Thursday's Analysts' Upgrades and Downgrades

Change in Ratings

Alpharma(ALO) was upgraded from Neutral to Buy at Merrill Lynch. $32 price target. Stock is discounting modest growth assumptions across the board for the company's different business lines.

Cheesecake Factory(CAKE) was downgraded from Outperform to Peer Perform at Bear Stearns. Company cut its second-quarter guidance as comp store sales growth is decelerating.

Morgan Stanley upgrades CoStar Group(CSGP) from equalweight to overweight and raises price target from $52 to $66.

Dresser-Rand(DRC) downgraded to Neutral rating from Buy at UBS. Full-year 2008 EPS estimates hold at $2.25, but price raised to $43.

Piper Jaffray is downgrading Home Depot(HD) to Market Perform from Outperform. Current valuation accurately reflects the company's growth. The retail market has slowed to a mid-single-digit rate. $44 price target.

Morgan Stanley initiates coverage of Lamar Advertising(LAMR) with an overweight rating and $77 price target.

Goldman is downgrading Nokia(NOK) to Neutral from Buy based on balanced risk/reward following recent strong run by shares. See improved product cycle and margins as priced into stock. Price target at $56.

Citigroup is downgrading Prudential(PRU) to Hold. The company presents low risk. Needs to effectively grow into its share valuation. $110 price target.

Baird is upgrading Symantec(SYMC) to Outperform. Challenges associated with the assimilation of Veritas are behind the company. Current EPS guidance does not take into consideration possible share repurchase and conservatively assumes a 5% stronger dollar. $25 price target.