Analyst upgrades:

• UBS upgraded Palm, Inc. (NASDAQ: PALM) to neutral from sell and placed a short-term buy rating on shares based on the new Palm Pre. The firm raised its target to $6.50 from $1.35.
  
• UBS upgraded Silver Wheaton Corp. (NYSE: SLW) to Buy from Neutral and raised its target to $7.50 from $5.75 based on its improved view of the company's credit risk.
• Canaccord upgraded Elan PLC (NYSE: ELN) to Buy from Sell and raised its target to $10.87 from $6.90, citing Tysabri potential.
• Brandywine Realty (NYSE: BDN) and Boston Properties (NYSE: BXP) were upgraded to Overweight from Neutral at JP Morgan.
• Raytheon (NYSE: RTN) and L-3 Comm (NYSE: LLL) were raised to Outperform from Neutral at Credit Suisse.

Chiquita Brands (NYSE: CQB) is recently down $6.71 to $16.58 after announcing it expects to report a Q3 loss on higher industry costs. Wachovia has an Outperform rating on CQB. CQB August 17 puts have traded 83 times on transaction volume of 1,718 contracts compared to its open interest of 1,312 contracts. CQB August option implied volatility of 68 is above its 26-week avearge of 54 according to Track Data, suggesting larger price movement.

Fresh Del Monte (NYSE: FDP) is recently down $6.56 to $25.32 in sympathy with CQB announcing a Q3 loss on higher industry costs. FDP July option implied volatility of 65 is above its 26-week average of 49, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

MOST NOTEWORTHY: Omnicare, Coca-Cola and OptionXpress were today's noteworthy upgrades:

• Oppenheimer upgraded Omnicare (NYSE: OCR) to Outperform from Perform citing their analysis that indicates the Rx market is stronger than expected in the LTC channel, which is largely overlooked by investors due to the legacy focus on beds. The firm expects solid Q2 results will increase confidence in the company's ability to achieve mid-point or better EPS guidance.
  
• Deutsche upgraded Coca-Cola (NYSE: KO) to Buy from Hold based on favorable currency impact, international growth, and valuation.
  
• OptionXpress (NASDAQ: OXPS) was raised at Merriman to Neutral from Sell as they see little downside to risk estimates, following several rounds of cuts, and valuation.

OTHER UPGRADES:

• Fresh Del Monte (NYSE: FDP) was upgraded to Outperform from Market Perform at Wachovia.
  
• JP Morgan upgraded Kellogg (NYSE: K) to Overweight from Neutral.
  
• Delta Petroleum (NASDAQ: DPTR) and St. Mary Land & Exploration (NYSE: SM) were upgraded at Merrill to Buy from Underperform.

MOST NOTEWORTHY: RealNetworks, Inc (RNWK), The Boeing Co (BA), L-3 Communications Holdings (LLL) and Research in Motion (RIMM) were some of today's most notable upgrades:

• Jefferies upgraded RealNetworks, Inc (NASDAQ: RNWK) to Hold from Underperform with an $8 target on valuation.

• JP Morgan raised The Boeing Co (NYSE: BA) and L-3 Communication Holding's (NYSE: LLL) rating to Neutral from Underweight citing valuation.

• Yesterday's "China Effect" on the U.S. markets have created a buying opportunity in Research in Motion Ltd; ThinkEquity upgraded shares of Research in Motion Ltd (NASDAQ: RIMM) to Buy from Accumulate with a $165 target.

OTHER UPGRADES:

• Ciena Corp (NASDAQ: CIEN) was upgraded to Overweight from Neutral at JP Morgan.

• Wachovia upgraded Fresh Del Monte Produce inc (NYSE: FDP) to Market Perform from Underperform based on an improving banana outlook and cost environment.

• Citigroup upgraded Nestle (OTC: NSRGY) to Buy from Hold to reflect the company's improved cash flows.

• Bear Stearns upgraded BEA Systems Inc (NASDAQ: BEAS) to Peer Perform from Underperform.

• Stephens upgraded Sanderson Farms Inc (NASDAQ: SAFM) to Overweight from Equal Weight with a $35 target.

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