Analyst Upgrades

• Macquarie upgraded Intel (INTC) to outperform from neutral and Advanced Micro (AMD) to neutral from underperform.
• Pfizer (PFE) was upgraded to outperform from market perform at Bernstein.
• Capstead Mortgage (CMO) was upgraded to outperform from market perform at FBR Capital.
• Oppenheimer upgraded Halliburton (HAL) to outperform from perform.
• Gilead (GILD) was upgraded to outperform from sector perform at RBC Capital.
• Skilled Healthcare (SKH) was upgraded to outperform from market perform at JMP Securities.
• Citigroup upgraded CapitalSource (CSE) to buy from hold.

Analyst Upgrades

• Oppenheimer upgraded Teva (TEVA) to outperform from perform. The firm expects the company to generate strong 2H10 earnings and thinks the competition created by Novartis's (NVS) Gilenia will be limited.
• Citigroup upgraded Celanese (CE) to buy from hold, citing valuation and the company's move to add assets in China, as well as possible takeover interest.
• Needham raised Stereotaxis (STXS) to buy from hold as the firm thinks that strong clinical data recently announced by the company could result in faster adoption rates of its robotic surgery.
• BMO Capital upgraded Smurfit-Stone Container (SSCC) given strength in the containerboard market.
• Melco Crown (MPEL) was upgraded to buy from neutral at UBS.
• Goldman Sachs raised Temple-Inland (TIN) to buy from neutral.
• Barclays upgraded Lloyds Banking (LYG) to equal weight from underweight.

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:

• Citigroup upgraded Lennar (NYSE: LEN) to Buy from Hold as it believes the company's near-term liquidity profile is improved following the $400M debt issuance. The firm raised its target price to $12 from $11.
• Jefferies upgraded Rowan Companies (NYSE: RDC) to Buy from Hold as it believes jack-up drillers will continue to outperform deepwater names. The firm raised its target price to $27 from $20.
• Keefe Bruyette upgraded First Financial (NASDAQ: FFIN) to Market Perform from Underperform to reflect more positive loan data for the Texas banks. The firm raised its target price on shares to $44 from $38.
• MGM Mirage (NYSE: MGM) was upgraded to Overweight from Neutral at JP Morgan.
• Morgan Stanley (NYSE: MS) was upgraded to Outperform from Market Perform at JMP Securities.
• Brinker (NYSE: EAT) was upgraded to Overweight from Equal Weight at Barclays.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Express Co. (NYSE: AXP) earnings tumbled in Q4 but came in just short of expectations.
• Best Buy Inc. (NYSE: BBY) earnings prospects and cash flow led to an analyst's upgrade.
• Bristol-Myers Squibb Co. (NYSE: BMY) topped analysts Q4 expectations, sending shares higher.
• Colgate-Palmolive Co. (NYSE: CL) posted a better-than-expected Q4 profit despite the weak economy.
• Delta Air Lines Inc. (NYSE: DAL) reported a big quarterly loss due to merger costs and bad fuel hedges.
• Eaton Corp. (NYSE: ETN) Q4 earnings fell on lower exchange rates and charges related to an acquisition.
• E*Trade Financial Corp. (NASDAQ: ETFC) narrowed its Q4 net loss but fell short of expectations.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Adobe Systems Inc. (NASDAQ: ADBE) posted strong Q4 and full-year results, but with flat Q4 revenues.
• Best Buy Inc. (NYSE: BBY) beat Q3 expectations though earnings tumbled, and shares rose about 18%.
• Carnival Corp. (NYSE: CCL) announced that it had lowered its full-year earnings and revenue guidance.
• Discover Financial Services (NYSE: DFS) net income from continuing operations more than doubled in Q4.
• Eaton Corp. (NYSE: ETN) cut its Q4 earnings guidance on weakness in the American auto market.
• FedEx Corp. (NYSE: FDX) Q2 earnings topped expectations and it reaffirmed its guidance.
• General Electric Co. (NYSE: GE) declined to provide quarterly earnings guidance in its annual outlook.
• General Mills (NYSE: GIS) posted a higher-than-expected profit on cost cutting and increased marketing.
• Gilead Sciences Inc. (NASDAQ: GILD) strong earnings growth are expected by one analyst to continue.
• Goldman Sachs Group (NYSE: GS) swung to an anticipated Q4 loss and reported negative revenues.
• Healthcare Realty Trust Inc. (NYSE: HR) was downgraded due to its near-term earnings prospects.
• Honeywell International Inc. (NYSE: HON) affirmed a lower 2009 outlook and said it expects profits to fall.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Advanced Micro Devices Inc. (NYSE: AMD) narrowed its Q3 net loss on rising revenues.
• AMR Corp. (NYSE: AMR) posted a deeper-than-estimated Q3 loss but ordered 42 new planes.
• Citigroup Inc. (NYSE: C) reported its fourth straight quarterly loss on another write-down.
• Coca-Cola Co. (NYSE: KO) posted better-than-expected Q3 results on growth overseas.
• CSX Corp. (NYSE: CSX) reported strong Q3 results on lower fuel prices and cost controls.
• eBay Inc. (NASDAQ: EBAY) topped Q3 expectations but lowered its full-year guidance.
• Gilead Sciences (NASDAQ: GILD) beat expectations, sending shares higher.
• Google Inc. (NASDAQ: GOOG) better-than-expected Q3 results sent shares higher.
• Harley-Davidson Inc. (NYSE: HOG) international growth couldn't overcome disappointing results.
• Hershey Co. (NYSE: HSY) results in Q3 were in line with analysts' expectations.
• IBM (NYSE: IBM) posted strong Q3 results and offered an optimistic outlook.
• Intel Corp. (NASDAQ: INTC) posted strong Q3 results but warned of lower demand in Q4.
• Intuitive Surgical Inc. (NASDAQ: ISRG) strong results easily topped expectations, but shares fell.
• Johnson & Johnson (NYSE: JNJ) posted strong Q3 results and raised its full-year guidance.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Bear Stearns Cos. Inc. (NYSE: BSC) reported a profit that missed expectations by a penny.
• Caterpillar Inc. (NYSE: CAT) posted higher profits in the first quarter, boosted by global gains.
• Charles Schwab Corp. (NASDAQ: SCHW) first-quarter earnings were in line with expectations.
• Citigroup Inc. (NYSE: C) posted a bigger-than-expected loss on further write-downs.
• Crocs Inc. (NASDAQ: CROX) lowered first-quarter guidance led the stock to a new 52-week low.
• Eaton Corp. (NYSE: ETN) beat first-quarter estimates due to strong demand overseas.
• Gilead Sciences Inc. (NASDAQ: GILD) posted better-than-expected first-quarter earnings.
• ITT Corp. (NYSE: ITT) raised its first-quarter and full-year earnings guidance.
• Johnson & Johnson (NYSE: JNJ) reported better-than-expected first-quarter earnings.
• JPMorgan Chase & Co. (NYSE: JPM) beat expectations though first-quarter profits fell
• Merrill Lynch & Co. (NYSE: MER) posted a bigger-than-expected first-quarter loss due to write-downs.
• TD Ameritrade Holding Corp. (NASDAQ: AMTD) second-quarter EPS rose 35%, but revenue fell.
• U.S. Bancorp (NYSE: USB) beat first-quarter earnings expectations thought profits slipped.
• Wachovia Corp. (NYSE: WB) posted its first quarterly loss since 2001 and cut its dividend.
• Washington Mutual Inc. (NYSE: WM) swung to a first-quarter loss of more than $1 billion.
• Wells Fargo & Co. (NYSE: WFC) beat expectations though first-quarter profits fell.

