Change in Ratings

Legg Mason

(LM) - Get Report

downgraded at Credit Suisse to Underperform from Neutral based on valuation and expected net redemptions. Maintained $42 target price.

Pharmaceutical Product Development

( PPDI) upgraded at Goldman to Buy from Neutral based on valuation, lower Street expectations and potential Q3 bookings increase. Price target raised to $49 from $44.

Steel Dynamics

(STLD) - Get Report

upgraded at Goldman Sachs to Buy from Neutral based on near-term upside from widening metal margins. Note lower scrap prices and 46% pullback from June highs. Price target at $34.

Stock Comments/EPS Changes

Motorola

( MOT) target raised at Credit Suisse to $8 from $7.50 based on improved prospects for a turnaround in devices and recent appointment of CEO Sanjay Jha. However, still sees significant near-term challenges. Maintained Underperform rating.

Strategy Calls/Market Calls

Steel sector downgraded at Goldman Sachs to Neutral from Attractive based on emergence of risks including rising U.S. dollar, "China fear," weak global economic data and softness in steel and scrap pricing. Top-rated stocks remain

Nucor

(NUE) - Get Report

and

U.S. Steel

(X) - Get Report

.

Chip-equipment sector downgraded at Morgan Stanley from Attractive to In-line. Stocks are up 10% to 15% from their lows, though fourth-quarter orders will likely fall short of expectations.

Lam Research

(LRCX) - Get Report

and

KLA-Tencor

(KLAC) - Get Report

were also downgraded to Underweight. On the other hand, the rating on

Novellus

(NVLS)

was raised to Overweight, given its relatively low exposure to DRAM and expectations for market share gains.

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This article was written by a staff member of TheStreet.com.