Ladenburg Thalmann & Co. analyst John Stone upgraded Pegasus Communications Inc. to "buy" from "outperform" on April 8. He also placed a price target of $8 to $12 on the stock. Pegasus — which resells DirecTV Inc. direct broadcast satellite service, mainly in rural areas — has seen its stock decline dramatically since EchoStar Communications Corp. announced its plan to merge with DirecTV parent Hughes Electronics Corp. in late October. Since that announcement, shares have declined 76 percent. But the stock got a lift after Stone's report last Tuesday, rising 13.5 percent (29 cents) to close at $2.43 on April 9. In his report, Stone said the decline makes Pegasus a "tempting takeover target" for Hughes.