Analyst Upgrades

• BB&T (BBT) and Aflac (AFL) to buy from hold at Deutsche Bank.
• Kodiak Oil & Gas (KOG) to outperform from neutral at RW Baird.
• Zhongpin (HOGS) to neutral from reduce at Global Hunter.
• Marathon Oil (MRO), Noble Energy (NBL) and Manulife Financial (MFC) to buy from neutral at UBS.
• Carrizo Oil & Gas (CRZO) to buy from hold at Canaccord.
• Comerica (CMA) to buy from neutral at Rochdale.

Analyst Upgrades

• DuPont (DD) was upgraded to buy from neutral at Goldman.
• UBS upgraded Deere (DE) to buy from neutral and AGCO (AGCO) to neutral from sell.
• Canadian Solar (CSIQ) was upgraded to outperform from neutral at Macquarie.
• Thoratec (THOR) and DTE Energy (DTE) were upgraded to overweight from equal weight at Barclays.
• NICE Systems (NICE) was upgraded to overweight from neutral at HSBC.
• Deutsche Bank upgraded Copa Holdings (CPA) to buy from hold.
• BofA/Merrill upgraded Nu Skin (NUS) to buy from neutral.
• Continental Resources (CLR) was upgraded to buy from hold at Jefferies.

Analyst Upgrades

• JPMorgan upgraded Deere (DE) to overweight from neutral and raised its target on shares to $65 from $52. JPMorgan believes the company's fundamentals are improving and sees signs of a recovery in forestry, turf and earth-moving equipment.
• Piper Jaffray upgraded Valmont (VMI) to neutral from underweight on valuation following the company's Q4 results. The firm lowered its target price on shares to $70 from $74.
• Soleil upgraded Group 1 Automotive (GPI) to buy from hold on valuation with a $36 price target. The firm believes negative news flow for Toyota has created an opportunity to accumulate shares.
• Bernstein upgraded Deutsche Telekom (DT) to outperform from market perform.
• Nucor (NUE) was upgraded to neutral from underperform at BofA/Merrill.
• American Eagle (AEO) was upgraded to outperform from market perform at Wells Fargo.

Analyst upgrades:

• Pali Capital upgraded Lazard (LAZ) to buy from neutral, citing a healthy restructuring environment, improving M&A and strength in the asset management segment. The firm has a $46 target on shares.
• Baird upgraded Scansource (SCSC) to outperform from neutral, citing strength in the channel business and growth drivers from improved telephony and security. The firm has a $30 target on shares.
• Citigroup upgraded Liberty Interactive (LINTA) to buy from hold, citing the company's QVC unit's return to growth. The firm raised its target on shares to $13.25 from $12.
• Hess Corp (HES) was upgraded to overweight from equal weight at Morgan Stanley.
• Vulcan Materials (VMC) was upgraded to buy from neutral at UBS.
• Dillard's (DDS) was upgraded to buy from hold at Deutsche Bank.

Analyst upgrades:

• JPMorgan upgraded Barrick Gold (NYSE: ABX) and Goldcorp (NYSE: GG) to Overweight from Neutral following its gold valuation analysis. The firm set a $54 price target on Barrick shares and a $47 price target on Goldcorp shares.
• Thomas Weisel upgraded EMC Corp. (NYSE: EMC) to Overweight from Market Weight and raised its target to $24 from $15, citing the company's improving end market demand, competitive position, and valuation.
• Barclays upgraded AMR Corp. (NYSE: AMR) to Overweight from Equal Weight, citing the company's improved liquidity position and what they believe to be the beginning of a multi-year profit cycle for the sector. Despite the upgrade, the firm lowered its target to $14 from $20.
• Harley-Davidson (NYSE: HOG) was upgraded to Outperform from Market Perform at Wells Fargo.
• Toshiba (OTC: TOSBF) was upgraded to Overweight from Neutral at JPMorgan.
• Sanofi-Aventis (NYSE: SNY) was upgraded to Neutral from Sell at UBS.

Terex (NYSE: TEX) is recently trading at $42.50 in pre-open trading, below its close of $47.32. TEX lowered 2008 EPS view to $6.35-$6.65 from $6.85-$7.15. TEX overall option implied volatility of 50 is near its 26-week average according to Track Data, according to Track Data, suggesting non-directional price movement.

