Analyst upgrades:

• JP Morgan lowered its 2009 North American light vehicle production estimate by 13% to 11.2M and Europe by 10% to 19M. The firm upgraded Borg-Warner (NYSE: BWA) to Overweight from Neutral citing balance sheet and revenue growth.
  
• Jefferies upgraded shares of Kroger (NYSE: KR) to Buy from Hold and raised its target to $32 from $28 as they expect the company's value image to benefit in the current environment.
  
• Leerink upgraded AMAG Pharma (NASDAQ: AMAG) to Outperform from Market Perform on valuation as they believe current data is sufficient for some form of first cycle approval of Ferumoxytol.
• Coca-Cola Enterprises (NYSE: CCE) was upgraded to Neutral from Underperform at Merrill Lynch.
  
• Watsco (NYSE: WSO) was raised to Perform from Underperform at Oppenheimer.
  
• UBS upgraded Invitrogen (NASDAQ: IVGN) to Buy from Neutral.

Analyst downgrades:

• Jefferies downgraded shares of Whole Foods (NASDAQ: WFMI) to Underperform from Buy and lowered its target to $9.50 from $23 on the worsening macro environment, which they believe is "overwhelming" the company's ability to drive even flat comps in Q4 and FY09.
  
• Deutsche Bank cut Texas Instruments (NYSE: TXN) to Hold from Buy and lowered its target to $19 from $28 following the company's worse-than-expected outlook, as they expect shares to be range bound.
  
• Banc of America downgraded the Dry Bulk Shipping sector to Equal Weight from Overweight to reflect the "depressed" charter rate environment, tighter credit markets and the weakening macroeconomic outlook. The firm downgraded Britannia Bulk (NYSE: DWT), Navios Maritime (NYSE: NM) and TBS International (NASDAQ: TBSI) to Neutral from Buy.
• Eaton (NYSE: ETN) was lowered to Underperform from Neutral at Merrill Lynch.
  
• AXA (NYSE: AXA) was downgraded at JP Morgan to Neutral from Overweight.
  
• Aracrus (NYSE: ARA) was downgraded to Underweight from Equal Weight at Morgan Stanley.

Aracruz Celulose S. A. (ADR) (NYSE: ARA) is a Latin stock that trades in the U.S. market. Based in Brazil, ARA produces bleached hardwood market pulp from eucalyptus pulp. The pulp is used by paper manufacturers to produce everything from tissues to writing papers to liquid packaging boards to specialty papers. Because the growing conditions are so favorable for eucalyptus in Brazil, Aracruz is able more easily and quickly grow the tree, and produce the pulp at a much lower cost than its competitors.

I have been asked numerous times for a recommendation for a Latin stock, and that is why I am writing on ARA. Aracruz Celulose is one of the biggest players in the paper pulp market. Good news for them comes from China, where demand for paper is growing at a fast clip.

China doesn't have sufficient forests to meet the demand for pulp, and its market helps Aracruz dominate the industry. Of the world's eucalyptus pulp supply, 31% of it comes from Aracruz. This company continues to grow at an excellent clip. It is in good financial health. However, as with many international companies, keep an eye on what is going on in Brazil. It has a wild economy, and governmental meddling with regulations, new taxes etc is not infrequent, often to the detriment of investors.

Type of stock: A large cap Latin American stock in the competitive paper industry, but one that has a leg up due to economies of scale and lower cost of eucalyptus.

Price target: Currently trading at $53.37, this stock has room for upside. If it dips to $50, I'd pick it up. It's averaged 27% revenue growth in the last three years, and I don't think this rate will slow soon. But remember the geopolitical risks that come with investing in a Brazilian company.

Hilary Kramer is a financial editor and money coach for AOL and an authority on investing. Visit her at www.hilarykramer.com.