Liz Claiborne Inc. (NYSE: LIZ) dropped a bombshell today, announcing that it will move decidedly down-market and give up the department store business that made the name an icon.

Instead, Liz Claiborne and Claiborne will be sold exclusively through JCPenney in the United States, and the much-anticipated Isaac Mizrahi-designed Liz Claiborne New York line will be sold exclusively by QVC.

In a press release, the company touted the financial prospects for the deal: "As a result of these agreements, the company expects the Liz Claiborne wholesale brand franchise to swing from a meaningful adjusted operating loss in 2009 to a targeted adjusted operating profit in 2010."

Analyst upgrades:

• Merriman upgraded Sunpower (NASDAQ: SPWRA) two levels to Buy from Sell after transitioning coverage. The firm believes Sunpower is emerging from the current recession as the CleanTech leader and has a $38-$48 price range on shares.
• Citigroup upgraded Varian Medical (NYSE: VAR) to Buy from hold as it believes capex pressure and health care reform uncertainty is priced into shares, and demand will return as hospital budgets stabilize. Citi raised its target on shares to $45 from $36.
• FBR Capital upgraded Gap (NYSE: GPS) to Outperform from Market Perform following the Q2 results to reflect product improvement and ongoing inventory control. The firm raised its target on shares to $24 from $18.
• Schnitzer Steel (NASDAQ: SCHN) was upgraded to Neutral from Sell at UBS.
• UDR Inc. (NYSE: UDR) was upgraded to Market Perform from Underperform at Wells Fargo.
• The Buckle (NYSE: BKE) was upgraded to Buy from Hold at Roth Capital.

MOST NOTEWORTHY: Lubrizol, BioMarin Pharmaceutical and Novartis were today's noteworthy downgrades:

• Jefferies downgraded shares of Lubrizol (NYSE:LZ) to Hold from Buy as they expect persistent raw material cost pressures to limit upside over the next few quarters. The firm lowered their target price to $60 from $65.
  
• Citigroup cut BioMarin (NASDAQ:BMRN) to Hold from Buy after their survey indicated an upside surprise from the Kuvan launch is unlikely. The firm lowered their target price to $37 from $42.
  
• HSBC downgraded shares of Novartis (NYSE:NVS) to Underweight from Neutral following the company's stake in Alcon (NYSE:ACL) as they believe it dilutes the company's return on assets.

OTHER DOWNGRADES:

• Goldman removed Waste Management (NYSE:WMI) from its Conviction Buy List.
  
• Thomas Weisel downgraded Kinross Gold (NYSE:KGC) to Market Weight from Overweight.
  
• Dreamworks Animation (NYSE:DWA) was lowered at UBS to Sell from Neutral.
  
• JP Morgan downgraded Martha Stewart (NYSE:MSO) to Neutral from Overweight.

MOST NOTEWORTHY: Continental Airlines, Inc (CAL), Molson Coors Brewing Co (TAP), Watsco, Inc (WSO), K-V Pharmaceutical Co (KV.A), Progressive Corp (PGR) and Color Kinetics (CLRK) were today's noteworthy downgrades:

• Goldman downgraded shares of Continental Airlines, Inc (NYSE: CAL) to Neutral from Buy on valuation, higher oil prices and a weak domestic market.

• Goldman also downgraded Molson Coors Brewing Co (NYSE: TAP) to Neutral from Buy based on the increase in analyst estimates, valuation and the potential for margin pressure in the summer.

• BB&T cut Watsco, Inc (NYSE: WSO) to Hold from Buy based on valuation and catalysts that are already reflected in the share price.

• Roth Capital downgraded shares of K-V Pharmaceutical Co (NYSE: KV.A) to Hold from Buy, telling clients they have learned that Par Pharmaceuticals Cos (PRX) has launched generics of 50, 100 and 200mg Toprol-XL. The firm expects a material impact to KV's 100 and 200mg strength generics.

• Stifel expects investor enthusiasm regarding Progressive's Corp (NYSE: PGR) recapitalization plan to fade as underwriting fundamentals deteriorate and cut shares to Sell from Hold.

• Color Kinetics (NASDAQ: CLRK) was downgraded to Hold from Sell at Needham on valuation...

OTHER DOWNGRADES:

• Citigroup cut The Phoenix Co's (NYSE: PNX) to Hold from Buy.

• KeyBank downgraded Lubrizol Corp (NYSE: LZ) to Hold from Buy.

• Goldcorp Inc (NYSE: GG) and Freeport-McMoRan Copper & Gold Inc (NYSE: FCX) were downgraded to Market Perform from Outperform at BMO Capital.

• Susquehanna downgraded Build-A-Bear Workshop, Inc (NYSE: BBW) to Neutral from Positive.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

To a significant degree, the national infrastructure is dependent on the lubrication properties of various hydrocarbon substances. A leader in the art of enhancing those properties is headquartered in Wickliffe, Ohio.

Lubrizol Corporation (NYSE: LZ) is a specialty chemical company, operating through two units. The Additives segment offers a range of substances that enhance the performance of engine oils, fuels and oilfield chemicals. It also supplies viscosity improvers and additives for paints, inks and greases. The company's Advanced Materials segment offers a diverse portfolio of performance chemicals used in personal care products, pharmaceuticals, coating emulsions and specialty plastics. A key competitor is Chevron Corporation (NYSE: CVX) subsidiary Chevron Oronite.

The firm pleased investors last week, when it issued upside guidance for Q1. Management said it expected EPS of 98 cents, twenty-two cents above the average Street estimate. Officials noted that shipment volumes in the quarter were higher than expected and reflected a return to normal order patterns. Jefferies and Deutsche Securities subsequently reiterated their "buy" ratings on the stock and boosted their price targets to $65.