Stock Upgrades, Downgrades from TheStreet.com Ratings

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Harman International Industries(HAR Quote), an audio equipment maker, has been downgraded to hold after the collapse of a previously announced takeover agreement and the company's reduced guidance for 2008 earnings due to increased research and development costs. In September, Kohlberg Kravis Roberts & Co. and Goldman Sachs Capital Partners backed out of an $8 billion acquisition deal, charging that materially adverse changes in Harman's business had occurred. On the plus side, the company's fiscal year fourth-quarter revenue grew 6.1% to $911.1 million and net income rose 62% to $104.9 million. The company has also launched several strategic initiatives that could boost revenue and profitability over the long-run. Harmon International had been rated a buy since October 2005.