Agco (NYSE: AG), global manufacturer of agricultural and construction equipment, closed at $56.10. AG overall option implied volatility of 49 is near its 26-week average, suggesting non-directional price movement.

Deere (NYSE: DE) closed at $66.53. DE overall option implied volatility of 40 is near its 26-week average according to Track Data, suggesting non-directional price movement.

CNH Global (NYSE: CNH), an agricultural and construction equipment manufacturer, closed at $35.17. CNH overall option implied volatility of 54 is near its 26-week average, suggesting non-directional price movement.

Caterpillar (NYSE: CAT) closed at $67.73. CAT October option implied volatility of 32 is near its 26-week average according to Track Data, suggesting non-directional price movement.

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

MOST NOTEWORTHY: Citizens Republic Bancorp, Hess Corp and Sanderson Farms were today's noteworthy upgrades:

• Keefe Bruyette upgraded shares of Citizens Republic Bancorp (NASDAQ: CRBC) to Outperform from Market Perform on valuation following yesterday's sell-off, which they attribute in part to its removal from the Dow Jones Select Dividend Index. Shares were also raised to OUtperform from Perform at Oppenheimer following the sell-off.
  
• Goldman upgraded Hess (NYSE: HES) to Buy from Neutral citing the company's leverage to higher oil prices. The firm said oil is likely to hit $150-$200/bbl in the next 6-24 months.
  
• Stephens upgraded shares of Sanderson Farms (NASDAQ: SAFM) to Overweight from Equal Weight as they expect industry fundamentals to improve in FY09.

OTHER UPGRADES:

• Baird raised Stellent (NASDAQ: STEL) to OUtperform from Neutral.
  
• Friedman Billings upgraded Preferred Bank (NASDAQ: PFBC) to Market Perform from Underperform.
  
• Agco (NYSE: AG) was upgraded at Goldman to Buy from Neutral.
• Lehman upgraded SLM Corp (NYSE: SLM) to Overweight from Equal Weight.

MOST NOTEWORTHY: Level 3 Communications (LVLT) and the Machinery Sector were the most notable initiations today.

• Credit Suisse initiated Level 3 Communications (NASDAQ: LVLT) with an Outperform rating and $7.50 target; the firm expects Level 3 to continue to benefit from strong demand for higher data usage.

• Morgan Stanley initiated the Machinery Sector with an In-Line rating.
  
• Within the sector, Deere & Co (NYSE: DE) was started with an Overweight rating and $116 target, Terex Corp (NYSE: TEX) with an Equal Weight rating and $67 target, and Caterpillar Inc (NYSE: CAT) & Agco (NYSE: AG) with Underweight ratings and targets of $52 & $25 respectively.

OTHER INITIATIONS:

• Baird initiated Alcatel-Lucent ADS (NYSE: ALU) with a Neutral rating and $15 target citing valuation and integration risks.

• Ferris Baker Watts initiated Navigators Group (NASDAQ: NAVG) with a Sell rating and $43 target; the firm said Navigators' balanced growth will serve to reduce underwriting/EPS volatility when the next highly active catastrophe season surfaces.

• Prudential initiated Allergan Inc (NYSE: AGN) with an Overweight rating and $138 target; the firm expects 2007 to be another strong year driven by medical aesthetics products acquired from Inamed in last year.

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

Today on Jim Cramer's STOP TRADING segment on CNBC, Cramer discussed General Motors Corporation (NYSE: GM).

Cramer had said it was going to $40. He said it changes things and he doesn't like GM as much after after Kerkorian's choice of Jerry York on GM's board resigned. He doesn't think it will kill it, but now it is a "5-up 5-down" (meaning it can trade up $5.00 from here or down $5.00 from here with an equal chance) situation. He now thinks a $40 target is a stretch.

He thinks GM has to announce a much better quarter and he doesn't think that can occur.

On AGCO Corporation (NYSE: AG) after its warning and since they are the #2 agricultural supplier in the US, Cramer said he thinks it could bring Deere & Company (NYSE: DE) down a couple points more.

Jon Ogg is a partner in 24/7 Wall St.; he does not own securities in the companies he covers.