Monday's Analysts' Upgrades, Downgrades

Change in Ratings

AlbemarleALB upgraded at Goldman Sachs to buy from neutral based on valuation, as well as defensive trends in catalysts and margin improvements in fine chemicals segment. See opportunity for improved strategic visibility at May 13 investor day. Price target at $50.

CaterpillarCAT downgraded at Credit Suisse to neutral from outperform based on less attractive risk/reward profile. First-quarter results showed continued strength in earnings and sales, as well as record demand from emerging markets. Note more cautious view on U.S. and Western Europe, and doubts regarding positive impact of CPS on operating performance. Price target raised to $84 from $80.

Caterpillar downgraded at Wachovia to market perform. Valuation call, as margins in the machine business will struggle to move higher.

EmbarqEQ upgraded at Wachovia from market perform to outperform, Wachovia said. Valuation call, as the stock has an attractive free cash flow yield. Company can support dividend and buyback program.

GameStopGME downgraded at Goldman Sachs to sell from neutral based on expectations for multiple compression. Note recent strength ahead of Grand Theft Auto IV and Wii Fit, but see little to sustain during second half of 2008. Price target at $50.

ProgressivePGR downgraded at Merrill from neutral to sell. Stock has bounced back 14% from its lows, and looks expensive at 2.6 times book value.

Pilgrim's PridePPC upgraded at Credit Suisse to outperform from neutral based on expectations for rising chicken prices through 2009. See earnings hitting a bottom in March, followed by acceleration thereafter. Target price raised to $33 from $26.

Reliance SteelRS downgraded at CIBC from outperform to sector perform with a $65 price target. Valuation call, as steel producers will have better leverage to rising carbon steel prices.

Sherwin-WilliamsSHW coverage initiated at Goldman with a neutral rating, based on combination of leading market share offset by ongoing demand and feedstock cost headwinds. Note stable fundamentals, solid management, and potential for increased penetration in Latin America and Asia. Price target at $62.

SchlumbergerSLB upgraded at Morgan Stanley to overweight with a $135 price target. Consensus analyst expectations are too low for the company.

Schlumberger price target raised at Goldman to $110 from $98 based on increased confidence in 2008 estimates, accelerating growth in North America and view that SLB is best-positioned to capture growth opportunities from offshore strength in 2009-2011. Maintained buy rating.

Wells FargoWFC downgraded at Oppenheimer from perform to underperform. Company is likely under-reserved by $4.5 billion. Estimates also lowered through 2009.