"There's a lot more consolidation ahead for the utility sector. Indeed, deal-making is picking up again," says utility sector specialist Roger Conrad.

The editor of Utility Forecaster explains, "CH Energy Group (CHG), Consolidated Communications (CNSL) and MarkWest Energy Partners LP (MWE) are three stocks that each meet my prime directive for takeover plays: Never buy anything you wouldn't want to own if no deal occurs.

MOST NOTEWORTHY: Career Education Corp (CECO) and Expedia Inc (EXPE) were today's most notable downgrades:

• Prudential downgraded Career Education Corp (NASDAQ: CECO) to Underweight from Neutral with a $20 target based fourth quarter results and guidance.

• Expedia inc (NASDAQ: EXPE) was downgraded to Sector Performer from Sector Outperformer based on a deteriorating outlook and valuation following the weak fourth quarter.

OTHER DOWNGRADES:

• Various retail dining companies were downgraded today:
  
• Denny's Corp (NASDAQ: DENN) was reduced to Neutral from Buy at Merriman, citing weak traffic trends and the net unit growth delay into 2008.
• UBS downgraded Applebee's Int'l Inc (NASDAQ: APPB) to Neutral from Buy as they believe sales and traffic declines are likely to continue until easier comps in the second quarter.
  
• BB&T downgraded California Pizza Kitchen Inc (NASDAQ: CPKI) to Hold from Buy on valuation and concerns about earnings visibility.
  

• Constellation Brands Inc (NYSE: STZ) was cut to Neutral from Buy at Goldman Sachs on concerns around upcoming guidance and their belief that a recovery in the U.K. and Australia is at least a year away.
  

• Goldman downgraded WellCare Health Plans Inc (NYSE: WCG) to Sell from Neutral.
  

• Citigroup downgraded Petrobras Energia Participaciones ADS (NYSE: PZE) and Consolidated Communications Holdings Inc (NASDAQ: CNSL) to Sell from Hold.
  

• WedBush downgraded Take-Two Interactive Software (NASDAQ: TTWO) to Sell from Hold with a $15 target to reflect less optimism about the company's sport franchise and risk from the NY AG investigation.

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