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Analyst upgrades:
- Jefferies upgraded shares of Safeway (NYSE: SWY) to Hold from Underperform on valuation as they believe the company's pricing pressure and sluggish sales trends are now priced in. The firm raised its target to $23.50 from $21.
- Merrill upgraded Pfizer (NYSE: PFE) to Buy from Underperform citing attractive dividend yield and stabilizing businesses.
- Banc of America upgraded shares of Apollo Group (NASDAQ: APOL) to Neutral from Sell and raised APOL's target to $60 from $48 on valuation as they see a balanced risk/reward at current levels.
- Nucor (NYSE: NUE) was raised to Overweight from Equal Weight at Morgan Stanley.
- Citrix Systems (NASDAQ: CTXS) and Symantec (NASDAQ: SYMC) were upgraded to Overweight from Neutral at JP Morgan.
- Keefe Bruyette upgraded Jefferies Group (NYSE: JEF) and Bank of America (NYSE: BAC) to Market Perform from Underperform.
Analyst downgrades:
- Citigroup downgraded General Motors (NYSE: GM) and Ford (NYSE: F) to Sell from Hold to reflect deteriorating global credit conditions and valuation, which they find as not attractive at current levels. GM's target was lowered to $6 from $12 and Ford's was cut to $2.50 from $5.50.
- Goldman Sachs lowered the Indian Technology-Services sector to Cautious from Neutral to reflect lower earnings expectations. The firm downgraded Satyam (NYSE: SAY) to Neutral from Buy and Wipro Ltd. (NYSE: WIT) to Sell from Neutral.
- Host Hotels (NYSE: HST) was cut to Market Perform from Outperform at Keefe Bruyette, citing the economic downturn and a slower than previously anticipated recovery. The company's target was lowered to $10.50.
- Morgan Stanley downgraded Steel Dynamics (NASDAQ: STLD) and U.S. Steel (NYSE: X) to Equal Weight from Overweight.
- RealNetworks (NASDAQ: RNWK) was downgraded at Piper Jaffray to Sell from Neutral.
- AuthenTec (NASDAQ: AUTH) was cut to Neutral from Overweight at JP Morgan.
Analyst initiations:
- Quaker Chemical (NYSE: KWR) was initiated at Janney Montgomery with a Buy rating. The firm believes the company has solutions that address the current challenges within the steel production, metal processing, and manufacturing-related industries.
- Oppenheimer assumed Myriad Genetics (NASADQ: MYGN) with an Outperform rating and $92 target and believes the company's balance sheet is strong and that the Street is underestimating the growth potential of its personalized medicine platform.
- Banc of America started Activision (NASDAQ: ATVI) with a Buy rating and $18 target. The firm believes Activision is the best way to play the cycle upswing, which they expect in the next 12-24 months.
- Dr. Pepper Snapple (NYSE: DPS) was assumed with a Buy rating at Stifel Nicolaus.
- BMO Capital initiated Calpine (NYSE: CPN) with a Market Perform rating and $11 target.
- Deustche Bank initiated Rehabcare (NYSE: RHB) and HealthSouth (NYSE: HLS) with Hold ratings and targets of $18 and $17, respectively.