Analyst Upgrades

• Oppenheimer upgraded Genoptix (NASDAQ: GXDX) to Outperform from Perform and raised its target to $44 from $33 based on analysis of oncology testing reimbursement that indicates average revenue per case is within industry norms.
• Deutsche Bank upgraded Legg Mason (NYSE: LM) to Hold from Sell citing reports that an activist investor, Nelson Peltz, has increased its stake in the company. The firm said fundamentals remain weak but the news will likely push shares higher.
• Suntrust upgraded VCA Antech (NASDAQ: WOOF) to Buy from Neutral citing reduced headwinds and favorable risk/reward. The firm has a $30 target on shares.
• SLM Corp. (NYSE: SLM) was upgraded to Overweight from Neutral at JPMorgan.
• Diamond Offshore (NYSE: DO) and FMC Technologies (NYSE: FMC) were upgraded to Neutral from Sell at Goldman.

Analyst upgrades:

• Jefferies upgraded Brocade (NASDAQ: BRCD) to Buy from Hold on expectations expanding OEM partnerships, new products and entry into new markets will drive long-term growth. The firm's channel checks indicate the first phase of an IBM (NYSE: IBM) deal for ethernet products will be announced next week. Jefferies raised its target price on the stock to $6 from $3.50.
  
• JMP Securities upgraded Broadcom (NASDAQ: BRCM) to Market Perform from Underperform citing the potential settlement with Qualcomm (NASDAQ: QCOM). The firm said Broadcom has far more to gain than Qualcomm has to lose.
  
• Citigroup upgraded Air Products (NYSE: APD) and Praxair (NYSE: PX) to Buy from Hold on expectations that an improvement in customer operating rates will benefit gas companies. The firm raised its target price on Air Products to $70 from $55 and on Praxair to $79 from $63.
  
• Royal Bank of Scotland upgraded BP Plc (NYSE: BP) to Buy from Hold to reflect its dividend yield at current levels.
• Apple (NASDAQ: AAPL) was raised to Outperform from Underperform at RBC Capital.
  
• T. Rowe Price (NYSE: TROW) was upgraded at Sandler O'Neill to Hold from Sell.
  
• Morgan Stanley (NYSE: MS) was lifted to Neutral from Underperform at Banc of America/Merrill.

MOST NOTEWORTHY: 012Smile.com, Lifecell and Genoptix were today's noteworthy initiations:

• 012Smile.com (NASDAQ: SMLC) was initiated with an Outperform rating and a $16 target at CIBC World Markets and RBC Capital and with an Overweight rating and $14.75 target at Thomas Weisel. CIBC believes the company is one of the least expensive smart-build competitive carriers in the world. The firm believes the company is poised to gain market share in newly opened local and wireless markets, and sees room for the company to expand its customer base in Israel. Cowen, which started shares with an Outperform rating, believes SMLC backing by Eurocom provides the company with significant clout and financial backing. The firm sees upside from new voice over broadband and wireless services.
  
• Banc of America resumed coverage of Lifecell (NASDAQ: LIFC) with a Neutral rating and $48 target and prefers to wait for a better entry point or evidence of better than expected Strattice uptake.
  
• The firm also started Genoptix (NASDAQ: GXDX) with a Buy rating and $36 target, as they believe the funds raised in the company's IPO will help drive annual EPS growth of 35% on a long-term basis, leading to higher valuation levels.

OTHER INITIATIONS:

• JP Morgan initiated Fred's Inc. (NASDAQ: FRED) with a Neutral rating.
  
• UBS started Vulcan Materials Company (NYSE: VMC) with a Sell rating and $85 target and Martin Marietta (NYSE: MLM) with a Neutral rating and $137 target.