Analyst downgrades:

• Oppenheimer downgraded Lazard (NYSE: LAZ) to Perform from Outperform following the passing of CEO Bruce Wasserstein as it believes disruption could cap upside in the stock. The firm keeps a $45 price target on shares.
• Keefe Bruyette downgraded The Travelers Companies (NYSE: TRV) to Market Perform from Outperform on concerns regarding the industry's 2010 underwriting outlook. The firm has a $51 price target on shares.
• Pali Capital downgraded Invesco (NYSE: IVZ) to Neutral from Buy on valuation and believes an acquisition is needed for shares to move higher in the near-term.
• BJ Services (NYSE: BJS) and Baker Hughes (NYSE: BHI) were downgraded to Sell from Hold at Citigroup.
• Host Hotels (NYSE: HST) was downgraded to Underperform from Neutral at Baird.
• Allianz (NYSE: AZ) was cut to Neutral from Buy at BofA/Merrill.

Analyst initiations:

• Bernstein believes Petrobras (NYSE: PBR) is well positioned to benefit from Brazilian pre-salt exploration. The firm started shares with an Outperform rating and $56 target.
• Bernstein also initiated Hess (NYSE: HES) with a Market Perform rating and $62 target. The firm has concerns regarding Hess's long-term growth profile.
• BMO Capital believes that the natural gas rig market will remain competitive for an extended period, resulting in pressure on smaller companies in the sector such as Complete Production (NYSE: CPX). The firm set a Market Perform rating and $15 target on the stock.
• BMO Capital initiated Halliburton (NYSE: HAL) and Schlumberger (NYSE: SLB) with Outperform ratings and targets of $40 and $92, respecitvely, and Baker Hughes (NYSE: BHI) with a Market Perform rating and $54 target.
• Tesoro (NYSE: TSO) was initiated with an Equal Weight rating and $16 target at Morgan Stanley.