Analyst Upgrades

• Deutsche Bank upgraded Murphy Oil (MUR) to buy from hold following the company's analyst day. In addition, the firm raised its target for shares to $70 from $59.
• SunTrust upgraded Petroleum Development (PETD) to buy from neutral based on higher price realizations. The firm has a $31 target on the stock.
• Sterne Agee upgraded P.F. Chang's (PFCB) to buy from neutral, citing valuation and SSS momentum. The firm has a $54 target on the stock.
• Royal Bank of Scotland (RBS) was upgraded to neutral from underperform at Credit Suisse.
• PepsiCo (PEP) was upgraded to conviction buy from buy at Goldman.
• Baytex Energy Trust (BTE) was upgraded to buy from speculative buy at Canaccord.
• Disney (DIS) was upgraded to hold from sell at Citigroup.

MOST NOTEWORTHY: PHH Corp., VF Corp. and Dialysis Corp. of America were today's noteworthy initiations:

• PHH Corp (PHH) was initiated with an Outperform rating and $25 target at Keefe Bruyette. The firm finds the stock inexpensive at current levels and believes the company's management team is strong and mortgage operations are improving.
  
• Baird is positive on VF Corp's (VFC) sales and EPS growth, brand portfolio strength, and global distribution opportunities. Shares were assumed with an Outperform rating and $90 target.
  
• Stanford started Dialysis Corp of America (DCAI) with a Buy rating and $10 target and believes the company is worth more to a strategic buyer, which they feel could drive revenue per treatment and margins higher.

OTHER INITIATIONS:

• Merrill initiated Sherwin-Williams (SHW) with an Underperform rating.
  
• Vail Resorts (MTN) was assumed with a Buy rating and $59 target at Banc of America.
  
• Goldman started Patterson-UTI Energy (PTEN) with a Neutral rating and $35 target.

MOST NOTEWORTHY: Mortgage Insurers, Thoratec Laboratories and Callaway Golf were today's noteworthy initiations:

• Keefe Bruyette resumed coverage of Old Republic (NYSE:ORI), MGIC Investment (NYSE:MTG), PMI Group (NYSE:PMI) and Radian (NYSE:RDN) with Market Perform ratings and a $16 target, $13 target, $7 target and $6.50 target, respectively, as they expect increased capital needs to generate operational headwinds in the near-term.
  
• JMP Securities expects FDA approval of Thoratec's (NASDAQ:THOR) next generation HeartMate II VAD any day now and for the company to meet/beat 2008 sales guidance. Shares were started with an Outperform rating and $20 target.
  
• Callaway Golf (NYSE:ELY) was assumed at Stephens with an Overweight rating and $19 target. The firm is positive on Callaway's leadership position, strong balance sheet, new products and international opportunity.

OTHER INITIATIONS:

• Kaufman Bros. initiated Bancscares of Florida (NASDAQ:BOFL) with a Buy rating and $15.50 target.
  
• Raymond James started Dialysis Corp of America (NASDAQ:DCAI) with a Strong Buy rating and $9 target.
  
• Intuitive Surgical (NASDAQ:ISRG) was initiated at Lazard with a Buy rating and $420 target.