Analyst downgrades:

• Jefferies downgraded China Sunergy (NASDAQ: CSUN) to Hold from Buy following the company's Q1 results to reflect a weaker ASP outlook. The firm keeps a $4 price target on shares.
• UBS downgraded Caterpillar (NYSE: CAT), Parker Hannifin (NYSE: PH) and Eaton (NYSE: ETN) to Sell form Neutral and Illinois Tool Works (NYSE: ITW) to Neutral from Buy. The analyst cites further risk of deterioration in key end markets, valuations, unfavorable seasonality, among other reasons, for the downgrades. Joy Global (NASDAQ: JOYG) remains the firm's top pick.
• Auriga downgraded Switch & Data (NASDAQ: SDXC) on valuation as it finds the risk/reward on shares balanced following the recent rally. The firm keeps a $13.50 target.
• Nordstrom (NYSE: JWN) was downgraded to Underperform from Neutral at Banc of America/Merrill.
• Mylan (NASDAQ: MYL) was cut to Buy from Conviction Buy at Goldman.
• Carrizo Oil & Gas (NASDAQ: CRZO) was downgraded to Neutral from Buy at SunTrust.

Analyst initiations:

• Deutsche Bank believes conditions at Harley-Davidson's (NYSE: HOG) Financial Services are improving and that the motorcycle business will continue to generate strong cash flow. The firm started shares with a Buy rating and $21 target.
• FBR Capital finds Discover Financial's (NYSE: DFS) current valuation attractive and believes the company's capital reserves can withstand the tough environment. Shares were initiated with an Outperform rating and $11 target.
• Wunderlich assumed Key Energy (NYSE: KEG) with a Buy rating and $10 target. The firm believes Key's workover rigs should benefit from any sustained upturn in oil or natural gas activity.
• Estee Lauder (NYSE: EL) was initiated with a Perform rating at Oppenheimer.
• Abercrombie & Fitch (NYSE: ANF) was initiated with a Market Perform rating and $28 target at BMO Capital.
• Electronic Arts (NASDAQ: ERTS) was started at ThinkEquity with an Accumulate rating and $25 target.