotten a ratings upgrade from Goldman Sachs (GS: NYSE). Southwest Airlines was upgraded to buy from neutral. Goldman Sachs cites that industry fundamentals are strong and Southwest should outperform its peers

Ebay (EBAY: Nasdaq) has also been upgraded. Stifel Nicolaus has upgraded the company from hold to buy. They feel Ebay is the real deal in sector and the company to watch.

Starbucks, Chipotle Mexican Grill and Burger King  have been upgraded even as the entire restaurant sector has received a “neutral” from Goldman Sachs.  Starbucks is now a strong buy as is Burger King and Chipotle. They have given a sell rating to Panera Bread (PNRA: Nasdaq) and Yum Brands (YUM: NYSE). Goldman says there are competitive challenges in the market and Yum has to contend with any effects from China’s lapses on food safety.