Analyst downgrades:

• Jefferies downgraded Chattem (NASDAQ; CHTT) to Hold from Buy to reflect decelerating scanner data in June and valuation. The firm keeps a $72 price target on shares.
• Baird downgraded Starwood Hotels (NYSE: HOT) to Underperform from Neutral and lowered its target to $16 from $17 based on expectations that a hotel recovery will be pushed out until 2H10 and that a recovery in high-end corporate and group travelers segments will lag.
• Piper Jaffray downgraded MoneyGram (NYSE: MGI) to Underweight from Neutral on valuation and balance sheet concerns.
• Rio Tinto (NYSE: RTP) was downgraded to Hold from Speculative Buy at Canaccord.
• Zebra Tech (NASDAQ: ZBRA) was downgraded to Market Weight from Overweight at Thomas Weisel.
• Arch Coal (NYSE: ACI) was downgraded to Neutral from Buy at Goldman.

Analyst initiations:

• Baird initiated Paccar (NASDAQ: PCAR) with a Neutral rating and $32 target. The firm said they would accumulate shares at current levels and would be more aggressive on signs of an end-market recovery.
• Benchmark started Lamar Advertising (NASDAQ: LAMR) with a Sell rating and $11 target and believes advertising demand could weaken further and stay depressed into 2010. The firm also thinks Lamar's debt load could be pressured by its shrinking cash flow.
• Soleil assumed coverage of Centurytel (NYSE: CTL) with a Buy rating and $40 target. The firm sees upside potential in CenturyTel given the company's restructuring opportunities.
• Qualcomm (NASDAQ: QCOM) was initiated with an Outperform rating at Morgan Keegan.
• Southwest Airlines (NYSE: LUV) was initiated with a Neutral rating and $7 target at Next Generation.
• Linear Tech (NASDAQ: LLTC) was initiated with an Accumulate rating and $24 target at ThinkEquity.