Analyst Upgrades

• Time Warner Cable (TWC) was upgraded to outperform from market perform at Bernstein.
• Citigroup upgraded MEMC Electronic (WFR) and Skilled Healthcare (SKH) to buy from hold at Citigroup.
• Administaff (ASF) was upgraded to buy from hold at Roth Capital.
• The Buckle (BKE) was upgraded to buy from hold at KeyBanc.
• BofA/Merrill upgraded DreamWorks (DWA) to neutral from underperform.
• Corrections Corp. (CXW) was upgraded to buy from neutral at SunTrust.
• Marvell Technology (MRVL) was upgraded to positive from neutral at Susquehanna.

Analyst Upgrades

• UBS upgraded Yum! Brands (YUM) to buy from neutral, citing valuation, improving momentum and stabilizing China fast-food sales. The firm raised its target to $44 from $38.
• United Technologies (UTX) was upgraded to outperform from neutral at Cowen.
• Needham upgraded Arris (ARRS) to buy from hold, citing valuation and positive near-term business trends. The firm has a $16 price target on shares.
• Warnaco (WRC) was upgraded to outperform from neutral at Credit Suisse.
• Aetna (AET) was upgraded to neutral from underperform at BofA/Merrill.
• Nestle (NSRGY) was upgraded to overweight from neutral at JPMorgan.

Arris (ARRS - option chain) shares are rising today after the company announced this morning that it now expects Q4 revenue of $295 million to $300 million, up from a previous forecast of $265 million to $285 million. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ARRS.

ARRS opened this morning at $11.70. So far today the stock has hit a low of $11.31 and a high of $11.73. As of 12:10, ARRS is trading at $11.47 up 67 cents (6.2%). The chart for ARRS looks bullish and S&P gives ARRS a positive 4 STARS (out of 5) buy ranking.

Analyst Upgrades

• Janney Montgomery upgraded Dreamworks (DWA) to buy from neutral on valuation and believes Dragon will be a major hit. The firm has a $45 target on the stock.
• Thomas Weisel upgraded Gildan Activewear (GIL) to market weight from underweight, citing expectations for increased market shares in the U.S. screen print channel. The firm raised its target to $17 from $12.
• P.F. Chang's (PFCB) was upgraded to overweight from equal weight at Morgan Stanley.
• PEPCO Holdings (POM) was upgraded to outperform from neutral at Credit Suisse.
• Arris (ARRS) was upgraded to buy from neutral at UBS.

Analyst upgrades:

• UBS upgraded Corning (NYSE: GLW) to Buy from Neutral and raised its target to $19 from $18.50, citing the improved LCD supply-demand outlook and improved sell-through ahead of the holiday season in China.
• Credit Suisse upgraded Newfield Exploration (NYSE: NFX) to Outperform from Neutral and raised its target to $48 from $44 citing valuation and improved asset quality.
• Stifel upgraded Newfield Exploration and Ultra Petroleum (NYSE: UPL) shares to Buy from Hold based on strong fundamentals and a long-term positive view for the E&P sector. The firm has a $50 target on Newfield and a $58 target on Ultra Petroleum.
• TJX Companies (NYSE: TJX) was upgraded to Conviction Buy from Buy at Goldman.
• General Mills (NYSE: GIS) was upgraded to Overweight from Equal Weight at Morgan Stanley.
• Coca-Cola Femsa (NYSE: KOF) was upgraded to Buy from Neutral at BofA/Merrill.

Analyst upgrades:

• Stephens upgraded Arris (NASDAQ: ARRS) to Overweight from Equal Weight following the company's Q1 results and raised its target on shares to $15 from $8.
  
• Goldman upgraded Goodyear Tire (NYSE: GT) to Neutral from Sell and raised their target to $11 from $7 citing better earnings prospects and stabilizing volumes.
  
• KeyBanc upgraded Parkway Properties (NYSE: PKY) to Hold from Underweight citing the company's improved balance sheet and valuation.
• Digital River (NASDAQ: DRIV) was raised to Perform from Underperform at Oppenheimer.
  
• Barclays (NYSE: BCS) was raised to Buy from Sell at Royal Bank of Scotland.
  
• First Potomac (NYSE: FPO) was upgraded at RBC Capital to Sector Perform from Underperform.

Analyst upgrades:

• Merrill upgraded Kraft Foods (NYSE: KFT) to Buy from Neutral citing progress in the company's turnaround plan, execution, and 2009 earnings growth.
  
• Thomas Weisel raised Express Scripts (NASDAQ: ESRX) to Overweight from Market Weight and believes the company's core business remains strong and that valuation is attractive.
  
• Friedman Billings upgraded shares of Symantec (NASDAQ: SYMC) to Outperform from Market Perform on valuation after checks indicated the company should meet Q2 expectations.
• NeuStar (NSR) was upgraded to Outperform from Neutral at Baird.
  
• UBS raised Advance Auto Parts (NYSE: AAP) to Neutral from Sell.
  
• Goldman upgraded Royal Dutch Shell (NYSE: RDS.A) to Buy from Neutral.

