Analyst upgrades:

• RBC Capital upgraded Fidelity National (FIS) to outperform from sector perform. The firm upgraded the stock due to valuation, and its belief that the company will clear up issues related to its merger on its Analyst Day, scheduled for Dec. 7. The firm set a $28 target on the stock.
• Citigroup upgraded Smith International (SII) to buy from hold, citing the sell-off in shares following its 28M share equity offering. Note that Smith International priced 28M shares Tuesday at $26.50.
• Wells Fargo upgraded DynCorp (DCP) to outperform from market perform. The firm upgraded the stock on valuation, and because it believes that the impact on DynCorp of a possible indictment of PWC will be minimal, if any.
• Rockwell (ROK) was upgraded to overweight from neutral at HSBC.
• Omega Healthcare (OHI) was upgraded to outperform from market perform at JMP Securities.
• Analog Devices (ADI) was upgraded to conviction buy from buy at Goldman.

Analyst upgrades:

• Microsoft (NASDAQ: MSFT) was upgraded to Buy from Hold by Canaccord, which cited the company's strong Q1 results.
• Pali Capital raised T. Rowe Price (NASDAQ: TROW) to Neutral from Sell following the company's better-than-expected Q3 results.
• Under Armour (NYSE: UA) was upgraded to Neutral from Negative at Susquehanna following positive checks ahead of the company's Tuesday's Q3 report.
• Stifel Nicolaus raised American Express (NYSE: AXP) to Buy from Hold, as the firm thinks the company is close to reaching "normalized" earnings.
• Goldman Sachs upgraded Garmin (NASDAQ: GRMN) to Sell from Conviction Sell.
• RBC Capital upgraded Noble Energy (NYSE: NBL) to Outperform from Sector Perform.
• American Superconductor (NASDAQ: AMSC) was upgraded to Outperform from Sector Perform by Pacific Crest.

"Housing starts have swooned, foreclosures have jumped and home prices saw their steepest drop in 26 years," notes income expert Carla Pasternak, who nevertheless is suggesting a real estate investment.

In her High Yield Investing she explains, "Our money-making opportunity isn't based on the housing market; rather, it's with a REIT -- Omega Healthcare Investors, Inc. (NYSE: OHI).

"REITs and housing are both real estate, but that's where the likenesses begin and end. Property-holding equity REITs invest in commercial real estate. And commercial properties continue to generate steady cash flow from rental income, thanks to long-term leases.

"Above-average dividends are what allow REITs to pack a punch. These companies must distribute at least 90% of their profits to shareholders, making them especially attractive to income investors.

"Founded in 1992, Omega manages a $1.3 billion portfolio of over 200 hospitals and nursing homes in diverse locations across 28 states. The company leases the properties to established healthcare operators.

MOST NOTEWORTHY: Coca-Cola, PepsiCo, Business Objects, Cognos and Cooper Companies were today's noteworthy downgrades:

• Deutsche Bank downgraded Coca-Cola Company (NYSE: KO) and PepsiCo (NYSE: PEP) to Hold from Buy on valuation, as they believe shares reflect prospects for growth.
  
• Business Objects (NASDAQ: BOBJ) was downgraded to Neutral from Buy at UBS following the acquisition by SAP AG (NYSE: SAP) and to Hold from Buy at Jefferies, as the firm finds the acquisition price fair and does not expect a counter-bid. Soleil believes the SAP offer is reflected in the stock price, and downgraded Business Objects to Hold from Buy.
  
• Roth Capital downgraded shares of Cognos (NASDAQ: COGN) to Hold from Buy based on recent share appreciation as shares capture a vast majority of a potential takeover bid; Goldman downgraded shares to Neutral from Buy and Jefferies downgraded shares to Hold from Buy on valuation.
  
• JP Morgan lowered shares of Cooper Companies (NYSE: COO) to Underweight from Neutral. The firm believes Street estimates are too high given a negative mix shift in the company's contact lens business, which could lead to a FY08 EPS shortfall.

OTHER DOWNGRADES:

• Goldman downgraded JetBlue Airways (NASDAQ: JBLU) to Neutral from Buy.
  
• Elizabeth Arden (NASDAQ: RDEN) was downgraded to Neutral from Buy at SunTrust.
  
• UBS downgraded Healthcare REITs to Market Weight from Overweight. UBS downgraded Health Care REIT (NYSE: HCN) and Ventas (NYSE: VTR) to Neutral from Buy and Omega Healthcare (NYSE: OHI) to Sell from Neutral.

MOST NOTEWORTHY: ORBComm Inc (NASDAQ: ORBC), Weingarten Realty Investors (NYSE: WRI) and Regency Centers Corporation (NYSE: REG) were today's noteworthy initiations:

• ORBComm was initiated with a Market Perform rating and $16 target at Piper Jaffray, as the firm believes the company may need to launch at least 25 satellites over the next few years to continue servicing its existing subscribers, which could lead to further losses. The company was initiated with an Outperform rating at Raymond James.
• Baird initiated Weingarten Realty with an Outperform rating and $56 target due to its strategy to accelerate growth and initiated Regency Realty with a Neutral rating and $88 target citing valuation and lack of catalysts.

OTHER INITIATIONS:

• OceanFreight Inc (NASDAQ: OCNF) was initiated with a Buy rating and $24 target at Cantor.
• UBS initiated shares of Ocean Power Technologies Inc (NASDAQ: OPTT) with a Buy rating and $20 target and shares of Omega Healthcare Investors Inc (NYSE: OHI) with a Neutral rating and $18 target.
• Shutterfly Inc (NASDAQ: SFLY) was initiated at JMP Securities with a Strong Buy rating and $25 target.
• Corn Products International Inc (NYSE: CPO) was initiated with a Buy rating and $48 target at BB&T Capital Mkts, as the firm believes CPO will be able to generate strong earnings growth, as well as use its strong cash flow to grow its specialty ingredients business, raise its dividend, use for a share repurchase or a combination of the above.

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