Analyst upgrades

• Deutsche Bank upgraded Sonoco Products (SON) to buy from hold after the company reported Q1 results and raised guidance. The firm upped its target for shares to $38 from $32.
• Baird upgraded Western Digital (WDC) to outperform from neutral following the solid Q3 report and guidance. The firm raised its target to $50 from $48.
• Goldman upgraded Qwest (Q) to neutral from sell. Qwest is being acquired by CenturyLink (CTL).
• Hershey (HSY) was upgraded to neutral from underweight at JPMorgan.
• Principal Financial (PFG) was upgraded to neutral from sell at UBS.
• Monster Worldwide (MWW) was upgraded to market perform from underperform at Wells Fargo.

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Unfortunately, most of us can't attend the World Series in person. What some of us do, though, is get our scores in real time over the phone. The World Series is becoming more data centric, real time, and wireless, like almost all other aspects of our modern lives, and telecommunications company CenturyTel Inc. (NYSE: CTL) is an enabler of this trend. CenturyTel, which provides voice and data services operating in 22 states, is benefiting from long-term secular trends, and has yet to be fully recognized by the market.

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Analyst upgrades:

• Calyon upgraded major network carriers based on falling oil prices and capacity cuts. The analyst is positive over the next 12 months but cautious short-term given the uncertain economy, and volatile markets and oil prices. AMR Corp (NYSE: AMR) and Delta Air (NYSE: DAL) were upgraded to Add from Neutral and UAL Corp (NASDAQ: UAUA) was raised to Neutral from Reduce.
• Ryanair (NASDAQ: RYAAY) was upgraded at Citigroup to Buy from Hold.
• Boardwalk Pipeline (NYSE: BWP) was raised to Buy from Hold at Deutsche Bank.
• Cowen lifted Biogen Idec (NASDAQ: BIIB) to Outperform from Neutral.
• JP Morgan upgraded Choice Hotels (NYSE: CHH) to Neutral from Underweight following the better-than-expected Q3 report.
• Oppenheimer upgraded shares of Integra LifeSciences (NASDAQ: IART) to Outperform from Perform on valuation, the company's minimal exposure to economic conditions, and expectations for margin improvement and a rebound in organic growth.

• Sherwin-Williams (NYSE: SHW) and AerCap Holdings (NYSE: AER) were downgraded to Neutral from Overweight at JP Morgan.
• UBS downgraded Embarq (NYSE: EQ) to Neutral from Buy following the CenturyTel (NYSE: CTL) merger announcement.

CenturyTel (NYSE: CTL) is an integrated communications company, providing carrier and enterprise level network access, local and long distance voice service, Internet access and broadband services. Its rural local-exchange carrier subsidiaries operate in the smaller communities of 25 states. Its core service areas are in Alabama, Arkansas, Missouri, Washington, and Wisconsin. AT&T (NYSE: T) is a major competitor.

The company pleased investors late last month, when it increased its annual cash dividend from 27 cents to $2.80, declared a one-time dividend of 63.25 cents per share, and accelerated the current share repurchase program to complete the remaining balance of about $385 million by early 2009. Management also said it expected to meet, or exceed, previously announced Q2 guidance for EPS of 78-82 cents (80 cent consensus) and revenues of $647-$657 million ($652.7M consensus). Soleil and Stanford Research subsequently upgraded CTL shares to "buy" status.

MOST NOTEWORTHY:

• UBS started shares of Delta Air Lines Inc (NYSE: DAL) with a Reduce rating and $17 target on valuation and management's overly optimistic outlook.

• Deutsche Bank prefers to wait of a better entry point for Goodrich Corp (NYSE: GR) and initiated shares with a Hold rating.

• Opnext Inc (NASDAQ: OPXT) was initiated at JP Morgan with a Neutral rating citing concerns regarding new transceiver margins.

• Prudential believes Terex Corp (NYSE: TEX) is well positioned to take advantage of strong sustainable growth in the global infrastructure and mining markets over at least the rest of the decade, starting shares with an Overweight rating.

• RBC Capital started Aruba Networks (NASDAQ: ARUN) with a Sector Perform rating while Lehman Bros initiated Aruba with an Overweight rating.

• Deutsche Bank started Delta Petroleum Corp (NASDAQ: DPTR) with a Buy rating and $27 target.

• JMP Securities started Hersha Hospitality Trust (AMEX: HT) with an Outperform rating and $14 target.

• Credit Suisse assumed coverage of Interline Brands, Inc (NYSE: IBI) with an Outperform rating and $34 target.

• Credit Suisse reinstated Brooks Automation, Inc (NASDAQ: BRKS) with a Neutral rating.

• Goldman Sachs started CenturyTel, Inc (NYSE: CTL) with a Sell rating and $42 target on valuation.

• B. Riley initiated Insteel Industries, Inc (NASDAQ: IIIN) with a Buy rating and $24 target.

MOST NOTEWORTHY:

• Morgan Stanley downgraded CACI International (NYSE: CAI) and SAIC Inc (NYSE: SAI) to Underweight from Equal Weight to reflect concerns over an increasingly unfavorable political environment as the risk of reduced funding for federal IT initiatives grows.

• Soleil downgraded shares of CenturyTel (NYSE: CTL) to Sell from Hold on valuation and a possibly active hurricane season.

• Honda Motor Co (NYSE: HMC) was cut to Neutral from Buy at Merrill Lynch.

• Micron Technology (NYSE: MU) was downgraded to Sell from Neutral at Goldman Sachs as the firm believes improvements in DRAM pricing will be short lived and that the company will continue to generate losses given its poor cost structure.

• CSX Corp (NYSE: CSX) was downgraded to Reduce from Neutral at Calyon on valuation and deteriorating volume.

• Rockwell Automation (NYSE: ROK) was cut to Neutral from Overweight at JP Morgan.

• Inverness Medical Innovations, Inc (AMEX: IMA) was downgraded to Hold from Buy at Stifel.

• WebSideStory, Inc (NASDAQ: WSSI) was downgraded to Sector Perform from Outperform at RBC, citing short-term execution risks.

• Jefferies downgraded Cerner Corp (NASDAQ: CERN) to Hold from Buy.