Analyst Upgrades

• HSBC upgraded Massey Energy (MEE) to overweight from neutral based on improved 2011 pricing power given industry supply-side discipline. Despite the upgrade, the firm cuts its price target to $40 from $54.
• Needham upgraded Blue Coat Systems (BCSI) to buy from hold following yesterday's announcement that Michael J. Borman has been named the new CEO. The firm has a $27 price target on the stock.
• Citigroup upgraded Teekay Offshore Partners (TOO) to buy from hold after the company announced shuttle tanker contracts to reflect improved operating performance. The firm raised its target for shares to $26 from $15.
• Prosperity Bancshares (PRSP) was upgraded to equal weight from underweight at Morgan Stanley.
• Ceradyne (CRDN) was upgraded to buy from hold at Benchmark Co.
• CTC Media (CTCM) was upgraded to buy from hold at Deutsche Bank.

Analyst Upgrades

• Auriga upgraded Allscripts (MDRX) to buy from hold to reflect valuation and potential synergies from the company's pending merger with Eclipsys (ECLP). The firm upped its target price for shares to $20 from $19.
• SunTrust upgraded Newell Rubbermaid (NWL) to buy from neutral based on completion of its turnaround plan, stabilizing end markets and favorable comparisons. The firm has a $25 price target on the stock.
• Morgan Joseph upgraded C.R. Bard (BCR) to buy from hold based on valuation and upside to estimates from the share buyback program. The firm has a $97 price target on the stock.
• Shire (SHPGY) was upgraded to buy from hold at Lazard Capital.
• Onyx Pharma (ONXX) was upgraded to outperform from market perform at BMO Capital.
• AvalonBay (AVB) was upgraded to neutral from sell at UBS.

Analyst Upgrades

• JPMorgan upgraded AstraZeneca (AZN) to neutral from underweight after the company's U.S. Crestor patent was ruled valid. The firm believes the ruling could lead to AstraZeneca announcing a sizeable share buyback program. AstraZeneca was also upgraded to buy from neutral at BofA/Merrill and to hold from underperform at Jefferies.
• Deutsche Bank upgraded Peabody Energy (BTU) to buy from hold, citing valuation and attractive fundamentals in the coal sector. The firm has a $57.50 price target for shares, and also maintains buy ratings on Arch Coal (ACI) and Alpha Natural (ANR).
• Oppenheimer upgraded NextEra Energy (NEE) to outperform from perform, citing valuation and an improving regulation outlook in Florida. The firm maintains a $55 price target for shares.
• Eaton Vance (EV) was upgraded to buy from neutral at BofA/Merrill.
• Dynamex (DDMX) was upgraded to overweight from equal weight at Stephens.
• Soleil upgraded RPM (RPM) to buy from gradually accumulate.

Analyst Upgrades

• Citigroup upgraded FMC Technologies (FTI) to buy from hold, citing pent-up deepwater drilling demand and valuation. Despite upgrading, the firm lowered its target for shares to $69 from $77.
• Piper Jaffray upgraded Valeant (VRX) to overweight from neutral following the company's merger with Biovail (BVF) and raised its target for shares to $53 from $43.
• Deutsche Bank upgraded Lincare Holdings (LNCR) to buy from hold, citing valuation and the company's dividend initiation. The firm upped its target for shares to $37 from $35.
• Ariba (ARBA) was upgraded to overweight from neutral at JPMorgan.
• Crucell (CRXL) was upgraded to buy from hold at RBS.
• ENI SpA (E) was upgraded to buy from neutral at Goldman.

Allscripts-Misys Healthcare Solutions Inc. (MDRX) is looking to extend its influence in the electronic health records by purchasing Eclipsys (ECLP) for $1.3 billion in stock.

Allscripts is the dominant player in providing physicians offices with electronic record-keeping systems, while Eclipsys provides similar services to hospitals. Combining the two groups should give Allscripts tremendous reach.

This is a smart move for Allscripts as the U.S. government -- through the American Recovery and Reinvestment Act -- is preparing to provide $30 billion in federal funding to hospitals and physicians who adopt electronic medical records. And if Allscripts can position itself correctly, a large percentage of that money could end up flowing to them.

Analyst upgrades:

• Deutsche Bank upgraded Blackrock (NYSE: BLK) to Buy from Hold as it believes the BGI acquisition is becoming more accretive with the market rally and that the company's core trends are healthy. The firm raised its target on shares to $230 from $180.
• Citigroup upgraded Burlington Northern (NYSE: BNI) to Hold from Sell as it believes the risk/reward on shares is balanced based on 2010 estimates. Citi raised its target on shares to $89 from $75.
• Auriga upgraded Eclipsys (NASDAQ: ECLP) to Buy from Hold on expectations the company's margin expansion initiatives will drive benefits in 2010 and 2011. The firm raised its target on shares to $24 from $16.
• Seagate (NASDAQ: STX) was upgraded to Overweight from Market Weight at Thomas Weisel and to Buy from Hold at Deutsche Bank.
• Web.com (NASDAQ: WWWW) was upgraded to Outperform from Market Perform at FBR Capital.
• CenturyTel (NYSE: CTL) was upgraded to Overweight from Equal Weight at Morgan Stanley.

Analyst upgrades:

• Banc of America/Merrill upgraded DPL Inc (NYSE: DPL) to Neutral from Underperform following the settlement agreement with staff of the Public Utilities Commission of Ohio on Electric Security Plan.
  
