Analyst upgrades, downgrades and initiations: AMAT, CSCO, GD, HOT, LIZ, RBS ...

Analyst upgrades:

Collins Stewart upgraded General Dynamics (NYSE: GD) to Buy from Hold as it finds the valuation compelling at current levels and sees potential upside from a better economy and better-than-expected defense budgets.
SunTrust views the sell-off in shares of Cabot Oil (NYSE: COG) as a buying opportunity and expects the Pennsylvania Department of Environmental Protection order to be resolved quickly. The firm upgraded Cabot to Buy from Neutral.
Barclays upgraded Cisco (NASDAQ: CSCO) to Overweight from Equal Weight based on expectations for improved carrier demand, continued U.S. momentum, and an improved Europe.
Applied Materials (NASDAQ: AMAT) was upgraded to Buy from Hold at Citigroup.
Stericycle (NASDAQ: SRCL) was upgraded to Gradually Accumulate from Hold at Soleil.
Grupo Televisa (NYSE: TV) was upgraded to Neutral from Sell at Goldman.

Analyst downgrades:

Oppenheimer downgraded TCF Financial (NYSE: TCB) to Perform from Outperform as it believes the company could lower fees charged to customers ahead of any potential regulatory changes, putting profitability at risk.
Citigroup downgraded MEMC Electronic (NYSE: WFR) to Hold from Buy after channel checks indicated the company's poly production issues remain unresolved. The firm lowered its target on shares to $20 from $24 and removed the stock from its Top Picks Live List.
Argus downgraded JoS. A. Bank (NASDAQ: JOSB) to Hold from Buy based on valuation.
Liz Claiborne (NYSE: LIZ) was downgraded to Neutral from Buy at Goldman.
Royal Bank of Scotland (NYSE: RBS) was downgraded to Sell from Hold at ING Group.
Jones Apparel (NYSE: JNY) was downgraded to Neutral from Buy at Goldman.

Analyst initiations:

Merriman believes Facet (NASDAQ: FACT) has a late-stage clinical asset with a high probability of success and a robust development-stage pipeline, and initiated the company with a Buy rating.
Auriga expects Thoratec (NASDAQ: THOR) to receive FDA approval for its HeartMate II in Q1 of 2010, and initiated the company with a Buy.
Starwood Hotels (NYSE: HOT) was initiated with a Hold at Collins Stewart.
Navistar (NYSE: NAV) was initiated with an Equal Weight at Barclays.
Heritage Financial (NASDAQ: HFWA) was initiated with an Outperform at Keefe Bruyette.