Analyst upgrades:

• Wachovia upgraded shares of The Goldman Sachs Group Inc (NYSE: GS) to Outperform from Market Perform on expectations for greater pricing power given Goldman's position as the largest remaining independent securities firm.
• Keefe Bruyette upgraded Investment Technology Group Inc (NYSE: ITG) to Outperform from Market Perform as they believe the company will take market share with the reshaping of the large wire-house brokerage community. The company's target was raised to $37 from $33.
• Broadpoint raised Hoku Scientific Inc (NASDAQ: HOKU) to Buy from Neutral as they believe the contract with Tianwei New Energy reduces financing risk.
• ACE Ltd (NYSE: ACE) and The Travelers Companies Inc (NYSE: TRV) were upgraded to Buy from Neutral at Goldman.
• Axcelis Technologies Inc (NASDAQ: ACLS) was upgraded to Buy from Hold and Evergreen Solar Inc (NASDAQ: ESLR) was lifted to Hold from Sell at Citigroup.

Analyst downgrades:

MOST NOTEWORTHY: Pioneer Southwest, Art Technology and Real Goods Solar were today's noteworthy initiations:

• Friedman Billings initiated Pioneer Southwest (NYSE: PSE) with an Outperform rating and $25 target. The firm believes the current valuation does not reflect potential upside from the upstream drop-downs, which would result in higher distributions.
  
• ThinkPanmure believes Art Technology (NASDAQ: ARTG) is well-positioned to benefit from a strong replatforming cycle. Shares were initiated with a Buy rating and $4.50 target.
  
• Broadpoint said Real Goods Solar (NASDAQ: RSOL) has a disciplined operational model leading to profitable growth, and started shares with a Buy rating and $10 target. ThinkPanmure also initiated Real Goods Solar with a Buy rating and $10 target and said the company is well-positioned given strong underlying trends that include higher retail electricity costs, legislative renewable energy standards and incentives, declining solar photovoltaic systems costs, and "green momentum."

OTHER INITIATIONS:

• Credit Suisse assumed Telmex International (NYSE: TII) with a Neutral rating and $18 target.
  
• Athenahealth (NASDAQ: ATHN) was initiated with a Hold rating at BB&T Capital.
  
• Western Gas Partners (NYSE: WES) was started at Citigroup with a Hold rating and $18.50 target.