Analysts' Upgrades, Downgrades: Adobe

Change in Ratings

Adobe Systems(ADBE Quote) upgraded at Morgan Stanley to overweight from equal-weight with a $51 price target. Adobe could potentially benefit from most durable drivers in software long term. In addition, short-term product cycles are predicted to accelerate growth beyond fiscal year 2009 consensus.

Franklin Resources(BEN Quote) upgraded at KBW to outperform from market perform with a $120 price target. Flow trends within the company have improved relative to what were weakening results. Because of this, the discount valuation can narrow and the risk/reward could be improving.

BJ's Wholesale(BJ Quote) downgraded at Citigroup to hold with a $42 price target. Business within the company is strong, but their margins are at risk. Gas is increasingly becoming low-margin and a larger percentage of the sales mix. Also, acquisition of BJ is less likely because of the availability of credit for potential buyers. Finally, BJ's stock price fairly reflects the current strength of the company's underlying business.

Clearwire(CLWR Quote) upgraded at Citigroup to hold from sell with a $13 price target. Risk/reward within the stock is becoming more symmetrical with potential to generate broadband revenue.

Charles River Laboratories(CRL Quote) downgraded at Goldman to neutral from buy based on valuation following recent strength. Shares are within 13% of price target ($73), and trading at premium to historical levels.

Emerson(EMR Quote) downgraded at Credit Suisse to neutral from outperform based on valuation. Cites best of breed in space but priced for perfection. Lowered target price to $58 from $60.

ev3 Inc.(EVVV Quote) initiated at Jefferies with a buy rating and $15 price target. Introduces 2008 EPS estimates of -48 cents.