Stephens upgraded shares of Ann Taylor (NYSE: ANN) to Overweight from Equal Weight to reflect the company's restructuring program, reductions in inventory and share repurchase program.
AIMCO (NYSE: AIV) was upgraded to Buy from Hold at Deutsche Bank.
UBS upgraded D.R. Horton (NYSE: DHI) to Neutral from Sell.
Argus believes BigBand Networks (NASDAQ: BBND) is succeeding by adding new customers and driving new business with existing customers. Shares were upgraded to Buy from Hold.
ThinkPanmure expects Capella Education (NASDAQ: CPLA) to attract students at a faster rate in the coming quarters and to improve operating margins. The firm raised shares to Buy from Accumulate and raised its target to $60 from $62.
Advanced Medical (NYSE:EYE) was lifted to Hold from Underperform at Jefferies.
This week BT PLC (formerly British Telecommunications PLC) (NYSE: BT) got lots of favorablecoverage for relenting on its plan to remove thousands of iconic red phone boxes. BT announced in June it wanted to replace about one-third of its remaining 12,000 red phone boxes. The company has slowly been dispatching the boxes for years, prompting small local protests all along and a big outcry this summer.
BT proposed a new deal: for £1 a town could keep the box, but with no working phone. A working phone would cost £500 ($900) a year. According to The Telecom, BT says £500 ($900) pounds is only half the annual cost of operating a red phone box. Really, $1,800 a year to maintain a pay phone? This July, residents in Cornwall were told their phone, which had been broken since June, wouldn't be fixed till late August. In protest, they strung up a bunch of tin cans on strings inside the booth.
Goldman upgraded BT Group (NYSE: BT) to Buy from Neutral on valuation and improved earnings visibility.
Soleil upgraded shares of Jo Ann Stores (NYSE: JAS) to Buy from Hold following the company's Q2 upside surprise to reflect strong fundamentals and market share gains. The firm raised Jo Ann's target to $30 from $25.
Amylin Pharma (NASDAQ: AMLN) was upgraded to Buy from Neutral at Merrill Lynch.
Energen (NYSE: EGN) was upgraded to Buy from Neutral at UBS.
Analyst downgrades:
Roth Capital downgraded shares of Warner Chilcott (NASDAQ: WCRX) to Hold from Buy pending patent clarity for the company's lead drug, Loestrin 24 for birth control. The firm lowered their target to $18 from $20.
JP Morgan cut China Mobile (NYSE: CHL) to Underweight from Overweight as they believe increased competition may limit earnings growth.
Cantor downgraded shares of Cell Genesys (NASDAQ: CEGE) to Hold from Buy following the termination of the VITAL-2 Phase III clinical trial. The firm also lowered their target to $2 from $10.
Coca-Cola (NYSE: KO) was lowered to Neutral from Outperform at Credit Suisse.
Gilead Sciences (NASDAQ: GILD) was downgraded to Equal Weight from Overweight at Lehman.
Cinemark (NYSE: CNK) was downgraded at BMO Capital to Market Perform from Outperform.
MOST NOTEWORTHY: Wachovia, American International Group and BT Group were today's noteworthy downgrades:
Oppenheimer downgraded shares of Wachovia (NYSE: WB) to Underperform from Perform as they believe the outlook is "bleak" for equity shareholders. The firm thinks Wachovia's expenses can't come down fast enough too offset earnings erosion.
Wachovia downgraded shares of American International Group (NYSE: AIG) to Market Perform from Outperform as they believe AIG's CDO valuations worsened in Q2, which could result in a $2B-$7B after tax "valuation adjustment." Wachovia expects the value of AIG's core insurance franchise to be obscured by its credit exposure.
Collins Stewart cut BT Group (NYSE: BT) to Hold from Buy on concerns surrounding the company's fiber network expansion.
OTHER DOWNGRADES:
Nokia (NYSE: NOK) was downgraded to Add from Buy at WestLB; the firm also lowered Ericsson (NASDAQ: ERIC) to Hold from Buy and Alcatel-Lucent (NYSE: ALU) to Sell from Hold.
Third Wave (NASDAQ: TWTI) was cut to Hold from Buy at Deutsche Bank.
