CHANGE IN RATINGS

Allstate ( ALL) downgraded at Wachovia from Outperform to Market Perform. Fundamentals are deteriorating in the company's personal insurance lines.

American Reprographics ( ARP) upgraded to Buy at Suntrust, Robinson Humphrey. Non-residential construction was likely strong in the third quarter, and near-term earnings risk is already priced into the stock.

BEA Systems ( BEAS) downgraded at UBS to Neutral rating from Buy. FY 2008 EPS estimates hold at $0.43 while price target lifts to $14.50 from $14.00.

Chipotle Mexican Grill ( CMG) downgraded at Baird to Neutral rating from Outperform. However, price target upped to $135 from $120.

CenterPoint Energy ( CNP) upgraded at Credit Suisse to Outperform from Neutral based on valuation and positive meeting with management. Raised target price to $20 from $18.

Dover Downs ( DDE) upgraded at Jefferies to Buy rating from Hold. However, FY 2008 EPS estimates dip to $0.81 from $0.82 and price target holds at $14.

Expedia ( EXPE) downgraded at Citigroup to Hold rating from Buy. FY 2008 EPS estimates hold at $1.41 while price target upped to $36 from $33.

Genpact ( G) initiated at UBS with Neutral rating. Price target starts at $18 and FY 2008 EPS estimates set at $0.60.

Hess ( HES) downgraded from Outperform to Market Perform at Friedman, Billings Ramsey. Crude prices should pull back 10% from record levels.

KLA-Tencor ( KLAC) downgraded at Friedman Billings Ramsey to Market Perform from Outperform. See lower bookings in Sept quarter and flat-to-down bookings post-March quarter 2008, driven by weakness in memory-related bookings. 2008 estimates cut to $3.50 from $3.86. Price target at $64.

Lehman Brothers ( LEH) upgraded at Credit Suisse to Outperform from Neutral. Sees improved performance prospects and likelihood of multiple expansion. Maintained $85-$90 target price range.

Nabors Industries ( NBR) downgraded at Merrill Lynch to Neutral. Estimates also cut, to reflect the company's latest pre-announcement.

Merrill Lynch ( MER) downgraded at JP Morgan from Overweight to Neutral. Lower market appetite for risk could weigh on the company's near-term growth. Estimates also cut to reflect management's new guidance.

Merrill Lynch downgraded at Credit Suisse to Neutral from Outperform. After revaluation following third-quarter preannouncement, firm lowers target price to $85 from $95.

Occidental Petroleum ( OXY) downgraded from Market Perform to Underperform at Friedman, Billings Ramsey. Crude oil prices are due for a 10% pullback in the near term.

Proctor & Gamble ( PG) downgraded at SunTrust Robinson Humphrey to Neutral from Buy based on valuation. With stock up 16% in past 3 months, see shares fairly valued based on solid core operations and margin benefits following integration of Gillette. Target remains $70.

Progressive ( PGR) downgraded at Wachovia from Market Perform to Underperform. Valuation call, as the stock trades at a hefty premium to its peers. Shares could fall to the $16 to $18 range.

Sovereign Bancorp ( SOV) downgraded at Friedman, Billings Ramsey from Outperform to Underperform. The company has outsized exposure to consumer loans. $14 price target.

Sunoco ( SOV) upgraded at Citigroup to Buy. Company should be a major beneficiary of the increased spread with ethanol prices. $90 price target.

Supertex ( SUPX) upgraded at Oppenheimer to Buy. $55 price target. Company should see all segments rebound after three soft quarters where inventory was building up.

Talbots ( TLB) downgraded from Market Perform to Underperform at Friedman, Billings Ramsey. Both divisions are seeing weak traffic, and will likely have to increase promotions. Debt-laden balance sheet also adds risk to the model.

Valero ( VLO) upgraded at Citigroup to Buy. Company has locked in higher prices with contracts, and has significant upside potential. $82 price target.

STOCK COMMENTS / EPS CHANGES

Apache ( APA) 2007 estimates lowered at Goldman to $7.45 from $7.62 based on higher tax assumptions stemming from strong Canadian dollar. Effective tax rate pushed to 47% from 40% average over past year. Maintained Buy rating and $110 target.

Barnes Group ( B) numbers raised at Jefferies. FY 2008 EPS estimates upped to $2.25 from $2.15 and price target lifts to $38 from $35. Reiterates Buy rating.

Gap ( GPS) estimates increased at Morgan Stanley. Now seen earning $1.20 a share in 2008. Meeting with management increases confidence that margins have bottomed and could rebound in the near term. Overweight rating and $23 price target.

3M ( MMM) target raised at Goldman to $100 from $93 based on strong organic growth and higher P/E multiple. Note strong international exposure (61% of revenue) and recent 10% earnings growth internationally, vs. 2% in U.S. Maintained Neutral rating.

Microsemi ( MSCC) numbers raised at Jefferies. FY 2008 EPS estimates upped to $1.31 from $1.29 and price target lifts to $33 from $27. Reiterates Buy rating.

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