Analyst downgrades:

• Jefferies downgraded Alkermes (NASDAQ; ALKS) to Hold from Buy following partner Johnson & Johnson's (NYSE: JNJ) decision to discontinue development of 4-week risperidone formulation.
• Collins Stewart downgraded Sigma Designs (NASDAQ: SIGM) to Hold from Buy citing the disappointing quarter and outlook.
• Jesup & Lamont downgraded Astronics (NASDAQ: ATRO) to Sell from Hold citing the company's downward 2009 guidance.
• Jackson Hewitt (NYSE: JTX) was downgraded to Perform from Outperform at Oppenheimer.
• Medical Properties (NYSE: MPW) was downgraded to Underperform from Market Perform at Wells Fargo.
• National Fuel (NYSE: NFG) was downgraded to Hold from Buy at Argus.

Analyst initiations:

• Citigroup believes Bed Bath & Beyond (NASDAQ: BBBY) will be able to meet or beat earnings expectations given its inventory management, cost savings, and solid balance sheet. The firm initiated shares with a Buy rating and $44 target.
• Kaufman Bros. initiated SeaChange (NASDAQ: SEAC) with a Buy rating and predicts that investment in video on demand will be higher than overall network capital spending. The firm believes that SeaChange's top-line trends are positive and it set an $11 target on the stock.
• Baird said Burlington Northern (NYSE: BNI) has the best commodity mix and most consistent financial models in the group. Shares were started with an Outperform rating and $100 target.
• Nationwide Health (NYSE: NHP) was initiated with a Market Perform rating at Wells Fargo.
• DineEquity (NYSE: DIN) was initiated with a Market Perform rating at Morgan Keegan.
• Alpha Natural (NYSE: ANR) was reinstated with an Overweight rating and $50 target at Barclays.