Tuesday's Analysts' Upgrades and Downgrades

Who made what calls.
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CHANGE IN RATINGS

Aecom Technology

(ACM) - Get Report

upgraded at Merrill to Buy. $32 price target. Stock has sold off along with the rest of the sector, and the non-residential cycle in the US remains strong.

Alberto-Culver

(ACV) - Get Report

initiated at UBS with Neutral rating. Price target starts at $28 and FY 2008 eps estimates begin at $1.20.

Cephalon

(CEPH)

upgraded at FBR to an Outperform rating and raising its target price to $97. Market opportunity for Treanda is not fully appreciated.

Choice Hotels

(CHH) - Get Report

upgraded at Wachovia from Underperform to Market Perform. The stock has underperformed of late, and the company operates a lower risk business model.

Discovery Holding

(DISCA) - Get Report

upgraded at Merrill to Buy. Stock is up 62% in the past month, but the market still is not fully valuing the company's earnings potential. $33 price target.

Kroger

(KR) - Get Report

coverage initiated at FBR with a Market Perform rating as valuation supports just 7% upside.

Longtop Financial

(LFT)

coverage initiated at Deutsche with a Buy rating and $30 target price. Company has strong position within Chinese financial services industry.

Longtop Financial initiated at Jefferies with Buy rating. Price target starts at $29 and FY 2008 eps estimates begin at $0.69.

VeriFone

(PAY)

downgraded at Credit Suisseto Neutral from Outperform following recent earnings restatements and concerns over margins. Lowered target price to $26 from $46.

VeriFone downgraded at Merrill from Buy to Neutral. Accounting issues appear isolated to one area, and expect margins to be about 450 basis points lower for 2007 and going forward. Estimates also cut.

Pactiv

(PTV)

coverage initiated at Goldman Sachs with a Neutral rating and $27 target. See slowing growth and higher resin prices, as well as overly optimistic current consensus estimates. Note continuing realization of benefits from Prairie Packaging acquisition.

Pzena

(PZN) - Get Report

initiated at UBSwith Neutral rating. Price target starts at $14 and FY 2008 eps estimates begin at $0.85.

Safeway

(SWY)

coverage initiated at FBR with a Market Perform rating as assets support valuation of $38.

XM Satellite Radio

(XMSR)

downgraded at Goldman Sachs to Sell from Neutral based on valuation. Believe current value assumes optimal scenario in which merger is approved with few conditions. See $8 in potential downside if not approved. Price target at $11.50.

STOCK COMMENTS / EPS CHANGES

MetLife

(MET) - Get Report

2008 estimates cut at FBR by 10 cents to $6.35 a share due to inverted yield curve. Maintained Outperform rating.