Tuesday's Analysts' Upgrades and Downgrades

State Street (STT Quote) upgraded at Morgan Stanley: Morgan Stanley upgrades State Street from underweight to equalweight after the company agreed to buy Investors Financial.

Tellabs (TLAB Quote) upgraded at Merrill: TLAB was upgraded to Buy at Merrill Lynch. Fourth quarter troubles should reverse throughout 2007. Current risk/reward appears favorable.

WebEx Communications (WEBX Quote) rated new Neutral at Credit Suisse: Credit Suisse is initiating coverage on WEBX with a Neutral rating. Believes shares are only modestly undervalued. Sets $50 target price.

STOCK COMMENTS / EPS CHANGES

B/E Aerospace (BEAV Quote) target raised at Jefferies: BEAV price target raised at Jefferies to $36 from $31. Maintains 2007 EPS estimates at $1.45 and reiterates Buy rating.

Chemtura (CEM Quote) price target raised at Goldman: Goldman is increasing its target on CEM to $10 from $9 after company announced sales agreement for struggling EPDM and certain Rubber Chemicals assets for $163 million. Expect future moves to focus on fixing the non-flame retardant plastic additives segment. Maintained Neutral rating.

Rock-Tenn (RKT Quote) numbers raised at Jefferies: RKT numbers raised at Jefferies. Price target jumps to $31 from $22. 2007 EPS estimates spike to $2.05 from $1.42. Reiterates Hold rating.

SLM (SLM Quote) estimates reduced at Goldman: Goldman is cutting its 2008 estimates on SLM to $3.53 from $3.72 due to impact from 2008 Presidential Budget. Key feature of proposal is 50bps drop in lender rates. Believe legislation will be passed before summer recess. Maintained Buy rating but target lowered to $50 from $54.