Tuesday's Analysts' Upgrades and Downgrades

CHANGE IN RATINGS

Arthur J. Gallagher (AJG Quote) upgraded at Merrill from Neutral to Buy. $27 price target. Company sports an attractive 5.3% dividend yield, and the stock is at its lowest valuation in 5 years. Brokerage margins should also stabilize with cost-cutting efforts.

Baxter International (BAX Quote) upgraded at Citigroup from Hold to Buy. Company should be able to grow margins in BioSciences. $69 price target.

Best Buy (BBY Quote) downgraded at Cowen to Neutral rating from Buy. Company cites lack of new product cycles on the horizon and the recent pop in BBY shares.

Brinker International (EAT Quote) downgraded at Keybanc from Hold to Underweight. Company announced poor quarterly same-store sales, and competition should remain high in 2008. $15 price target.

Federated Investors (FII Quote) upgraded at UBS to Buy rating from Neutral. Price target and FY 2008 eps estimates hold at $44 and $2.65.

Genco Shipping (GNK Quote) rated new Outperfrom at Credit Suisse. Remains bullish on the near-term outlook for charter rates and believes current stock price presents a compelling entry point. Sets $70 target.

Helen of Troy (HELE Quote) upgraded at Jefferies to Buy rating from Hold. Price target and FY 2008 eps estimates hold at $21 and $1.80.

Intuitive Surgical (ISRG Quote) downgraded at Wachovia to Market Perform. Stock looks fully valued, as 2008 estimates may fall short of consensus expectations.

Illinois Tool Works (ITW Quote) downgraded at Merrill from Buy to Neutral. Estimates also cut, because of the company's dependence on the North American consumer.