Analyst Upgrades

• McAdams Wright expects Dendreon's (NASDAQ: DNDN) near-term momentum to continue but has long-term concerns that Street estimates are too high. The firm upgraded shares to Hold from Sell.
• JPMorgan upgraded Ameristar Casinos (NASDAQ: ASCA) to Overweight from Neutral to reflect valuation, potential catalysts from Colorado's easing gaming regulations, and the company's strong free cash flow. The firm raised its target on shares to $24 from $20.
• Citigroup upgraded Valspar (NYSE: VAL) to Hold from Sell after channel checks indicated paint demand is shifting to big-box retailers, the company's primary sales channel. The firm raised its target on shares to $22 from $19.
• Vulcan Materials (NYSE: VMC) was upgraded to Buy from Neutral at UBS.
• Altera (NASDAQ: ALTR) was raised to Outperform from Sector Perform at RBC Capital.
• Spectra Energy (NYSE: SEP) was upgraded to Neutral from Sell at Goldman.

MOST NOTEWORTHY: SonicWALL, DG FastChannel and Thomson Reuters were today's noteworthy initiations:

• B. Riley believes SonicWALL's (NASDAQ: SNWL) long-term outlook should benefit as the company specifically targets the SMB IT security market and is increasing its focus on the Asian and Latin American markets. Shares were initiated with a Buy rating and $14 target.
  
• Merriman started DG FastChannel (NASDAQ: DGIT) with a Buy rating and believes the recent closing of the Vyvx acquisition and anticipated closing of the Enliven acquisition could create positive catalysts for the stock.
  
• Citigroup assumed Thomson Reuters (NASDAQ: TRIN) with a Hold rating. The firm finds the valuation full at current levels and prefers to wait for a better entry point.

OTHER INITIATIONS:

• Ameristar Casinos (NASDAQ: ASCA) was initiated with an Overweight rating and $26 target at Thomas Weisel.
  
• William Blair assumed Intuitive Surgical (NASDAQ: ISRG) with an Outperform rating.
  
• Longtop Financial (NYSE: LFT) was started at Oppenheimer with an Outperform rating and $25 target.

Las Vegas Sands (NYSE: LVS) volatility Elevated into Macao Resort Hotel opening. LVS opened the Venetian Macao Resort Hotel today. Sheldon Adelson, chairman & chief executive officer, said "it is no overstatement to say that the opening of Venetian Macao represents a massive paradigm shift for Macao and the future of tourism development in Asia." Goldman Sachs (NYSE: GS) says "the scale is enormous and the detail impressive." LVS over all option implied volatility of 44 is above its 26-week average of 39 according to Track Data, suggesting larger price fluctuations.

Ameristar Casinos (NASDAQ: ASCA) implied volatility Elevated at 43. ASCA, a Las Vegas based gaming and Entertainment Company, is recently down $0.55 to $28.39. ASCA has a market cap of $1.6 billion with long term debt of $878 million. ACSA over all option implied volatility of 43 is above its 26-week average of 37 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Netflix Inc (NASDAQ: NFLX)

Amazing. Amazon.com Inc (NASDAQ: AMZN), that big online retailer, sees the flix for the net. The shares keep rising for the online DVD rental company-up about 15%, highest since January-- even if their discs do come a little scratched. More than that though is while new subscribers are coming on; it's not exactly going gangbusters. Still, 6.8M is a whole lot of subscribers. Will Amazon, or someone else, overpay?

Rackable Systems Inc (NASDAQ: RACK)

Which came first: The ongoing takeover rumors or the higher stock price? Or was it that Dell Inc (NASDAQ: DELL) is said to be after Rackable, a provider of servers and storage products for high density data center deployments. Rack it up.

Feldman Mall Properties Inc (NYSE: FMP)

Word is that this real estate investment trust will look for a sale, combo or merger. They said the venerable firm of Friedman, Billings, Ramsey & Co. will help them "explore strategic alternatives." Then the stock went up.

