Analyst upgrades

• UBS upgraded CF Industries (CF) to neutral from sell. The firm cites valuation for the upgrade. In addition, UBS raised its price target on shares to $84 from $81.
• Baird upgraded Johnson Controls (JCI) to outperform from neutral and raised its price target to $42 from $33. The upgrade was based on improving margins, China growth, and upside from a cyclical recovery.
• Barrington upgraded G&K Services (GKSR) to outperform from market perform ahead of the company's Q3 results to reflect optimism regarding the company's operational turnaround. The firm set a $35 price target for shares.
• LaSalle Hotel (LHO) was upgraded to top pick from outperform at RBC Capital.
• Zimmer (ZMH) was upgraded to overweight from neutral at JPMorgan.
• Thermo Fisher (TMO) was upgraded to buy from hold at Jefferies.

This is news for the IPO market. Financial Engines is the first IPO to trade above its initial offering range in 2010. Heretofore, underwriters have had to slash prices below the original filing range to make their deals.

What is so special about Financial Engines (FNGN)? First, one of its founders, William Sharpe is co-winner of the Nobel Prize in Economics. The company provides low cost financial advice and manages retirement funds in employer sponsored plans.

Here is a brief company report:

Financial Engines, which provides online financial planning services, did something that hasn't been done this year; that is, price its IPO above the range. The company issued 10.6 million shares at $12 million. As for the price range, it was $9 to $11.

It's another sign that IPOs are warming up again -- at least for strong companies.

As the responsibility for retirement shifts to the individual, there is a growing need for investment counsel. However, employers are hesitant in providing advice because of the fiduciary risks and liabilities.

But this has been a huge opportunity for independent service providers, such as Financial Engines. In fact, to capitalize on things, the company has filed to go public.

At the core of Financial Engines is a sophisticated platform for financial planning, which is based on the portfolio analysis of Nobel Laureate, Professor William F. Sharpe (who is also the company's co-founder). This allows for building optimal decisions based on past financial performance, expense levels, manager performance, asset class exposures, tax efficiency and risk tolerances. In other words, individuals can get top-quality financial advice that would typically be available mostly to those with large portfolios.