AT&T (NYSE: T) was removed from Goldman's Conviction Buy List.
MOST NOTEWORTHY: European banks, the Paper and Forest Products sector, Kindred Healthcare and Convergys were today's noteworthy upgrades:
Keefe Bruyette upgraded the European Banks sector to Neutral from Underweight on valuation as they see limited downside from current levels. Included in the firm's top picks are HSBC Holdings Plc (NYSE: HBC) and Banco Santander SA (NYSE: STD).
Credit Suisse upgraded the Paper and Forest Products sector to Overweight from Underweight citing valuations and expectations that fundamentals will bottom this fall. The firm raised shares of Temple-Inland Inc (NYSE: TIN) and Smurfit-Stone Container Corporation (NASDAQ: SSCC) to Outperform from Neutral.
Friedman Billings upgraded shares of Kindred Healthcare Inc (NYSE: KND) to Outperform from Market Perform on valuation following the recent pullback and believes the company is well-positioned to beat modest expectations over the remainder of the year. The firm raised their target to $36 from $29.
Oppenheimer raised Convergys Corporation (NYSE: CVG) to Outperform from Perform on valuation, as they believe investors should look at the company's business lines separately. Their sum of parts valuation yields an $18 target.
OTHER UPGRADES:
Suncor Energy Inc (NYSE: SU) was upgraded to Overweight from Neutral at JP Morgan and to Outperform from Market Perform at Friedman Billings.
UBS upgraded BT Group Plc (NYSE: BT) to Neutral from Sell.
MOST NOTEWORTHY: Beckman Coulter, BT Group and Micromet were today's noteworthy initiations:
Oppenheimer believes Beckman Coulter (NYSE:BEC) is well-positioned to leverage its broad installed base in the clinical lab market to increase sales of its consumable and a new molecular diagnostics instrument expected in 2010. The firm initiated shares with an Outperform rating and $80 target.
Societe Generale expects BT Group's (NYSE:BT) domestic revenues to deteriorate as line erosion accelerates; shares were assumed with a Sell rating.
Roth Capital started Micromet (NASDAQ:MITI) with a Buy rating and $3 target. The firm expects the company's proprietary 'BiTE' antibody platform to gain validation as its lead candidate MT103 starts accumulating clinical data in multiple hematology indications.
OTHER INITIATIONS:
Yahoo! (NASDAQ:YHOO) was initiated with a Neutral rating at Merrill.
Piper resumed coverage of Alexion Pharma (NASDAQ:ALXN) with a Buy rating and $88 target.
MedAssets (NASDAQ:MDAS) was started at Jefferies with a Buy rating and $25 target.
According to its conference call, things look good for NetSuite (Nasdaq: N), which offers an on-demand enterprise resource planning (ERP) platform for small and medium size businesses. Yet, it wasn't enough for investors. So far in today's trading, the stock price is down 16% to $18.72.
But, on its face, the Q1 report was strong. Revenues spiked 47% to $34.1 million and the net loss fell from $9.28 million to $2 million.
In fact, NetSuite had more than one million log-ins for the quarter and there were more than 400 new customers. Then again, the company continues to innovate – with new offerings like OneWorld, which is a good fit with multinational companies.
At the same time, NetSuite is striking key deals for distribution. For example, there is a new alliance with BT (NYSE: BT).
No doubt, Wall Street can get jittery – especially in the short run. But, NetSuite likes to say that it is gunning for the "Fortune 5 Million" businesses, which is a multi-billion market opportunity. And despite attempts from competitors – like SAP (NYSE: SAP), which recently scaled back its plans – NetSuite is still positioned nicely.
MOST NOTEWORTHY: Auto & Truck Suppliers, Oplink Comm and The Wet Seal were today's noteworthy upgrades:
Baird upgraded the Auto & Truck Suppliers sector to Market Overweight from Market Weight citing valuations, lowered expectations, industry dynamics and a potential bottom in economic indicators. The firm upgraded Accuride Corp (NYSE: ACW) and Magna International (MGA) to Outperform from Neutral.
Merriman upgraded shares of Oplink Comm (NASDAQ: OPLK) to Neutral from Sell on valuation, as they believe Friday's sell-off fully reflects near-term operating concerns and that share price downside from here is limited.
