Analysts' Upgrades, Downgrades: Lehman

Change in Ratings

Arvinmeritor(ARM Quote) upgraded at Goldman Sachs to buy from neutral based on expectations for recovery in Class 8 truck sales. Believe orders have bottomed, and that 2009 outlook appears reasonably strong. Price target raised to $20 from $15.

Chesapeake Energy(CHK Quote) target raised at Credit Suisse to $56 from $49 based on higher gas price outlook. However, maintained neutral rating based on valuation.

Continental Resources(CLR Quote) downgraded at Deutsche Bank to hold from buy. Maintains price target of $53 and 2008 EPS estimates of $2.19.

Conexant Systems(CNXT Quote) upgraded at Jefferies to buy from hold. See restructuring efforts nearing completion, new revenue drivers in imaging business, additional operating leverage and attractive valuation relative to peers. Price target raised to $1.00 from 50 cents.

CommScope(CTV Quote) initiated at JPMorgan with an overweight rating. See improving margins and 16% annualized operating income growth.

Fresh Del Monte(FDP Quote) upgraded at Wachovia to outperform from market perform. 2008 EPS estimates raised to $3.25 from $3.10. Maintains valuation range of $36 to $38.

Ingersoll Rand(IR Quote) coverage initiated at JPMorgan with a neutral rating. See headwinds from input costs and note limited confidence in the combined IR-Trane business with departure of CFO James Gelly.

Kellogg(K Quote) upgraded at JPMorgan to overweight from neutral based on improved outlook for fundamentals and valuation. Note that earnings growth is likely to accelerate in 2009-2010 and that pricing should help alleviate concerns over commodity costs.

Lehman(LEH Quote) downgraded at Credit Suisse to neutral from outperform. Says shares are unlikely to outperform until real estate inventories are more substantially reduced. Lowered target price to $36 from $57.50.