Analyst downgrades:

• Canaccord downgraded Rio Tinto (NYSE: RTP) to Hold from Speculative Buy based on concerns that group earnings will be at a "low point" in the second half of 2009.
• Jefferies assumed coverage of Cephalon (NASDAQ: CEPH) and downgraded the stock to Hold from Buy. The firm believes the 2010 consensus estimate for net income is too high and set a $58 target price on shares.
• Piper downgraded Nokia (NYSE: NOK) to Neutral from Overweight on valuation and believes material improvement in the company's device portfolio is unlikely until at least the second half of 2010. The firm lowered its target on shares to $14 from $16.
• Avery Dennison (NYSE: AVY) was downgraded to Sell from Neutral at UBS.
• XTO Energy (NYSE: XTO) was downgraded to Hold from Buy at Deutsche Bank.
• eHealth (NASDAQ: EHTH) was downgraded to Neutral from Buy at Merriman.

Analyst initiations:

• Bernstein started Bank of America (NYSE: BAC) with an Outperform rating and $25 target. The firm believes Bank of America's valuation is attractive relative to its long-term earnings power.
• Keefe Bruyette expects continued operating losses from Citigroup (NYSE: C) and thinks the company's risk reduction process is unlikely to be quick. Shares were assumed with a Market Perform rating and $4.20 target.
• Jefferies initiated Forest Labs (NYSE: FRX) with a Buy rating and $36 target and believes the Street is underestimating the potential for Forest's Daxas.
• E-Trade (NASDAQ: ETFC) was initiated with a Hold rating at Collins Stewart.
• First Solar (NASDAQ: FSLR) was initiated with a Buy rating and $185 target at Janney Montgomery.
• Excel Maritime (NYSE: EXM) was initiated with a Hold rating and $7.50 target at Citigroup.