Analyst downgrades:

• Goldman cut JCPenney (JCP) to sell from neutral and lowered its target to $32 from $36. The firm expects JCPenney's focus on margins to impact its top line.
• Oppenheimer downgraded Cadence Pharma (CADX) to perform from outperform following the announcement that the FDA has delayed the PDUFA for Acetavance by three months to February 12, 2010. The firm has concerns regarding the FDA's request for additional clinical pharmacology data.
• Merriman downgraded ZAGG (ZAGG) to neutral from buy as it believes that the company's FY10 guidance may be too optimistic and leaves little room for error.
• Dollar Tree (DLTR) was downgraded to neutral from buy at Goldman; the firm lowered its target to $52 from $54.
• WuXi PharmaTech (WX) was downgraded to neutral from outperform at Credit Suisse.
• Shire (SHPGY) was downgraded to hold from buy at Lazard Capital.

Analyst initiations:

• Deutsche Bank views Lear's (LEARQ) valuation as compelling following its emergence from bankruptcy. The firm started shares with a buy rating and $77 target.
• Auriga believes that Research In Motion (RIMM) is poised to exploit the growth in smartphones, but the firm believes that the company also faces significant competitive threats that balances the stock's risk/reward scenario. The firm set a hold rating and $66 target on Research In Motion.
• Jefferies is cautious about Lance (LNCE) as the firm thinks that the company's DSD work could result in continued dislocation. The firm set a hold rating and $26 target on the stock.
• Deutsche Bank initiated Novartis (NVS) and Sanofi-Aventis (SNY) with buy ratings and AstraZeneca (AZN) and GlaxoSmithKline (GSK) with hold ratings.
• Ingram Micro (IM) was initiated with a neutral rating at BofA/Merrill.