MOST NOTEWORTHY: SLM Corp, Tempur Pedic and ITT Corp were today's noteworthy downgrades:
Morgan Stanley downgraded SLM Corp. (NYSE: SLM) to Underweight from Equal Weight citing the impact on earnings from reduced government subsidies and disrupted capital markets.
Tempur Pedic (NYSE: TPX) was cut to Neutral from Overweight at JP Morgan citing the consumer slowdown and increased competition.
Credit Suisse downgraded ITT Corp. (NYSE: ITT) to Neutral from Outperform citing the surprised management changes announced last night.
OTHER DOWNGRADES:
Cowen downgraded TechTarget (NASDAQ: TTGT) to Neutral from Outperform.
Merriman lowered Jamba (NASDAQ: JMBA) to Neutral from Buy.
LSI Corp. (NYSE: LSI) was downgraded at Merrill to Neutral from Buy.
MOST NOTEWORTHY: BAE Systems, VASCO Data Security, Salesforce.com, Tempur Pedic and Fidelity National were today's noteworthy upgrades:
Goldman added BAE Systems (OTC: BAESY) to its Conviction Buy List, as they believe the company's defensive growth characteristics will lead to outperformance.
Salesforce.com Inc (NYSE: CRM) was upgraded to Outperform from Market Perform at Piper to reflect the company's strong cash flow generation and the firm's belief that CRM is a core holding in the enterprise application market.
Citigroup upgraded shares of Tempur Pedic International Inc (NYSE: TPX) to Buy from Hold, as they believe double-digit sales growth and margin expansion will drive 25% EPS growth over the next few years.
East West Bancorp (NASDAQ: EWBC) was initiated with a Buy rating and $36 target at B. Riley; the firm's target implies a 23.1% potential total return over the next twelve months including the stock's 1.35% dividend yield.
Tempur Pedic (NYSE: TPX) was started with an Outperform rating at William Blair, as they find the current valuation attractive for long-term investor given the company's strong position in the specialty sleep products.
Deutsche Bank resumed coverage of AbitibiBowater (NYSE: ABH) with a Hold rating and $29 target, citing the strength of the Canadian dollar and difficult newsprint fundamentals.
OTHER INITIATIONS:
Banc of America initiated shares of JA Solar (NASDAQ: JASO) and Trina Solar (NYSE: TSL) with Buy ratings and targets of $73 and $76, and initiated Horizon Lines (NYSE: HRZ) and Solarfun Power (NASDAQ: SOLF) with Neutral ratings and targets of $34 and $14.
MOST NOTEWORTHY: Kenneth Cole, Tempur Pedic, Biogen Idec, Cubist Pharma and ShoreTel were today's noteworthy initiations:
B. Riley started shares of Kenneth Cole (NYSE: KCP) with a Neutral rating and $21 target, citing a lack of near-term catalysts and the challenging environment for footwear companies.
William Blair resumed coverage of Tempur Pedic International (NYSE: TPX) with an Outperform rating, and finds the current valuation attractive for long-term investors.
Banc of America assumed coverage of Biogen Idec (NASDAQ: BIIB) with a Neutral rating and $79 target, as they see less than 50% probability of a sale at current prices and expect shares to trade back to pre-announcement levels in the mid-to-high $60s if no sale is made.
Cubist Pharmaceuticals (NASDAQ: CBST) was initiated with a Sector Performer rating at CIBC, citing competitive headwinds.
ShoreTel (NASDAQ: SHOR) was initiated with a Neutral rating at Nollenberger on valuation.
OTHER INITIATIONS:
UBS initiated CVS Caremark (NYSE: CVS) with a Buy rating and Rite Aid (RAD) and Walgreen (WAG) with Neutral ratings.
Caris initiated Starent Networks (NASDAQ: STAR) with an Average rating and $23 target.
MOST NOTEWORTHY: American Eagle, CVS/Caremark, Office Depot, WPP Group and Pixelworks were today's noteworthy upgrades:
American Eagle Outfitters Inc (NYSE: AEO) was upgraded to Outperform from Market Perform at Wachovia, as the firm believes momentum from a strong Spring/Summer can carry into the fall/Holiday seasons.
JP Morgan views CVS/Caremark Corporation (NYSE: CVS) as the most sophisticated healthcare offering, the largest PBM, and has first mover advantage. The firm upgraded shares to Overweight from Neutral.
