Tuesday's Analysts' Upgrades and Downgrades

CHANGE IN RATINGS

Bed, Bath & Beyond (BBBY Quote) was downgraded from Neutral to Sell at Merrill Lynch. Estimates also cut, as the company is facing lower secular growth.

Bear Stearns (BSC Quote) was downgraded from Buy to Neutral at Merrill Lynch. Company is more dependent on the debt market than its peers, and will likely have its lowest ever ROE in the third quarter.

Citigroup (C Quote) was cut from Buy to Neutral at Merrill Lynch. Money center banks hold more value, but JPM looks more attractive at current levels.

DTE Energy (DTE Quote) was downgraded from Buy to Hold at Keybanc. Company has made a lot of progress monetizing its assets, and the stock has limited near-term upside potential.

Lehman Bros. (LEH Quote) was downgraded from Buy to Neutral at Merrill Lynch. Company is more dependent on the debt market than its peers. 2008 estimates also cut by 22%.

MF Global (MF Quote) was initiated with a Hold rating at Deutsche Bank. $31 price target. Company should benefit from higher futures trading volume, though falling commission rates could diminish this somewhat.

MF Global rated new Outperform at Credit Suisse. Believes specialty broker should capitalize on continued strong secular growth within derivatives. Sets $33 target price.

Petrobras (PBR Quote) initiated at Morgan Stanley with an overweight rating and $66 price target.

Websense (WBSN Quote) upgraded at Jefferies to Hold rating from UnderPerform. Price target and 2008 EPS estimates hold at $19 and $1.04, respectively.