Analyst upgrades:

• Bernstein upgraded General Electric (NYSE: GE) to Outperform from Market Perform Thursday after the close. The firm sees an improved risk/reward on the stock and raised its price target to $19 from $18.
• Bernstein also upgraded Amazon.com (NASDAQ: AMZN) to Outperform from Market Perform as it believes sales growth and margin expansion expectations are too low. The firm raised its target on shares to $160 from $125.
• Piper Jaffray upgraded CBS (NYSE: CBS) to Neutral from Underweight following the company's Q3 results and raised its target on shares to $13 from $12.
• JPMorgan upgraded Macy's (NYSE: M) to Overweight from Neutral to reflect the company's improving comps. The firm has a $23 target on the stock.
• Ansys (NASDAQ: ANSS) was upgraded to Buy from Hold at Jefferies.
• Travelers (NYSE: TRV) was upgraded to Buy from Neutral at Goldman.
• Air Methods (NASDAQ: AIRM) was upgraded to Overweight from Equal Weight at Stephens.

Analyst upgrades:

• FBR Capital upgraded CapitalSource (NYSE: CSE) to Outperform from Market Perform on valuation as it sees an attractive risk/reward at current levels. The firm raised its target on shares to $5 from $3.
• Kaufman Bros. upgraded The Knot (NASDAQ: KNOT) to Buy from Hold following the company's Q2 results to reflect stable national advertising and a better bottom-line outlook. The firm raised its target on shares to $11 from $8.50.
• Baird upgraded Obagi Medical (NASDAQ: OMPI) to Outperform from Neutral and raised its target to $10 from $7 following the strong Q2 report. The firm believes business bottomed in Q1 and the outlook is improving.
• IPC The Hospitalist Co. (NASDAQ: IPCM) was upgraded to Overweight from Equal Weight at Stephens.
• King Pharma (NYSE: KG) was upgraded at BofA/Merrill to Buy from Hold.
• Infinera (NASDAQ: INFN) was upgraded to Hold from Underperform at Jefferies.

Analyst upgrades:

• Kaufman Bros. assumed coverage of Ctrip.com (NASDAQ: CTRP) and upgraded the stock to Buy from its previous Hold rating. The firm thinks the company's Q2 targets are achievable while 20%-plus growth should return in Q3 as comps ease.
• Janney Montgomery upgraded Cogdell Spencer (NYSE: CSA) to Neutral from Sell as it believes last night's capital raise removes risk. The firm has a $4.50 target on shares.
• Deutsche Bank upgraded Map Pharmaceuticals (NASDAQ: MAPP) to Buy from Hold following the positive Levadex Phase 3 results as it believes the migraine drug could generate peak sales of $250M in the U.S. if approved. Deutsche raised its target on shares to $12 from $5.
• Northwest Natural Gas (NYSE: NWN) was raised to Buy from Neutral at UBS.
• Petro-Canada (NYSE: PCZ) was upgraded to Overweight from Equal Weight at Barclays.
• Alcatel-Lucent (NYSE: ALU) was upgraded to Add from Reduce at WestLB.

MOST NOTEWORTHY: SRS Labs, Tennant and Entergy were today's noteworthy initiations:

• B. Riley initiated SRS Labs (NASDAQ: SRSL) with a Neutral rating and $7 target. The firm believes expectations for Q2 and FY08 may be high as the company ramps marketing spend in the face of difficult macro economic conditions.
  
• Jefferies assumed Tennant (NYSE: TNC) with a Hold rating and $32 target which reflects their macro economic outlook for end markets in North America and Western Europe.
  
• Wachovia is positive on Entergy's (NYSE: ETR) shareholder-friendly management, strong financial position, and leverage to favorable wholesale power market trends. Shares were initiated with an Outperform rating.

OTHER INITIATIONS:

• ThinkPanmure initiated Knot Inc. (NASDAQ: KNOT) with a Source of Funds rating and $8 target.
  
• Qualcomm (NASDAQ: QCOM) was started with a Buy rating and $61 target at Citigroup.
  
• HSBC assumed Spreadtrum (NASDAQ: SPRD) with an Overweight rating.

MOST NOTEWORTHY: iRobot, Felcor Lodging and Office Max were today's noteworthy initiations:

• Stanford initiated iRobot (NASDAQ: IRBT) with a Buy rating and $18 target and believes better-than-expected military robot sales will allow the company to beat 2008 consensus estimates.
  
• Felcor Lodging (NYSE: FCH) was initiated at Keefe Bruyette with a Market Perform rating and $12.50 target. The firm believes material upside is unlikely given the company's above average suburban and airport exposure.
  
• Soleil assumed Office Max (NYSE: OMX) with a Hold rating and $17 target, as they believe macroeconomic challenges and heightened competition will limit near-term upside in the stock.

OTHER INITIATIONS:

• Broadcom (NASDAQ: BRCM), Marvell Tech (NASDAQ: MRVL) and Nvidia (NASDAQ: NVDA) were initiated with Outperform ratings at Cowen.
  
• Knot Inc. (NASDAQ: KNOT) was started with an Outperform rating at William Blair.
  
