MOST NOTEWORTHY: Take-Two Interactive Software Inc (TTWO), Circuit City Stores Inc (CC) and Exxon Mobil Corp (XOM) are today's more notable downgrades:

• Both Soleil and Citigroup downgraded Take-Two Interactive Software Inc (NASDAQ: TTWO) to Sell from Hold following the company's earnings shortfall and reduced guidance.

• Piper Jaffray downgraded Circuit City Stores Inc (NYSE: CC) to Market Perform from Outperform and a $20 target, based on checks that indicate weak sales trends following Christmas.

• AG Edwards removed Exxon Mobil Corp (NYSE: XOM) from its Focus Portfolio, believing the company offers less upside potential than other companies in the energy sector...

OTHER DOWNGRADES:

• Harrah's Entertainment Inc (NYSE: HET) was cut to Neutral from Buy at Buckingham Research.

• Sasol Limited ADR (NYSE: SSL) was downgraded to Hold from Buy at Citigroup based on the persistent regulator risk.

• ThinkEquity cut Syniverse Holdings Inc (NYSE: SVR) to Source of Funds from Accumulate citing expectations for increased competition and price pressures.

• Citigroup downgraded Barr Pharmaceuticals Inc (NYSE: BRL) to Hold from buy.

• First Albany cut Shuffle Master Inc (NASDAQ: SHFL) to Neutral from Buy.

• Jefferies downgraded Omnicare Inc (NYSE: OCR) to Hold from Buy with a $44 target.

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

MOST NOTEWORTHY: Lockheed Martin Corp (LMT), Harrah's Entertainment Inc (HET) and Avaya Inc (AV) were some of today's most notable downgrades:

• JP Morgan downgraded Lockheed Martin Corp (NYSE: LMT) to Underweight from Neutral, citing Lockheed's outperformance as well as expectations for a more challenging environment for defense stocks.

• Harrah's Entertainment (NYSE: HET) was downgraded to Neutral from Add at Calyon based on the expected buyout.

• Thomas Weisel downgraded Avaya Inc (NYSE: AV) to Underweight from Market Weight based on increased concerns that shares are not sufficiently discounting transition risks associated with AV's strategic shift from telephony hardware to software and applications, driven by the shift towards VoIP from TDM technology.

OTHER DOWNGRADES:

• JP Morgan removed Dover Corp (NYSE: DOV) from its Focus List.

• Baird downgraded PRA International (NASDAQ: PRAI) to Underperform from Neutral following a disappointing Q4 report.

• Syniverse Holdings Inc (NYSE: SVR) was downgraded to Market Perform from Outperform at Raymond James and Avondale Partners; Kaufman Bros cut Syniverse to Hold from Buy, while Bear Stearns downgraded Syniverse to Underperform from Peer Perform.

• Roth Capital downgraded Shuffle Master (NASDAQ: SHFL) to Hold from Buy.

• Lazard cut Overseas Shipholding Group (NYSE: OSG) to Hold from Buy.

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

MOST NOTEWORTHY: CNET Networks (CNET) and SanDisk (SNDK) top today's extensive list of downgrades.

• CNET Networks Inc. (NASDAQ: CNET) was downgraded to Sell from Neutral at Goldman Sachs on the belief that estimates remain too high following lower than expected Q3 revenues and guidance.
• SanDisk Corp. (NASDAQ: SNDK) was downgraded at CIBC to Sector Performer from Outperform, citing the likely 1H07 NAND oversupply and the challenging in retaining M-Systems Flash Disk Pioneers (FLSH) DoK business.

OTHER DOWNGRADES:

• Bear Stearns downgraded the Lodging Sector to Market Weight from Overweight. They downgraded Highland Hospitality Corp. (NYSE: HIH), Host Hotels & Resorts, Inc (NYSE: HST) and Sunstone Hotel Investors, Inc. (NYSE: SHO) to Peer Perform from Outperform citing valuation and limited upside.
• Morgan Stanley downgraded Harrah's Entertainment Inc. (NYSE: HET) to Equal Weight from Overweight following Apollo Management's and Texas Pacific Group's offer to acquire the company. Note that shares of Harrah's were removed from Morgan's STEP Portfolio and replaced with NASDAQ 100 Index (QQQQ).
• Steve Madden Ltd. (NASDAQ: SHOO) was downgraded to Hold from Buy on valuation at Matrix USA.
• UBS downgraded Microchip Technology Inc. (NASDAQ: MCHP) to Neutral from Buy.

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