MOST NOTEWORTHY: Comcast Corp (CMCSA), Monster Worldwide (MNST), Microsoft (MSFT), XM Satellite Radio Holdings Inc (XMSR) and Sirius Satellite Radio (SIRI) were today's most noteworthy upgrades:

• Comcast Corp (NASDAQ: CMCSA) was upgraded at AG Edwards to Buy from Hold with a $33 objective, citing valuation.

• Gabelli raised Monster Worldwide's (NASDAQ: MNST) rating to Buy from Hold and sees an attractive long-term opportunity as near-term margin pressure issues are providing an opportunity.

• CIBC upgraded shares of Microsoft (NASDAQ: MSFT) to Sector Performer from Underperformer to reflect solid Q3 results and an improved 2008 outlook. Citigroup raised Microsoft's rating to Buy from Hold after the quarterly report.

• UBS upgraded both XM Satellite Radio (NASDAQ: XMSR) to Buy from Neutral citing improving fundamentals and Sirius Satellite Radio (NASDAQ: SIRI) to Buy from Neutral on better operational execution...

OTHER UPGRADES:

• Goldman upgraded NetGear, Inc (NASDAQ: NTGR) to Neutral from Sell.

• KLA-Tencor Corp (NASDAQ: KLAC) was raised to Neutral from Underperform at First Albany following positive Q3 results.

• Alaska Communications Systems Group, Inc (NASDAQ: ALSK) was upgraded to Hold from Sell at Stifel following its first quarter report.

• RBC Capital raised Baidu.com, Inc (NASDAQ: BIDU) to Outperform from Sector Perform citing guidance that indicated a reacceleration of underlying fundamentals.

• JP Morgan added Taser International, Inc (NASDAQ: TASR) to its SMID Money List and will maintain its Outperform rating.

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

KLA-Tencor Corp. (NASDAQ:KLAC) is the leading producer of tools that measure defects in the semiconductor manufacturing process. The company has a large market cap of over $10 billion and trades nearly five million shares a day.

The puzzling aspect of the company's share price is that it has defied gravity as the semiconductor industry has taken a beating on oversupply and margins. The stock trades at $51 on a 52-week high/low of $54.66/$38.38. The company does have a strong balance sheet in its favor, no debt and over $2 billion in cash.

In the last quarter of 2006, revenue rose 33% to $649 million, but growth in net was less impressive, up only 8% to $90 million.

But, a supplier cannot avoid the problems of its industry indefinitely. Firms like Advanced Micro Devices Inc. (NYSE:AMD) and Texas Instruments Inc. (NYSE:TXN) continue to struggle as competition moves chip prices lower and pressures top-line growth. It is not an environment where companies that provide tools can keep price leverage.

That is not good for KLAC's stock.

Douglas A. McIntyre is a partner at 24/7 Wall St.

MOST NOTEWORTHY: Digital River Inc (DRIV) was today's only notable initiation.

• American Technology initiated Digital River Inc (NASDAQ: DRIV) with a Buy rating and $65 target. The firm believes Q1 guidance could be weak, but feels weakness would be short-lived as investors gain a better understanding of Digital River's Microsoft Corp- (NASDAQ: MSFT) driven revenue and margin upside in the second-half of 2007...

OTHER INITIATIONS:

• Merriman initiated Idera Pharmaceuticals Inc (AMEX: IDP) with a Buy rating and put fair value at $10-$12 a share.

• Merrill Lynch reinstated Nvidia Corp (NASDAQL NVDA) and KLA-Tencor Corp (NASDAQ: KLAC) with Buy ratings.

• Jefferies initiated CommScope Inc (NYSE: CTV) with a Buy rating and $37.50 target; they believe CommScope is a solid play with trends such as increasing competition among cable operators and wireline service providers as well as increasing bandwidth consumption by enterprises.

• Raymond James started Keystone Automotive Inds Inc (NASDAQ: KEYS) with a Market Perform rating.

• Roth Capital initiated G. Willis Food Int'l Ltd (NASDAQ: WILC) with a Buy rating and 48 target; Roth expects the largest marketer and distributor in Israel of kosher food products to grow at a 15%-20% rate over the next several years.

• JP Morgan initiated Covanta Holding Corp (NYSE: CVA) with a Neutral rating on valuation.

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