• Deutsche Bank initiated Cardtronics (NASDAQ: CATM) with a Buy rating and $13 target.

Kaufmann has started The Knot (NASDAQ: KNOT) as a "buy," according to the AP.

Soleil upgraded Yahoo! (NASDAQ: YHOO) to "hold" from "sell," according to Briefing.com. The news service also reports that Stanford initiated Time Warner (NYSE: TWX) with a "buy" rating.

Campbell Soup (NYSE: CPB) raised to Overweight from Equalweight at Lehman, according to 24/7 Wall St.

MOST NOTEWORTHY: Knot Inc (KNOT), Cablevision (CVC), Chesapeake Energy Corp (CHK), Green Mountain Coffee (GMCR) and Intermec (IN) were today's noteworthy downgrades:

• Merriman downgraded shares of Knot Inc (NASDAQ: KNOT) to Neutral from Buy following the company's mixed outlook to reflect poor visibility.

• Cablevision (NYSE: CVC) was downgraded to Market Perform from Outperform at Wachovia following its disappointing Q2 report and guidance. The firm does not expect a higher Dolan bid.

• Wachovia also downgraded shares of Chesapeake Energy Corp (NYSE: CHK) to Market Perform from Outperform. The firm said management expects an equity offering in the next 6-9 months, which is in contrast to recent comments regarding capital discipline and funding plans.

• Green Mountain Coffee (NASDAQ: GMRC) was downgraded to Market Perform from Outperform at Piper Jaffray on valuation and tough year/year comparisons.

• Bear Stearns downgraded Intermec (NYSE: IN) to Underperform from Peer Perform on valuation.

OTHER DOWNGRADES:

• Lehman downgraded Novo Nordisk (NYSE: NVO) to Equal Weight from Overweight.

• Davenport downgraded Wm. Wrigley Jr. Co (NYSE: WWY) to Neutral from Buy on valuation.

• Delta Petroleum (NASDAQ: DPTR) was downgraded at Merrill Lynch to Sell from Neutral.

• JMP Securities lowered Kenexa (NASDAQ: KNXA) to Market Perform from Outperform.

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

Priceline (NASDAQ: PCLN) August straddle Expensive at $7.20 into EPS. PCLN is recently up $3.08 to $64.81. PCLN will report EPS after the close tonight. PCLN August straddle is priced at $7.20. PCLN September option implied volatility of 54 is above its 26-week average of 36 according to Track Data, suggesting larger price fluctuations.

Sprint Nextel (NYSE: S) option prices Elevated as expected into 8/8 EPS. S is expected to report EPS of 22 cents before the open on 8/8 according to Thomson First Call. Stanford Group says "a key data point will be whether S has been able to turn around its postpaid subscriber business." S August 20 straddle is at $1.70. S September option implied volatility of 39 is above its 26-week average of 29 according to Track Data, suggesting larger risks.

Knot Inc. (NASDAQ: KNOT) August straddle Expensive at $3.50 EPS & Outlook. KNOT, the nations leading wedding resource that reaches over 1 million engaged couples each year, will report EPS on 8/8. CIBC says "the 23% drop in the stock since the reporting of 1Q is largely attributed to investors' growing skepticism of management's ability to effectively monetize its assets. Without a material catalyst, the shares are not yet 'cheap' enough." KNOT August 17.5 straddle is at $3.50 according to Track Data, suggesting larger fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

MAJOR PAPERS:

• Barron's Online's "Weekday Trader" section said that Bankrate Inc (NASDAQ: RATE), Answers Corporation (NASDAQ: ANSW), WebMD Health Corp (NASDAQ: WBMD) and The Knot Inc (NASDAQ: KNOT) may be the next preferred takeover targets for Google Inc (NASDAQ: GOOG) and Microsoft Corporation (NASDAQ: MSFT).
• The Wall Street Journal reported that Brad Tierney is interested in Dow Jones and Company (NYSE: DJ), which in talks with News Corporation's (NYSE: NWS) Rupert Murdoch for a possible $5B sale.
• According to the Wall Street Journal, citing a person close to the deal, Deutsche Telekom (NYSE: DT) will acquire the Orange Netherlands unit of France Telecom for about EUR1.3B, and simultaneously sell Ya.com for EUR320M to them.
• The Financial Times reported that three separate research teams showed the embryonic stem cells can be created by reprogramming some of the genes in adult mice skin cells, without creating an embryo. The news will be well-received by opponents of embryonic stem cell research, but scientists said it is too early to tell if the technique can be used with human cells.

OTHER PAPERS:

• The Herald Sun reported that a new $237B Chinese state-owned investment fund may be interested in acquiring natural resources company BHP Billiton Limited (NYSE: BHP), according to Bell Potter research chief Peter Quinton.

A.G.Edwards initiated coverage in the Internet sector: aQuantive (NASDAQ: AQNT), Google Inc. (NASDAQ: GOOG), Monster Worldwide (NASDAQ: MNST), Bankrate (NASDAQ: RATE), ValueClick (NASDAQ: VCLK), and Yahoo! (NASDAQ: YHOO) all started as Buy. IAC/Interactive (NASDAQ: IACI) and Knot, Inc. (NASDAQ: KNOT) were started as Hold.

