MOST NOTEWORTHY: General Motors, Ford, Deutsche Bank and Credit Suisse were today's noteworthy downgrades:
Bear downgraded General Motors Corporation (NYSE: GM) to Underperform from Peer Perform and Ford Motor Company (NYSE: F) to Peer Perform from Outperform citing deterioration in the automotive consumer's ability to purchase vehicles.
ABN Amro downgrade Deutsche Bank AG (NYSE: DB) to Sell from Hold and Credit Suisse Group (NYSE: CS) to Hold from Buy on concerns of slowing revenue growth amid the subprime crisis.
OTHER DOWNGRADES:
FormFactor Inc (NASDAQ: FORM) was lowered to Neutral from Buy at Broadpoint.
MOST NOTEWORTHY: FormFactor, Inc (FORM), Graco Inc (GGG), China Telecom (CHA), Sempra Energy (SRE) and Unica Corp (UNCA) were today's noteworthy downgrades:
JP Morgan cut FormFactor (NASDAQ: FORM) to Underweight from Neutral citing expected competition from Micronics Japan, which has successfully ramped up production at its new advanced probe card factory.
CIBC's checks suggest that challenges still remain in Graco's (NYSE: GGG) contractor segment and is likely to impact results, downgrading shares to Sector Performer from Sector Outperformer.
Deutsche Bank downgraded shares of China Telecom (NYSE: CHA) to Hold from Buy to reflect slower user growth as the company added 77% fewer fixed-line customers in the first five months of 2007.
Sempra Energy (NYSE: SRE) was cut to Outperform from its Top Pick rating at RBC Capital following the company's JV announcement with the Royal Bank of Scotland (RBSPY).
Jefferies downgraded shares of Unica (NASDAQ: UNCA) to Hold from Buy after the company reported lower than expected Q3 licenses to reflect too much variance in execution...
MOST NOTEWORTHY: Palm, Inc (PALM), Reliant Energy, Inc (RRI) and Take-Two Interactive Software (TTWO) topped today's more notable downgrades:
UBS cut Palm, Inc (NASDAQ: PALM) to Reduce from Neutral citing valuation. Bank of America downgraded shares to Neutral from Buy with an $18 target and considers the risk/reward less favorable at these levels.
Bank of America also downgraded Reliant Energy (NYSE: RRI) to Sell from Neutral on valuation.
Hillard Lyons cut Take-Two Interactive Software (NASDAQ: TTWO) to Neutral from Outperform.
OTHER DOWNGRADES:
CIBC downgraded Jabil Circuit, Inc (NYSE: JBL) to Sector Performer from Outperformer following the company's disappointing outlook. Bear Stearns cut Jabil to Peer Perform from Outperform. BMO cut the company to Market Perform from Outperform.
Friedman, Billings, Ramsey downgraded shares of FormFactor, Inc (NASDAQ: FORM) to Market Perform from Outperform to reflect increased risks in the logic market and long-term growth concerns.
Matrix USA downgraded Knight Transportation (NYSE: KNX) to Hold from Buy.
American Technology downgraded shares of Comverse Technology, Inc (NASDAQ: CMVT) to Neutral from Buy as the firm believes a retreat to the $17 range is likely given the company's disappointing margin trends.
CL King cut Claire's Stores, Inc (NYSE: CLE) to Neutral from Strong Buy following the buyout offer.
Goldman downgraded Atmos Energy Corp (NYSE: ATO) to Sell from Neutral and Liz Claiborne, Inc (NYSE: LIZ) to Neutral from Buy.
MOST NOTEWORTHY: Johnson & Johnson (JNJ) led this morning's list of initiations.
Goldman Sachs reinstated Johnson & Johnson (NYSE: JNJ) with a Buy rating and $75 target.
OTHER INITIATIONS:
FormFactor Inc. (NASDAQ: FORM) was started at AG Edwards with a Buy rating and $50 target; the firm said FormFactor's advanced wafer probe cards offer semiconductor manufacturers a cost effective and yield enhancing solution for the wafer probe test process.
Bank of America initiated Peabody Energy (NYSE: BTU) with a Buy rating and $53 target based on the company's large PRB operations and low production costs.
Soleil initiated shares of Hess Corp (NYSE: HES) with a Buy rating and $62 target.
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MOST NOTEWORTHY: General Motors, Ford, Deutsche Bank and Credit Suisse were today's noteworthy downgrades: 
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