Analyst downgrades:

• Morgan Stanley downgraded shares of Philips Electronics (NYSE: PHG) to Underweight from Equal Weight on expectations for disappointing results in the second half of 2009.
  
• UBS downgraded Community Health Systems (NYSE: CYH) and Universal Health Services (NYSE: UHS) to Neutral from Buy and Tenet Healthcare (NYSE: THC) to Sell from Neutral citing the deteriorating economic environment and difficult 2009 comps. The firm lowered Community Health's target to $32 from $42, Universal Health's target to $59 from $70, and Tenet's target to $5 from $6.50.
  
• Wachovia cut Ruth's Hospitality (NASDAQ: RUTH) to Market Perform from Outperform citing weakening consumer spending trends.
• Boston Scientific (NYSE: BSX) was lowered to Underperform from Neutral at Merrill Lynch.
  
• Crown Castle (NYSE: CCI) was removed from Goldman's Conviction Buy List.
  
• Network Engines (NASDAQ: NENG) was downgraded at Cantor to Hold from Buy.

Analyst initiations:

• Deutsche Bank initiated STMicroelectronics (NYSE: STM) with a Hold rating, citing the slowing macro environment and the potential for share losses.
  
• Roth Capital believes Peer Manufacturing (NASDAQ: PMFG) benefits from higher energy costs that drive increased production of natural gas and lower energy costs that encourage additional use of gas in generating electricity. Shares were initiated with a Buy rating and $18 target.
  
• Synchronoss (NASDAQ: SNCR) was assumed at Baird with a Neutral rating and $11 target on valuation.
• Thomas Wiesel initiated Dolby Laboratories (NYSE: DLB) with an Overweight rating and $42 target.
  
• Osiris Therapeutics (NASDAQ: OSIR) was initiated with an Outperform rating and $25 target at JMP Securities.
  
• Rigel Pharmaceuticals (NASDAQ: RIGL) was initiated with a Buy rating and $35 target at Piper.