Analyst Upgrades

• Thoratec (THOR) to buy from neutral at UBS.
• TW Telecom (TWTC) to buy from hold at Citigroup.
• TAL Education (XRS) to overweight from neutral at Piper Jaffray.
• Amedisys (AMED) to buy from hold at Deutsche Bank.

Analyst Downgrades

• Navigators (NAVG) to neutral from outperform at Macquarie.
• El Paso Electric (EE) to hold from buy at Jefferies.
• Hancock Holding (HBHC) to hold from buy at Wunderlich.
• California Water Service (CWT) and American States Water (AWR) to neutral from buy at Janney Capital.
• Mednax (MD) to hold from buy at Deutsche Bank.

Analyst Upgrades

• Goldman Sachs upgraded BJ's Wholesale (BJ) to neutral from sell and has a $43 target on the stock. Note that private equity firm Green Equity took a 9.5% stake in the company. Shares were also upgraded at Jefferies to buy from hold.
• Stephens upgraded Covenant Transportation (CVTI) to overweight from equal weight after the company positively preannounced Q2 results. The firm raised its target for shares to $12 from $5.
• Leerink upgraded Arena Pharmaceuticals (ARNA) to outperform from market perform after the company signed a partnership deal with Eisai for U.S. commercialization rights to lorcaserin. The firm believes the deal removes a major concern and upped its target for shares to $6 from $5.
• Fortune Brands (FO) was upgraded to hold from sell at Citigroup.
• KeyBanc upgraded NiSource (NI) to buy from hold.
• Akzo Nobel (AKZOY) was upgraded to buy from neutral at UBS.

Analyst Upgrades

• UBS upgraded Potash (POT) to buy from neutral and raised its price target to $112 from $106. UBS raised its 2011 potash production estimates based on expectations for a tighter market and notes the potential for China to import substantial amounts of corn.
• BMO Capital upgraded Peabody Energy (BTU) to outperform from market perform. The firm, which has a $49 target on the stock, cites valuation for the upgrade.
• Janney Montgomery upgraded City Holding (CHCO) to buy from neutral with a $37 price target, citing the recent pullback in shares.
• Boston Scientific (BSX) was upgraded to sell from conviction sell at Goldman.
• Pegasystems (PEGA) was upgraded to buy from hold at Roth Capital.
• Wendy's/Arby's (WEN) was upgraded to buy from neutral at SunTrust.

Option investors took a bullish interest in the Oil & Gas Pipelines industry and bearish interest in the Business Services industry on Tuesday.

Bullish Volatility Skews

• Enbridge Inc. (ENB) -- part of the Oil & Gas Pipelines industry -- came in at the top with a volatility skew of 1.25. This may come as a surprise as ENB is down -4.27% for the past month.

MOST NOTEWORTHY: Heartland Payment, Holly Corp and Buckeye Technologies were today's noteworthy upgrades:

• Heartland Payment (NYSE: HPY) was upgraded to Outperform from Neutral at Baird on valuation.
• Holly Corp. (NYSE: HOC) was upgraded to Buy from Neutral at UBS on valuation.
  
• UBS also upgraded Buckeye Technologies (NYSE: BKI) to Buy from Sell on valuation and stabilizing fundamentals.

OTHER UPGRADES:

• TAM SA (NYSE: TAM) was upgraded to Equal Weight from Underweight at Morgan Stanley.
  
• Bear Stearns raised MasterCard (NYSE: MA) to Outperform from Peer Perform.
  
• Keefe Bruyette upgraded Hancock Holding (NASDAQ: HBHC) to Outperform from Market Perform.

MOST NOTEWORTHY: Occam Networks, Washington Mutual, Downey Financial and IMS Health were today's noteworthy downgrades:

• Merriman downgraded shares of Occam Networks (NASDAQ: OCNW) to Neutral from Buy as they believe the company's restatement filing raised more questions than it answered and that the company's takeout value is shrinking.
  
• Friedman Billings downgraded Washington Mutual (NYSE: WM) and Downey Financial Corporation (NYSE: DSL) to Underperform from Market Perform based on credit trends that are eroding faster than anticipated in the housing market.
  
• William Blair downgraded IMS Health (NYSE: RX) to Market Perform from Outperform following the lower than expected Q3 results to reflect deterioration in the company's market environment. Shares were also downgraded to Sell from Neutral at Goldman Sachs.

OTHER DOWNGRADES:

• Knight Transportation (NYSE: KNX) was downgraded to Market Perform from Outperform at Wachovia.
  
• B. Riley downgraded Hancock Holding (NASDAQ: HBHC) to Neutral from Buy.
  
• Deutsche Bank downgraded eBay (NASDAQ: EBAY) to Sell from Hold and E-Trade Financial Corporation (NASDAQ: ETFC) to Hold from Buy.

MOST NOTEWORTHY: Advanced Micro Devices, Hancock Holding, Town Sports and Gerdau SA were today's noteworthy initiations:

• Nollenberger started shares of Advanced Micro Devices (NYSE: AMD) with a Buy rating and $18 target. The firm believes the company's issues are widely known and already baked into the valuation and feels the Barcelona ramp and performance are likely ahead of expectations and demand for the latest family of ATI graphics is solid.
• B. Riley initiated shares of Hancock Holding Company (NASDAQ: HBHC) with a Buy rating of $43 target as the firm believes a higher premium is warranted given the company's superior growth prospects and conservative management profile.
• Town Sports International Holdings (NASDAQ: CLUB) was initiated with a Sector Outperformer and a $23 target at CIBC. The firm expects shares to be driven by improving fundamentals.
• Citigroup believes Gerdau SA's (NYSE: GGB) acquisition of Chaparral was expensive and will provide near-term headwinds for the stock, starting shares off with a Hold rating.

OTHER INITIATIONS:

• UBS initiated shares of Baker Hughes Incororated (NYSE: BHI), Halliburton (NYSE: HAL) and Schlumberger Limited (NYSE: SLB) with Buy ratings and targets of $102, $52 and $121, respectively.
• BMO initiated shares of Health Care Reit (NYSE: HCN) with a Market Perform rating.
  
• Lazard initiated shares of Micron Technology (NYSE: MU), SanDisk Corporation (NASDAQ: SNDK) and Silicon Motion Technology (NASDAQ: SIMO) with Buy ratings and targets of $14, $63 and $29.