Analyst upgrades:

• Piper upgraded shares of Palm (NASDAQ: PALM) to Buy from Neutral following the company's negative Q3 pre-announcement as it believes the launch of Pre will drive longer term profitability. Piper raised its target price on shares to $10 from $4.
  
• Jefferies upgraded Monotype Imaging (NASDAQ: TYPE) to Buy from Hold as it believes the valuation is compelling at current levels and the company's debt is manageable. Despite upgrading, Jefferies lowered its target price to $4 from $6.
  
• Citigroup raised Arcelor Mittal (NYSE: MT) to Hold from Sell as it believes the company's productions cuts and lower dividends are positive.
• Celanese (NYSE: CE) was upgraded to Buy from Neutral at Goldman and added to the firm's Conviction Buy List.
  
• Aegon (NYSE: AEG) was lifted at UBS to Neutral from Sell.
  
• Sun Healthcare (NASDAQ: SUNH) was upgraded at Stephens to Overweight from Equal Weight.

"We are looking for companies that are expanding rapidly in international markets, sporting respectable yields, and offer solid management and a history of big results," says Keith Fitz-Gerald.

In his Money Map Reporter, he says, "There are a few gems out there. And one such company is Celanese Corp. (NYSE: CE).

"Celanese is the world's largest supplier of acetyl products, including acetic acid and vinyl acetate. What's important to understand is that CE makes 'building block' chemicals based on acetate.

"These chemicals are in almost every household in the world. It specializes in making acid products that others use to create things like plastics, cigarette filters, emulsions, alcohols, acetate products and even food ingredients.

"Not only is CE the world's largest supplier of this specialized material; it also enjoys a huge competitive advantage, based on lower production costs and economies of scale. In fact, 95% of CE's products are number one or number two in their respective markets.

Celanese Corporation (NYSE: CE) is engaged in the production and sale of industrial chemicals. Its primary operations include the manufacture of building block substances like acetic acid and vinyl acetate monomers. The firm's products are used in the manufacture of such diverse materials as paints, adhesives, textiles, solvents, filter products and food sweeteners. Celanese operates primarily in North America, Europe, and Asia. The The Blackstone Group L.P. (NYSE: BX) is a major owner.

The company pleased investors earlier in the month, when it said it anticipated fiscal year (FY) 07 EPS of $3.26 to $3.31. Analysts had been expecting $3.21. Management also issued FY08 EPS guidance in-line with the Street view. Among the developments Celanese cited in support of its outlook were the launch of acetic acid and emulsions units at its Nanjing complex. The company also announced plans to add a polymer compounding unit at that location. The news popped the shares out of an early December "cup" into the late December "handle" of a Cup & Handle formation. The price is now showing signs of completing the pattern with a bullish rise from the right-hand side of the "handle".

Brokers recommend the issue with four "strong buys", five "buys" and two "holds". Analysts expect a twelve percent growth rate, through the next year. The CE Price to Sales ratio (1.01), Price to Cash Flow ratio (12.80), Price to Free Cash Flow ratio (30.54), EPS Growth rate (48.73%) and Return on Equity (32.46%) compare favorably with industry, sector and S&P 500 averages. Over the past twelve months, CE has traded between $24.50 and $44.77. A stop-loss of $37.00 looks good here. Note that the firm is expected to release Q4 results in early February.

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

MOST NOTEWORTHY: RadiSys, Diageo plc, Vitesse, Big 5 Sporting Goods and Coca-Cola Enterprises were today's noteworthy upgrades:

• Jefferies upgraded shares of RadiSys (NASDAQ: RSYS) to Buy from Hold following the Q3 upside to reflect the large ramp of new business expected in 2008.
  
• Lehman raised its rating on Diageo plc (NYSE: DEO) to Equal Weight from Underweight and has increased confidence that the group can increase margins.
  
• CIBC upgraded shares of Vitesse (NASDAQ: VTSS) to Sector Performer from Sector Underperformer following the company's business update, as they believe progress is being made on numerous fronts.
  
• Nollenberger upgraded shares of Big 5 Sporting Goods (NASDAQ: BGFV) to Buy from Neutral following the better-than-expected Q3 results and improved full-year outlook, as they believe visibility has improved significantly.
  
• Citigroup upgraded Coca-Cola Enterprises (NYSE: CCE) to Buy from Hold on valuation as they believe the stock is undervalued given Glaceau's expansion to European markets. The broker recommends taking profits in Pepsi Bottling Group (NYSE: PBG) and swapping into CCE.

OTHER UPGRADES:

• Baird upgraded Modine Manufacturing (NYSE: MOD) and Accuride (NYSE: ACW) to Neutral from Underperform.
  
• Deutsche Bank upgraded Energizer (NYSE: ENR) to buy from Hold.
  
• Goldman added Celanese (NYSE: CE) to its Conviction Buy List.

MOST NOTEWORTHY: American Eagle, CVS/Caremark, Office Depot, WPP Group and Pixelworks were today's noteworthy upgrades:

• American Eagle Outfitters Inc (NYSE: AEO) was upgraded to Outperform from Market Perform at Wachovia, as the firm believes momentum from a strong Spring/Summer can carry into the fall/Holiday seasons.
  
• JP Morgan views CVS/Caremark Corporation (NYSE: CVS) as the most sophisticated healthcare offering, the largest PBM, and has first mover advantage. The firm upgraded shares to Overweight from Neutral.
  
• JP Morgan also upgraded shares of Office Depot Inc (NYSE: ODP) to Overweight from Neutral based on valuation and potential turnaround.
  
• Morgan Stanley upgraded WPP Group (NASDAQ: WPPGY) to Overweight from Equal Weight as they believe the company can still meet its profit forecasts and margin goals in a slowing global economy.
  
• Jefferies upgraded shares of Pixelworks Inc (NASDAQ: PXLW) to Hold from Underperform on valuation as they no longer believe the risk/reward favors shorting at these levels.

OTHER UPGRADES:

• Stifel upgraded Tempur Pedic International (NYSE: TPX) to Buy from Hold.
  
• Merrill upgraded Tyco Electronics (NYSE: TEL) to Buy from Neutral.
  
• BB&T upgraded Celanese Corporation (NYSE: CE) to Buy from Hold.
  
• CIT Group Inc (NYSE: CIT) was upgraded to Outperform from Neutral at Credit Suisse.