On Wednesday, the Dow Jones Industrial Average (NYSEARCA:DIA) closed up 21 points, or .17%, to 12,418. The S&P 500 (NYSEARCA:SPY) closed up .24 points, or .02%, to 1,277, and the Nasdaq (NASDAQ:QQQ) closed up .36 points, or .01%, to 2,648. These companies saw analyst catalysts amidst the trading action today:

Watson Pharmaceuticals Inc. (NYSE:WPI): Cowen recommends buying Watson Pharmaceuticals at current levels. This recommendation anticipates January 20th approval for Watson’s Prochieve by the Food and Drug Administration Advisory review. The firm is convinced the product’s will be approved and have deep market penetration. The firm has WPI rated Outperform.

CONMED Corporation (NASDAQ:CNMD): CL King names Conmed a Top Pick for 2012. CL King believes potential for cost reductions and significant new products and cost reductions, gives Conmed the greatest relative upside in its group. CNMD has a Buy rating and $29 price target.

InterMune Inc. (NASDAQ:ITMN): ThinkEquity dropped InterMune from $41 to $25. Consulting with a German expert, the firm feels InterMune’s Esbriet had a decent launch, while discussion about InEK reimbursement may have a “neutral.to positive outcome.” The firm reiterates InterMune’s Buy rating.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA): Piper Jaffray say Arena Pharmaceuticals response has provided a sufficient response to the Food and Drug Administration. FDA concerns should be satisfied with the additional data for Arena Pharmaceuticals’ lorcaserin. The firm thinks FDA will accept Arena’s response on lorcaserin and set a Prescription Drug User Fee Act date later this month. The firm reiterates Arena’s Overweight rating.

Acme Packet, Inc. (NASDAQ:APKT): Credit Suisse lowers Acme Packet price target from $77 to $45. Credit Suisse cited the negative preannouncement but sees this as transitory and feels Acme offers the best industry growth. The firm rates Acme Outperform.

The Valspar Corporation (NYSE:VAL): Citigroup names Celanese, Cytec, and Valspar top acquisition candidates. For the Chemicals space, Citigroup named Valspar (NYSE:VAL), Cytec Industries (NYSE:CYT) and Celanese (NYSE:CE) top acquisition candidates.  For commodities Citigroup chose LyondellBasell (NYSE:LYB) and Dow Chemical (NYSE:DOW). In Agriculture, Citigroup likes nitrogen exposure as well, upgrading CF Industries (NYSE:CF) and Cytec Industries (NYSE:CYT) to Buy yet downgrading Mosaic (NYSE:MOS) to Neutral.

To contact the reporter on this story: Jim Wilkerson at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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