<strong>ROLLS-ROYCE</strong><br />Goldmach Sachs downgraded the civil aerospace company to Sell after a strong outperformance against its peers. It added that it expected the sector&rsquo;s downturn to be less severe than investors anticipated, and that Rolls-Royce would benefit from this. It downgraded the company because its shares trade at a premium to rivals.<br /><strong>FRANCE TELECOM<br /></strong>JP Morgan upgraded France Telecom from neutral to overweight. It has been cautious on the company over the past twelve months because of consensus margin forecasts. JPM said that Q2 results showed that cost reduction plans are bearing fruit. Margin risk is now weighted to the upside, it added.<br /><br /><strong>BOVIS HOMES GROUP<br /></strong>Goldman Sachs downgraded Bovis from buy to neutral following its recent outperformance. The shares have almost reached its six-month price target, the broker said, and it said the risk-reward is now more balanced at these levels. Since being upgraded to a buy in June, Bovis' shares have risen 27.5 per cent.