CHANGE IN RATINGS

Activision ( ATVI) coverage initiated at Goldman Sachs with a Buy rating, based on expectations for strong growth in sales and margins over the course of the new console cycle. Note that online connectivity will enable in-game advertising, digital distribution, and micro-transactions. Price target at $24.

DemandTec ( DMAN) initiated at Morgan Stanley with an overweight rating and $15 price target.

Electronic Arts ( ERTS) coverage initiated at Goldman Sachs with a Buy rating, based on strong position heading into new console cycle. Note balanced portfolio of top franchises and international expansion. Price target at $64.

General Motors ( GM) downgraded at Goldman Sachs to Neutral from Buy due to valuation. Shares are up 21% since September 7, indicating that value of a UAW concession package appears priced in. Longer term fundamental outlook remains challenged. Price target at $37.

Harte-Hanks ( HHS) downgraded at JP Morgan to Underweight from Neutral. Cites lack of short-term catalysts based on continued challenging business conditions.

Wimm-Bill-Dann Foods ( WBD) downgraded at Credit Suisse to Neutral from Outperform. Cites strong growth and fundamentals are already priced-in to the stock. Raised target to $122 from $119.50.

STOCK COMMENTS / EPS CHANGES

Adobe Systems ( ADBE) numbers raised at UBS. Price target lifts to $52 from $50 and FY 2008 EPS estimates upped to $1.36 from $1.31. Reiterates Buy rating.

bebe stores ( BEBE) 2008 estimates raised at FBR by 2 cents to 86 cents a share to reflect share repurchase agreement. Maintained Market Perform rating.

Capital One ( COF) 2008 estimates cut at FBR by 30 cents to $8.25 a share to reflect management comments in 8-K filing. Maintained Outperform rating.

E*Trade ( ETFC) 2007 estimates slashed at Goldman to $1.07 from $1.62. Management drastically lowered earnings guidance, citing increases in provisions for loan losses, additional securities impairments, and the need to exit and restructure some non-core businesses. Price target cut to $16 from $29.

E*Trade numbers lowered at UBS. Price target dips to $16 from $17.50 and FY 2008 EPS estimates drop to $1.40. Reiterates Neutral rating.

LodgeNet ( LNET) numbers lowered at UBS. Price target dips to $40 from $41 and FY 2008 EPS estimates drop to a loss of $(0.26) from $(0.13). Reiterates Buy rating.

National City ( NCC) 2007 estimates cut at Bernstein from $2.35 a share to $1.89 to reflect continued mortgage weakness. Maintained Market Perform rating.

Schwab ( SCHW) 2007 estimates raised at Bernstein by 3 cents to 97 cents a share following strong August metrics. Maintained Outperform rating.

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