Analyst Upgrades

• Verisk (VRSK) was upgraded to outperform from market perform at Wells Fargo.
• Marriott (MAR) was upgraded to outperform from market perform at Bernstein.
• Jefferies upgraded Teekay (TK) and Tsakos Energy (TNP) to Buy from Hold.
• Cadence Design (CDNS) was upgraded to sector perform from underperform at RBC Capital.
• BofA/Merrill upgraded NV Energy (NVE) to buy from underperform and Education Realty Trust (EDR) to neutral from underperform.
• Men's Wearhouse (MW) was upgraded to buy from hold at Stifel.
• William Blair upgraded Atheros (ATHR) to outperform from market perform.
• Freeport McMoran (FCX) was upgraded to buy from hold at Argus.

Analyst Upgrades

• UBS said Martin Marietta's (MLM) Q2 showed evidence of leverage to a recovery and the firm views risk/reward in shares as attractive. Shares were upgraded to buy from neutral, but its price target was lowered to $96 from $101.
• Soleil upgraded Regis (RGS) to buy from hold after the company said it is exploring strategic options. The firm raised its target for shares to $26 from $14.
• Wunderlich upgraded Sirius XM Radio (SIRI) to buy from hold with a $1.50 price target following the company's Q2 results. The firm believes Sirius' product continues to resonate with healthier higher-end consumers and notes that CEO Mel Karmazin said a resolution could be reached with Howard Stern by the Q3 conference call.
• Magellan Midstream (MMP) was upgraded to outperform from sector perform at RBC Capital.
• Savient (SVNT) was upgraded to neutral from underperform at BofA/Merrill.
• EMS Tech (ELMG) was upgraded to buy from hold at Needham.

Intercontinental Exchange (NYSE: ICE) is a stock that's underperformed since the June 2, 2009 Buy recommendation at a price of $115.15 per share.

But so far, place ICE in the category of a 'tired stock,' not a 'broken company,' hence I'm Reiterating the June Buy rating. Here's why:

IntercontinentalExchange (NYSE: ICE - option chain) shares are rising today after the company reported its first-quarter profit fell 22% to $72.2 million, or 98 cents per share. ICE's adjusted profit of $1.09 per share beat analysts' estimates of $1.01 per share. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ICE.

ICE opened this morning at $89.32. So far today the stock has hit a low of $89.32 and a high of $104.60. As of 10:50, ICE is trading at $101.90, up 11.47 (12.7%). The chart for ICE neutral and S&P gives ICE a neutral 3 STARS (out of 5) hold ranking.

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

• Bed Bath & Beyond Inc. (NASDAQ: BBBY) easily topped Q4 earnings estimates but same-store sales fell.
• Brinker International Inc. (NYSE: EAT) forecast Q3 earnings that are well above analysts' estimates.
• Constellation Brands Inc. (NYSE: STZ) said it narrowed its loss in Q4 despite restructuring costs.
• Excel Maritime Carriers Ltd. (NYSE: EXM) is expected to fall short of Q4 earnings expectations.
• Family Dollar Stores Inc. (NYSE: FDO) reported strong Q2 results and and raised its outlook for Q3.

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

• American International Group Inc. (NYSE: AIG) blamed another big loss on housing and credit markets.
• Barrett Business Services Inc. (NASDAQ: BBSI) beat Q2 estimates and raised its Q3 guidance.
• Fannie Mae (NYSE: FNM) Q2 loss was three times more than analysts had predicted.
• Freddie Mac (NYSE: FRE) big loss was due to loan write-offs, but revenue rose 10%.
• HSBC Holdings PLC (NYSE: HBC) reported a drop in profit and warned of more difficulties to come.
• InterContinental Exchange (NYSE: ICE) posted Q2 results that were in line with Wall Street expectations.
• Marvel Entertainment Inc. (NYSE: MVL) posted strong Q2 results on Iron Man and Incredible Hulk movies.
• Midway Games Inc. (NYSE: MWY) widened its Q2 net loss as revenues slumped.
• News Corp. (NYSE: NWS) posted strong Q4 results on asset gains, and warned of slower growth.
• Playboy Enterprises Inc. (NYSE: PLA) posted a worse-than-expected Q2 loss despite cost controls.
• Procter & Gamble Co. (NYSE: PG) healthy Q4 and full-year results beat analysts' expectations.
• RadiSys Corp. (NASDAQ: RSYS) easily beat Q2 expectations on strong demand for wireless products.
• Time Warner Inc. (NYSE: TWX) net income slumped on declining AOL subscriber fees (see transcript).
• Tyco International Ltd. (NYSE: TYC) beat Q3 earnings expectations and raised its full-year guidance.
• Whole Foods Market International (NASDAQ: WFMI) posted dismal results and suspended its dividend.

MOST NOTEWORTHY: Pioneer Natural, Genomic Health and Alphatec were today's noteworthy upgrades:

• Citigroup upgraded shares of Pioneer Natural Resources Company (NYSE: PXD) to Buy from Hold on valuation following the recent weakness.
• Genomic Health Inc (NASDAQ: GHDX) was raised to Outperform from Sector Perform at RBC Capital, as they believe momentum for the company's Oncotype Dx test is building based on inclusion in new clinical guidelines and expanded reimbursement.
• Alphatec Holdings Inc (NASDAQ: ATEC) was upgraded to Buy from Source of Funds at Think Equity, citing the new CEO's efforts to overhaul the company, which has positioned it for growth.

