Analyst upgrades:

• Jefferies upgraded Biogen (NASDAQ: BIIB) to Buy from Hold based on valuation. The firm, which has a $50 target on the stock, believes Tysabri PML cases are reflected in shares.
• Deutsche Bank upgraded Nordstrom (NYSE: JWN) to Buy from Hold as it finds the valuation attractive and believes the company's sales are benefiting from stabilization in California and share gains. Deutsche raised its target on shares to $45 from $36.
• RBC Capital upgraded Yum! Brands (NYSE: YUM) to Outperform from Sector Perform and raised its target to $39 from $36 citing valuation and views it as a low risk option on a global economic recovery.
• Credit Suisse (NYSE: CS) was upgraded to Buy from Hold at Citigroup.
• Royal Caribbean (NYSE: RCL) was upgraded to Outperform from Market Perform at Wells Fargo.
• Alcatel-Lucent (NYSE: ALU) was upgraded to Hold from Sell at RBS.

Analyst upgrades:

• Baird upgraded Adtran (NASDAQ: ADTN) to Outperform from Neutral based on valuation, new product cycles, and confidence in 2H08 results.
  
• Morgan Stanley upgraded shares of Repsol (NYSE: REP) to Overweight from Equal Weight as they believe the potential sale to Sacyr Vallehermoso SA could lead to a restructuring.
  
• Stanford lifted National Oilwell Varco (NYSE: NOV) to Buy from Hold citing valuation. In addition, the firm, which set a target of $70, thinks most of the drop in commodity prices is now over.
• Ryanair (NASDAQ: RYAAY) was raised to Hold from Sell at Societe Generale.
  
• Ann Taylor (NYSE: ANN) was upgraded at Piper to Neutral from Sell.
  
• Goldman added Illinois Tool Works (NYSE: ITW) to the Conviction Buy List.

Analyst downgrades:

• Argus downgraded shares of Constellation Energy (NYSE: CEG) to Hold from Buy post-close given the volatility in the stock as they can no longer recommend CEG until concerns over its capital and liquidity are resolved. Shares were also downgraded to Hold from Buy at Citigroup.
  
• Collins Stewart downgraded Lloyds TSB Group (NYSE: LYG) to Hold from Buy following the acquisition of HBOS (OTC: HBOOY) as they expect short-term weakness in the stock.

Incyte Corp. (NASDAQ: INCY) is our next pick from the single-digit sect, and it's not a play for the squeamish. The company is part of the frequently volatile biotechnology industry, and focuses its efforts on drugs that inhibit specific enzymes thought to cause cancer, diabetes, and other serious maladies. After abandoning its DFC medication, designed to help patients with HIV, the company has focused its efforts on a number of other treatments in the pipeline. A successful clinical trial could result in impressive gains in the stock, while another disappointment could send the shares unraveling.

But for now, the stock looks like a nice potential play for an aggressive trader. The stock has been in rally mode since early August, aside from a slight pullback that petered out a few weeks ago. From early August through mid-November, INCY shares had increased more than 80% and toppled several layers of technical resistance.

Currently, the stock is consolidating some of its recent gains as it tests its 10-week moving average. This trendline coincides with chart support at the $8.00 mark, representing the equity's April 27 peak. This level served as resistance seven months ago but may reverse roles and act as support this time around, especially as its presence is bolstered by the 10-week trendline.