Analyst Upgrades

• Soleil upgraded Starwood Hotels (HOT) to buy from hold, citing accelerating RevPAR comps and valuation. The firm upped its target for shares to $57 from $55.
• TD Newcrest upgraded Ivanhoe Mines (IVN) to speculative buy from hold based on valuation.
• BMO Capital upgraded Power Integrations (POWI) and ON Semiconductor (ONNN) to outperform from market perform based on valuation. The firm has a $45 target on Power Integrations and a $9 target on ON Semiconductor.
• Priceline.com (PCLN) was upgraded to buy from neutral at Goldman.
• Reliance Steel (RS) was upgraded to buy from neutral at UBS.
• AXA (AXA) was upgraded to add from neutral at WestLB.
  

Analyst Upgrades

• RBC Capital upgraded FMC Technologies (FMC) to outperform from sector perform. The firm upgraded shares based on expectations that subsea order flow and backlog will be significantly higher than previous forecasts. The firm has a $70 target on shares.
• Citigroup upgraded ONEOK Partners LP (OKS) to buy from hold due to valuation and maintains a $65 price target on the stock.
• Needham upgraded Autodesk (ADSK) to buy from hold following the Q4 report and guidance. The firm has a $31 target on the stock.
• Morgan Stanley upgraded Under Armour (UA) to equal weight from underweight, citing valuation. The firm raised its target to $27 from $23.
• EOG Resources (EOG) was upgraded to buy from neutral at Goldman.
• FPL Group (FPL) was upgraded to outperform from neutral at Credit Suisse.
• Novo Nordisk (NVO) was upgraded to buy from hold at Jefferies.

Analyst Upgrades

• Deutsche Bank upgraded Viacom (VIA) to buy from hold due to valuation and expectations that share buybacks will resume this year. The firm raised its price target on shares to $37 from $28.
• Canadian Natural (CNQ) was upgraded to outperform from neutral at Credit Suisse. The firm upgraded shares based on valuation and the outlook for heavy crude.
• UBS upgraded Key Energy (KEG) to buy from neutral, citing increased E&P well spending, a possible shorter term rally in gas activity and improved utilization. Target raised to $12.50 from $9.50.
• Shire (SHPGY) was raised to outperform from perform at Oppenheimer.
• PNC Financial (PNC) was upgraded at Bernstein to outperform from market perform.
• Pacer International (PACR) was upgraded to buy from hold at BB&T.

Nine catastrophe bonds have matured so far in the first quarter of 2010, removing $1.8 billion in risk-transfer capacity, according to data from Reuters. The insurance industry has compensated with $508 million in new cat bond risk capital, with the busy fourth quarter helping to absorb what is maturing now. Only one cat bond has closed so far this year, The Hartford's (HIG) $180 million Foundation Re III. But, the first quarter is usually a quiet one for the cat bond market.

It partly replaces the $105 million in protection that Foundation Re D afforded. Swiss Re (SWCEY) and SCOR (SCRYY) are also among the insurance companies with bonds maturing that have at least partial coverage from new cat bond issuances. Another four bonds have matured, however, with no new related issuance, affecting Munich Re (MURGY), AXA (AXA) and others.

Analyst upgrades:

• JP Morgan lowered its 2009 North American light vehicle production estimate by 13% to 11.2M and Europe by 10% to 19M. The firm upgraded Borg-Warner (NYSE: BWA) to Overweight from Neutral citing balance sheet and revenue growth.
  
• Jefferies upgraded shares of Kroger (NYSE: KR) to Buy from Hold and raised its target to $32 from $28 as they expect the company's value image to benefit in the current environment.
  
• Leerink upgraded AMAG Pharma (NASDAQ: AMAG) to Outperform from Market Perform on valuation as they believe current data is sufficient for some form of first cycle approval of Ferumoxytol.
• Coca-Cola Enterprises (NYSE: CCE) was upgraded to Neutral from Underperform at Merrill Lynch.
  
• Watsco (NYSE: WSO) was raised to Perform from Underperform at Oppenheimer.
  
