Analyst calls: MCO, VALE, GS, CSCO, PALM, LLY, JBHT, PTR

Analyst upgrades:

Deutsche Bank upgraded HealthSouth (NYSE: HLS) and Rehabcare (NYSE: RHB) to Buy from Hold after raising its Post Acute Care sector view to Positive from Neutral. The firm believes volumes and margin leverage can drive better than expected Q2 results and 2009 guidance. The firm raised its target on HealthSouth shares to $16 from $12 and on Rehabcare to $28 from $19.
Jefferies upgraded Moody's (NYSE: MCO) to Hold from Underperform to reflect stabilizing credit markets and its belief regulatory concerns are overstated. The firm raised its target on shares to $30 from $19.
Keefe Bruyette upgraded Goldman Sachs (NYSE: GS) to Outperform from Market Perform as it finds the stock inexpensive following the better than expected results. The firm has a $195 target on shares.
Vale (NASDAQ: VALE) was upgraded to Buy from Neutral at BofA/Merrill.
CNOOC (NYSE: CEO) was upgraded to Overweight from Equal Weight at Morgan Stanley.
International Game Tech (NYSE: IGT) was upgraded to Buy from Neutral at Janney Montgomery.

Analyst downgrades:

Merriman downgraded 3PAR (NYSE: PAR) to Neutral from Buy as the firm sees additional downside risk following the company's Q1 pre-announcement.
Goldman downgraded PPD, Inc (NASDAQ: PPDI) to Sell from Neutral and lowered its target to $18 from $21. The firm cites reduced growth outlook for the downgrade.
PetroChina (NYSE: PTR) was downgraded to Equal Weight from Overweight at Morgan Stanley.
Plum Creek Timber (NYSE: PCL) was downgraded to Neutral from Buy at BofA/Merrill.
J.B Hunt (NASDAQ: JBHT) was downgraded to Market Perform from Outperform at Raymond James.

Analyst initiations:

Jefferies initiated Chico's FAS (NYSE: CHS) with a Buy rating and $15 target. The firm believes a sales turnaround is underway at Chico's given operational discipline and improved product.
Citigroup expects Cisco (NASDAQ: CSCO) shares to outperform during the early stages of an economic recovery. Shares were started with a Buy rating and $23 target.
BMO Capital initiated Palm (NASDAQ: PALM) with a Market Perform rating and $12 target citing increased competition that will make it difficult for the company to achieve Street unit estimates.
Eli Lilly (LLY) was initiated with an Underweight rating and $34 target at Morgan Stanley.
First Horizon (NYSE: FHN) coverage resumed with a Buy rating and $15 target at Janney Montgomery.
Children's Place (NASDAQ: PLCE) was initiated with a Buy rating and $32 target at BofA/Merrill.