Analyst downgrades:

• Citigroup downgraded Aflac (NYSE: AFL) to Hold from Buy ahead of the company's Q2 results on valuation and concerns of slowing EPS growth. Citi keeps a $36 price target on the stock.
• FBR Capital downgraded Signature Bank (NASDAQ: SBNY) to Market Perform from Outperform on valuation following the company's Q2 results but raised its target on shares to $32.
• Goldman downgraded Morgan Stanley (NYSE: MS) to Neutral from Buy and lowered its target to $32 from $34. The firm sees "better risk/reward opportunities" in the group and lowered 2H09 estimates based on expectations for reduced investment banking and trading revenues.
• Provident Financial (NYSE: PFS) was downgraded to Neutral from Buy at Janney Montgomery.
• SPSS (NASDAQ: SPSS) was downgraded to Hold from Buy at Kaufman Bros.
• Perry Ellis (NASDAQ: PERY) was downgraded to Neutral from Buy at SunTrust.

Analyst initiations:

• Roth Capital is positive on the long-term potential of Bio Delivery's (NASDAQ: BDSI) Onsolis, for breakthrough cancer pain, and its next pipeline drug. Shares were started with a Buy rating and $7.25 target.
• Cantor Fitzgerald believes that Compugen's (NASDAQ: CGEN) products can provide pharmaceutical companies with a significant competitive advantage and the firm views Compugen's approach to drug discovery as "market disruptive." The firm set a Buy rating and $5 target.
• The firm also initiated MDRNA (NASDAQ: MRNA) with a Buy rating and $4 target and believes MDRNA is poised to expand its product pipeline and business, as the firm expects pharmaceutical companies' need for cost-effective innovation to create demand for MDRNA's platforms.
• The Buckle (NYSE: BKE) was initiated with a Market Perform rating and $34 target at FBR Capital.
• Dow Chemical (NYSE: DOW) was initiated with a Buy rating and $25 target at UBS.
• Cypress Semiconductor (NYSE: CY) was initiated with a Buy rating and $13 target at ThinkEquity.