Analyst upgrades:

• Target (NYSE: TGT) was upgraded two ratings to Buy from Sell at Citigroup, and it raised its price estimate on shares to $61 from $44. The firm sees significant earnings upside as the company's same-store sales improve and finds the valuation attractive at current levels.
• Motorola (NYSE: MOT) was upgraded to Outperform from Sector Perform at RBC Capital citing valuation, new product launches, and expectations that the Mobile Devices division will be profitable. The price target is $11.
• AK Steel (NYSE: AKS) was upgraded to Buy from Hold at Citigroup as it believes the company's Q3 results were solid and the China steel market is stabilizing. The firm raised its target to $21 from $17.
• Ceradyne (NASDAQ: CRDN) was upgraded at Wells Fargo to Market Perform from Underperform. The firm thinks that earnings expectations for the company have now reached more reasonable levels, limiting risk.
• FormFactor (NASDAQ: FORM) was upgraded to Outperform from Market Perform at FBR Capital ahead of the company's Q3 results due to valuation as it views the risk/reward on shares compelling. The firm raised its price target to $25 from $19.
• Texas Instruments (NYSE: TXN) was upgraded at Goldman to Buy from Neutral, citing 2H10 margin expansion and analog share gains. Target was raised to $29 from $27.
• Barrett Business Services (NASDAQ: BBSI) was upgraded to Buy from Hold at Roth Capital as the firm thinks the company will benefit from a labor market recovery next year. Roth notes that the stock's valuation has lagged behind most of its peers in recent months and it set an $18 target.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American International Group Inc. (NYSE: AIG) blamed another big loss on housing and credit markets.
• Barrett Business Services Inc. (NASDAQ: BBSI) beat Q2 estimates and raised its Q3 guidance.
• Fannie Mae (NYSE: FNM) Q2 loss was three times more than analysts had predicted.
• Freddie Mac (NYSE: FRE) big loss was due to loan write-offs, but revenue rose 10%.
• HSBC Holdings PLC (NYSE: HBC) reported a drop in profit and warned of more difficulties to come.
• InterContinental Exchange (NYSE: ICE) posted Q2 results that were in line with Wall Street expectations.
• Marvel Entertainment Inc. (NYSE: MVL) posted strong Q2 results on Iron Man and Incredible Hulk movies.
• Midway Games Inc. (NYSE: MWY) widened its Q2 net loss as revenues slumped.
• News Corp. (NYSE: NWS) posted strong Q4 results on asset gains, and warned of slower growth.
• Playboy Enterprises Inc. (NYSE: PLA) posted a worse-than-expected Q2 loss despite cost controls.
• Procter & Gamble Co. (NYSE: PG) healthy Q4 and full-year results beat analysts' expectations.
• RadiSys Corp. (NASDAQ: RSYS) easily beat Q2 expectations on strong demand for wireless products.
• Time Warner Inc. (NYSE: TWX) net income slumped on declining AOL subscriber fees (see transcript).
• Tyco International Ltd. (NYSE: TYC) beat Q3 earnings expectations and raised its full-year guidance.
• Whole Foods Market International (NASDAQ: WFMI) posted dismal results and suspended its dividend.

Barrett Business Services (NASDAQ: BBSI) provides a range of human resource management services to small and medium-sized U.S. businesses. The company offers both temporary and long-term staffing to some 2,300 clients, focusing on light industrial, clerical, and technical specialties. It also outsources such human resource services as payroll management, benefits administration and recruiting to about 1,200 clients. Barrett operates primarily on the coasts, through a total of 45 offices.

The company pleased investors last week, when it reported Q2 EPS of 29 cents and revenues of $269.4 million. Analysts had been expecting 22 cents and $264.2 million. Management also guided Q3 EPS to 34-36 cents (28 cent consensus) and Q3 revenues to $277-$282 million ($269.32M consensus). Roth Capital subsequently upgraded BBSI to "buy" status.

It is not difficult to find companies geared to offering business services to large corporate clients. The smaller company market can sometimes be underserved, though. So far as staffing and human resource functions are concerned, there is an outfit in Vancouver, Washington that specializes in the needs of the smaller firm.

Barrett Business Services (NASDAQ: BBSI) provides a range of human resource management services to small and medium-sized U.S. businesses. The company offers both temporary and long-term staffing to some 1,800 clients, focusing on light industrial, clerical, and technical specialties. It also outsources such human resource services as payroll management, benefits administration and recruiting to about 1,100 clients. Barrett operates primarily on the coasts, through a total of about forty offices. Five of those were added earlier in the month, when the firm acquired privately held Strategic Staffing.

The stock popped late last month, when JMP Securities upgraded the issue to "strong buy" status and declared a $31 price target. The broker spoke optimistically about the potential effects of the Strategic Staffing action. Shares have since been consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys" and four "buys". The BBSI P/E ratio (18.83), Price to Sales ratio (1.16), Price to Book ratio (2.90), Price to Free Cash Flow ratio (23.49), EPS Growth rate (27.13%), Return on Assets (10.40%) and Return on Investment (15.37%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 61% of the outstanding shares. Over the past 52 weeks, the stock has traded between $18.66 and $27.44. A stop-loss of $23.75 looks good here. Note that the firm is expected to report Q2 results on July 25th, after the close.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.