CHANGE IN RATINGS

Affiliated Computer

( ACS) downgraded at AG Edwards from Buy to Hold. Competing takeover offer may materialize, but will likely not carry a sizable premium.

Chico's FAS

(CHS) - Get Report

upgraded from Underperform to Market Perform at Friedman, Billings Ramsey. Stock has been range-bound for several months, and near-term disappointments are likely already factored in at current levels.

Dresser-Rand

(DRC)

was initiated with an Overweight rating at JP Morgan. Company is leveraged to all phase of the energy infrastructure spending cycle, with floating production and LNG driving near-term growth.

Fulton Financial

(FULT) - Get Report

was downgraded from Buy to Neutral at Suntrust Robinson Humphrey. Estimates also cut through 2008, as the company reported higher early payment defaults on mortgages and home equity loans.

Ingersoll-Rand

(IR) - Get Report

downgraded at UBS to Neutral rating from Buy. Price target drops to $47 from $50. FY2007 EPS estimates lowered to $3.45 from $3.60.

Sonic

(SONC)

upgraded at JP Morgan from Neutral to Overweight. Stock is already pricing in lower upcoming Feb. quarter results, and interest will likely return to the quick-service restaurant stocks in the near term.

STOCK COMMENTS / EPS CHANGES

Goldman is cutting its 2007 estimates on

Agere

(AGR) - Get Report

to $0.35 from $0.65 to reflect lower sales guidance. See recovery beginning in second quarter. Maintained Not Rated rating.

Smith Micro

(SMSI) - Get Report

numbers raised at UBS. Price target lifts to $23 from $18 and 2007 EPS estimates rise to $0.34 from $0.32. Reiterates Buy rating.

Walgreen

(WAG)

price target raised at Credit Suisse to $50 from $46 after company reported better than expected Q2 earnings. Upside driven by lower SG&A expenses and benefit from generics. Maintained Market Weight rating.