Friday's Analysts' Upgrades and Downgrades

CHANGE IN RATINGS

Allied Capital (ALD Quote) initiated at Morgan Stanley: Morgan Stanley initiates Allied Capital with an overweight rating and a $39 price target.

Avery Dennison (AVY Quote) downgraded at JP Morgan: AVY was downgraded from Overweight to Neutral at JP Morgan. Stock also cut from the focus list, as the stock now looks fully valued.

Ciena (CIEN Quote) upgraded at Deutsche: CIEN was upgraded from Hold to Buy at Deutsche Bank. $36 price target. Stock offers best upside potential in the group. Deal exposure helps to offset consolidation among customers.

DRS Technologies (DRS Quote) upgraded at Morgan Stanley: Morgan Stanley upgrades DRS Technologies to equalweight from underweight and gives the company a $55 price target.

Encana (ECA Quote) downgraded at Citigroup: ECA downgraded from Buy to Sell at Citigroup. $47 price target. Company guided to lower 2007 production growth, and the stock has already enjoyed a solid run.

Ecolab (ECL Quote) downgraded at Goldman Sachs: Goldman Sachs downgrades ECL to Neutral and removes from Americas Buy list on valuation concerns.

Forward Air (FWRD Quote) downgraded at Baird: FWRD was downgraded from Outperform to Neutral at Robert Baird. $35 price target. Difficult external environment is weighing on the company's ability to achieve earnings goals.

International Rectifier (IRF Quote) downgraded at UBS: IRF downgraded to Neutral rating from Buy at UBS. Maintains price target at $43.50 and 2007 estimates at $2.26.