Scott Valentin, an analyst at Friedman, Billings, Ramsey & Co., raised his rating of Advanta Corp. to "market perform," from "underperform," on Wednesday, writing that the stock has fallen to a point at which "valuation better reflects risks."

"Make no mistake, we are not recommending shares for purchase, given our expectation for continued credit deterioration, which could potentially be significant," Valentin wrote to clients.

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