Wednesday's Analysts' Upgrades and Downgrades

CHANGE IN RATINGS

Alcoa (AA Quote) was upgraded from Neutral to Buy at Merrill Lynch. $45 price target. Estimates also raised, to reflect higher aluminum prices.

Anadarko Petroleum (APC Quote) upgraded at Bernstein from Underperform to Market Perform. Valuation call, driven by the seasonal natural gas trade.

BP(BP Quote) upgraded at Bernstein to Outperform. Risks remain, but the European integrateds look particularly attractive here. New production and refining restarts also provide potential catalysts.

Century Aluminum (CENX Quote) was upgraded from Neutral to Buy at Merrill Lynch. $61 price target. Expect aluminum prices to keep rising over the short and long term.

ConocoPhillips (COP Quote) was downgraded from Outperform to Market Perform. Recent positive corporate actions are already factored into the stock price.

Cepheid (CPHD Quote) downgraded at UBS to Neutral rating from Buy. FY 2008 eps estimates bump up to loss of ($0.09) from ($0.10), but price target rises to $23 from $19.

Devon Energy (DVN Quote) upgraded at Bernstein from Underperform to Market Perform. Valuation call, as natural gas fundamentals have materially improved.

EOG Resources (EOG Quote) upgraded at Bernstein from Underperform to Market Perform. Valuation call, but also expect the seasonal strength in natural gas to exist through January.

Femsa (FMX Quote) upgraded at Morgan Stanley from equalweight to overweight with a $44 price target.

Goldman Sachs is reinstating coverage on Home Depot (HD Quote) with a Buy rating. Expect stable near-term business trends, greater upside than others if Fed eases, and continued aggressive share repurchases over next year. Price target at $42.