JP Morgan also upgraded shares of Office Depot Inc (NYSE: ODP) to Overweight from Neutral based on valuation and potential turnaround.
Morgan Stanley upgraded WPP Group (NASDAQ: WPPGY) to Overweight from Equal Weight as they believe the company can still meet its profit forecasts and margin goals in a slowing global economy.
Jefferies upgraded shares of Pixelworks Inc (NASDAQ: PXLW) to Hold from Underperform on valuation as they no longer believe the risk/reward favors shorting at these levels.
Citigroup upgraded US Steel Corporation (NYSE: X) to Buy from Hold and raised their target to $118 to reflect operating catalysts and their expectations for domestic steel markets to improve in Q4 and 2008.
Cooper Companies Inc (NYSE: COO) was also upgraded to Buy from Hold at Citigroup despite the lowered guidance as they believe the company's products are improving and earnings upside is possible.
WestLB upgraded Continental AG (OTC: CTTAY) to Buy from Hold after the tire marker announced plans to reorganize its company structure into six divisions following the purchase of Siemens AG's (NYSE: SI) VDO automotive unit.
Bernstein also upgraded shares of BP PLC (NYSE: BP) and BG Group (NYSE: BRG) to Outperform from Market Perform.
Check Point Software Technologies (NASDAQ: CHKP) was upgraded to Outperform from Market Perform at Friedman Billings, citing checks that indicate a strong product cycle for the company's beefed up VPN/firewall product portfolio.
ValueClick (NASDAQ: VCLK) was upgraded at Citigroup to Buy from Hold on valuation, as they believe the recent correction provides a compelling entry point.
The Financial Times (subscription required) wrote that Citigroup Inc (NYSE: C) has shaken up its top management structure, giving senior status to executives outside New York in a move to recognize the bank's growth prospects abroad.
Barron's Online's (subscription required) "Weekday Trader" was positive on Teva Pharmaceutical Industries ADS (NASDAQ: TEVA), writing that despite challenges in 2007, the company could win back its crown.
OTHER PAPERS:
The Globe and Mail reported that DaimlerChrysler AG's (NYSE: DCX) Chrysler Group will eliminate 20%, or 2,000, of its 10,000 jobs in Canada.
According to French paper Les Echoes (in French), Alcatel-Lucent ADS (NYSE: ALU) is expected to announce 12,000-13,000 job cuts, or more than 15% of its work force.
Technology website CNet.com reported that Microsoft Corporation (NASDAQ: MSFT) will release Windows 6, the latest software for powering mobile phones, on Monday.
Investor's Business Daily's "New America" column was positive on bed manufacturer Tempur-Pedic International Inc (NYSE: TPX), which makes visco-elastic foam mattresses. The company has been able to stay in front by doubling its R&D and increasing its ad spending.
MOST NOTEWORTHY: Alternative Energy and Tempur Pedic (TPX) top today's list of initiations.
Citigroup initiated Evergreen Solar Inc. (NASDAQ: ESLR), SunPower Corp. (NASDAQ: SPWR) and Suntech Power Holdings (NYSE: STP) with Buy ratings and Energy Conversion Devices Inc. (NASDAQ: ENER) with a Hold rating.
Tempur Pedic International Inc. (NYSE: TPX) was initiated with a Buy at First Albany. The firm is positive on plans for increased national distribution and expanding the company's manufacturing capacity.
OTHER INITIATIONS:
Morgan Keegan initiated Microsemi Corp. (NASDAQ: MSCC) with a Market Perform, citing near-term softness and lack of visibility for the company.
The Banc of America initiated certain Business Services stocks. In the consulting space, the firm initiated Watson Wyatt Worldwide Inc. (NYSE: WW) with a Buy and Resources Connection Inc. (NASDAQ: RECN) with a Neutral. In the staffing space, the firm initiated MPS Grp Inc. (NYSE: MPS) and Labor Ready Inc. (NYSE: LRW) with Hold ratings.
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MOST NOTEWORTHY: SLM Corp, Tempur Pedic and ITT Corp were today's noteworthy downgrades:.gif){kind=logo}
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MOST NOTEWORTHY: Alternative Energy and Tempur Pedic (TPX) top today's list of initiations. 
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