Analyst Upgrades

• Janney Montgomery upgraded Dreamworks (DWA) to buy from neutral on valuation and believes Dragon will be a major hit. The firm has a $45 target on the stock.
• Thomas Weisel upgraded Gildan Activewear (GIL) to market weight from underweight, citing expectations for increased market shares in the U.S. screen print channel. The firm raised its target to $17 from $12.
• P.F. Chang's (PFCB) was upgraded to overweight from equal weight at Morgan Stanley.
• PEPCO Holdings (POM) was upgraded to outperform from neutral at Credit Suisse.
• Arris (ARRS) was upgraded to buy from neutral at UBS.

Analyst upgrades:

• Deutsche Bank upgraded Freeport McMoRan (NYSE: FCX) to Buy from Hold to reflect the company's better than expected Q3 results and improved volume outlook. Deutsche raised its target on shares to $100 from $72.
• Thomas Weisel upgraded Motorola (NYSE: MOT) to Overweight from Market Weight and raised its target to $11 from $7 and said they expect Motorola to benefit from several upcoming catalysts that include new Android-based smartphone products and they believe the handset division could break even by year end of 2010.
• Janney Montgomery upgraded Regal Entertainment (NYSE: RGC) and Cinemark (NYSE: CNK) to Buy from Neutral on expectations both companies will benefit from a strong box office in Q4. The firm has a $14 price target on Regal shares and a $13.50 target on Cinemark shares.
• Marshall & llsley (NYSE: MI) was upgraded to Neutral from Underweight at JPMorgan.
• F5 Networks (NASDAQ: FFIV) was upgraded to Neutral from Sell at UBS.
• William Blair upgraded Lindsay Corporation (NYSE: LNN) to Outperform from Market Perform.

MOST NOTEWORTHY: Celgene (CELG), Sysco (SYY), Kinetic Concepts (KCI), BioMimtic Therapeutics (BMTI) and Lifecell Corp (LIFC) were today's noteworthy initiations:

• William Blair believes Celgene (NASDAQ: CELG) has the best growth profile in large-cap biotechnology and initiated shares with an Outperform rating.

• Citigroup views Sysco (NYSE: SYY) as the dominant leader in the foodservice distribution industry, initiating shares with a Buy rating, and feels the company will continue to take market share from its peers. The firm thinks the current valuation reflects the perception that Sysco may perform poorly in the near-term, which they disagree with.

• Wachovia started Kinetic Concepts (NYSE: KCI) with a Market Perform, citing competitive pressures and mature markets for its rating.

• Wachovia is positive on BioMimetic Therapeutics (NASDAQ: BMTI), initiating shares with an Outperform, based on strong rhPDGF technology, strategy, and management team.

• Wachovia is positive on Lifecell Corp's (NASDAQ: LIFC) Strattice, a porcine tissue matrix, which improves the company's international exposure and provides opportunities in new markets, initiating shares with an Outperform...

OTHER INITIATIONS:

• Credit Suisse initiated Community Health (NYSE: CYH) and Universal Health (NYSE: UHS) with Outperform ratings, LifePoint (NASDAQ: LPNT) with a Neutral rating, and Health Management (NYSE: HMA) and Tenet Healthcare (NYSE: THC) with Underperform ratings.

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