Analyst Upgrades

• NYSE Euronex (NYX) to conviction buy from neutral at Goldman.
• General Dynamics (GD) to buy from hold at Citigroup.
• Deere (DE), Parker-Hannifin (PH) and ExlService (EXLS) to overweight from neutral at JPMorgan.
• Aflac (AFL) to outperform from market perform at FBR Capital.
• Wynn Resorts (WYNN) to buy from neutral at Janney Capital.
• Amdocs (DOX) to buy from neutral at UBS.
• Juniper (JNPR) to buy from hold at ThinkEquity.
• Rudolph Tech (RTEC) and KLA-Tencor (KLAC) to perform from underperform at Oppenheimer.
• Hershey (HSY) and Pinnacle Entertainment (PNK) to outperform from market perform at Wells Fargo.
• Spirit AeroSystems (SPR) to equal weight from underweight at Morgan Stanley.
• Micron (MU) to outperform from neutral at RW Baird.

Analyst Upgrades

• JPMorgan upgraded Coca-Cola (KO) to overweight from neutral due to valuation and expectations that developed market volume should improve. The firm raised its target price for shares to $66.
• BB&T upgraded Nordson (NDSN) to buy from hold and has an $82 price target on the stock. The firm believes certain drivers of Nordson's Advanced Tech unit are becoming more secular vs. cyclical and that the company's EBIT margins can go higher.
• Credit Suisse upgraded Embraer (ERJ) to outperform from underperform, citing the positive announcements from the Famborough Air Show. The firm raised its price target to $37 from $21.
• Universal Health (UHS) was upgraded to outperform from sector perform at RBC Capital.
• Mead Johnson (MJN) was upgraded to conviction buy from buy at Goldman.
• Coventry Health (CVH) was upgraded to outperform from market perform at Leerink.

When Apple (APPL) launched the iPhone three years ago, the big attraction was the sleek design and cool graphics. However, there was something else that was truly innovative: the app store. Basically, Apple allowed third-party developers to create applications for the iPhone, which certainly benefited customers. It has turned into a cash machine, as Apple gets a cut of all the downloads.

Wanting to capitalize on this -- as well as try to slow down Apple -- a group of mobile companies have formed an alliance, called the Wholesale Applications Community. The members include 24 companies, such as AT&T (T), China Mobile (CHL), Verizon (VZ), NTT DoCoMo, Bharti Airtel and Vodafone (VOD).

The Apple (NASDAQ: AAPL) iPhone is not selling up to expectations in the UK. According to the Financial Times, "O2 said shortly before the iPhone's UK launch on November 9 that it expected handset sales of 200,000 in the first two months, but people familiar with the situation said the actual figure for the first eight weeks was about 190,000." But, a number of analysts viewed sales estimates from O2, the exclusive iPhone reseller in the UK to be very conservative. Estimates by research firm Gartner were as high as 400,000.

The reason for the slow sales may be the pricing of the iPhone and its calling plan. The handset plus a minimum contract cost about $1,700.

If the news were in a vacuum it might not sting. But, just a week ago China Mobile (NYSE: CHL) said it had cut off conversations with Apple over distributing the product in China, the world largest cell market. The price of the calling plan Apple wanted to market in the world's most populated nation may be been a sticking point.

If sales in the UK and Europe do not begin to exceed expectations and an Asian roll-out is slow, that leaves the U.S. to carry the burden of Apple hitting its 2008 sales targets.

That may be a little too much to expect.

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

Close on the heels of a recent $1 billion deal for network upgrades with China Mobil, another upgrade contract for an undisclosed amount has been entered into by Ericsson (NASDAQ: ERIC). China Unicom has called upon Ericsson to assist in the upgrade of its GSM network in six Chinese provinces. China Unicom ultimately has plans to pursue network upgrades in 129 cities over a total of 30 Chinese provinces, and it would appear that Ericsson has been chosen to assist in the projects.

Added to Erisson's China moves was the recent announcement that the company would be establishing an R&D unit in Chennai India. Also, Ericsson indicates that it intends to outsource the manufacture of up to 10 million phone units to there by 2009. This move is precipitated by the company's successes in encouraging growth within the Indian market. Company sources state that the robust Indian economy, the technologically adept workforce, and the quickness with which the country is embracing mobile technology are the key reasons why the company is continuing to establish deep roots there.

Being that Ericsson shares are currently more than $2 below their high point near $42 in January 2007, one should consider if there might be an investment opening here. It appears to me that the company is doing a fine job of increasing cash flow while increasing capital outlay by a lesser compared percentage. Additionally, although it may possibly be involved, I have not seen Ericsson's name mentioned in regard to the Qualcomm (NASDAQ: QCOM) chip fiasco. As things stand at this moment, all things Qualcomm are not looking too healthy.