Analyst downgrades:

• Citigroup downgraded Extra Space Storage (NYSE: EXR) to Hold from Buy on concerns of declining fundamentals following the company's weaker than expected Q2 results. Citi raised its target on shares to $8.50 from $8.
• Jefferies downgraded Savient Pharmaceuticals (NASDAQ: SVNT) to Underperform from Hold as it believes the risk/reward on shares is unfavorable given uncertainties surrounding the timing of final approval for KRYSTEXXA. The firm has a $5 price target on the stock.
• Janney Montgomery downgraded Patriot Capital Funding (NASDAQ: PCAP) to Sell from Neutral after the company entered an acquisition agreement with Prospect Capital (NASDAQ: PSEC).
• France Telecom (NYSE: FTE) was downgraded to Neutral from Buy at BofA/Merrill.
• Aixtron (NASDAQ: AIXG) was downgraded to Neutral from Outperform at Credit Suisse.
• PharMerica (NYSE: PMC) was downgraded to Perform from Outperform at Oppenheimer.

Analyst initiations:

• Quiksilver (NYSE: ZQK) was reinstated with a Market Weight rating and $2.50 target at Thomas Weisel.
• Phase Forward (NASDAQ: PFWD) was initiated with a Hold rating and $16 target at Citigroup.
• Medidata Solutions (NASDAQ: MDSO) was initiated with an Outperform rating and $23 target at Credit Suisse, with a Buy rating and $22 target at Needham, and with a Hold rating and $21 target at Citigroup.
• Myriad Genetics (NASDAQ: MYGN) was initiated with an Outperform rating at William Blair.
• Air Products (NYSE: APD) was initiated with a Neutral rating and $86 target at Baird.
• Targacept (NASDAQ: TRGT) was initiated with a Buy rating at Ladenburg.