Analyst upgrades:

• UBS upgraded Target (NYSE: TGT) to Buy from Neutral and raised its price target to $52 from $45 citing reduced inventories, some credit stability, and an improved back-to-school period.
• Credit Suisse said concerns regarding Safeway's (NYSE: SWY) price position are overblown and that earnings risk is limited. The firm upgraded shares to Outperform from Neutral and raised the target price to $25 from $22.
• Oppenheimer upgraded Canadian Solar (NASDAQ: CSIQ) to Outperform from Perform as it believes the story is underappreciated following the recent sector rally. The firm has a $14 price target on the stock.
• CME Group (NASDAQ: CME) was upgraded to buy from Neutral at Goldman.
• Freeport McMoRan (NYSE: FCX) was upgraded to Overweight from Neutral at JP Morgan.
• Gilead Sciences (NASDAQ: GILD) was upgraded to Buy from Neutral at FTN Equity.

Canadian Solar (NASDAQ: CSIQ) develops, manufactures and markets solar module products for the conversion of sunlight into electrical energy. Offerings include solar panels for residential and industrial use, plus customized modules that customers incorporate into their own products. The modules power such special-purpose devices as bus stop lighting systems and vehicle battery chargers. Canadian Solar is incorporated in Ontario, but conducts all of its manufacturing operations through six subsidiaries in China. The firm is actively involved in government projects to bring solar power to rural Chinese communities. Clients are distributors, systems integrators and manufacturers in North America, Asia and Europe.

The company pleased investors last week, when it raised its 2008 output guidance from 200-220 MW to 230-260 MW and boosted its estimated annual revenue from $650-$750 million to $750-$870 million ($836.06M consensus). Management pointed to continued robust market demand for its products.

Canadian Solar (NASDAQ: CSIQ) is recently up $5.97 to $48.49 after increasing its 2008 annual revenue and output guidance to reflect the sales of e-Module products.

CSIQ call option volume of 15,574 contracts compares to put volume of 5,013 contracts. CSIQ July call option implied volatility is at 86; puts are at 97; near its 26-week average according to Track Data, suggesting non-directional price risk. CSIQ puts are more expensive than calls because CSIQ is difficult to borrow.

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

Suntech Power Holdings Co. (NYSE: STP), which saw its stock surge some 150% in 2007, didn't have such a good 2008 so far with its stock plunging about 44% year-to-date. But since setting a 52-week low of $28.19 on March 22, the stock has rebounded nicely, up over 55%. Roller coaster or what?!

Well, today, the maker of photovoltaic cells and modules said first-quarter earnings more than doubled on 76% higher revenue. Earnings reached $55.8 million, or 33 cents an American depositary share, beating analysts estimates of 28 cents. Revenue reached $434.5 million. Gross margins also expanded nicely and Suntech reiterated revenue estimates for 2008.

Early in the morning, STP shares jumped over 7% in premarket trading in response to the report but have not kept this up. Shares are now trading at $45.73, down over 1%, probably declining with the rest of the sector following Goldman Sachs's downgrade of Solarfun (NASDAQ: SOLF) to Sell from Neutral. SOLF shares are down over 18% taking LDK Solar (NYSE: LDK), Trina Solar (NYSE: TSL) and Canadian Solar (NASDAQ: CSIQ) down with it -- 5%, 8% and 13% respectively, to name but a few.

Canadian Solar (NASDAQ: CSIQ) develops, manufactures and markets solar module products for the conversion of sunlight into electrical energy. Offerings include solar panels for residential and industrial use, plus customized modules that customers incorporate into their own products. The modules power such special-purpose devices as bus stop lighting systems and vehicle battery chargers. Canadian Solar is incorporated in Ontario, but conducts all of its manufacturing operations through six subsidiaries in China. The firm is actively involved in government projects to bring solar power to rural Chinese communities. Clients are distributors, systems integrators and manufacturers in North America, Asia and Europe.

The company pleased investors last week, when it reported Q1 EPS of 61 cents and revenues of $171.2 million. Analysts had been looking for 31 cents and $151.9 million. The CEO cited robust market demand, strong pricing and effective management of foreign exchange exposure for the successful quarter. Management also guided Q2 revenues to $185-$190 million, versus consensus of $167.62 million.