• UBS upgraded Invitrogen (NASDAQ: IVGN) to Buy from Neutral.

Analyst downgrades:

• Jefferies downgraded shares of Whole Foods (NASDAQ: WFMI) to Underperform from Buy and lowered its target to $9.50 from $23 on the worsening macro environment, which they believe is "overwhelming" the company's ability to drive even flat comps in Q4 and FY09.
  
• Deutsche Bank cut Texas Instruments (NYSE: TXN) to Hold from Buy and lowered its target to $19 from $28 following the company's worse-than-expected outlook, as they expect shares to be range bound.
  
• Banc of America downgraded the Dry Bulk Shipping sector to Equal Weight from Overweight to reflect the "depressed" charter rate environment, tighter credit markets and the weakening macroeconomic outlook. The firm downgraded Britannia Bulk (NYSE: DWT), Navios Maritime (NYSE: NM) and TBS International (NASDAQ: TBSI) to Neutral from Buy.
• Eaton (NYSE: ETN) was lowered to Underperform from Neutral at Merrill Lynch.
  
• AXA (NYSE: AXA) was downgraded at JP Morgan to Neutral from Overweight.
  
• Aracrus (NYSE: ARA) was downgraded to Underweight from Equal Weight at Morgan Stanley.

Markets in Europe rose sharply at 4:40 AM New York time.

The FTSE was up 3.3% to 5,678. Barclays (NYSE: BCS) was up 10.2% to 472.75. Lloyds was up 7.1% to 465.

The DAXX rose 3.2% to 6,519. Deustche Bank (NYSE: DB) was up 5% to 73.78 marks. Siemens (NYSE: SI) was up 2.5% to 58.7.

The CAC 40 traded up 3.2% to 4,680. Alcatel-Lucent (NYSE: ALU) was up 4.7% to 3.54 francs. AXA (NYSE: AXA) was up 4.6% to 22.05.

Data from Reuters.

Douglas A. McIntyre is an editor at 247wallst.com.

The big run-up in shares in Asia did not make it over to Europe. Concerns about the global economy still appear to be too great.

At 5 AM New York time, the FTSE was off .9% to 5,688. Commodity proxy and miner BHP Billiton (NYSE: BHP) was off 3.7%, GlaxoSmithKline (NYSE: GSK) was off 2.1%, so Big Pharma did not appear to be making a comeback.

In Germany, the DAXX fell off 1.7% to 6,658. Multi-national Siemens (NYSE: SI) held its own, down only 0.4%.

In France, the CAC 40 was down .8% to 4,805. France Telecom (NYSE: FTE) sank 2.3% to 23.25. But global financial services company AXA (NYSE: AXA) rose .7%.

Data from Reuters.

Douglas A. McIntyre is an editor at 247wallst.com.

Markets in Europe are taking a huge beating at 7.05 AM US time.

The London FTSE is down almost 5% to 5,610. BHP Billiton (NYSE: BHP) is off 6.4% Rio Tinto (NYSE: RTP) is off almost 7%.

The German DAXX is off 6.2% to 6,864. DeutscheBank (NYSE: DB) is off over 7%. Siemen (NYSE: SI) is down 6.5%.

The French CAC 40 is trading down 6.4% to 4,793. AXA (NYSE: AXA) is down 7.9%. Societe Generale is off 8.3%.

Data from Reuters.

Douglas A. McIntyre is an editor at 247wallst.com.

MOST NOTEWORTHY: New York Times, Finlay Enterprises and AXA were today's noteworthy downgrades:

• Banc of America downgraded shares of New York Times Co. (NYSE: NYT) to Sell from Neutral and lowered their target to $14 from $21, as they believe the luxury categories, which represent 28% of NYT's national ad revenue, are not recession proof and that the company is also vulnerable to a cyclical contraction in the financial services sector.
• B. Riley lowered its rating on Finlay Enterprises (NASDAQ: FNLY) to Sell from Neutral to reflect the weak consumer environment, higher gold prices, and lower sales expectations for Bailey.
• Goldman downgraded shares of AXA (NYSE: AXA) to Sell from Buy and added AXA to their Conviction Sell List on valuation and the company's exposure to the equity markets.

