Monday's Analysts' Upgrades and Downgrades

CHANGE IN RATINGS

Ambac Financial (ABK Quote) upgraded at Friedman, Billings Ramsey from Market Perform to Outperform. Stock looks undervalued, following the recent affirmation of the company's AAA credit rating by Moody's.

American Eagle Outfitters (AEO Quote) upgraded at Bear Stearns to Outperform from Peer Perform. Cites company is well-positioned in favorable teen sub-sector and valuation is compelling. Sets $30 target price.

Apria Healthcare (AHG Quote) upgraded at UBS to Neutral rating from Sell. Price target lifts to $24 from $22 and FY 2008 EPS estimates hold at $1.95.

Countrywide Financial (CFC Quote) downgraded at Citigroup from Buy to Hold. $12 price target. Company lacks near-term catalysts and continues to face a lot of headwinds. Estimates also cut.

Capital One Financial (COF Quote) downgraded at Citigroup from Hold to Sell. $45 price target. Estimates also cut, as credit quality is deteriorating. $45 price target.

Euronet Worldwide (EEFT Quote) upgraded at Citigroup from Sell to Hold. $29.50 price target. Remain bearish on the MGI acquisition, but that and other operating risks have already been priced into the stock.

MDU Resources (MDU Quote) upgraded at Citigroup from Hold to Buy. $31.50 price target. Bakken position is not fully valued in the stock, and the company will likely receive a favorable court ruling on its CBM development.

Pricline.com (PCLN Quote) downgraded at Citigroup from Buy to Hold. $124 price target. Valuation call, as the stock is up 41% since earnings.