Analyst downgrades:

• Piper Jaffray downgraded Life Time Fitness (NYSE: LTM) to Neutral from Overweight on valuation and maintains a $30 price target on shares.
• Rodman & Renshaw downgraded Arena Pharmaceuticals (NASDAQ: ARNA) to Market Perform from Outperform citing valuation and recently reported competitor obesity drug data.
• Roth Capital downgraded PMFG (NASDAQ: PMFG) to Hold from Buy citing the contraction in backlog and valuation.
• Flir Systems (NASDAQ: FLIR) was downgraded to Neutral from Overweight at JPMorgan.
• Government Properties (NYSE: GOV) was downgraded to Underperform from Neutral at BofA/Merrill.
• CSX (NYSE: CSX) was downgraded to Hold from Buy at Stifel Nicolaus.

Analyst initiations:

• JPMorgan expects Netflix (NASDAQ: NFLX) to add subscribers over the near-term and successfully transition away from DVD-by-mail. The firm initiated shares with an Overweight rating and $53 price target.
• Merriman believes sales of Abraxis's (NASDAQ: ABII) Abraxane drug could double by 2013 as the EU and China territories come on line, and that the company could be an attractive acquisition target. The firm started shares with a Buy rating.
• Wells Fargo initiated Emerson Electric (NYSE: EMR) with an Outperform rating. The firm believes Emerson is well positioned as global infrastructure growth resumes and thinks expectations are FY10 are low. The firm has a $45-$47 valuation range on shares.
• Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL) were reinstated with Buy ratings and a $38 target and $26 target, respectively, at BofA/Merrill.
• Corning (NYSE: GLW) was initiated with a Neutral rating and $17 target at Goldman.
• CareFusion (NYSE: CFN) was started at Deutsche Bank with a Hold rating and $20 target.