Analyst upgrades, downgrades and initiations: AXP, BHP, KBH, MSFT, TROW, USB ...

Analyst downgrades:

• Rochdale's Dick Bove downgraded U.S. Bancorp (NYSE: USB) to Neutral from Buy, as Bove thinks that banks' share prices don't reflect the effect of financial reform legislation on profits.
• Gabelli downgraded T. Rowe Price (NASDAQ: TROW) to Hold from Buy on valuation.
• J. Crew (NYSE: JCG) was downgraded to Hold from Buy on valuation by Brean Murray.
• SunTrust (NYSE: STI) was downgraded to Sell from Neutral by Rochdale's Dick Bove, who believes that SunTrust's Florida loan losses and housing markets may lead to losses until the start of 2011.
• Morgan Stanley dropped H&R Block (NYSE: HRB) to Underweight from Equal Weight.
• Deutsche Bank downgraded British Airways (OTC: BAIRY) to Sell from Hold.
• BofA/Merrill dropped Stericycle (NASDAQ: SRCL) to Underperform from Buy.

Analyst initiations:

• Credit Suisse initiated Aeropostale (NYSE: ARO) with a Neutral rating and $40 target, and also initiated Urban Outfitters (NASDAQ: URBN) with a Neutral rating and $33 target.
• Deutsche Bank started KB Home (NYSE: KBH) with a Hold rating.
• HSBC launched BHP Billiton (NYSE: BHP) with a Hold rating and $17 target, and also initiated Anglo American (OTC: AAUKY) with a Hold rating.
• Delphi Financial (NYSE: DFG) was initiated with an Outperform rating by Keefe Bruyette.
• JMP Securities initiated Omega Healthcare (NYSE: OHI) with a Market Perform rating.