• Pharmion Corp (NASDAQ: PHRM) was downgraded to Sell from Source of Funds at ThinkEquity, citing valuation.

• Matrix USA downgraded Genesis Microchip Inc (NASDAQ: GNSS) to Strong Sell from Hold to reflect a share decline in revenues; they also believe shares are overvalued relative to the sector.

• SanDisk Corp (NASDAQ: SNDK) was cut to Hold from Buy at WR Hambrecht. The firm said it has learned that a crack in the IP story has occurred, as Samsung has found a way to significantly reduce its royalty payments to SanDisk on its finished SD cards that it is currently shipping. The firm said this step by Samsung puts at risk ~15% of SanDisk royalty revenues as early as Q2:07, as Samsung is no longer willing to pay the 8% royalty rate to SanDisk on NAND MLC SD cards.

• Stephens downgraded Group 1 Automotive Inc (NYSE: GPI) to Equal Weight from Overweight following disappointing Q1 results.

• JMP Securities downgraded Flanders Corp (NASDAQ: FLDR) to Market Perform from Outperform.

• Oppenheimer cut ValueClick Inc (NASDAQ: VCLK) to Neutral from Buy on valuation.

• Matrix USA downgraded L-1 Identity Solutions (NYSE: ID) to Sell from Buy on valuation.

• Goldman took Medco Health Solutions Inc (NYSE: MHS) off its Conviction Buy List, citing valuation.

• Raymond James lowered Hiland Holdings (NASDAQ: HPGP) rating to Outperform from Strong Buy.

• JP Morgan cut Waters Corp (NYSE: WAT) to Neutral from Overweight based on valuation.

Analyst downgrades 2-22-07: SanDisk & ValueClick downgraded today originally appeared on BloggingStocks on Thu, 22 Feb 2007 11:30:00 EST. Please see our terms for use of feeds.