OTHER DOWNGRADES:

• Volkswagen AG (OTC: VLKAY) was downgraded to Sell from Hold at Societe Generale.
• Deutsche Bank cut Air France KLM (NYSE: AKH) and Ryanair (NASDAQ: RYAAY) to Hold from Buy.

MOST NOTEWORTHY: Chevron, AXA and Emageon were today's noteworthy upgrades:

• Bears Stearns upgraded shares of Chevron (NYSE:CVX) to Outperform from Peer Perform after raising their oil price assumption for 2008 to $75 per barrel from $60 per barrel. They believe CVX should benefit from stronger earnings.
  
• AXA (NYSE:AXA) was raised to Outperform from Neutral at Credit Suisse, as they believe positive Q4 sales results will ease concerns on the impact of the economic slowdown.
  
• Friedman Billings raised its rating on Emageon (NASDAQ:EMAG) to Outperform from Market Perform based on valuation and the belief that the Q4 EPS turnaround is on track.

OTHER UPGRADES:

• Punk, Ziegel upgraded Washington Mutual (NYSE:WM) and Key Corp (NYSE:KEY) to Market Perform from Sell.
  
• Lehman upgraded CaviumNetworks (NASDAQ:CAVM) to Overweight from Equal Weight.
  
• StatoilHydro (NYSE:STO) was upgraded to Hold from Sell at ING.

MOST NOTEWORTHY: Boston Scientific (BSX), Medtronic (MDT), St. Jude Medical (STJ), Bankrate (RATE) and AXA (AXA) were today's noteworthy initiations:

• Thomas Wiesel initiated coverage of the Medical Devices Industry:
• Boston Scientific (NYSE: BSX) was initiated with an Underweight rating, expecting shares to Underperform peers due to reductions in estimates, risks to the stent business and valuation.
  
• Medtronic (NYSE: MDT) was initiated with an Overweight rating, saying attractively valued as they believe the growth in underlying markets may be more robust than the current sentiment suggests.
  
• St. Jude Medical (NYSE: SJT) was initiated with an Overweight rating, saying shares offer exposure to attractive drivers, a management team with the best track record in the segment, and a potential acquisition candidate.
  

• Stephens believes the recent weakness in Bankrate (NASDAQ: RATE) due to "turmoil" in the market has created an attractive entry point, starting shares with an Overweight rating.

• Morgan Stanley assumed coverage of AXA (NYSE: AXA) with an Overweight rating, citing an attractive risk/reward and strong free cash flow...

OTHER INITIATIONS:

• S1 Corp (NASDAQ: SONE) was initiated with a Market Perform rating at Avondale.

• Needham started Blue Coat Systems (NASDAQ: BCSI) with a Buy rating.

• Credit Suisse initiated AK Steel (NYSE: AKS) with a Neutral rating.

• Jefferies started Molex (NASDAQ: MOLX) with a Hold rating.

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

MOST NOTEWORTHY: Odyssey Re Holdings Corp (ORH) was today's only notable initiation:

• Shares of the reinsurance underwriter Odyssey Re Holdings Corp (NYSE: ORH) was initiated at Citigroup with a Sell rating and $39 target, citing high valuation, the impact from past legacy underwriting business and risk of further SEC investigation related to majority shareholder Fairfax Financial Holdings Ltd (FFH).

OTHER INITIATIONS:

• UBS started PetSmart inc (NASDAQ: PETM) with a Neutral rating and $35 target.

• Bear Stearns initiated Autodesk inc (NASDAQ: ADSK) with a Peer Perform rating.

• B. Riley started Design Within Reach Inc (NASDAQ: DWRI) with a Buy rating and $10 target.

• Goldman Sachs resumed coverage of AXA Financial ADS (NYSE: AXA) with a Buy rating.

• Credit Suisse started CB Richard Ellis Group Inc (NYSE: CBG) with an Outperform rating and $44 target.

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