Cowen raised The Wet Seal (NASDAQ: WTSLA) to Outperform from Neutral and has increased confidence that the new management's operational changes and cost cutting initiatives will lead to EPS upside.
OTHER UPGRADES:
BT Group (NYSE: BT) was raised to Equal Weight from Underweight at Morgan Stanley.
Societe Generale raised Royal Dutch Shell (NYSE: RDS.A) to Buy from Hold and ENI SpA (NYSE: E) to Hold from Sell.
Goldman raised Embarq (NYSE: EQ) to Neutral from Sell.
MOST NOTEWORTHY: Level 3 Communications, BT Group and Limited Brands were today's noteworthy downgrades:
Merriman downgraded shares of Level 3 Communications Inc (NASDAQ: LVLT) to Neutral from Buy, as they believe the risks outweigh the rewards until the company can complete its integration and turn FCF positive.
BT Group Plc (NYSE: BT) was downgraded to Equal Weight from Overweight at Lehman to reflect the company's slowing revenue growth.
Bear downgraded Limited Brands Inc (NYSE: LTD) to Peer Perform from Outperform, citing the unfavorable macro backdrop, execution issues and management turnover.
OTHER DOWNGRADES:
Societe Generale lowered its rating on GlaxoSmithKline Plc (NYSE: GSK) to Hold from Buy.
Morgan Stanley downgraded Cox Radio Inc (NYSE: CXR) to Equal Weight from Overweight.
MOST NOTEWORTHY: Cisco Systems, Virgin Mobile and Polo Ralph Lauren were today's noteworthy downgrades:
JP Morgan downgraded shares of Cisco Systems Inc (NASDAQ: CSCO) to Neutral from Overweight following its Q2 results, as they believe the company's international exposure is not enough to offset slowing in North America and Europe. Shares were also downgraded to Neutral from Outperform at Baird, citing the meaningful slowdown in fundamentals.
Lehman downgraded Virgin Mobile USA Inc (NYSE: VM) to Equal Weight from Overweight based on reduced visibility following its Q4 report.
Polo Ralph Lauren Corporation (NYSE: RL) was lowered to Hold from Buy at Citigroup, as they believe the company is facing fundamental challenges in key markets and a lack of visibility on the Japanese market. They see more upsideelsewhere.
OTHER DOWNGRADES:
Bear Stearns downgraded BT Group Plc (NYSE: BT) to Peer Perform from Outperform.
Think Equity lowered Napster Inc (NASDAQ: NAPS) to Accumulate from Buy.
MOST NOTEWORTHY: Sonus Networks, Kenexa, Canadian Pacific, Applied Materials and Powerwave Tech were today's noteworthy upgrades:
Merriman upgraded Sonus Networks (NASDAQ: SONS) to Neutral from Sell following its win at BT Group (NYSE: BT) for its ASX platform, which the firm believes endorses the company's technology.
Cantor upgraded Kenexa (NASDAQ: KNXA) to Buy from Hold. The firm finds the stock being 40%+ off due to the 3Q weak earnings report as quite an overreaction and believes there is more than enough upside to advise buying shares. Management announced a 2M share buyback program.
Shares of Canadian Pacific (NYSE: CP) was upgraded to Sector Outperformer from Sector Performer at CIBC, as they believe the strong Canadian Dollar and the delay in STB approval of the DM&E acquisition is priced into shares.
Applied Materials (NASDAQ: AMAT) was upgraded to Outperform from Neutral at JP Morgan and to Buy from Hold at Citigroup; Citigroup expects capex revisions to start to reverse in mid-08 and views solar as a free option.
Piper Jaffray raised its rating on Powerwave Technologies (NASDAQ: PWAV) to Outperform from Market Perform on valuation and seasonally strong Q4 capex trends.
OTHER UPGRADES:
eBay (NASDAQ: EBAY) was upgraded to Outperform from Market Perform at Piper Jaffray.
Morgan Joseph upgraded Perini (NYSE: PCR) to Buy from Hold and Shuffle Master (SHFL) to Hold from Sell.
Next year the sale of prescription drugs in the U.S is expected to be the slowest in years, resulting from tough regulation and cost-controls, according to IMS Health Inc., a health-care information and consulting firm, and reported by the Wall Street Journal.