• Friedman Billings upgraded SeaBright Insurance (NYSE: SBX) to Outperform from Market Perform on valuation as they believe shares are oversold at current levels. Despite upgrading, the firm lowered its target price to $14 from $16.
  
• JP Morgan upgraded AT&T (T) to Overweight from Neutral as it believes upside earnings revisions are likely in 2009 due to the company's conservative wireline margin outlook. The firm finds the stock's valuation attractive at current levels and raised their target on shares to $28 from $24.
• Chubb (NYSE: CB) was upgraded to buy from Neutral at UBS.
  
• Cascal B.V. (NYSE: HOO) was raised to Outperform from Neutral at Credit Suisse.
  
• Healthcare Realty Trust (NYSE: HR) was upgraded at Keefe Bruyette to Outperform from Market Perform.

Analyst upgrades:

• Thomas Weisel upgraded SanDisk (NASDAQ:SNDK) to Market Weight from Underweight. Thomas Weisel said they are less negative on the outlook for memory industry dynamics but they do expect SanDisk shares to be range bound.
  
• Citigroup upgraded shares of Hershey (NYSE:HSY) to Buy from Hold as they believe Hershey is benefiting from increased advertising spending and the consumer trade-down to less expensive chocolate. The firm maintains a $39 target on the stock.
  
• Deutsche Bank upgraded Best Buy (NYSE:BBY) to Buy from Holdas they believe the company will be a beneficiary from the Circuit City liquidation.
• Ericsson (NASDAQ:ERIC) was upgraded to Neutral from Sell at Goldman.
  
• Advance Auto Parts (NYSE:AAP) and Virgin Media (NASDAQ:VMED) were raised to Overweight from Neutral at JP Morgan.
  
• NewMarket (NYSE:NEU) was upgraded at KeyBanc to Buy from Hold.

Analyst downgrades:

• Citigroup downgraded Kellogg (NYSE:K) to Hold from Buy as they believe the company's U.S. trends are decelerating and that FX trends will have a negative impact. The firm lowered their target price to $47 from $58.
  
• Jefferies downgraded Cerner (NASDAQ:CERN) to Hold from Buy following Eclipsys' (NASDAQ:ECLP) negative pre-announcement as they believe both companies are suffering from a downturn in hospital spending. Jefferies lowered their target on Cerner to $38 from $51.
  
• Oppenheimer cut Amdocs (DOX) to Perform from Outperform following the weak Q1 results citing lack of near-term catalysts and the macroeconomic slowdown.
• Eclipsys (NASDAQ:ECLP)was downgraded to Underperform from Buy at Jefferies and to Neutral from Buy at Piper Jaffray.
  
• PetSmart (NASDAQ:PETM) was downgraded to Hold from Buy at Deutsche Bank.
  
• Fulton Financial (NASDAQ:FULT) was lowered to Underperform from Market Perform at Keefe Bruyette.

Analyst initiations:

• Wunderlich initiated Republic Services (NYSE:RSG) with a Buy rating and $30 target and believes the company should enjoy sustainable pricing leverage following the merger with Waste Management.
  
• RBC Capital initiated Elan Corp (NYSE:ELN) with an Underperform rating and $4 target based on Tysabri uncertainty, bapineuzumab clinical risk, MS competition, and debt overhang.
  
• Oppenheimer expects Ligand Pharmaceuticals (NASDAQ:LGND) to become an aggressive acquirer of financially distressed biotech companies with the completion of the acquisition of Pharmacopeia. Shares were assumed with an Outperform rating and $5 target.
• Zebra Tech (NASDAQ:ZBRA) was initiated with a Neutral rating and $25 target at JP Morgan.
  
• Activision (NASDAQ:ATVI) was reinitiated at Friedman Billings with an Outperform rating and $14 target.
  
• Ameren (NYSE:AEE) was assumed with a Hold rating at Jesup & Lamont.

MOST NOTEWORTHY: Riverbed Technology (RVBD), Silicon Storage (SSTI), Regal Entertainment (RGC), Fannie Mae (FNM) and Freddy Mac (FRE) were today's more noteworthy initiations:

• CIBC initiated shares of Riverbed Technology (NASDAQ: RVBD) with a Sector Performer rating, citing valuation. The firm believes the mobile opportunity is a wild card, and cites increased Cisco Systems (CSCO) risk.

• Silicon Storage (NASDAQ: SSTI) as announced several new products in late 2006 and 1H07 with shipments expected to start in 2H07 along with significant revenues in 2008; Barrington initiated shares with a Market Perform rating.

• Ferris Baker Watts initiated Regal Entertainment (NYSE: RGC) with a Neutral rating, seeing annual top-line growth only in the low- to mid-single digits.

• Fox-Pitt Kelton believes both Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are finally set to emerge from restatement issues with new accounting procedures and operating systems in place, initiating both companies with an Outperform rating...

OTHER INITIATIONS:

• Needham initiated Tennant (NYSE: TNC) with a Buy rating.

• Merrill Lynch started TriZetto Group (NASDAQ: TZIX) and Eclipsys (NASDAQ: ECLP) with Neutral ratings.

• CIBC started Centene (NYSE: CNC) with a Sector Performer rating.

• Deutsche initiated Thomson (NYSE: TOC) with a Buy rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).