Wednesday's Analysts' Upgrades and Downgrades

Who made what calls.
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CHANGE IN RATINGS

Alcoa

(AA) - Get Report

was upgraded from Neutral to Buy at Merrill Lynch. $45 price target. Estimates also raised, to reflect higher aluminum prices.

Anadarko Petroleum

(APC) - Get Report

upgraded at Bernstein from Underperform to Market Perform. Valuation call, driven by the seasonal natural gas trade.

BP

(BP) - Get Report

upgraded at Bernstein to Outperform. Risks remain, but the European integrateds look particularly attractive here. New production and refining restarts also provide potential catalysts.

Century Aluminum

(CENX) - Get Report

was upgraded from Neutral to Buy at Merrill Lynch. $61 price target. Expect aluminum prices to keep rising over the short and long term.

ConocoPhillips

(COP) - Get Report

was downgraded from Outperform to Market Perform. Recent positive corporate actions are already factored into the stock price.

Cepheid

(CPHD)

downgraded at UBS to Neutral rating from Buy. FY 2008 eps estimates bump up to loss of ($0.09) from ($0.10), but price target rises to $23 from $19.

Devon Energy

(DVN) - Get Report

upgraded at Bernstein from Underperform to Market Perform. Valuation call, as natural gas fundamentals have materially improved.

EOG Resources

(EOG) - Get Report

upgraded at Bernstein from Underperform to Market Perform. Valuation call, but also expect the seasonal strength in natural gas to exist through January.

Femsa

(FMX) - Get Report

upgraded at Morgan Stanley from equalweight to overweight with a $44 price target.

Goldman Sachs is reinstating coverage on

Home Depot

(HD) - Get Report

with a Buy rating. Expect stable near-term business trends, greater upside than others if Fed eases, and continued aggressive share repurchases over next year. Price target at $42.

Infineon

(IFX)

upgraded at Credit Suisse to Outperform from Neutral citing revenue growth opportunities from its low-cost wireless solution to Nokia.

Lululemon Atheletica

(LULU) - Get Report

initiated at Goldman with a Buy rating. Company is capitalizing on underserved market for women's active apparel, and can likely double earnings over the next 3 years. See owned stores expanding from 54 today to 350 over next 3 years. Price target at $40.

Altria

(MO) - Get Report

downgraded to Neutral from Buy at Goldman. See shares as only modestly undervalued relative to sum of parts price target. With the spin-off of PMI having been announced, have negative view of potential for unit to achieve a premium valuation to peers. Price target lowered to $7 from $79.

NeurogesX

(NGSX)

downgraded at Morgan Stanley from overweight to equalweight and moves price target to $12.

MetroPCS

(PCS)

upgraded at Jefferies to Buy rating from Hold. FY 2008 eps estimates lift to $1.10 from $1.06, but price target dips to $35 from $38.

Southern Copper

(PCU)

upgraded at Merrill Lynchto Neutral. Copper price estimates raised from 14% to 44%, plus the stock sports an attractive 7% dividend yield.

Steel Dynamics

(STLD) - Get Report

upgraded at UBS to Buy rating from Neutral. FY 2008 eps estimates bump up to $4.90 from $4.85, but price target holds at $52.

Tempur-Pedic

(TPX) - Get Report

upgraded at JP Morgan to Overweight. Sales growth will continue to be driven by the company's innovative product lineup and robust demand. Company also set to raise prices.

Valueclick

(VCLK)

upgraded at Citigroup from Hold to Buy. $25 price target. Company is a core Internet name, and looks attractive after a 30% decline.

STOCK COMMENTS / EPS CHANGES

Nabors Industries

(NBR) - Get Report

2008 estimates cut at Credit Suisse to $3.45 from $3.75 due to proposed convertible debt accounting change. Maintained Neutral rating.

Temple-Inland

(TIN)

target price lowered at Credit Suisse to $66 from $70 based on shift in market sentiment regarding credit and rates. Maintained Underweight rating.