Analyst calls: LM, FSLR, KEY, HIG, PPO, ASH, VRTX, MKL, CX ...

Analyst upgrades:

Jefferies upgraded Legg Mason (NYSE: LM) to Buy from Hold on valuation following the recent sell-off, as they find the risk/reward attractive at current levels. However, the firm lowered their target to $23 from $44.
Merriman raised First Solar (NASDAQ: FSLR) to Buy from Neutral after the company showed "industry leading growth" in Q3. The firm has a 12-month price target range of $185 to $195 per share.
Ladenburg upgraded KeyCorp (NYSE: KEY) to Buy from Neutral.
Citigroup upgraded shares of Silicon Laboratories (NASDAQ: SLAB) to Buy from Hold on valuation and expects the company to post above average industry growth in 2009.
Janus Capital (NYSE: JNS) was upgraded to Neutral from Underweight at JP Morgan.
Associated Estates Realty (NYSE: AEC) was upgraded to Outperform from Neutral at Baird.

Analyst downgrades:

Merrill downgraded Hartford Financial (NYSE: HIG) to Neutral from Buy citing greater than expected capital volatility and the potential for another $2B capital raise or more in order to maintain ratings.
Baird downgraded Polypore Inernational (NYSE: PPO) to Neutral from Outperform and lowered its target to $16 from $28 due to the company's announcement that its battery separator pact with Johnson Controls (NYSE: JCI) will end in December.
Ashland (NYSE: ASH) and Pan American Silver (NASDAQ: PAAS) were cut to Neutral from Overweight at JP Morgan.
Achillion (NASDAQ: ACHN) was downgraded at Oppenheimer to Perform from Outperform.

Analyst initiations:

Merriman believes the Vertex's (NASDAQ: VRTX) lead compound, telaprevir, is the most advanced therapeutic for the treatment of hepatitis C in clinical development. The firm thinks shares are undervalued at current levels and initiated shares with a Buy rating.
Markel (NYSE: MKL) was initiated at Keefe Bruyette with a Market Perform and $360 target. The firm believes shares are fairly valued at current levels.
Cemex (NYSE: CX) was assumed with an Underperform rating and $7 target at Credit Suisse.
Merriman believes Pharmasset (NASDAQ: VRUS) has a strong pipeline with drugs targeting major indications in the infectious disease space. The firm, which started shares with a Buy rating, thinks shares could trade closer to a range of $22 to $26 in the next 12 months.

Tags: achn, aec, ash, cx, fslr, hig, inthenews, jci, jns, key, lm, mkl, paas, ppo, slab, vrtx, vrus