Analyst downgrades:

• KeyBanc downgraded BorgWarner (NYSE: BWA) to Hold from Buy citing Q3 earnings risk. The firm believes negative product mix, lower profitability in Europe, and slow commercial vehicle sales could persist several more quarters.
• Deutsche Bank downgraded Shanda (NASDAQ: SNDA) to Sell from Hold on concerns of IPO-related dilution as it believes the GAME spin-out does not warrant a premium. The firm lowered its target on shares to $42 from $50.10.
• Soleil downgraded Tesoro (NYSE: TSO) to Sell from Hold on valuation and concerns of declining West Coast refining margins. The firm has a $14 target on the stock.
• Goodrich (NYSE: GR) was downgraded to Buy from Conviction Buy at Goldman.
• Black & Decker (NYSE: BDK) was downgraded to Neutral from Buy at UBS.
• Kroger (NYSE: KR) was downgraded to Equal Weight from Overweight at Morgan Stanley.

Analyst initiations:

• Jefferies expects Itron (NASDAQ: ITRI) to benefit from significant growth as utility deployments accelerate in 2010. The firm started shares with a Buy rating and $77 target.
• RBC Capital believes that Vanguard National's (NYSE: VNR) valuation is attractive, in light of its healthy yield and well-balanced property portfolio. The firm set an Outperform rating and $17 target on the stock.
• PNC Financial (NYSE: PNC) was initiated with a Perform rating at Oppenheimer.
• Lindsay Corp. (NYSE: LNN) was initiated with a Market Perform rating at William Blair.
• Lamar Advertising (NASDAQ: LAMR) was initiated with a Buy rating and $29 target at Lazard Capital.
• Synaptics (NASDAQ: SYNA) was initiated with a Buy rating and $35 target at Needham.