Applied Materials upgraded at CIBC: CIBC said it was upgrading AMAT from Sector Performer to Sector Outperformer on growing exposure to DRAW. Maintained $18 target. BEA Systems downgraded at Bernstein: BEAS was downgraded from Market Perform to Underperform, Sanford C. Bernstein said. $9 price target. Stock is already pricing in business stabilization. BellSouth upgraded at Bear Stearns: Bear Stearns said it is upgrading BLS to Outperform following agreement to be acquired. Raised target price to $43.73. Central Garden & Pet downgraded at CIBC: CENT was downgraded from Outperform to Sector Perform, CIBC said. Stock has rallied since November, and appears fully valued, based on near-term earnings expectations. Chico's upgraded at Prudential: Prudential said it is upgrading CHS to a Neutral Weight rating as stock has fallen inline with $40 target price. Finisar initiated at Jefferies: Jefferies said it was initiating coverage at FNSR with a Buy rating and $6 target citing rapid growth of fiber optic datacom market. Forest Oil downgraded at UBS: UBS said it is downgrading FST to Neutral from Hold. Cites limited upside after successful spinoff. Lowered target price to $41 from $61. Hyperion Solutions downgraded at JP Morgan: HYSL was downgraded from Overweight to Neutral, JP Morgan said. Stock is up 25% since May, and near-term earnings upside potential appears limited. Kyphon upgraded at UBS: UBS said it is upgrading KYPH to Buy from Neutral. Cites strong visibility and potential upside from acquisitions. Maintained $46 target price. LifePoint Hospitals downgraded at Bear Stearns: Bear Stearns said it is downgrading LPNT to Peer Perform to reflect a longer than expected turnaround and higher than anticipated interest expense. Dropped 2006 target price. 3M downgraded at AG Edwards: MMM downgraded from Buy to Hold, AG Edwards said. Company will struggle to grow just 5% this year, based on local currency. Management also has less room to cut operating expenses, relative to the industry.