Monday's Analysts' Upgrades and Downgrades

Amdocs (DOX Quote) initiated at Morgan Stanley: Morgan Stanley initiates coverage of Amdocs with an equalweight rating and $42 price target.

EnCana downgraded at Goldman Sachs: Goldman is downgrading ECA to Sell from Neutral based on valuation relative to other large E&Ps. Note that company trades at highest EV/debt-adjusted cash flow multiple. Sell rating reflects preference towards XTO and DVN. Target price at $56.

Foot Locker (FL Quote) downgraded at Merrill: FL was downgraded to Neutral at Merrill Lynch. Cash flow will be lower, given investment in the new retail concept. Also seeing more promotions during the holiday shopping season, which could hurt margins.

Forest Oil (FST Quote) upgraded at CSFB: FST was upgraded from Neutral to Outperform at Credit Suisse. Expect higher natural gas prices through the end of the decade. Company also has ability to generate robust organic growth.

IBM (IBM Quote) rated new Neutral at Prudential: IBM was initiated with a Neutral rating at Prudential. $100 price target. Company should continue to generate momentum in the fourth quarter, led by software bookings. That said, the stock is already at a 52-week high, and growth should slow in Services and Hardware during 2007.

JC Penney (JCP Quote) upgraded at AG Edwards: JCP was upgraded from Hold to Buy at AG Edwards. $96 price target. Inventory management is improving, and the company's earnings surprises should tend toward the upside over the next several quarters.