Tuesday's Analysts' Upgrades, Downgrades

Change in Ratings

American Capital(ACAS Quote) downgraded at Jefferies to underperform rating from buy. Price target cut to $25 from $34 and 2008 EPS estimates slashed to $2.93 from $3.31.

Eaton(ETN Quote) downgraded at Bear from outperform to peer perform. Estimates also cut, because of a weaker truck market outlook. Automotive market also not helping.

Hansen Natural(HANS Quote) upgraded at Goldman Sachs to buy from neutral based on solid energy drink outlook, market share gains, strong pricing and relative valuation. See recent weakness creating attractive entry point. Price target trimmed to $50 from $54.

MGC Capital(MCGC Quote) downgraded at Jefferies to hold rating from buy. Price target cut to $9 from $15 and 2008 EPS estimates slashed to $1.36 from $1.55.

Altria(MO Quote) downgraded at Morgan Stanley to equal-weight. Tobacco stocks should continue to outperform, but management has few tricks remaining up its sleeve. $26 price target.

PepsiCo(PEP Quote) downgraded at Goldman Sachs to neutral from buy based on limited upside following recent strength. See continued earnings growth potential, attractive segment exposure and strong management track record. Prefer HANS due to greater potential upside. Price target at $78.

VMWare(VMW Quote) upgraded at Wachovia to outperform. Recent pullback is overdone and channel checks support the investment thesis.

Vertex Pharma(VRTX Quote) upgraded at Wachovia from underperform to market perform. Major potential threat to telaprevir is now behind the company.

Stock Comments/EPS Changes

Aflac(AFL Quote) numbers raised at Morgan Stanley to $65 a share. Estimates also boosted, as the company is benefiting form the strong yen. Gross sales will remain under pressure, however. Equal-weight rating.

eBay(EBAY Quote) price target raised at Goldman to $35 from $33 based on valuation, high free cash flow/ROE and indications that recent insertion fee reductions have stabilized gross merchandise value growth. Maintained buy rating.

General Dynamics(GD Quote) estimates raised at Morgan Stanley to $5.80 a share. Company will likely boost guidance after a solid first-quarter report, though further margin upside may be relatively limited. Overweight rating and $95 price target.

Google(GOOG Quote) price target trimmed at Goldman to $560 from $600, noting lower earnings estimates due to challenging economic backdrop. Maintained buy rating based on secular growth profile, valuation and traffic outlook.