MOST NOTEWORTHY: The biotech sector, WESCO International, Wyndham and Century Casinos were today's noteworthy initiations:

• BMO Capital initiated coverage on Arena Pharmaceuticals Inc. (NASDAQ: ARNA) and Gilead Sciences Inc. (NASDAQ: GILD) with Outperform ratings and a $16 target and $51 target and Celgene Corp. (NASDAQ: CELG) and Genentech Inc. (NYSE: DNA) with Market Perform ratings and a $69 target and $85 target.
  
• CIBC initiated shares of WESCO International Inc. (NYSE: WCC) with a Sector Outperformer rating and $46 target. The firm believes lower estimates are already priced into shares and that the company's operating initiatives increase the chances for more stable margins in this environment.
  
• Deutsche Bank started shares of Wyndham Worldwide Corp. (NYSE: WYN) with a Buy rating and $41 target. The firm believes stability of the timeshare industry, international expansion and improved transparency will serve as catalysts for shares.
  
• Century Casinos Inc. (NASDAQ: CNTY) was initiated at Nollenberger with a Neutral rating, citing the underperformance of new properties and concerns from the smoking ban in Colorado; however, the firm believes the company is headed in the right direction.

OTHER INITIATIONS:

• Soleil started shares of Sunoco Inc. (NYSE: SUN) and Valero Energy Corp. (NYSE: VLO) with Buy ratings and targets of $96 and $88, and initiated shares of Tesoro Corp. (NYSE: TSO) with a Hold rating and $55 target.
  
• Rodman & Renshaw started shares of Labopharm Inc. (NASDAQ: DDSS) with a Market Perform rating.
  
• UBS resumed coverage on Kroger Co. (NYSE: KR) with a Buy rating and $34 target.