STILL FLYING AROUND

Trump Entertainment Resorts Inc (NASDAQ: TRMP)

Dennis Gomes, whose name surfaced in March, is a one time gaming exec and regulator. He's signed a confidentiality agreement to have a look see at the firm's Atlantic City casinos. Separately, Las Vegas' Boyd Gaming Corporation (NYSE: BYD) has also been mentioned as a possible contender.

YRC Worldwide Inc (NASDAQ: YRCW)

The CEO of this Kansas-based transportation service provider has been quoted as saying that a takeover is possible. An LBO is likely. This week the shares have actively been trading up.

Dollar Tree Stores Inc (NASDAQ: DLTR)

Imagine a dollar tree where the stock keeps going up, up, up. Well, here it is, once again, a subject of takeover talk.

BUZZ

United States Steel Corporation (NYSE: X): Russia's Severstal may be prowling around...Plains Exploration & Production Company (NYSE: PXP): Takeover candidate's stock is sharply higher... Micron Technology Inc (NYSE: MU): Blackstone has interest...Ameristar Casinos Inc (NASDAQ: ASCA): A hot stock and takeover rumors abound...Nvidia Corporation (NASDAQ: NVDA): Remains an LBO candidate...The First Marblehead Corporation (NYSE: FMD): The student loan business is booming and earnings growth is strong, but who would buy it?...Marriott International Inc (NYSE: MAR): A target? But where's the movement?...Oakley Inc (NYSE: OO) as a target has been around and around, and now some say it will be bought by Luxottica Group (NYSE: LUX).

MOST NOTEWORTHY: British Airways plc (BAB), Ryanair Holdings plc (RYAAY), Cox Radio, Inc (CXR) and Autoliv Inc (ALV) were today's noteworthy initiations:

• Deutsche Bank upgraded shares of both British Airways (NYSE: BAB) and Ryanair Holdings plc (NASDAQ: RYAAY) to Hold from Sell on valuation.

• Credit Suisse upgraded shares of Cox Radio Inc (NYSE: CXR) to Neutral form Underperform on valuation following the stock's recent pullback. Bear Stearns also upgraded Cox Radio to Outperform from Peer Perform on valuation.

• Merrill Lynch upgraded shares of Autoliv Inc (NYSE: ALV) to Neutral from sell.

OTHER UPGRADES:

• Wachovia upgraded Heelys, Inc (NASDAQ: HLYS) to Outperform from Market Perform following positive channel checks, which could lead to upside to the Street's Q1 EPS estimate of 18c, and valuation.

• Stifel upgraded VistaPrint Ltd (NASDAQ: VPRT) to Buy from Hold with a $43 target. The firm said risks from taxes and non-transaction revenue have been diminished to levels that allow them to focus on the core printing business.

• Ameristar Casinos, Inc (NASDAQ: ASCA) was upgraded to Buy from Hold at Jefferies.

• Bear Stearns upgraded Waddell & Reed Financial, Inc (NYSE: WDR) to Outperform from Peer Perform based on strong operating leverage and valuation.

• Potash Corp (NYSE: POT) was upgraded to Buy from Neutral at UBS.

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

MOST NOTEWORTHY: Insituform Technologies, Inc (INSU), Ameristar Casinos, Inc (ASCA) and Christopher & Banks Corp (CBK) were some of today's more noteworthy downgrades:

• Canaccord Adams downgraded shares of Insituform Technologies (NASDAQ: INSU) to Underweight from Neutral following the company's reduced outlook and announcement to exit the tunneling business.

• Prudential downgraded shares of Ameristar Casinos (NASDAQ: ASCA) to Underweight from Neutral on valuation following the recent run-up due to speculation the company will be sold; based on management statements, Prudential believes a company sale is unlikely.

• Buckingham cut Christopher & Banks (NYSE: CBK) to Underperform from Neutral.

OTHER DOWNGRADES:

• ABN AMRO downgraded shares of British Airways plc (NYSE: BAB) to Sell from Hold as the firm believes profits on trans-Atlantic routes may drop from increased competition due to the "open skies" agreement between the European Union and the U.S.

• JP Morgan downgraded China Unicom Limited (NYSE: CHU) to Underweight from Neutral.

• RBC cut Paychex, Inc (NASDAQ: PAYX) to Sector Perform from Outperform.