NYSE Euronext (NYSE: NYX) has paid $90M for a 1% stake in Bovespa, the owner of Brazil's largest exchange. The move is seen as an attempt by NYSE Euronext to increase its presence in Brazil, reported the Financial Times.
OTHER PAPERS:
The U.K. Times reported that British telecom company BT Group (NYSE: BT) is expected to announce that it will cut thousands of jobs when it reports its Q2 results next week.
Merrill Lynch (NYSE: MER) has notified pension boards that it is being investigated by the Securities and Exchange Commission, which believes the company may have violated federal regulations, reported the South Florida Sun-Sentinel.
The Detroit News reported that Ford Motor Company (NYSE: F) and the UAW talks adjourned at 1am and will continue later this morning. Sources say that progress was made in the talks although no agreement was reached.
MOST NOTEWORTHY: BT Group, Luminent Mortage, Cognos, Thor Industries and Watson Pharmaceuticals were today's noteworthy upgrades:
ING Group upgraded shares of BT Group (NYSE: BT) to Hold from Sell to reflect the company's more stable revenue trend and improving cash flow generation.
Deutsche Bank upgraded shares of Luminent Mortgage Capital (NYSE: LUM) to Hold from Sell, as they believe the company's portfolio is beginning to stabilize and its liquidity has improved.
Goldman upgraded Cognos Inc (NASDAQ: COGN) to Buy from Neutral following its Q2 report.
Thor Industries (NYSE: THO) was raised to Sector Perform from Underperform at RBC Capital Markets. The firm's checks indicate strengthening backlog and lower promotional spending.
Roth Capital believes Watson Pharmaceuticals (NYSE: WPI) is about to enter a growth phase with Paul Bisaro at the helm and is positive on Silodosin potential. The firm upgraded shares to Buy from Hold.
Sprint Nextel (NYSE: S) operates a wireless and wireline network servicing 54 million customers, is recently up $0.63 to $18.63 on unconfirmed buyout chatter of BT Group PLC (NYSE: BT) interest. Sprint's October 20 calls have traded 157 times on transaction volume of 11,757 contracts. S October 20 calls are bid $0.35 cents above its theoretical value of $0.29 cents according to Track Data, suggesting upside price hedging.
Bed Bath & Beyond (NASDAQ: BBBY) October implied volatility Elevated into EPS. BBBY, a nationwide chain of retail stores, is expected to report EPS of $0.52 cents on 9/26 according to Thomson First Call. BBBY October option implied volatility of 36 is above its 26-week average of 28 according to Track Data, suggesting larger risks.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
MOST NOTEWORTHY: The ethanol sector, BT Group, AMR Corp and Kyphon were today's noteworthy downgrades:
Friedman Billings downgraded Aventine Renewable Energy (NYSE: AVR) and Pacific Ethanol Inc (NASDAQ: PEIX) to Underperform and VeraSun Energy Corporation (NYSE: VSE) was downgraded to Market Perform from Outperform. The firm said the ethanol market has become increasingly challenging as spot market prices have declined by 30% in the past few months and expect pressure to remain through 2008 as the industry's growing pains continue.
Morgan Stanley downgraded shares of BT Group (NYSE: BT) to Underweight from Equal Weight on valuation and regulation uncertainty ahead of Ofcom's first consultation document next week.
AMR Corporation (NYSE: AMR) was downgraded to Sell from Neutral at Goldman to reflect the company's U.S. exposure as they expect the U.S. economy to slow.
Banc of America downgraded shares of Kyphon Inc (NASDAQ: KYPH) to Neutral from Buy on valuation as the spread on the acquisition by Medtronic Inc (NYSE: MDT) has now narrowed.
.gif){kind=logo}
Analyst upgrades:
.gif){kind=logo}
.gif){kind=logo}
According to its conference call, things look good for 
and 
. He also operates .gif){kind=logo}
.gif){kind=logo}
.gif){kind=logo}
.gif){kind=logo}
Sprint Nextel
Big 3 CEOs drive to Washington to suck up to Congress
GM and Ford ready weak pitches for taxpayer bucks
Cramer on BloggingStocks: A troika of opportunity and trouble 