MOST NOTEWORTHY: Kelly Services, Iron Mountain, Covenant Transportation and the biotech sector were today's noteworthy upgrades:

• Merrill Lynch upgraded Kelly Services Inc (NASDAQ: KELYA) to Neutral from Sell and Iron Mountain Incorporated (NYSE: IRM) to Buy from Neutral after they adjusted estimates in the group to reflect risks of a recession in the U.S.
  
• AG Edwards upgraded shares of Covenant Transportation Group (NASDAQ: CVTI) to Buy from Hold as they believe the stock is oversold after the company was able to renegotiate its debt covenants without significant cost increases.
• Bernstein upgraded the biotech sector citing valuation and typical seasonality for the group. The firm reiterated shares of Amgen Inc (NASDAQ: AMGN), Genentech Inc (NYSE: DNA), Gilead Sciences Inc (NASDAQ: GILD), Celgene Corporation (NASDAQ: CELG) and Vertex Pharmaceuticals (NASDAQ: VRTX) with Outperform ratings...

OTHER UPGRADES:

• Netflix Inc (NASDAQ: NFLX) was upgraded to Hold from Sell at Wedbush. The firm also upgraded shares of Kenexa Corporation (NASDAQ: KNXA) to Buy from Hold.
  
• Deutsche Bank upgraded shares of United Microelectronics (NYSE: UMC) to Buy from Hold.
  
• UBS upgraded shares of Royal Dutch Shell (NYSE: RDS.A) to Buy from Neutral on valuation.
  
• Lehman Brothers upped regulated utilities to Neutral from Negative, and Public Service Enterprise Group (NYSE: PEG) and Wisconsin Energy Corporation (NYSE: WEC) to Overweight from Equal Weight.

MOST NOTEWORTHY: Take-Two Interactive Software (TTWO), Greenbrier Cos (GBX), DirecTV Group (DTV), General Motors (GM) and Ford (F) were today's noteworthy upgrades:

• Soleil upgraded shares of Take-Two Interactive Software (NASDAQ: TTWO) to Buy from Hold as they believe the new management team has quickly taken multiple steps to address key issues and is refocusing on profitable growth.

• Morgan Keegan raised Greenbrier Cos (NYSE: GBX) to Market Perform from Underperform following the company's Q3 report.

• Citigroup upgraded shares of DirecTV Group Inc (NYSE: DTV) to Buy from Hold as they see a 75% chance that Liberty Media (LCAPA) tenders for DTV within the next 12 months and could offer $30 a share for the company.

• JP Morgan upgraded General Motors Corp (NYSE: GM) to Overweight from Neutral with a $50 target and Ford Motor Co (NYSE: F) to Overweight from Underweight as they see signs that unions will engage in radical changes, which could bring EPS upside. General Motors was also added to JP Morgan's Focus List...

OTHER UPGRADES:

• Jefferies raised Micron Technology (NYSE: MU) to Buy from Hold.

• Cowen added shares of Gilead Sciences (NASDAQ: GILD) to its Focus List.

• Friedman Billings added Fannie Mae (NYSE: FNM) to its Top Pick list.

• Buckingham upgraded shares of American Eagle Outfitters (NYSE: AEO) to Accumulate from Neutral.

• Gabelli upgraded shares of Gemstar-TV Guide International (NASDAQ: GMST) to Buy from Hold.

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

MOST NOTEWORTHY: Energizer Holdings, Inc (ENR), Gilead Sciences, Inc (GILD), Intel Corp (INTC) and Advanced Micro Devices (AMD) were some of today's more noteworthy upgrades:

• Prudential upgraded Energizer Holdings Inc (NYSE: ENR) to Neutral from Underweight. The firm said Energizer has been overly focused on the negative potential of cost inflation without fully appreciating the positive mix shift being generated by faster growth of high-margin specialty products and new products that indicate innovation and a competitive edge.

• Gilead Sciences (NASDAQ: GILD) was upgraded to Outperform from Market Perform at Leerink Swann following Gilead's strong quarter.

• FTN Midwest upgraded shares of Advanced Micro Devices Inc (NYSE: AMD) and Intel (NASDAQ: INTC) to Buy from Neutral as the firm believes they are seeing the beginnings of a truce with between the two companies which could lead to higher ASPs.

OTHER UPGRADES:

• CNOOC Ltd (NYSE: CEO) was upgraded to Overweight from Neutral at JP Morgan to reflect the company's prospects for production growth.

• Stifel raised shares of Washington Real Estate Investment Trust (NYSE: WRE) to Buy from Hold with a $42 target.

• AG Edwards upgraded FARO Technologies, Inc (NASDAQ: FARO) to Buy from Hold.

• William Blair upgraded Illinois Tool Works, Inc (NYSE: ITW) to Outperform from Market Perform.