Analyst downgrades:

• Friedman Billings downgraded shares of Zions Bancorp (NASDAQ: ZION) to Market Perform from Outperform and lowered its target to $33 from $43 following the company's Q3 results, as they believe near-term credit trends and concerns surrounding its securities portfolio will limit upside. Shares were also downgraded at JP Morgan to Neutral from Overweight due to deteriorating credit trends.
  
• Banc of America cut Monster (NASDAQ: MNST) to Neutral from Buy to reflect a lack of margin stability and their belief consensus estimates remain too high.
  
• Barclays downgraded Avis Budget Group (NYSE: CAR) to Equal Weight from Overweight citing the global economic slowdown and refinancing risk.
• Johnson Controls (NYSE: JCI), Luxottica (NYSE: LUX) and ArvinMeritor (NYSE: ARM) were cut to Neutral from Buy at Goldman.
  
• Luxottica was also downgraded at HSBC to Neutral from Overweight.
  
• JP Morgan cut AuthenTec (NASDAQ: AUTH) to Underweight from Neutral.

Analyst initiations:

• Janney Montgomery believes Gladstone Capital's (NASDAQ: GLAD) management team and lower portfolio investment risk profile warrant a premium valuation. The firm started shares with a Buy rating and $13 target.
• CommVault (NASDAQ: CVLT) was initiated with a Buy rating and $14 target at Cantor, as the firm finds the stock attractively valued given its secular growth rate potential.
  
• KeyBanc is positive on Papa John's (NASDAQ: PZZA) management team, growth potential, cost initiatives, and differentiation. Shares were assumed with a Buy rating and $30 target.
• Arris (NASDAQ: ARRS) was initiated at Jefferies with a Hold rating and $7 target.
  
• Rigel Pharmaceuticals (NASDAQ: RIGL) was initiated at Banc of America with a Neutral rating and $21 target.
  
• Morgan Stanley started Hansen Natural (NASDAQ: HANS) with an Equal Weight rating.

MOST NOTEWORTHY: Cleveland Cliffs, Synthesis Energy and Bookham Tech were today's noteworthy initiations:

• KeyBanc believes the pullback in Cleveland Cliffs (NYSE: CLF) shares is an attractive entry point given acceleration of North American Iron Ore pellet contract pricing and increased pellet production into 2009. Shares were assumed with a Buy rating and $180 target.
  
• Stanford believes the Synthesis Energy's (NASDAQ: SYMX) U-GAS technology offers several advantages, including the ability to use waste/low grade coal and operational cost savings and intitiated shares with a Buy rating and $12 target.
  
• Morgan Keegan started Bookham Tech (NASDAQ: BKHM) with an Outperform rating and said the company continues to benefit from a expanding customer base, timing of new product introductions, and new products.

OTHER INITIATIONS:

• Arris (NASDAQ: ARRS), Garmin (NASDAQ: GRMN) and Harmonic (NASDAQ: HLIT) were initiated at RBC Capital with Sector Perform ratings.
  
• Citigroup assumed Delphi Financial (NYSE: DFG) with a Hold rating and $23 target.
  
• VanceInfo (NYSE: VIT) was initiated with an Outperform rating and $12 target at Oppenheimer.

SGX Pharmaceuticals (NASDAQ:SGXP) is up more than 100% on a buyout from Eli Lilly (NYSE:LLY).

Wachovia (NYSE:WB) is up about 4% on a brokerage upgrade.

Arris (NASDAQ:ARRS) is down over 15% after cutting its outlook.

Digital River (NASDAQ:DRIV) is off 4% on a brokerage downgrade.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

MOST NOTEWORTHY: Micron, China Sunergy and Medtronic were today's noteworthy upgrades:

• Deutsche Bank upgraded shares of Micron (NYSE: MU) to Buy from Hold as they believe improved pricing and the company's cost reductions should drive a strong margin recovery. The firm raised MU's target to $11 from $7.
  
• Jefferies raised China Sunergy (NASDAQ: CSUN) to Hold from Underperform following the company's Q1 beat to reflect its improved outlook for the production of higher efficiency cells and better controls over cash flow measures.
  
• Goldman raised Medtronic (NYSE: MDT) to Buy from Neutral based on potential earnings upside from strong market share and broad distribution.

OTHER UPGRADES:

• UBS upgraded National Fuel Gas (NYSE: NFG) to Buy from Neutral.
  
• Arris (NASDAQ: ARRS) was raised to Outperform from Market Perform at Friedman Billings.
  
• Piper upgraded Central Garden & Pet (NASDAQ: CENT) to Buy from Neutral.

Priceline (NASDAQ:PCLN) is up 11% on a strong earnings report.

Kraft (NYSE:KFT) is up almost 4% on news that Warren Buffett has taken a stake in the company.

Arris Group (NASDAQ:ARRS) is off 25% on weak quarterly numbers.

