Analyst Upgrades

• Brinker (EAT) to buy from neutral at UBS.
• Starbucks (SBUX) to overweight from equal weight at Morgan Stanley.
• Paccar (PCAR) to overweight from neutral at JPMorgan.
• CA Technologies (CA) to outperform from perform at Oppenheimer.
• PPL Corp. (PPL) to overweight from equal weight at Barclays.
• ConocoPhillips (COP) to hold from sell at Citigroup.
• First Defiance (FDEF) to outperform from market perform at Keefe Bruyette.
• MasTec (MTZ) to outperform from neutral at Credit Suisse.
• Amdocs (DOX) to neutral from underperform at BofA/Merrill.

Analyst Upgrades

• Athenahealth (ATHN), Ensco (ESV), Pride International (PDE) and Sinclair Broadcast (SBGI) to outperform from market perform at Wells Fargo.
• CIRCOR (CIR) to buy from hold at BB&T.
• Urban Outfitters (URBN) to hold from sell at Citigroup.
• Shaw Group (SHAW) to buy from neutral at UBS.
• MGM Resorts (MGM) and Boyd Gaming (BYD) to buy from neutral, as well as Intrepid Potash (IPI) to neutral from underperform, at BofA/Merrill.
• Carlisle (CSL) to buy from neutral at SunTrust.

Option traders appear to be setting up for a bullish move on CA Technologies (CA). Traders plowed into 13,932 new call option contracts -- 19.32 times the average volume -- on the stock on Monday. And we know that traders were eager to get into this trade because 98% of the trades came in on the ask price.

CA recently bounced off of support at $18 and is nearing resistance at $20.50. The stock closed Monday at $20.17, up 6.69% during the past month.

Analyst Upgrades

• Goldman upgraded Republic Services (RSG) to buy from neutral and raised its price target to $34 from $32. The firm cites valuation for the upgrade.
• Deutsche Bank upgraded MeadWestvaco (MWV) to buy from hold due to valuation and keeps a $29 price target for shares.
• UBS upgraded Symantec (SYMC) to buy from neutral.
• Lloyds Banking (LYG) upgraded to add from neutral at WestLB.
• Ternium (TX) was upgraded to overweight from equal weight at Barclays.

Boyd Gaming(NYSE:BYD) calls active on renewed & unconfirmed buyout chatter. BYD is recently up $0.68 to $43.37. BYD has a market cap of $3.7 billion with long term debt of $2.1 billion. BYD had quarterly June 2007 revenues of $511 million. BYD call option volume of 3,763 contracts compares to put volume of 105 contracts. BYD October option implied volatility of 38 is above its 26-week average of 34 according to Track Data, suggesting larger price risk.

Dreamworks(NYSE:DWA) calls active on unconfirmed buyout chatter: 'Bee Movie' out 11/2. DWA is recently up $0 .10 cents to $32.95. Unconfirmed buyout chatter is circulating today. Goldman Sachs said on 9/19 "we continue to rate DWA Buy as we believe the four films of 2007/2008 will raise investors' perception of normalized earnings." The Bee Movie is expected to be released on 11/2. DWA October 35 calls have traded 47 times on transaction volume of 897 contracts above its open interest of 344 contracts. DWA October option implied volatility of 36 is above its 26-week average of 30 according to Track Data, suggesting larger price risk.

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

Trump Entertainment Resorts Inc (NASDAQ: TRMP), Donald Trump's casino company, this morning said that following a three-month search, it would conclude its strategic review. Although it has held talks since March with groups of investors that included former Trump Taj Mahal manager Dennis Gomes and Boyd Gaming Corporation (NYSE: BYD), the company said the offers it has received "weren't likely to lead to a transaction."

It seems a little strange that Trump Entertainment couldn't find a buyer, particularly because the market for casinos and their assets is hot. Recent examples of casino sector activity include the in-process $17B acquisition of Harrah's Entertainment Inc (NYSE: HET) and the announced $6.1B acquisition of casino and racetrack operator Penn National Gaming Inc (NASDAQ: PENN) by Fortress Investment Group LLC (NYSE: FIG), a U.S. hedge fund and private-equity firm.

What gives? Why hasn't Trump found a buyer? Sources have speculated that its casinos, located in Atlantic City, NJ, have been struggling in comparisons to Las Vegas "entertainment destinations," a partial smoking ban and competition from new gaming venues in Pennsylvania and New York. Additionally, the announcement that the company would end its efforts to sell comes weeks after CEO James Perry said he would retire and, effective yesterday, would be replaced by COO Mark Juliano.

Trump's Atlantic City casinos are still working on a $250M project to update its gaming floors and add new restaurants, although it hasn't seemed to help. The company posted losses in earnings per share loss and revenue when it reported Q1 results in May. The Trump Taj Mahal Casino Resort, its largest casino, with 786 rooms, is set to open next summer.

The casino company said that while it was ending the initiative to sell the company, it would continue to review other strategic alternatives, including a cost cutting effort. The company laid off Chief Information Officer Virginia McDowell and executive vice president of design and construction, Paul Keller. It doesn't plan to fill these positions.

Trump shares fell nearly 18% this morning.

