Analyst downgrades:

• Jefferies downgraded Adobe (NASDAQ: ADBE) to Hold from Buy on valuation and risk from the Omniture (NASDAQ: OMTR) acquisition as it does not see much synergy from the deal over the near-term. The firm keeps a $39 price target on the stock.
• Goldman downgraded General Mills (NYSE: GIS) to Neutral from Buy citing slowing top line growth and relative valuation. Note that the firm prefers Fortune Brands, which was upgraded to Buy from Neutral. The firm has a $66 price target on General Mills.
• Thomas Weisel downgraded Sprint Nextel (NYSE: S) to Market Weight from Overweight as it sees a low probability of the company being acquired and believes its fundamentals continue to deteriorate. The firm lowered its target on shares to $4.50 from $6.
• Martha Stewart (NYSE: MSO) was downgraded to Underweight from Neutral at JPMorgan.
• Verizon (NYSE: VZ) was downgraded to Neutral from Buy at UBS.
• Post Properties (NYSE: PPS) was downgraded to Sell from Hold at Citigroup.

Analyst initiations:

• Citigroup started Marriott (NYSE: MAR), LaSalle Hotel (NYSE: LHO), and Starwood Hotels (NYSE: HOT) with Buy ratings and targets of $29, $22, and $36, respectively. The firm also initiated Sunstone Hotel (NYSE: SHO) and Host Hotels (NYSE: HST) with Hold ratings and targets of $7.50 and $11, respectively.
• Emergency Medical Services (NYSE: EMS) was initiated with a Buy rating and $55 target at Deutsche Bank.
• Wellpoint (NYSE: WLP) was initiated with a Hold rating at Collins Stewart.
• Arena Resources (NYSE: ARD) was initiated with a Market Perform rating at Morgan Keegan.
• Zumiez (NASDAQ: ZUMZ) was initiated with a Hold rating at Needham.