• Keefe Bruyette downgraded shares of Bank of America (NYSE: BAC) to Underperform from Market Perform on valuation and the potential for a capital raise and dividend cut. The company's target remains $25.
  
• Bernstein downgraded Merck (NYSE: MRK) to Market Perform from Outperform based on valuation, concerns regarding Singulair and Gardasil prescription trends, and lackluster growth, among other reasons.
  
• B. Riley cut Ashworth Inc. (NASDAQ: ASHW) to Neutral from Buy to reflect the risk that the company's strategic alternatives process yields disappointing results. The firm lowered their target to $3.75 from $4.40.
  
• Lamar Advertising (NASDAQ: LAMR) was lowered to Hold from Buy at Jefferies.
  
• Citigroup downgraded GFI Group (NASDAQ: GFIG) to Sell from Hold.
  
• Nokia (NYSE: NOK) was downgraded at WestLB to Reduce from Hold.
  
• Pearson Plc (NYSE: PSO) was downgraded to Underweight from Equal Weight at Lehman.

Analyst initiations:

• Deutsche Bank has a Cautious rating on the Business and Professional Services sector as they believe Europe is at least a year behind the U.S. in the cycle and that consensus estimates are too high for 2008. The firm initiated Manpower (NYSE: MAN) and MPS Group (NYSE: MPS) with Sell ratings, and Resources Connection Inc. (NASDAQ: RECN) with a Hold rating.
  
• Thomas Weisel initiated Deckers Outdoor (NASDAQ: DECK) with an Overweight rating and $139 target. The firm believes the company is well-positioned to leverage its strong brand.
  
• Morgan Keegan is positive on Cerner's (NASDAQ: CERN) diverse product portfolio, broad customer base, and valuation. Shares were astarted with an Outperform rating.
• JMP securities initiated Apple Inc. (NASDAQ: AAPL) with a Market Perform rating.
  
• Credit Suisse started Yum! Brands (NYSE: YUM) with a Neutral rating and $42 target and Burger King (NYSE: BKC) with an Ouperform rating and $32 target.