Analysts' Upgrades, Downgrades: Adobe

CHANGE IN RATINGS

Adobe (ADBE Quote) target cut at Morgan Stanley to $26. Demand for Creative Suite 2 has been hampered by the economy. Overweight rating.

Adobe (ADBE Quote) downgraded at Wachovia to Market Perform from Outperform with valuation range of $16-$18 or 9-10x P/E. Downgrade ahead of earnings release on March 17 as unfavorable economic conditions and weak ad market continue to impact ADBE's sales.

Federated (FII Quote) downgraded at Goldman Sachs to Sell from Neutral due to weakening money market flows and potential regulatory changes. Low yields are pushing flows toward high-yield credit funds and bank deposits. Price target cut to $17 from $21.

NII Holdings (NIHD Quote) downgraded at Piper Jaffray to Neutral from Buy. Foreign exchange rates continue to drag on results. Q4 results were in line with expectations, but 2009 outlook was well below consensus. Expect continues multiple contraction until FX headwinds subside. Price target slashed to $17 from $40.

Omnicare (OCR Quote) upgraded at Weisel from Market-weight to Overweight. $34 price target. Company posted a strong quarter, and the Obama healthcare proposal should not have a materially negative effect on business.

O'Reilly Automotive (ORLY Quote) downgraded at Deutsche to Hold from Buy and price target increased to $34 from $32. Downgrade based on valuation, as Deutsche Bank believes outlook has improved but limited upside from recent run.

Paychex (PAYX Quote) downgraded at Goldman Sachs to Sell from Neutral due to expectations for negative earnings growth through 2010. Expect continuing declines in key metrics and negative revisions to Street estimates. Price target cut to $20 from $25.