Wednesday's Analysts' Upgrades and Downgrades

Interpublic(IPG Quote) was upgraded from Neutral to Overweight at JPMorgan. Company is winning new business, and the outlook for Europe has improved. Company has also improved its balance sheet.

Moody's(MCO Quote) was downgraded from Neutral to Sell at Merrill Lynch. Risk/reward becomes more negative after the first quarter, as slower growth could contract the valuation multiple.

Morgan Stanley initiates coverage of Companhia Vale de Rio Doce(RIO Quote) with an overweight rating and $50 price target.

Teradyne(TER Quote) was downgraded from Outperform to Sector Perform at CIBC. Stock has gradually moved higher over the recent months and lacks a significant catalyst to take it further in the near term. $17 price target.

Wendy's(WEN Quote) was downgraded from Market Perform to Underperform at Wachovia. Valuation call, as the new breakfast lineup faces considerable competition.

Stock Comments/EPS Changes

Adtran(ADTN Quote) numbers raised at UBS. Price target lifts to $27.50 from $25, and 2007 EPS estimate rises to $1.47 from $1.43. Reiterates Neutral rating.

Steel Dynamics(STLD Quote) numbers raised at Jefferies. Price target lifts to $41 from $33, but 2007 EPS estimate lowered to $4.04 from $4.12. Reiterates Hold rating.

2007 estimates on Seagate(STX Quote) lowered to $1.38 from $1.53 at Goldman. Gross margins of 21.6% came in well below Goldman forecast of 24.3%. See deteriorating industry pricing and lower volumes hurting earnings. Price target cut to $21.50 from $25 and maintained Neutral rating.