Friday Analyst Upgrades and Downgrades

Changes in Ratings

Advance Auto(AAP Quote) is upgraded at JPMorgan. New CEO should help drive higher earnings growth through better capital allocation.

Abiomed(AMBD Quote) coverage is initiated at UBS with a buy rating. Price target starts at $18 with fiscal year 2008 EPS estimates set at a -89 cents.

Avon Products(AVP Quote) is upgraded to a buy at Merrill Lynch, with a $46 price target. The company is cutting costs, and the U.S. business has remained resilient so far.

American Express(AXP Quote) is downgraded at Merrill from neutral to sell. The company will struggle as consumer credit and spending will likely continue to deteriorate in the coming quarters.

AutoZone(AZO Quote) is upgraded to neutral at JPMorgan. Management has improved execution, and the company appears to be on a clear path to double-digit annual earnings growth.

CA(CA Quote) is upgraded to buy from neutral at Goldman Sachs. Goldman said the upgrade is due to business momentum and potential for margin upside. The investment bank believes cash flow will catch up to robust net income growth in early 2008. Price target raised to $33 from $32.

Capital One(COF Quote) is downgraded from overweight to underweight at Morgan Stanley, which moves its price target from $88 to $45.

Capital One was also downgraded from neutral to sell at Merrill. The stock has already been hit, but further market deterioration reduces the likelihood that the company could be bought.