Analyst downgrades 6-29-07: KOMG, GYI and RURL

MOST NOTEWORTHY: Komag Incorporated (NASDAQ: KOMG), commercial mortgage REITs, Getty Images Inc (NYSE: GYI) and Rural/Metro Corporation (NASDAQ: RURL) were today's noteworthy downgrades:

Komag was downgraded to Neutral from Buy at Craig-Hallum, to Market Perform from Outperform at Piper Jaffray, to Hold from Buy at Deutsche Bank and to Neutral from Outperform at Robert W Baird & Co following the announcement it would be acquired by Western Digital Corporation (NYSE: WDC).
Morgan Stanley downgraded Commercial Mortgage REITs to Underweight from Neutral. Specifically, the firm downgraded shares of Capital Trust, Inc (NYSE: CT) to Equal Weight from Underweight and Gramercy Capital Corp (NYSE: GKK) to Underweight from Equal Weight, citing increased credit spreads and subordination levels.
Getty Images was downgraded to Sell from Hold at Matrix as the firm believes margins are declining and sees downside to their $40/share intrinsic value calculation.
Rural/Metro was downgraded by Ferris, Baker Watts to Neutral from Buy on valuation.

OTHER DOWNGRADES:

PMI Group Inc (NYSE: PMI) was downgraded to Neutral from Buy at UBS.
Deutsche Bank downgraded Palm, Inc (NASDAQ: PALM) to Sell from Hold.
BMO Capital downgraded shares of Carrizo Oil & Gas Incorporated (NASDAQ: CRZO) to Market Perform from Outperform.
Morgan Stanley downgraded shares of Cemex (NYSE: CX) to Equal Weight from Overweight.
Barnes & Noble Inc (NYSE: BKS) was downgraded to Hold from Buy at Matrix.