Analysts' Upgrades, Downgrades: AIG

Change in Ratings

American International Group (AIG Quote - Cramer on AIG - Stock Picks) downgraded at Merrill from Buy to Neutral. $12.50 price target. Company will face higher losses and try to obtain dilutive financing. AIG downgraded at Citigroup from Buy to Hold. $14 price target. Company will have its worst quarter yet in the wake of Lehman (LEH Quote - Cramer on LEH - Stock Picks), though it should still survive.

Amylin (AMLN Quote - Cramer on AMLN - Stock Picks) upgraded at Natixis Bleichroder from Sell to Hold. $22 price target. Byetta monotherapy FDA ruling at the end of the month could go either way, and the risk/reward looks even at current levels.

Goldman Sachs (GS Quote - Cramer on GS - Stock Picks) downgraded at Merrill from Buy to Neutral. $159 price target. Estimates also cut, to reflect a higher cost of capital and continued deleveraging.

JP Morgan Chase (JPM Quote - Cramer on JPM - Stock Picks) downgraded at Merrill to Underperform. $33 price target. Estimates also cut, to reflect expected mark-to-market losses.

Louisiana-Pacific (LPX Quote - Cramer on LPX - Stock Picks) downgraded at RBC from Sector Perform to Underperform. $8.50 price target. Prices should fall at the end of the buidling season, and the stock has already rebounded 40% from its recent lows.

National Instruments (NATI Quote - Cramer on NATI - Stock Picks) upgraded at Weisel from Underweight to Market-weight. $35 price target. Company has the strongest secular organic growth potential in the industry, though numbers could decelerate because of the increasing scale.

Strategy Calls/Market Calls

Lowe's (LOW Quote - Cramer on LOW - Stock Picks) and Home Depot (HD Quote - Cramer on HD - Stock Picks) downgraded at Credit Suisse to Neutral from Outperform based on valuation and further weakness in the housing sector. Maintained target prices: $29 for Home Depot and $26 for Lowe's.

Two Homebuilders downgraded at Citigroup. Pulte (PHM Quote - Cramer on PHM - Stock Picks) downgraded from Buy to Hold. Valuation call, as the stock is up 32% since Aug. 12. The rating on D.R. Horton (DHI Quote - Cramer on DHI - Stock Picks) was cut from Hold to Sell, also based on valuation.