Analyst upgrades:

• Bernstein upgraded Amgen (NASDAQ: AMGN) to Outperform from Market Perform on valuation as it believes threats to the core business are priced in at current levels and upside catalysts may come from pipeline news. The firm raised its target on shares to $65 from $57.
• Stephens upgraded CyberSource (NASDAQ: CYBS) to Overweight from Equal Weight on valuation as it believes the recent pullback creates a buying opportunity. The firm raised its target on shares to $16 from $14.
• JPMorgan upgraded Magna (NYSE: MGA) and Tenneco (NYSE: TEN) to Overweight from Neutral on expectations global auto production has sequentially bottomed with European light vehicle production rebounding in Q2. The firm also sees a short-term trading opportunity in TRW Automotive (NYSE: TRW), but keeps a Neutral rating on the stock.
• SINA Corp. (NASDAQ: SINA) was upgraded to Conviction Buy from Buy at Goldman.
• Cogent Communications (NASDAQ: CCOI) was raised to Buy from Hold at Citigroup.

Mattel (NYSE: MAT) and Bratz maker MGA Entertainment have been locked in bizarre litigation involving Bratz dolls -- those scantily-clad coked up Barbie wannabes that have been marketed aggressively to pre-teen girls. MGA lost an intellectual property lawsuit and is to give up control of the brand to Mattel sometime early this year. Mattel had sued, claiming that the creator of the dolls was working for Mattel when he designed the Bratz line.

But The Wall Street Journal reports (subscription required) that there is still considerable legal wrangling before the two parties as they work out a time line for the change of control. MGA Chief Executive Isaac Larian is hoping that his company will be allowed to continue manufacturing and shipping the dolls through 2009 so he can avoid laying off half of his company's employees. The matter is currently on appeal.

Financially, this doll fiasco could solve itself: The Bratz fad appears to be on its last legs. In September, I wrote that Target (NYSE: TGT) had slashed its Bratz shelf-space by 50% as sales of the dolls were expected to fall by 25% year over year.

Parents who don't want their kids to grow up to be like Paris and Lindsay should be pleased.

Analyst upgrades:

• Keefe Bruyette upgraded IberiaBank (NASDAQ: IBKC) to Market Perform from Underperform following the company's capital raise, which the firm believes strengthens IberiaBank's balance sheet. Baird upgraded IberiaBank to Outperform from Neutral based on valuation following weakness related to the $100M capital raise.
  
• Pali upgraded shares of Urban Outfitters (NASDAQ: URBN) to Neutral from Sell on valuation as they believe the company's comp slowdown is largely priced in at current levels.
  
• Morgan Keegan upgraded Casey's General Store (NASDAQ: CASY) to Outperform from Market Perform based on valuation, healthy SSS, and easing comps.
• Cabot OIl & Gas (NYSE: COG) and Royal Dutch Shell (NYSE: RDS.A) were added to Goldman's Conviction Buy List.
  
• American Capital (NASDAQ: ACAS) was raised to Market Perform from Underperform at Friedman Billings.
  
• CIBC lifted Manulife (NYSE: MFC) to Sector Outperformer from Sector Performer.

Analyst downgrades:

• Goldman downgraded Caterpillar (NYSE: CAT) to Sell from Neutral based on expectations for reduced capex spending by mining and oil & gas companies and the impact from the credit crunch.
  
• Deutsche Bank downgraded auto companies and suppliers as they believe the failed government bailout increases risks. Ford (NYSE: F), American Axle (NYSE: AXL), Magna International (NYSE: MGA) and Lear (NYSE: LEA) were downgraded to Sell from Hold.
  
• SAP (NYSE: SAP) was cut to Hold from Buy at Jefferies to reflect the "deteriorating" corporate IT spend environment.
• Waters (NYSE: WAT) was downgraded to Neutral from Overweight at JP Morgan.
  
• Agilent (NYSE: A) was lowered to Equal Weight from Overweight at Barclays; the firm also downgraded Varian (NASDAQ: VARI) to Underweight from Equal Weight.

Analyst initiations:

• Jefferies believes Core Laboratories (NYSE: CLB) is well positioned to benefit from the increasing need for reservoir optimization services. Shares were initiated with a Buy rating and $70 target.
  
• Deutsche Bank initiated Capital One (NYSE: COF) with a Sell rating and $24 target, citing the difficult economic environment and the potential for higher credit losses.
  
• Soleil started Hexcel (NYSE: HXL) with a Buy rating and $10 target and expects the company's military business to remain strong through 2010.
• On Semiconductor (NASDAQ: ONNN) was assumed with a Neutral rating and $3.80 target at UBS.
  
• Cbeyond (NASDAQ: CBEY) was initiated at Oppenheimer with a Perform rating.
• Brocade (NASDAQ: BRCD) was started with a Neutral rating at Piper Jaffray.

MOST NOTEWORTHY: Auto & Truck Suppliers, Oplink Comm and The Wet Seal were today's noteworthy upgrades:

• Baird upgraded the Auto & Truck Suppliers sector to Market Overweight from Market Weight citing valuations, lowered expectations, industry dynamics and a potential bottom in economic indicators. The firm upgraded Accuride Corp (NYSE: ACW) and Magna International (MGA) to Outperform from Neutral.
  
