Analyst calls: ETR, THO, AMN, DF, FOSL, NSRGY . . .

• Merriman downgraded shares of Emcore (NASDAQ: EMKR) to Neutral from Buy on expectations reduced spending on network infrastructure and analog/cable components over the next two quarters could keep shares range bound. The firm believes Street estimates for the company's fiber optics business unit are too aggressive.
  
• Stephens cut Dean Foods (NYSE: DF) to Equal Weight from Overweight following the company's Q3 earnings miss and lowered their target to $20 from $26.
  
• Argus downgraded Replidyne (NASDAQ: RDYN) to Hold from Buy following the company's agreement to be acquired by Cardiovascular Systems.
  
• Blue Nile (NASDAQ: NILE) and Fossil (NASDAQ: FOSL) were downgraded to Underweight from Neutral at JP Morgan.
  
• Citigroup cut Health Net (NYSE: HNT) to Sell from Hold.
  
• iPCS Inc. (NASDAQ: IPCS) was lowered to Hold from Buy at Jefferies.

Analyst initiations:

• Jefferies expects Nestle (OTC: NSRGY) to navigate the consumer slowdown through its "dominant brands" and easing input costs. Shares were initiated with a Buy rating.
  
• KeyBanc initiated Knight Transportation (NYSE: KNX) with a Buy rating and $19 target. The firm is positive on the regional truckload market, Knight's strong financial position, and above average growth, among other reasons.
  
• Cytec Industries (NYSE: CYT) was assumed with a Hold rating and $34 target at Citigroup. The firm prefers to stay on the sidelines given the near-term headwinds in the aerospace space.
• HSN Inc. (NASDAQ: HSNI) was started at JP Morgan with an Underweight rating and $6 target.
  
• Credit Suisse assumed Equitable Resources (NYSE: EQT) with an Outperform rating.
  
• Brink's Home Security (NYSE: CFL) was initiated with an Overweight rating at Morgan Stanley.