Analyst Upgrades, Downgrades and Initiations: AA, D, H, INTC, NOK, PALM, POT, STX, V ...

Analyst Upgrades

Goldman upgraded Potash (POT) to conviction buy from buy and said a "near-worst-case" scenario on 2010 potash pricing is reflected in potash valuations and that they continue to expect a fundamental potash demand recovery in 2010. Note that the firm also upgraded Mosaic (MOS) to buy from neutral. Potash's price target is $138.
Morgan Stanley upgraded Alcoa (AA) to overweight from equal weight based on expectations for alumina to continue to rally in 2H10. The firm has a $22 target on the stock.
Baird upgraded Seagate (STX) to outperform from neutral and raised its target to $25 from $22 based on expectations that IT hardware spend will continue to accelerate through 2010, HDD supply conditions will continue to be constrained at least into the March quarter, and that enterprise strength and favorable supply conditions will drive shares higher in 2010.
Intel (INTC) was upgraded to overweight from equal weight at Barclays.
Resource Capital (RSO) was raised to outperform from market perform at FBR Capital.
Palm (PALM) was upgraded to hold from sell at Morgan Joseph.

Analyst Downgrades

Wells Fargo downgraded Dominion Resources (D) to market perform from outperform, based on valuation and raised its valuation range to $39 to $41.
Argus downgraded Nokia (NOK) to hold from buy, citing the company's failure to develop a compelling set of applications for its smart phones, which will result in the company losing smart phone share.
Merriman downgraded Blue Coat Systems (BCSI) to neutral from buy on valuation.
Air Products (APD) was downgraded to buy from conviction buy at Goldman.
Genzyme (GENZ) was downgraded to underweight from equal weight at Morgan Stanley.
Ameristar Casinos (ASCA) was downgraded to neutral from outperform at Macquarie.

Analyst Initiations

Morgan Stanley expects Human Genome's (HGSI) Benlysta to be the first lupus drug approved in 50 years and that investors are underestimating its peak sales and margins, pricing power and penetration across various lupus patients. The firm started shares with an overweight rating and $40 target.
Visa (V) and MasterCard (MA) were initiated with overweight ratings at Thomas Weisel.
Citigroup assumed coverage of Rockwell Collins (ROK) with a hold rating and $57 target on valuation.
BioCryst (BCRX) was initiated with an equal weight rating at Morgan Stanley.
Hyatt Hotels (H) was initiated with a market perform rating at Wells Fargo.
FirstEnergy (FE) was initiated with an equal weight rating and $51 target at Morgan Stanley.