Analyst upgrades, downgrades and initiations: CBS, H, HOT, MT, NWS, WFC, XTO ...

Analyst Downgrades

• RBC Capital downgraded XTO Energy (XTO) to sector perform from outperform after ExxonMobil (XOM) announced that it would acquire XTO. The firm set a $51 target on XTO.
• Keefe Bruyette downgraded FICO (FICO) to underperform from market perform on expectations recessionary pressures will weigh on the Business Information Services sector in 2010. The firm lowered its target on shares to $16 from $19.
• JMP Securities downgraded Starlims Technologies (LIMS) to market perform from outperform following the company's acquisition by Abbott (ABT).
• Jefferies downgraded American Electric (AEP) to hold from buy but raised its target to $37.50 from $36 based on valuation.
• Honeywell (HON) was downgraded to underweight from neutral at HSBC.
• CBS (CBS) was cut to neutral from buy at UBS.
• HCP Inc. (HCP) was downgraded to neutral from buy at BofA/Merrill.

Analyst Initiations

• Wells Fargo resumed coverage of Bemis (BMS) with an outperform rating. The firm thinks the market is failing to take the potential of the Alcan deal into account.
• Citigroup believes Hyatt (H) trades at an attractive relative valuation. Shares were started with a buy rating and $36 target. Shares were also initiated at Goldman with a buy rating and $36 target and with a neutral rating and $28 target at Baird.
• Roth Capital said Tyler Technologies (TYL) is a steady grower with a long-tenured management team and has a compelling medium-term catalyst from its joint venture with Microsoft (MSFT). The firm intitiated shares with a buy rating and $23 target.
• Express Scripts (ESRX) was initiated with a buy rating and $108 target at BB&T.
• WESCO International (WCC) was assumed with a hold rating at KeyBanc.
• Emerson Electric (EMR) coverage was resumed with an equal weight rating and $43 target at Morgan Stanley.