Analyst upgrades:

• JP Morgan upgraded Alcoa (NYSE: AA) to Overweight from Neutral and added shares to its Focus List. The analyst said the equity offering and dividend cut provide enough "liquidity insurance" to make it through 2009 and now views risk/reward as attractive.
  
• Deutsche Bank upgraded Asbury Automotive (NYSE: ABG) to Buy from Hold as it finds the current valuation attractive and thinks the company's cost savings will drive upside in a recovery. The firm raised its target price to $7 from $5.50.
  
• Barclays upgraded Beckman Coulter (NYSE: BEC) to Overweight from Equal Weight. Following their healthcare conference and management meetings, the firm sees increased visibility into revenues.
• Waddell & Reed (NYSE: WDR) was raised to Buy from Neutral at Goldman.
  
• Nokia (NYSE: NOK) was upgraded to Outperform from Neutral at Credit Suisse.
  
• Brocade (NASDAQ: BRCD) was lifted to Outperform from Sector Perform at RBC Capital.

This was quite a week in biotechnology. You had a major premium buyout and had much data come out from the American Society of Clinical Oncology (ASCO) and others. This is far from all of the movers, but it is a brief summary of the major gainers from BioHealthInvestor.com showing how large some moves were in biotechnology this week.

Acorda Therapeutics Inc. (NASDAQ: ACOR) had a great week after it announced positive data from a second Phase III study of its Fampridine-SR for patients' walking abilities who suffer from multiple sclerosis (MS). FULL DETAILS

Auxilium Pharmaceuticals Inc. (NASDAQ: AUXL) was a strange stock this week. The company reported great news but shares slid before the market figured out it had misinterpreted news in the company. INITIAL DETAILS

Inspire Pharmaceuticals Inc. (NASDAQ: ISPH) saw a surge after it reached its primary endpoint in Phase III trial of Denufosol for Cystic Fibrosis. FULL DETAILS

MOST NOTEWORTHY: Lehman, CIT Group and Auxilium Pharma were today's noteworthy downgrades:

• Oppenheimer cut Lehman (NYSE: LEH) to Perform from Outperform on valuation, as they see a "protracted challenging capital markets environment."
  
• The firm also downgraded CIT Group (NYSE: CIT) to Perform from Outperform, as they believe the company addressed its liquidity concerns too late and will be forced into a fire sale of assets.
  
• Merriman downgraded shares of Auxilium Pharma (NASDAQ: AUXL) to Sell from Neutral as they believe there were a number of unexpected adverse events in the phase 3 trials of XIAFLEX that could potentially delay the approval and launch. They see significant potential downside in the interim.

OTHER DOWNGRADES:

• Gap (NYSE: GPS) was lowered to Neutral from Buy at UBS.
  
• Wachovia cut Symmetry Medical (NYSE: SMA) to Market Perform from Outperform.
  
• Wells Fargo (NYSE: WFC) was downgraded by Baird to Underperform from Neutral.

Auxilium Pharmaceuticals (NASDAQ: AUXL) is a specialty biopharmaceutical company with a focus on developing products for urologists, endocrinologists, orthopedists and select primary care physicians. The firm markets Testim, a topical testosterone gel for the treatment of hypogonadism. It also has projects in clinical development for the treatment of Dupuytren's contracture, Peyronie's disease, Frozen Shoulder syndrome and overactive bladder.

The stock is up 48% over the past fifteen weeks, sparked by such issues as better than expected Q3 results, upside guidance and subsequent affirmation of FY07 revenues, and positive clinic trial developments. The news has the stock cycling through a positive trading channel. The price is consolidating at the base of that channel, where oversold CCI, MACD and Stochastic technical parameters suggest the potential for a rise back toward the top. Correspondence of the stock's 30-day moving average to the base of the channel backs the rebound notion.

MOST NOTEWORTHY: The systems technology sector, Auxilium Pharmaceuticals (AUXL) and BioSante Pharm (BPA) were today's noteworthy initiations:

• In the systems technology sector, JP Morgan initiated coverage on CommVault Systems (NASDAQ: CVLT) and Double-Take Software, Inc (NASDAQ: DBTK) with Overweight ratings, Isilon Systems (NASDAQ: ISLN) and Opsware Inc (NASDAQ: OPSW) with Neutral ratings and Avocent Corp (NASDAQ: AVCT) with an Underweight rating.

• Auxilium Pharmaceuticals (NASDAQ: AUXL) was initiated with an Outperform rating at Cowen, which said AUXL's lead candidate, AA4500, is in pivotal testing for Dupuytren's contracture, which could be a $400M+ revenue opportunity.

• BioSante Pharmaceuticals (AMEX: BPA) was initiated with a Positive rating at Susquehanna, as the firm is positive on BPA's growth prospects for the transdermal estrogen market, upside potential from the female dysfunction market, and valuation.

OTHER INITIATIONS:

• Morgan Stanley initiated shares of Lamar Advertising (NASDAQ: LAMR) with an Overweight rating and $77 target.

• SunTrust Robinson Humphrey initiated shares of Texas Roadhouse (NASDAQ: TXRH) with a Neutral rating.

• Morgan Joseph initiated shares of Metalico (AMEX: MEA) with a Hold rating.

• Stifel Nicolaus initiated shares of Tenet Healthcare (NYSE: THC) with a Sell rating and a $5 target.

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

MOST NOTEWORTHY: Hewlett-Packard Co (HPQ), Tekay Offshore Partners LP (TOO), Auxilium Pharmaceuticals, Inc (AUXL) and Northwest Airlines Corp (NWA) were today's more noteworthy initiations:

• Friedman Billings started Hewlett-Packard (NYSE: HPQ) with an Outperform rating and $53 target.

• Teekay Offshore (NYSE: TOO) was initiated with a Hold rating and $30 target by Deutsche Bank based on valuation.

• Banc of America noted that if approved, Auxilium Pharmaceuticals' (NASDAQ: AUXL) lead candidate, AA4500, could become a first-in-class therapy, with an over-$800M sales potential in niche markets, with no competition. Bank of America started AUXL with a Buy rating and $22 target.

• Northwest Airlines (OTC: NWACQ) was initiated at Morgan Stanley with an Equal Weight rating...

OTHER INITIATIONS:

• Banc of America assumed coverage of Gilead Sciences, Inc (NASDAQ: GILD) with a Buy rating and increased its target to $94 from $90. Banc of America also started Arena Pharmaceuticals, Inc (NASDAQ: ARNA), Amylin Pharmaceuticals, Inc (NASDAQ: AMLN) and Celgene Corp (NASDAQ: CELG) with Neutral ratings.

• Credit Suisse assumed coverage of RF Micro Devices, Inc (NASDAQ: RFMD) with an Outperform rating.

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