• Merriman upgraded shares of Oplink Comm (NASDAQ: OPLK) to Neutral from Sell on valuation, as they believe Friday's sell-off fully reflects near-term operating concerns and that share price downside from here is limited.
  
• Cowen raised The Wet Seal (NASDAQ: WTSLA) to Outperform from Neutral and has increased confidence that the new management's operational changes and cost cutting initiatives will lead to EPS upside.

OTHER UPGRADES:

• BT Group (NYSE: BT) was raised to Equal Weight from Underweight at Morgan Stanley.
  
• Societe Generale raised Royal Dutch Shell (NYSE: RDS.A) to Buy from Hold and ENI SpA (NYSE: E) to Hold from Sell.
  
• Goldman raised Embarq (NYSE: EQ) to Neutral from Sell.

Though Gulzhan Moldazhanova is the top female executive in Russia, she is little known outside the former Soviet Union. I hadn't heard of her, and a quick trip to my frequent first stop on the research trail, Wikipedia, surprisingly had nothing on her when I looked.

Digging a little deeper (thanks to the Globe and Mail) reveals a rags to riches story. This soft-spoken, Khazakstan-born divorced mother of a three-year-old, started her career as the secretary for an ambitious young Russian businessman named Oleg Deripaska (who does have a Wikipedia page). In only ten years she worked her way up the ladder to become CEO of Russia's biggest and fastest-growing industrial conglomerate, Basic Element. This US$23 billion company is a big player in seven domestic industries -- energy, resources, manufacturing, financial services, construction, materials, and aviation -- and recently took a US$1.54 billion stake in Canadian auto parts giant Magna International (NYSE: MGA).

Moldazhanova lives in Moscow, speaks English, and according to Fortune magazine is the 20th most powerful woman in the world. She first went to work for Deripaska when he was running an aluminum trading company. After she trained as an accountant at the Russian government's Finance Academy, her career took off. By 2003, Deripaska, and his company Rusal, had became the undisputed king of Russian aluminum. In 2006, Rusal surpassed Alcoa Inc. (NYSE: AA) and to become the world's top aluminum maker.

MOST NOTEWORTHY: Wal-Mart Stores, Magna International, EchoStar Communications, Westell Technologies and SiRF Technology were today's noteworthy upgrades:

• Rochdale upgraded shares of Wal-Mart Stores (NYSE: WMT) to Buy from Hold citing improved outlook for margins and ROIC.
• CIBC World Markets resumed coverage and upgraded shares of Magna International (NYSE: MGA) to Sector Outperformer from Sector Performer as they believe higher multiples are warranted due to the company's improving earnings power and cash flow generation.
  
• Oppenheimer upgraded shares of EchoStar Communications (NASDAQ: DISH) to Buy from Neutral as they believe recent events add $4-$6 per share to their valuation analysis.
  
• Westell Technologies (NASDAQ: WSTL) was upgraded to Outperform from Neutral at Baird. The firm believes Westell is taking the right steps to improve its market position and financial performance.
  
• Credit Suisse upgraded SiRF Technology Holdings (NASDAQ: SIRF) to Outperform from Neutral, expecting the stock to benefit from a strong holiday season at electronic retailers.

OTHER UPGRADES:

• Goldman upgraded Campbell Soup Company (NYSE: CPB) to Neutral from Sell and Emerson Electric (NYSE: EMR) to Buy from Neutral.
  
• Keefe Bruyette upgraded Oriental Financial Group (NYSE: OFG) to Outperform from Market Perform.
  
• Prudential plc (NYSE: PUK) was raised to Outperform from Peer Perform.
  
• Wachovia upgraded Kindred Healthcare Inc (NYSE: KND) to Market Perform from Underperform.

MOST NOTEWORTHY: Turkcell (TKC), Lloyds TSB Group (LYG), DSW Inc (DSW) and the European telecom sector were today's most noteworthy upgrades:

• JP Morgan upgraded shares of Turkcell (NYSE: TKC) to Overweight from Neutral following a meeting with management, as they are more comfortable with the company's growth prospects.

• Citigroup upgraded Lloyds TSB Group (NYSE: LYG) Group to Buy from Hold as they believe the company's free cash flow generation will drive faster dividend growth.

• Matrix finds DSW Inc (NYSE: DSW) shares fairly valued at current levels and believes improving pricing is leading to higher profit margins and upgraded shares to Hold from Sell.

• Credit Suisse upgraded the European Telecom sector to Overweight from Market Weight to reflect higher forecasts for mobile growth...

OTHER UPGRADES:

• HSBC upgraded Ericsson (NASDAQ: ERIC) to Overweight from Neutral.

• Lehman upgraded Internet Initiative Japan Inc (NASDAQ: IIJI) to Overweight from Equal Weight.

• Magna International (NYSE: MGA) was upgraded to Outperform from Market Perform.