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: Dell (DELL), Boyd Gaming (BYD) and OmniVision Tech (OVTI) were today's noteworthy upgrades:

• Dell Inc. (NASDAQ: DELL) was upgraded to Buy from Hold at AG Edwards to reflect the strong April quarter results.
• Boyd Gaming Corp. (NYSE: BYD) was upgraded to Outperform from Market Perform at Wachovia due to ongoing improvement in the locals business through revenue growth and cost reductions, expected benefits at Borgata from the summer season, and a new hotel tower at the property.
• OmniVision Technologies Inc. (NASDAQ: OVTI) was upgraded to Buy from Hold at American Technology and to Buy from Neutral at Merriman to reflect the company's improved revenue and gross margin outlook.

OTHER UPGRADES:

• Universal Compression Partners (NASDAQ: UCLP) was upgraded to Buy from Hold at AG Edwards, as the firm believes the potential for additional asset acquisitions creates likely upside to estimates.
• UBS upgraded shares of Norsk Hydro (NYSE: NHY) to Buy from Neutral and shares of Lear (LEA) to Neutral from Reduce.
• Cowen upgraded VistaCare Inc. (NASDAQ: VSTA) to Outperform from Neutral and added shares to the firm's Focus List. Cowen believes the company's decision to review strategic alternatives will unlock value.
• Matrix USA upgraded shares of Whole Foods Market Inc. (NASDAQ: WFMI) to Sell from Strong Sell based on valuation.
• CHLM upgraded shares of 3D Systems Corp. (NASDAQ: TDSC) to Accumulate from Neutral.
• Cantor upgraded shares of NMS Communications Corp. (NASDAQ: NMSS) to Buy from Hold on potential restructuring benefits.

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

MOST NOTEWORTHY: MasterCard (MA), American Express (AXP), Boyd Gaming (BYD) and Overstock.com (OSTK) were the most notable companies on the initiation list today:

• Keefe Bruyette initiated MasterCard Inc. (NYSE:MA) with an Underperform and an $88 target, citing valuation, and American Express Co. (NYSE:AXP) with an Outperform rating and $72 target;
• Coverage of Boyd Gaming Inc. (NYSE:BYD) was resumed with a Buy rating and $67 target, as the firm believes the company's assets are undervalued and investors will look at Boyd as a potential candidate to go private;
• Overstock.com Inc. (NASDAQ:OSTK) was initiated with a Sell rating and $14 target at First Albany.

OTHER INITIATIONS:

• BMO Capital initiated Harley-Davidson Inc. (NYSE:HOG) with a Market Perform and $70 target on valuation.
• Susquehanna initiated The Knot Inc. (NASDAQ:KNOT) with a Positive rating, citing the recent buyback and cash infusion; the firm says Knot has an opportunity to capitalize on the growing value of quality online content and favorable sector trends.
• Scientific Games Corp. (NASDAQ:SGMS) was initiated at Bear Sterns with a Peer Perform rating, citing valuation.

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

MOST NOTEWORTHY: Texas Instruments (TXN) was the only notable upgrade today:

• JP Morgan upgraded shares of Texas Instruments (NYSE:TXN) to Overweight from Neutral after the mid-quarter update, as they believe margins are bottoming.

OTHER UPGRADES:

• Raymond James upgraded Applebee's International Inc. (NASDAQ:APPB) to Market Perform from Underperform.
• Buckingham Research upgraded Boyd Gaming Corp. (NYSE:BYD) to Accumulate from Neutral with a $55 target.
• Matrix USA upgraded PetSmart Inc. (NASDAQ:PETM) to Hold from Sell based on increasing sales and valuation.

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

MOST NOTEWORTHY: Mastercard (MA), Boyd Gaming (BYD), McDonald's (MCD) and ElkCorp (ELK) top today's massive list of downgrades.

• Mastercard, Inc. (NYSE:MA) was downgraded by Underperform from Market Perform at Bernstein. The firm expects Mastercard to miss the consensus estimates for growth, revenues and EPS for the third quarter Wednesday. They believe this could be the start of many catalysts for the stock.
• Boyd Gaming Corp. (NYSE:BYD) was downgraded by CIBC to Sector Perform from Outperform due to limited near-term visibility in the Atlantic City market.
• McDonald's Corp. (NYSE:MCD) was taken off the Conviction Buy List at Goldman Sachs, citing price appreciation.
• Finally, Soleil downgraded ElkCorp (NYSE:ELK) to Sell from Buy following the company's weak first quarter and guidance...

OTHER DOWNGRADES:

• Bank of America downgraded Swift Transportation Co Inc. (NASDAQ:SWFT) to Sell from Neutral, citing weakening truckload fundamentals.
• Kaufman Bros downgraded Avid Technology, Inc. (NASDAQ:AVID) to Hold from Buy. The firm believes Avid is well positioned in the market, but feels it will take a few quarters for the company and investors to recognize revenues from the change-over to Intel (INTC) based Macs and the Vista platform (MSFT).
• Soliel downgraded PortalPlayer, Inc. (NASDAQ:PLAY) to Hold from Buy, citing "muted " guidance.
• Citigroup downgraded Norfolk Southern, Corp. (NYSE:NSC) to Hold from Buy on valuation.
• Finally, Goldman Sachs downgraded YUM! Brands, Inc. (NYSE:YUM) to Neutral from Buy.

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