Analyst Upgrades

• Deutsche Bank upgraded Southern Copper (SCCO) to buy from hold to reflect valuation and positive near-term catalysts. The firm raised its target for shares to $38 from $35.
• JMP Securities upgraded Ultimate Software (ULTI) to outperform from market perform. The firm cites the company's expanding employee base for the upgrade. The firm has a $40 target on the stock.
• Piper Jaffray upgraded Aeropostale (ARO) to neutral from underweight following the company's Q4 results and raised its target for shares to $31 from $24.
• Kennametal (KMT) was upgraded to sell from conviction sell at Goldman.
• Lifetime Brands (LCUT) was upgraded to outperform from market perform at Barrington.
• Volvo (VOLVY) was upgraded to overweight from underweight at JPMorgan.

Analyst Upgrades

• ThinkEquity upgraded InterMune (ITMN) to buy from hold following the FDA advisory committee's approval of Esbriet. InterMune was also upgraded to outperform from market perform at Wells Fargo.
• Piper Jaffray upgraded Radian (RDN) to neutral from underweight with a $9 target. The firm believes the company will not have to raise capital as the government is allowing it to increase its leverage ratio beyond historic maximum levels.
• JPMorgan upgraded ExlService (EXLS) to neutral from underweight following the company's Q4 results.
• Lockheed Martin (LMT) was upgraded to neutral from underperform at Macquarie.
• Analog Devices (ADI) was upgraded to outperform from market perform at Bernstein.
• Goodrich (GR) was upgraded to conviction buy from buy at Goldman.

After the closing bell Tuesday, Abbott Laboratories (ABT) announced that it will acquire Facet Biotech (FACT) for $27 per share. The transaction carries a total price tag of $722 million. Including $272 million of FACT's cash and securities, the net cost turns out to be roughly $450 million.

Back in December, FACT turned down Biogen Idec's (BIIB) unsolicited takeover offer of $17.50 per share. The deal is expected to close in the second quarter, as both boards of directors have approved the deal.

U.S. stock futures inched higher Wednesday morning. News is thin this morning, save some corporate deals and later on inventory data -- the first major economic release of the week. Also, some data from China showed that exports and imports grew faster than expected, boosting confidence regarding the global economic recovery.

On Tuesday, Wall Street market the one-year anniversary of the recession's lows and the march to recovery since. U.S. stocks finished with slight gains. The Dow Jones Industrial Average rose 11 points, while the Nasdaq finished at 2010 closing highs.

Analyst upgrades:

• Collins Stewart upgraded General Dynamics (NYSE: GD) to Buy from Hold as it finds the valuation compelling at current levels and sees potential upside from a better economy and better-than-expected defense budgets.
• SunTrust views the sell-off in shares of Cabot Oil (NYSE: COG) as a buying opportunity and expects the Pennsylvania Department of Environmental Protection order to be resolved quickly. The firm upgraded Cabot to Buy from Neutral.
• Barclays upgraded Cisco (NASDAQ: CSCO) to Overweight from Equal Weight based on expectations for improved carrier demand, continued U.S. momentum, and an improved Europe.
• Applied Materials (NASDAQ: AMAT) was upgraded to Buy from Hold at Citigroup.
• Stericycle (NASDAQ: SRCL) was upgraded to Gradually Accumulate from Hold at Soleil.
• Grupo Televisa (NYSE: TV) was upgraded to Neutral from Sell at Goldman.