• Deutsche Bank upgraded HealthSouth (NYSE: HLS) and Rehabcare (NYSE: RHB) to Buy from Hold after raising its Post Acute Care sector view to Positive from Neutral. The firm believes volumes and margin leverage can drive better than expected Q2 results and 2009 guidance. The firm raised its target on HealthSouth shares to $16 from $12 and on Rehabcare to $28 from $19.
  
• Jefferies upgraded Moody's (NYSE: MCO) to Hold from Underperform to reflect stabilizing credit markets and its belief regulatory concerns are overstated. The firm raised its target on shares to $30 from $19.
  
• Keefe Bruyette upgraded Goldman Sachs (NYSE: GS) to Outperform from Market Perform as it finds the stock inexpensive following the better than expected results. The firm has a $195 target on shares.
• Vale (NASDAQ: VALE) was upgraded to Buy from Neutral at BofA/Merrill.
  
• CNOOC (NYSE: CEO) was upgraded to Overweight from Equal Weight at Morgan Stanley.
  
• International Game Tech (NYSE: IGT) was upgraded to Buy from Neutral at Janney Montgomery.
  

• Oppenheimer upgraded Savient Pharmaceuticals (NASDAQ: SVNT) to Perform from Underperform after the FDA's Arthritis Advisory Committee voted 14-1 in favor of approving Krystexxa for gout.
• Banc of America/Merrill upgraded Texas Instruments (NYSE: TXN) to Buy from Underperform and raised its target to $27 from $18 based on expectations that margin expansion will be higher than Street expectations.
• UBS said Nvidia (NASDAQ: NVDA) has limited downside risk given the improved outlook for the graphics processor market and professional solutions business. Shares were upgraded to Neutral from Sell and its target was raised to $11.50 from $8.
• BHP Billiton (NYSE: BHP) was upgraded to Outperform from Neutral at Macquarie.
• Neutral Tandem (NASDAQ: TNDM) was upgraded to Outperform from Neutral at Baird.
• Central Garden & Pet (NASDAQ: CENT) was upgraded to Buy from Neutral at SunTrust.

Analyst upgrades:

• Jefferies upgraded shares of Safeway (NYSE: SWY) to Hold from Underperform on valuation as they believe the company's pricing pressure and sluggish sales trends are now priced in. The firm raised its target to $23.50 from $21.
  
• Merrill upgraded Pfizer (NYSE: PFE) to Buy from Underperform citing attractive dividend yield and stabilizing businesses.
  
• Banc of America upgraded shares of Apollo Group (NASDAQ: APOL) to Neutral from Sell and raised APOL's target to $60 from $48 on valuation as they see a balanced risk/reward at current levels.
• Nucor (NYSE: NUE) was raised to Overweight from Equal Weight at Morgan Stanley.
  
• Citrix Systems (NASDAQ: CTXS) and Symantec (NASDAQ: SYMC) were upgraded to Overweight from Neutral at JP Morgan.
  
• Keefe Bruyette upgraded Jefferies Group (NYSE: JEF) and Bank of America (NYSE: BAC) to Market Perform from Underperform.

Analyst downgrades: