Analyst downgrades:

• UBS downgraded Smith & Nephew (NYSE: SNN) to Neutral from Buy based on a more cautious view on growth for the orthopedic market.
• Baird said Cephalon's (NASDAQ: CEPH) Nuvigil launch is proving not to be a catalyst and that the growth picture looks challenging. The firm downgraded shares to Neutral from Outperform and cut shares to $59 from $74.
• Canaccord downgraded St. Jude (NYSE: STJ) to Hold from Buy following Tuesday's lower-than-expected results.
• Robbins & Myers (NYSE: RBN) was downgraded to Hold from Buy at BB&T.
• Aeropostale (NYSE: ARO) was downgraded to Underweight from Neutral at Piper Jaffray.
• British Airways (OTC: BAIRY) was downgraded to Sell from Hold at Societe Generale.

Analyst initiations:

• Aurgia believes Ann Taylor (NYSE: ANN) shares should trade at a premium to peers given the company's improved merchandising, focus on inventories, and sourcing and cost-reduction initiatives. The firm started shares with a Buy rating and $18 target.
• The firm also initiated New York & Co. (NYSE: NWY) with a Hold rating and $5.50 target. Auriga believes New York & Co.'s improved merchandise may not be enough to drive results and finds the stock fairly valued at current levels.
• Jefferies finds Ulta Salon's (NASDAQ: ULTA) valuation not compelling following the recent rally in shares. Shares were initiated with a Hold rating and $16 target.
• PetSmart (NASDAQ: PETM) was initiated with an Outperform rating at Wells Fargo.
• Quanta Services (NYSE: PWR) was initiated with an Overweight rating and $28 target at Stephens.
• National Oilwell Varco (NYSE: NOV) was initiated with a Positive rating and $51 target at Susquehanna.