UBS (NYSE:UBS) is down 4% on concerns about more large write-downs in 2008.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

MOST NOTEWORTHY: Novell, Con-Way and Flamel Technologies were today's noteworthy upgrades:

• Jefferies named Novell (NASDAQ: NOVL) its Tuesday Value Pick and upgraded shares to Buy from Hold based on expectation for revenue stabilization and gradually improving margins throughout 2008. They note the company has $3.64 in cash per share.
  
• JP Morgan upgraded Con-Way (NYSE: CNW) to Overweight from Neutral, citing strong execution following the company's Q4 report.
  
• Flamel Tech (NASDAQ: FLML) was raised to Buy from Neutral at Merriman, as they believe low expectations and the company's robust pipeline create upside the potential for upside in 2008.

OTHER UPGRADES:

• Toyota (NYSE: TM) was upgraded to Neutral from Underweight at HSBC.
  
• UBS upgraded Arris (NASDAQ: ARRS) to Buy from Neutral.
  
• BNP Paribas raised Siliconware Precision (NASDAQ: SPIL) to Buy from Hold.

MOST NOTEWORTHY: Lincare Holdings, Gentiva Health, Five Star Quality Care, Arris and U.S. Steel Group were today's noteworthy upgrades:

• Jefferies upgraded shares of Lincare Holdings (NASDAQ: LNCR) to Buy from Hold on valuation as they now believe the likelihood that Congress could severely cut Medicare oxygen reimbursement this year is priced into shares.
  
• Jefferies also upgraded Gentiva Health (NASDAQ: GTIV) to Buy from Hold on valuation, as they believe the recent sell-off is overdone.
  
• RBC Capital raised Five Star Quality Care (AMEX: FVE) to Outperform from Sector Perform, as they believe the company's Q3 report could be better than expected and that census and outlook are improving.
  
• CIBC upgraded shares of Arris Group (NASDAQ: ARRS) to Sector Outperformer from Sector Performer on valuation as they believe the weakness in the stock is overdone.
  
• Deutsche Bank upgraded shares of U.S. Steel (NYSE: X) to Buy from Hold, as they expect the company to be a major beneficiary of rising raw material costs. Further, Deutsche thinks Lone Star and Stelco will be catalysts for earnings growth in 2008.

OTHER UPGRADES:

• VeraSun Energy Corporation (NYSE: VSE) was upgraded to Overweight from Equal Weight at Morgan Stanley.
  
• UST Inc (NYSE: UST) was upgraded to Buy from Neutral at Goldman.
  
• JP Morgan upgraded BASF AG (OTC: BASFY) to Overweight from Neutral.
  
• Avondale Partners upgraded Polaris Industries (NYSE: PII) to Market Outperform from Market Perform.

MOST NOTEWORTHY: General Motors (GM), Aluminum Corp of China (ACH), Greenbrier Cos (GBX) and Monsanto (MON) were today's noteworthy downgrades:

• Bear Stearns cut General Motors (NYSE: GM) to Peer Perform from Outperform based on valuation and growing fundamental headwinds.

• HSBC downgraded Aluminum Corp of China (NYSE: ACH) to Underweight from Neutral as they believe prices of lightweight metal have peaked.

• Greenbrier Cos (NYSE: GBX) was cut at Bear Stearns to Peer Perform from Outperform on valuation.

• Matrix USA downgraded Monsanto (NYSE: MON) to Buy from Strong Buy on valuation...

OTHER DOWNGRADES:

• Sandler cut Western Alliance Bancorporation (NYSE: WAL) to Hold from Buy.

• UBS cut Arris Group (NASDAQ: ARRS) to Neutral from Buy.

• AG Edwards downgraded Hilton Hotels (NYSE: HLT) to Sell from Buy. Gabelli cut Hilton Hotels to Hold from Buy.
  

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: ColdWater Creek Inc (CWTR), Celadon Group, Inc (CLDN), Berry Petroleum Co (BRY), SiRF Technology Holdings Inc (SIRF) were today's noteworthy initiations:

• Brean Murray started shares of Coldwater Creek (NASDAQ: CWTR) with a Buy rating and $25 target, expecting second-half upside from new merchandise this year.

• Keybanc is positive on Celadon's (NASDAQ: CLDN) disciplined approach to strategic acquisitions and leverage in its operating model, starting shares with a Buy rating and $20 target.

• CRT Capital believes Berry Petroleum (NYSE: BRY) has the ability to continue to deliver double digit percentage production/reserves growth and started shares with a Buy rating and $40 target.

• American Technology believes SiRF Technology Holdings (NASDAQ: SIRF) will continue to be a market leader in GPS chipsets and finds the company's wireless business undervalued, starting shares with a Buy rating and $26 target...

OTHER INITIATIONS:

• Javelin Pharmaceuticals Inc (AMEX: JAV) was initiated with an Outperform rating at Leerink Swann.

• UBS started Arris Group, Inc (NASDAQ: ARRS) with a Buy rating and $18 target.

• Publicis Groupe (NYSE: PUB) was started with a Buy rating at ING.

• Thomas Weisel initiated shares of Ambassadors International (NASDAQ: AMIE) with an Overweight rating and $41 target. Baird started

• Capella Education Co (NASDAQ: CPLA) with an Outperform rating and $46 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).