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

The Wall Street Journal is reporting that the private equity firm Cerberus has won the bidding for Chrysler. DaimlerChrysler (NYSE: DCX), which will probably change its name, will hold a small stake in the new holding company. Cerberus bought the majority of GMAC from General Motors (NYSE: GM) last year.

Aside from what Cerberus pays for the U.S. car company, which may be very little, the key to the transaction will be that Daimler will move the $18 billion of Chrysler pension and benefits obligations off of its books.

The UAW is bound to try to derail the deal. They favor having Daimler keep Chrysler or sell it to Canadian car parts company Magna International (NYSE: MGA). In either case, the union believed it could hold on to more jobs. The UAW may now be faced with trying to block the deal at the Daimler supervisory board level, or threaten to strike in the face of the deal. A work stoppage could badly damage Chrysler's already troubled efforts to turn around it sinking U.S. sales.

Cerberus may have the money, but the union holds most of the cards.

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

Stock futures are indicating a low start for stocks ahead of April retail sales data and PPI report tomorrow.

Yesterday, the Federal Reserve left rates unchanged, as expected, and chairman Bernanke reiterated that inflation remains the primary concern even as economic growth is slowing down. Others, however, interpreted Bernanke's statement as being less hawkish as it indicated concern over the slowing growth as well as inflation. It could be that the Fed sees moderate growth in the next few quarters, but is still unsure if inflation was curbed, hence the focus on inflation. Regardless, most investors found comfort in the Fed's statement and U.S. stocks closed higher.

Today, several indicators will be released. Retailers are due to report their April sales through out the day, giving the market an indication of consumer spending during the month. April sales are generally expected to be weak.
At 8:30 a.m., import and export prices for April, along with the trade balance for March are due. The deficit is expected to have widened. Also at that time, weekly jobless claims will be released.
The Treasury Budget is scheduled for 2:00 p.m.

Overseas: As expected, the Bank of England raised its benchmark interest rate by a quarter-point to 5.5% -- a six-year high -- as consumer spending, house-price growth and record employment drove inflation to the highest in a decade. Many economists believe another rate hike is coming.
European stocks fell, led by mining shares as takeover speculations of Rio Tinto (NYSE: RTP) by BHP Billiton Ltd. (NYSE: BHP) have been damped and copper prices declined further. Asian stocks closed mixed with Japan and Hong Kong closing lower.

American International Group Inc. (NYSE: AIG) and Viacom Inc. (NYSE: VIA) are due to report earnings today.

Magna International Inc. (NYSE: MGA), the Canadian firm bidding to buy a piece of DaimlerChrysler (NYSE: DCX) Chrysler group in partnership with Canadian-based buyout and investment firm Onex Corp., has sold a stake to Russian billionaire and automotive entrepreneur Oleg Deripaska. The Russian businessman will pay $1.54-billion to buy 20 million shares. The move will increase Magna's financial liquidity, helping it bid for Chrysler.

Yesterday, car parts company Magna International (NYSE: MGA) said it should be the winning bidder for DaimlerChrysler AG's (NYSE: DCX) Chrysler unit.

Magna's CEO, Frank Stronach, told the Globe and Mail: "It's a big sum we would allocate. [...] We would make a big commitment."

Magna is really not a very big company. It has a market cap of just over $8 billion. Its income last year was just over $22 billion. Daimler's market cap is $85 billion and Chrysler's revenue is almost 35% of its $200 billion in revenue.

The union members on Daimler's board do not want Chrysler sold to private equity interests as they believe this would lead to a break-up of the company and tens of thousands of lay-offs. Regardless, it is hard to imagine that Magna can manage a company so much larger than itself, and manage its own business at the same time. If a merger with Chrysler fails, the job loss could be just as terrible.

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

MOST NOTEWORTHY: The automotive sector was today's most noteworthy initiation:

• Prudential initiated the automotive manufacturers industry and automotive retail industry with Favorable ratings and the automotive parts and equipment industry with an Unfavorable rating. The firm initiated coverage on following stocks:
  
• Overweight-rated names included Autoliv Inc (NYSE: ALV), Group 1 Automotive, Inc (NYSE: GPI), Honda Motor Co, Ltd (NYSE: HMC), Johnson Controls, Inc (NYSE: JCI), Sonic Automotive, Inc (NYSE: SAH), & Toyota Motor Corp (NYSE: TM).
  
• Neutral Weight-rated names included AutoNation, Inc (NYSE: AN), DaimlerChrysler (NYSE: DCX), Magna International Inc (NYSE: MGA) and United Auto Group, Inc (NYSE: UAG).
  
• Underweight-rated names included Ford Motor Co (NYSE: F), General Motors Corp (NYSE: GM) and Gentex Corp (NASDAQ: GNTX).

OTHER INITIATIONS:

• Bernstein initiated JPMorgan Chase & Co (NYSE: JPM) with a Market Perform rating and $54 target.

• Lehman started Time Warner Cable Inc (NYSE: TWC) with a Neutral rating.

• Merriman initiated shares of Progressive Gaming International Corp (NASDAQ: PGIC) with a Buy rating, as the firm believes it is on the cusp of gaining meaningful market share of casino floors through its technologies and now is the time to get involved in shares.

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