OTHER UPGRADES:

• Intercontinental Exchange Inc (NYSE: ICE) was added to JP Morgan's Focus List.
• Banc of America upgraded Sirona Dental Systems Inc (NASDAQ: SIRO) to Buy from Neutral.
• Baird upgraded CommVault Systems Inc (NASDAQ: CVLT) to Outperform from Neutral.

Chicago Mercantile Exchange Holdings Inc. (NYSE: CME) opened at $533.30. So far today the stock has hit a low of $533.30 and a high of $539.45. As of 10:55, CME is trading at $535.87, up $2.47 (0.5%).

After hitting a one year high of $596.30 in January, the stock has trended slightly downward over the past six months, bouncing off support at $500 in May. Chicago Board of Trade (NYSE: BOT) management is urging shareholders to vote for a merger with CME rather than the competing offer from Intercontinental Exchange (NYSE: ICE). A vote will be held on July 9. Recent technical indicators for CME have been bullish but deteriorating, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $500 range.CME hasn't been below $500 for more than a day since November and has shown support around $508 recently. This trade could be risky if broader markets take a tumble, but CME is not scheduled to report earnings until the week after July expiration.

Brent Archer is an options analyst and writer at Investors Observer.
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. At publication time, Brent neither owns nor controls positions in CME, BOT, or ICE.

MOST NOTEWORTHY: Cavium Networks Inc (NASDAQ: CAVM), Travel Centers of America LLC (AMEX: TA) and MetroPCS Communications Inc (NYSE: PCS) were today's noteworthy initiations:

• Cavium Networks was initiated with a Strong Buy rating and $25 target at JMP Securities. The firm's checks indicate significant momentum for Cavium's products and cites good visibility. Cavium was also initiated with a Market Weight rating at Thomas Weisel, which finds shares fairly-valued at current levels, with a Buy rating and $25 target at Needham, with an Equal Weight rating and $22 target at Lehman Brothers, with an Equal Weight rating at Morgan Stanley and with a Buy rating and $26 target at Deutsche Bank, which expects over 50% revenue growth from 2006-2009 due to the growth in the company's network processor product line.
• TravelCenters of America was initiated with a Buy rating and $54 target at Ferris Baker Watts and with a Buy rating and $70 target at BWS Financial, as the firm is positive on TA's earnings power and valuation.
• Citigroup initiated shares of MetroPCS with a Buy rating and $40 target. The firm believes the company's coupled with deepening penetration in its core markets should produce revenue and FCF growth that exceeds the maturing industry average.

OTHER INITIATIONS:

• IntercontinentalExchange Inc (NYSE: ICE) was initiated with an Outperform rating at Credit Suisse.
• Janco initiated shares of Foundry Networks Inc (NASDAQ: FDRY) with a Buy rating and $19.50 target, as the firm believes the company's new products put it in a position to gain market share.
• CIBC World Markets initiated shares of Accuray Incorporated (NASDAQ: ARAY) with a Sector Underperformer rating and $19 target.

MAJOR PAPERS:

• The Wall Street Journal reported that President Bush picked former advisor Robert Zoellick to take over the World Bank from Paul Wolfowitz; Mr. Zoellick, now a vice chairman at Goldman Sachs Group Inc (NYSE: GS), was a trade representative and deputy secretary of state.
• The Institutional Shareholder Service has advised shareholders of medical device maker Biomet Inc (NASDAQ: BMET) to turn down a $10.9B private equity deal for the company, according to the Wall Street Journal.
• The Financial Times reported that the IntercontinentalExchange Inc (NYSE: ICE) has signed an exclusive deal with the CBOT Holdings Inc (NYSE: BOT), a move that could advance ICE's unsolicited bid for the Chicago Board of Trade.
• Rather than focus on potential take-out targets, Barron's Online's "Weekday Trader" said that the smart bet for investors is to focus on companies with rising profits, cash flows and dividends, such as Loews Corp-Carolina Group (NYSE: CG) and Imperial Tobacco Group plc (NYSE: ITY), which boast free cash and dividends.

OTHER PAPERS:

• Best Buy Co Inc (NYSE: BBY) is in talks with Vivek for a "foray" into India, the Economic Times reported.
  
• The Washington Post reported that Nigeria filed criminal charges against Pfizer Inc (NYSE: PFE) over child deaths.

Usually, the buyer in an M&A transaction has a drop in its stock price. Well, that wasn't the case with Intercontinental Exchange's (ICE) $1 billion purchase of the New York Board of Trade (NYBOT). In fact, ICE's stock surged 10% on the announcement.

Basically, ICE is an electronic exchange for trading on energy products. Despite the recent fall-off in energy prices, the market has been particularly strong for ICE, as the stock has surged almost 80% this year.

So, why not use some of this increased shareholder value to do a deal?

The purchase of the NYBOT will be a move to diversify ICE away from energy. For the most part, NYBOT is an old-school exchange (there is a physical trading floor) that focuses in stuff like sugar, cocoa, and coffee trading.

Also, ICE believes the deal will result in cost synergies of $50 million or so. Something else: ICE is likely to leverage its technology infrastructure into the NYBOT.

Although, according to Wall Street's response, ICE may be too conservative on the benefits of the deal. After all, NYBOT was founded in 1870: there is probably lots of opportunity to modernize things at the exchange.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.