- Goldman upgraded Bed Bath & Beyond (NASDAQ: BBBY) to Buy from Neutral based on valuation and a potential margin rebound at Linens N' Things.
- Citigroup upgraded Rockwell Automation Inc. (NYSE: ROK) to Hold from Sell on valuation and believes expectations have been reset to a reasonable level. The company's target was lowered to $27 from $33.
- Friedman Billings upgraded shares of Ceradyne (NASDAQ: CRDN) to Outperform from Market Perform on valuation following the recent weakness and thinks the Army will move forward with a larger XSAPI procurement in FY09. The firm raised their target to $30 from $26.
- Goldman added Wyeth (NYSE: WYE) to the Conviction Buy List.
- Equity Residential (NYSE: EQR) was upgraded to Buy from Neutral at UBS.
- Analog Devices (NYSE: ADI) was raised to Overweight from Equal Weight at Morgan Stanley.
Analyst downgrades:
- Jefferies downgraded shares of TriMas (NYSE: TRS) to Hold from Buy as they believe macro economic issues could limit upside in the near-term. The firm lowered their target to $2 from $9.50.
- SunTrust downgraded Solera (NYSE: SLH) to Neutral from Buy on the company's currency headwinds and expectations for slower global claims volume.
- Deutsche Bank cut Focus Media (NASDAQ: FMCN) to Hold from Buy on the company's deteriorating fundamentals and thinks it will take time for management to restore confidence following the "weak" Q4 results.
- Goldman removed Autoliv (NYSE: ALV) from the Conviction Buy List.
- Live Nation (NYSE: LYV) was lowered to Hold from Buy at Nataxis.
- Broadcom (NASDAQ: BRCM) and RF Micro (NASDAQ: RFMD) were downgraded to Underweight from Equal Weight at Morgan Stanley.
Analyst initiations:
- Oppenheimer expects Archer Daniels (NYSE: ADM) to benefit from long-term worldwide demand for both food and fuel. The firm initiated shares with an Outperform rating and $30 target.
- ChinaCast Education (NASDAQ: CAST) was assumed with a Buy rating and $7.20 target at Roth Capital. The firm believes the company is greatly undervalued given the company's growth prospects and financial strength.
- Stanford believes that Cubic's (NYSE: CUB) earnings growth will outpace the growth of military spending due to its exposure to military training and its margin improvement. The firm, which started shares with a Buy rating and $28 target, views the company as an attractive acquisition candidate.
- RiskMetrics Group (NYSE: RMG) was initiated with a Buy rating and $20 target at Banc of America.
- Leerink initiated Cepheid (NASDAQ: CPHD) with an Outperform rating.
- Morgan Stanley initiated Barr Pharma (NYSE: BRL) and Teva Pharma (NASDAQ: TEVA) with Equal Weight ratings and targets of $67 and $44, respectively.

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