• JP Morgan added J.C. Penney Co (NYSE: JCP) to its Focus List.

• Matrix USA upgraded shares of Henry Schein, Inc (NASDAQ: HSIC) to Buy from Hold on valuation.

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

MOST NOTEWORTHY: Callaway Golf Co (ELY), Genentech, Inc (DNA), LSI Logic Corp (LSI) and Evergreen Solar, Inc (ELSR) were today's more notable initiations.

• Merriman initiated Callaway Golf Co (NYSE: ELY) with a Buy rating and believes new management could get the company back on track.
  

• Genentech (NYSE:DNA) was initiated at Prudential with a Neutral rating and $92 target. The firm believes the lack of a new product launch before 2010 is a concern for long-term growth.

• American Technology believes shares of LSI Logic (NYSE: LSI) are undervalued, initiating the company with a Buy rating and $13 target, given synergies and revenue opportunities from the merger with Agere Systems, Inc (AGR).

• Bank of America initiated Evergreen Solar Inc (NASDAQ: ESLR) with a Sell rating and $8 target to reflect the lack of visibility on its growth, which puts the company at a competitive disadvantage.

OTHER INITIATIONS:

• Salary.com, Inc (NASDAQ: SLRY) was initiated at Pacific Crest and Wachovia with an Outperform rating and at Thomas Weisel with an Overweight rating.

• Prudential started Gilead Sciences, Inc (NASDAQ: GILD) with an Overweight rating and $90 target.

• BMO initiated Smithfield Foods, Inc (NYSE: SFD) with with an Outperform rating and $36 target.

• Kaufman Brothers started VeriChip Corp (NASDAQ: CHIP) with a Buy rating, believing the company's growth position is compelling given its patented, FDA-approved microchip that can be implanted into humans for a variety of applications.

• Citigroup started Amgen, Inc (NASDAQ: AMGN) with a Hold rating and $64 target.

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

Gilead Sciences Inc. (NASDAQ: GILD) opened at $72.25. So far today the stock has hit a low of $72.25 and a high of $73.36. As of 1:35 p.m., GILD is trading at $73.04, up $2.27 (3.2%).

The stock hit its 52-week high of $74.97 in February and set its 52-week low of $52.55 in May. This morning, GILD was upped by Merrill Lynch to buy from neutral. The broker expects good results on cystic fibrosis and pulmonary arterial hypertension drugs launches that could bring in $1.5 billion in revenue. The company's price target was established at $91 per share. The technical indicators for the stock are bullish and deteriorating while S&P gives GILD a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider a May bull-put credit spread below the $62.50 range. GILD hasn't been below $62.50 since August and has shown support around $68. This trade could be risky if one of the company's drugs hits some regulatory snags, but the support around $63 could protect this position.

Brent Archer is an options analyst and writer at Investors Observer. (Free Subscription)

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.

MOST NOTEWORTHY: Today's notable upgrades include SanDisk Corp (SNDK), Cabela's Inc (CAB) and Knightsbridge Tankers Ltd (VLCCF):

• CIBC upgraded shares of SanDisk Corp (NASDAQ: SNDK) to Sector Outperformer from Sector Performer with a $50 target. The firm finds the risk/reward compelling due to a rebounding NAND outlook for Q4 and 2008 and the probability of Hynix signing a watershed licensing deal.

• Matrix USA upgraded Cabela's Inc (NYSE: CAB) Inc to Hold from Sell as retail operations have improved, providing a boost to fundamental trends.

• JP Morgan upgraded shares of Knightsbridge Tankers (NASDAQ: VLCCF) Ltd to Neutral from Underweight based on valuation and increased time-charter contract coverage.

OTHER UPGRADES:

• Merrill Lynch upgraded Gilead Sciences, Inc (NASDAQ: GILD) to Buy from Neutral to reflect improved prospects for long-term growth of the company's HIV-franchise.

• UBS resumed coverage of Express Scripts, Inc (NASDAQ: ESRX) with a Buy rating, up from its previous Neutral rating.

• Deutsche Bank upgraded Valspar Corp (NYSE: VAL) with a Buy from Hold and $34 target.

• HSBC upgraded Dow Chemical Co (NYSE: DOW) to Overweight from Neutral as the firm believes a joint venture with Reliance could trigger a valuation re-rating with a higher multiple, offsetting any EPS dilution.

• Caris upgraded Seagate Technology (NYSE: STX) to Above Average from Average as the firm believes Seagate has too many structural advantages over the competition.

• Buckingham upgraded TJX Cos (NYSE: TJX) to Strong Buy from Accumulate with a $33 target.

• Lehman Brothers upgraded Volkswagen ADS (OTC: VLKAY) to Equal-Weight from Underweight.

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