Analyst Upgrades

• Berstein upgraded Diamond Offshore (DO) to market perform from underperform based on valuation. The firm has a $69 price target on the stock.
• Jefferies upgraded Patterson-UTI Energy (PTEN) to buy from hold, citing leverage to higher land rig pricing. The firm raised its price target to $21 from $17.
• Wunderlich upgraded Renasant (RNST) to buy from hold following the company's acquisition of Crescent Bank. The firm raised its target for shares to $20 from $15.
• AT&T (T) was upgraded to buy from hold at Deutsche Bank.
• Blackstone (BX) was upgraded to buy from neutral at BofA/Merrill.
• Scripps Networks (SNI) was upgraded to overweight from equal weight at Morgan Stanley.

American Medical Systems Holdings (NASDAQ: AMMD) provides medical solutions designed to restore the pelvic health of men and women. It manufactures and markets surgical products to urologists, gynecologists, and urogynecologists for erectile restoration, benign prostatic hyperplasia, male urethral stricture, urinary and fecal incontinence, menorrhagia, and pelvic organ prolapse. Boston Scientific (NYSE: BSX) and Johnson & Johnson (NYSE: JNJ) are major competitors.

The stock lost ground at the end of October, on a slightly weaker than expected third quarter report. It has risen fifteen percent since that time, however, on word of insider buying, a pair of upgrades, in-line to upside fourth quarter guidance and the replacement of the CEO by the COO.

MOST NOTEWORTHY: British American Tobacco, Covad Communications, Pacific Capital, Volcom and American Medical Systems were today's noteworthy downgrades:

• Goldman downgraded shares of British American Tobacco (NYSE: BTI) to Neutral from Buy on valuation.
  
• Covad Communications (NYSE: DVW) was lowered to Hold from Buy at Jefferies. The firm downgraded shares after Platinum Equity Holdings agreed to acquire the company.
• Keefe Bruyette downgraded Pacific Capital Bancorp (NASDAQ: PCBC) to Market Perform from Outperform following its Q3 credit loss pre-announcement.
  
• ThinkEquity reduced Volcom (NASDAQ: VLCM) to Accumulate from Buy following its reduced guidance.
  
• American Medical Systems (NASDAQ: AMMD) was downgraded to Market Perform from Outperform at Raymond James and at Piper Jaffray. Piper downgraded shares following the lower-than-expected Q3 results. Shares were also downgraded to Hold from Buy at Stifel following the weak Q3 report.

OTHER DOWNGRADES:

• Citigroup downgraded Mechel OAO (NYSE: MTL) to Hold from Buy.
  
• Hutchison Telecommunications (NYSE: HTX) was downgraded to Neutral from Overweight at JP Morgan.
  
• Las Vegas Sands (NYSE: LVS) was downgraded to Market Perform from Outperform at BMO Capital.
  

MOST NOTEWORTHY: Broadcom Corp (BRCM) and American Medical Systems Holdings (AMMD) were today's notable initiations.

• Merrill Lynch reinstated Broadcom Corp (NASDAQ: BRCM) with a Buy rating and $42 target to reflect the company's secular growth story.

• Thomas Weisel started American Medical Systems Holdings (NASDAQ: AMMD) with an Overweight rating and $16 target; the firm says American Medical is a leader in surgical urology and gynecology and sees upside from the company's full pipeline.

OTHER INITIATIONS:

• NaviSite inc (NASDAQ: NAVI) was initiated with a Market Weight rating at Thomas Weisel.

• Medicis Pharmaceutical Corp (NYSE: MRX) was initiated with a Buy rating and $45 target at Jefferies.

• Soleil initiated Amylin Pharmaceuticals Inc (NASDAQ: AMLN) with a Hold rating.

• DA Davidson started Allegheny Technologies Inc (NYSE: ATI) with a Buy rating.

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