Canadian Solar (NASDAQ: CSIQ) is recently up $1.02 to $45.92 in pre-open trading as shares rally on alternate energy

CSIQ designs, manufactures and sells solar cell and module products that convert sunlight to electricity.

CSIQ overall option implied volatility of 77 is below its 26-week average of 93 according to Track Data, suggesting decreasing price risk.

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

MOST NOTEWORTHY: Anadigics, Crystal River Capital and Canadian Solar were today's noteworthy downgrades:

• Oppenheimer downgraded shares of Anadigics (NASDAQ: ANAD) to Perform from Outperform on valuation following the recent run-up.
  
• Wachovia downgraded Crystal River Capital (NYSE: CRZ) to Market Perform from Outperform citing the uncertain near-term strategic outlook.
  
• Broadpoint downgraded shares of Canadian Solar (NASDAQ: CSIQ) to Buy from Strong Buy on valuation following yesterday's rally but raised their target to $45 from $29.

OTHER DOWNGRADES:

• UBS cut Sunstone Hotel Investors (NYSE: SHO) to Neutral from Buy.
  
• KeyBanc downgraded Wabtec (NYSE: WAB) to Hold from Buy.
  
• Goldman downgraded Fiserv (NASDAQ: FISV) to Neutral from Buy.
  
• Suntrust downgraded Spectrum Brands (NYSE: SPC) to Neutral from Buy.

VISICU, Inc. (NASDAQ: EICU): Philips Electronics is buying the company. The stock moved up to $11.76 from a 52-week low of $6.57.

Canadian Solar, Inc. (NASDAQ: CSIQ): Thanks to a big rally in renewable energy stocks, shares are up to $27.15 from a 52-week low of $6.50.

EMCORE Corporation (NASDAQ: EMKR): This company is buying a piece of Intel Coporation (NASDAQ: INTC)'s telecom assets. It traded up to $14.11 from 52-week low of $3.84.

Hess Corp. (NYSE: HES): The market is still bullish on oil prices and Hess moved to $90.57 from 52-week low of $45.96.

Douglas A. McIntyre is an editor at 247wallst.com.

Several stocks made new 52-week highs today on large volume.

Adams Respiratory Therapeutics, Inc. (NASDAQ: ARXT): Personal care products maker Reckitt Benckiser made a buy-out offer. Shares moved up to $59.30 against a 52-week low of $27.25.

MGI Pharma, Inc. (NASDAQ: MOGN): Japanese pharmaceutical maker Eisai will buy the company. Shares rose to $40.23 compared to 52-week low of $16.98.

Millennium Pharmaceuticals, Inc. (NASDAQ: MLNM): This company's late stage cancer drug shows promise. The company hit $16.62, well up from 52-week low of $9.49.

Canadian Solar Inc. (NASDAQ: CSIQ): A new contract for peer LDK Solar Co., Ltd. (NYSE: LDK) pulled the entire sector higher. Canadian Solar hit $24.83 against a 52-week low of $6.50.

DynCorp International Inc. (NYSE: DCP): A new Army contract boosted shares to $25.97, compared with a 52-week low of $13.51.

Douglas A. McIntyre is an editor at 247wallst.com.

John McNay, portfolio manager of Essex Investment Management, provided some good investment ideas on the evolving high-tech power business in this weekend's Barron's Magazine (subscription required). A few of these we blogged about in the past, but they're worth noting again.

• Sunpower Corporation (NASDAQ: SPWR), the Cypress Semiconductor Corporation (NYSE: CY) spin off, makes semiconductors for solar cells and solar panels
• MEMC Electronic Materials Inc (NYSE: WFR) makes the polysilicon that is needed to manufacture the solar cells and panels based on semiconductor technology
• Suntech Power Holdings (NYSE: STP), First Solar Inc (NASDAQ: FSLR), Canadian Solar Inc (NASDAQ: CSIQ) and Trina Solar (NYSE: TSL) were other stocks mentioned.

Sunpower and MEMC we have blogged about and know the companies reasonably well. The others you have to do your homework on, as these are new ideas to this Fly.

TJ Rodgers, Cypress Semiconductor's CEO, referred to Sunpower as Intel during the 1970s. That is a big statement. This is an important industry that will get a lot of investors' attention during the next five years. Solar energy utilizing semiconductor technology is an investment theme that is still in its very early stages.