Analyst downgrades:

• RBC Capital downgraded Petroleum Development (NASDAQ: PETD) to Sector Perform from Outperform and lowered its target to $20 from $25 following the company's 3.75M equity offering.
• UBS downgraded Yum! Brands (NYSE: YUM) to Neutral from Buy based on valuation and slowing U.S. sales. The firm has a $38 target on the stock.
• Deutsche Bank downgraded Dynegy (NYSE: DYN) to Hold from Buy on concerns the company's asset sale highlights tough conditions in the Midwest power market. The firm keeps a $2 target on shares.
• Aegon (NYSE: AEG) was downgraded to Neutral from Outperform at Credit Suisse.
• The Bancorp (NASDAQ: TBBK) was downgraded to Neutral from Buy at B. Riley.
• Massey Energy (NYSE: MEE) was downgraded to Buy from Conviction Buy at Goldman.

Analyst initiations:

• Deutsche Bank is positive on Kroger's (NYSE: KR) positive position given its large scale and finds the valuation attractive at current levels. The firm started shares with a Buy rating and $28 target.
• Deutsche Bank also initiated Safeway (NYSE: SWY) with a Buy rating and $23 target. The firm expects Safeway's sales to accelerate as macro conditions stabilize in 2010.
• Cantor Fitzgerald predicts that Real Goods Solar (NASDAQ: RSOL) will benefit from increased adoption of solar power systems in California. The firm thinks the company will gain market share and it set a Buy rating and $5 target.
• Amgen (NASDAQ: AMGN) was initiated with an Outperform rating and $72 target at RBC Capital.
• Regis Corp. (NYSE: RGS) was initiated with a Buy rating and $17 target at BofA/Merrill.
• Pentair (NYSE: PNR) was initiated with a Hold rating at KeyBanc.