Citigroup (NYSE: C) was started as Buy at Bank of America.

Lehman Brothers started the brokerage firm sector in new coverage under Bear Stearns (NYSE: BSC) started as Overweight, The Goldman Sachs Group (NYSE: GS) started as equal weight, and Morgan Stanley (NYSE: MS) started as equal weight.

Melco PBL Entertainment (NASDAQ: MPEL), the independent Macau casino, was removed from the Citigroup Sell list and raised to a Hold rating.

At Goldman Sachs, Accenture, Ltd. (NYSE: ACN) started as Buy in new coverage. (For a full summary of Goldman Sachs research, click here.)

Altria Group, Inc. (NYSE: MO) added to America's Conviction Buy List with a $76 target (ex-Kraft); raised 2008 targets by 2-3%.

You can review a full research summary at 24/7 Wall St.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Volatility Index S&P 500 Options-VIX up .71 to 11.81.

Blue Nile Inc. --(NASDAQ:NILE) February straddle bid up; reflecting $3.50 risk into tonight's EPS. NILE, a leading online retailer of diamonds and jewelry, will report EPS after the close tonight. NILE is recently down $1.44 to $39.82. PIPR says: "We maintain our underperform rating. We would be more constructive if NILE is able to demonstrate flat gross margins with maintaining near 20% revenue growth." NILE February 40 straddle is at $3.65, above its theoretical value of $1.83 according to Track Data, suggesting larger fluctuations.

The Knot, Inc -- (NASDAQ:KNOT) February straddle pricing in a $2.50 move into 2/13 EPS & Outlook. KNOT, the nation's leading wedding resource that reaches more than one million engaged couples each year, will report EPS on 2/13. KNOT is down .95 to $29.75. KNOT February 30 straddle is at $2.75, above its theoretical value of $1.46 according to Track Data, suggesting larger fluctuations.

FTD Group, Inc. (NYSE:FTD) implied volatility is low; FTD hired GSCO on 11/16 to explore sale. FTD, a leading provider of floral-related products, is recently down .42 to $19.44. FTD hired GSCO to explore a possible sale on 11/16/06. FTD has a market cap of $551 million dollars with long term debt of $318 million. FTD reported 2006 revenues of $465 million. FTD over all option implied volatility of 31 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

1-800-Flowers.com, Inc. (NASDAQ:FLWS) option implied volatility flat; FLWS near record into Valentine's Day. FLWS is recently up 0.16 cents to $7.72. FLWS over all option implied volatility of 52 is near its 26-week average according to Track Data, suggesting non-directional price risk.

Option volume leaders today were: Google (NASDAQ:GOOG), NYSE Group (NYSE:NYX), Intel (NASDAQ:INTC) and Apple Inc. (NASDAQ:AAPL).

MOST NOTEWORTHY: Wrigley, Wm Jr. and Denny's were the most notable initiations today.

• Wrigley, Wm Jr. (NYSE: WWY) was started at Bear Stearns with an Underperform rating, citing valuation.

• Denny's Corp (NASDAQ: DENN) was initiated with a Buy rating at Wedbush; the firm sees significant earnings growth potential from the company's store re-franchising.

OTHER INITIATIONS:

• ThinkEquity initiated Lightbridge Inc (NASDAQ: LTBG) with a Buy rating and $18 target. The firm says Lightbridge's business and investor focus will be enhanced when the company exits the TDS segment by mid-2007. The broker expects shares to then be driven by Authorize.net, a pure-play payment processor.

• CIBC initiated Knot Inc (NASDAQ: KNOT) with a Sector Performer rating and $32 target. The firm expects pricing growth over the next few years to drive 20% ad revenue growth and for margins to be driven by business mix, synergies from the Wedding Channel acquisition, and cost structure.

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

MOST NOTEWORTHY: MasterCard (MA), American Express (AXP), Boyd Gaming (BYD) and Overstock.com (OSTK) were the most notable companies on the initiation list today:

• Keefe Bruyette initiated MasterCard Inc. (NYSE:MA) with an Underperform and an $88 target, citing valuation, and American Express Co. (NYSE:AXP) with an Outperform rating and $72 target;
• Coverage of Boyd Gaming Inc. (NYSE:BYD) was resumed with a Buy rating and $67 target, as the firm believes the company's assets are undervalued and investors will look at Boyd as a potential candidate to go private;
• Overstock.com Inc. (NASDAQ:OSTK) was initiated with a Sell rating and $14 target at First Albany.

OTHER INITIATIONS:

• BMO Capital initiated Harley-Davidson Inc. (NYSE:HOG) with a Market Perform and $70 target on valuation.
• Susquehanna initiated The Knot Inc. (NASDAQ:KNOT) with a Positive rating, citing the recent buyback and cash infusion; the firm says Knot has an opportunity to capitalize on the growing value of quality online content and favorable sector trends.
• Scientific Games Corp. (NASDAQ:SGMS) was initiated at Bear Sterns with a Peer Perform rating, citing valuation.

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