When it comes to medical testing, convenience of sample collection is an important factor. A leading provider of test kits designed to work with easily obtainable oral fluid specimens is headquartered in Bethlehem, Pennsylvania.

OraSure Technologies (NASDAQ: OSUR) offers specimen kits and other diagnostic tests designed to detect HIV and drugs. The firm's products use oral specimens, rather than traditional blood- or urine-based methods, a factor making them attractive to OraSure's widespread client base of clinical laboratories, hospitals, clinics, public health organizations, government agencies, physicians' offices, and commercial/industrial entities. The company also provides immunoassays, in vitro diagnostic tests, and wart removal systems.

OraSure pleased investors earlier in the month, when it announced Q2 EPS of two cents and revenues of $21.4 million. Analysts had been looking for a penny and $20.5 million. The CEO attributed the solid numbers to continued growth in infectious disease testing, substance abuse testing and OTC cryosurgical sales. Management also guided Q3 EPS to 0-1 cent (penny consensus), Q3 revenues to $21.0-$21.5 million ($20.51M consensus) and FY07 EPS to five cents (nickel consensus).

MOST NOTEWORTHY: Lockheed Martin (LMT), CastlePoint Holdings, Ltd (CPHL) and OraSure Technologies, Inc (OSUR) were today's notable upgrades:

• Matrix USA started Lockheed Martin (NYSE: LMT) with a Strong Buy rating, believing steady demand from defense spending and communications systems is allowing the company to continue to build impressive fundamental trends.

• Piper believes CastlePoint'sHoldings Ltd (NASDAQ: CPHL) relationship with Tower Group allows it immediate access to a high quality book of business, strong relationships in the industry and the ability to efficiently place capital overnight. Piper Jaffray stated shares of CastlePoint with an Outperform rating and a $20 target.

• Lazard started Orasure Technologies Inc (NASDAQ: OSUR) with a Buy rating and $12 target based on new production launches and new CDC HIV testing guidelines...

OTHER INITIATIONS:

• UBS started Grant Prideco, Inc (NYSE: GRP) with a Neutral rating.

• Banc of America started Bon-Ton Stores, Inc (NASDAQ: BONT) with a Buy rating and $64 target.

• Roth Capital transferred coverage of Web.com, Inc (NASDAQ: WWWW) with a Buy rating and $8 target.

• City National Corp (NYSE: CYN) was started with a Hold rating at AG Edwards.

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