Wednesday's Analysts' Upgrades, Downgrades

Change in Ratings

CompuCredit(CCRT Quote) downgraded at Jefferies to hold rating from buy. Price target cut to $10 from $13 and 2008 EPS estimates hold at minus 9 cents.

Fannie Mae(FNM Quote) upgraded at Morgan Stanley to equal-weight based on valuation. See weak fourth-quarter results as reflected in share price. Note that first-quarter results for both FNM and Freddie Mac(FRE Quote) should still show negative earnings, but see rebound thereafter. Continue to prefer FRE to FNM. No target price.

Jabil Circuit(JBL Quote) upgraded at Merrill from neutral to sell, Merrill Lynch said. Stock is down 50% since late September, and is already pricing in lower end-market demand. Company also trades at a discount to its earnings growth rate, and looks historically cheap on its book value.

Jackson Hewitt(JTX Quote) upgraded at Goldman Sachs to neutral from sell based on valuation. See dismal third-quarter results and weak outlook fully reflected in shares. Price target cut to $14 from $20.

Liberty Capital Group(LCAPA Quote) downgraded at Morgan Stanley to equal-weight from overweight following the carve out of 85% of its former asset value into new tracker Liberty Media( LMDIA Quote). See LCAPA trading at a discount to NAV due to potential liabilities in the case that Liberty liquidates its holdings. Do not see catalysts that would narrow this gap. Target at $17.

Legg Mason(LM Quote) upgraded at Wachovia to market perform, Wachovia said. Valuation call, as value funds should attract more funds in the current environment. CEO change should also be a positive, and Citigroup has already placed most of its shares on the market.

Omniture(OMTR Quote) upgraded at Jefferies to buy rating from hold. Price target and 2008 EPS estimates hold at $27 and 44 cents, respectively.

Paetec(PAET Quote) coverage initiated at Deutsche Bank with a buy rating and $12 target price as company is well-positioned to benefit from improving industry conditions.

PepsiAmericas(PAS Quote) upgraded at Deutsche Bank to a buy rating as recent share weakness is unwarranted.

Pioneer Drilling(PDC Quote) upgraded at Deutsche Bank to a buy rating due to significant accretion from acquisitions, increased international exposure and more optimal capital structure.

RiskMetrics Group(RMG Quote) coverage initiated at Goldman with a neutral rating. See appealing business model and organic revenue growth, but note pricey valuation. Target price at $24.

Thornburg(TMA Quote) downgraded at Jefferies to hold rating from buy. Price target slashed to $3.75 from $13 and 2008 EPS estimates cut to negative $3.10 from $1.48.

Whirlpool(WHR Quote) downgraded at JPMorgan from neutral to underweight. Stock is up 8% on the year, but the 20% increase in steel prices will weigh on earnings.

Stock Comments/EPS Changes

SandRidge Energy(SD Quote) target price raised at Deutsche Bank to $39.