Analysts' Upgrades, Downgrades: Merck

CHANGE IN RATINGS

Baxter (BAX Quote) downgraded at Soleil from Buy to Hold. Pricing fundamentals in the Plasma Proteins business are deteriorating. $49 price target.

Blackstone (BX Quote) upgraded at Goldman Sachs to Buy from Neutral based on stabilization in asset management industry. Company has strong balance sheet, including $27 billion it could use to acquire struggling asset managers. Price target at $13.

Google (GOOG Quote) downgraded at Benchmark from Buy to Hold. Channel checks show that online ad trends appear to be softening again. $430 price target.

Hovnanian (HOV Quote) downgraded at Wachovia to Underperform. Valuation call, as the stock is up 353% since March. That said, the company should be unprofitable the next 6 quarters.

Itron (ITRI Quote) upgraded at JPMorgan to Overweight from Neutral based on upcoming ramp in smart meter deployments. See lower risk following last week's equity-raise and debt repayment, and expect 2-3 years of above average growth beginning with AMI programs in second half of 2009. Price target raised to $73 from $53.50.

MercadoLibre (MELI Quote) upgraded at Susquehanna to Positive. $29 price target. Valuation call, based on stabilizing macro factors.

Qwest Communications (Q Quote) downgraded at Argus to Sell. Company looks desperate and may not raise as much as expected for its long-distance network.

STOCK COMMENTS / EPS CHANGES

Arrow Electronics (ARW Quote) numbers raised at Credit Suisse to $21 from $18.50. Management implemented a strategy that will focus on high growth vertical markets, demand creation, value-added content, and solution selling. Maintained Neutral rating.

Big Five Sporting Goods (BGFV Quote) numbers raised at Credit Suisse to $14 from $9. Cites a positive outlook, management is confident in their long term market share and valuation. Maintained Neutral rating.