• Matrix USA downgraded EarthLink, Inc (NASDAQ: ELNK) to Sell from Hold and WCI Communities, Inc (NYSE: WCI) to Strong Sell from Hold on valuation.

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

MOST NOTEWORTHY: Plexus Corp (PLXS) and Ameristar Casinos Inc (ASCA) were some of today's most notable initiations:

• Lehman initiated Plexus Corp (NASDAQ: PLXS) with an Underweight rating and $15.50 target.

• Wachovia started Ameristar Casinos Inc (NASDAQ: ASCA) with an Outperform rating; the firm sees upside for Ameristar through growth of existing properties that have expansions and the removal of the $500 loss limit in Missouri.

OTHER INITIATIONS:

• Mattel Inc (NYSE: MAT) was initiated with a Hold rating at Sterne Agee.

• First Albany started Gaming Partners International Corp (NASDAQ: GPIC) with a Buy rating and $23 target.

• Jefferies initiated Morgans Hotel Group Co (NASDAQ: MHGC) with a Hold rating and $20 target based on valuation.

• UBS started E*Trade Financial Corp (NASDAQ: ETFC) with a Buy rating and $29 target.

• UBS also started TD Ameritrade Holding Corp (NASDAQ: AMTD) with a Neutral rating on valuation.

• Stifel initiated Saia Inc (NASDAQ: SAIA) with a Buy rating and $31 target; the firm is positive on Saia's growth and said the company should be the biggest beneficiary of further tonnage leakage from Central Freight Lines, which recently went private.

• William Blair started US BioEnergy Corp (NASDAQ: USBE) with an Outperform rating.

• JMP Securities assumed coverage of Delta Financial Corp (NYSE: DFC) with a Strong Buy rating and $13 target.

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

MOST NOTEWORTHY: The Gaming sector and CBS Corp (CBS) were the most notable companies on today's initiation list.

• Prudential initiated the Gaming sector with a Favorable rating,
  
• They initiated Boyd Gaming Corp (NYSE: BYD), Town Sports International Holdings (NASDAQ: CLUB), Penn National Gaming (NASDAQ: PENN), Shuffle Master Inc (NASDAQ: SHFL), Steiner Leisure Ltd (NASDAQ: STNR) and Great Wolf Resorts Inc (NASDAQ: WOLF) with Outperform ratings.
  
• Ameristar Casinos Inc (NASDAQ: ASCA), MGM Mirage (NYSE: MGM) and WMS Industries Inc (NYSE: WMS) were initiated with Neutral ratings.
• Underweight ratings were given to International Game Tech (NYSE: IGT), Isle of Capri Casinos Inc (NASDAQ: ISLE), Life Time Fitness Inc (NYSE: LTM), Pinnacle Entertainment Inc (NYSE: PNK) and Trump Entertainment Resorts Inc (NASDAQ: TRMP).

• UBS initiated CBS Corp (NYSE: CBS) with a Buy rating and $38 target, citing valuation, dividends and buybacks.

OTHER INITIATIONS:

• Nollenberger believes International Rectifier Corp (NYSE: IRF) is the way to play the trend for energy efficiency, initiating the company with a Buy rating and $60 target.

• Goldman Sachs resumed coverage of AT&T Inc (NYSE: T) with a Buy rating and Level 3 Communications inc (NASDAQ: LVLT) with a Neutral rating.

• Stanford started EDO Corp (NYSE: EDO) with a Hold rating and $25 target; the firm believes EDO can be a turnaround story in 2007, but they recommend investors to stay on the sidelines until after Q4 earnings given their concerns over the quarter and guidance.

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

MOST NOTEWORTHY: Research in Motion (RIMM) was the only notable company in today's list of initiations.

• Lazard initiated Research in Motion Ltd. (NASDAQ:RIMM) with a Hold based on valuation.

OTHER INITIATIONS:

• Morgan Stanley initiated Labor Ready Inc. (NYSE:LRW) with an Equal Weight rating and $18 target, expecting headwinds from the US "growth recession", which should continue next year.
• Calyon initiated Ameristar Casinos Inc. (NASDAQ:ASCA) with a Neutral rating citing valuation.

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