Analyst Upgrades

• Chesapeake (CHK) to buy from hold at Canaccord.
• Biogen (BIIB) and Regeneron (REGN) to outperform from sector perform at RBC Capital.
• Caribou Coffee (CBOU) to outperform from neutral and Encore Energy (ENP) to neutral from underperform at RW Baird.
• Fluor (FLR) to market perform from underperform at BMO Capital.
• Hornbeck Offshore (HOS) to conviction buy from neutral at Goldman.
• Saks (SKS) and Zale (ZLC) to neutral from underperform at BofA/Merrill.

Hornbeck Offshore Services' (HOS) stock has 'totally misbehaved' since the May 28, 2009 buy call at a price of $27.08, but I'm nevertheless reiterating the recommendation. Here's why:

The bullish trend in the oil sector should keep Hornbeck's growth story intact, even though day rates for 2009 offshore supply vessels will likely be 15-20% below 2008; in 2010, offshore rates should improve slightly. Meanwhile, capacity utilization should improve in 2010 from the current roughly 80% rate.

Offshore oil servicer Hornbeck Offshore (NYSE: HOS), first recommended on May 28, 2009 at a price of $27.08, twice within the past 60 days broke below the key, 50-day moving average.

Historically, that would be enough to re-evaluate the investment, but the stock did the re-valuation work on its own, recovering to the $27.08 entry point this month.

"With high-quality stocks on sale, now seems an opportune time to look for bargains among small and midcap blue chips," suggests Richard Moroney.

In his Upside Stocks advisory, which uses the quantitative-based Quadrix ratings system, he says, "We've found several 'Best Buys' with superior year-ahead potential."

Here, the analyst looks at Aeropostale (NYSE: ARO), Catalyst Health (NASDAQ: CHSI) and Hornbeck Offshore (NYSE: HOS).

Readers of this space know that one of the preferred sectors is oil/oil services, and with the aforementioned in mind, Hornbeck Offshore (NYSE: HOS).

In general, analysts expect short-term doldrums for offshore oil servicer Hornbeck, primarily due to a decrease in demand for crude oil in North America.

However, heading into F2010 HOS should benefit from increased deepwater drilling in the Gulf of Mexico, particularly as oil's price firms later in 2009, as the U.S. economic recovery takes hold.