Analyst upgrades:

• Janney Montgomery upgraded Kenexa (NASDAQ: KNXA) and SuccessFactors (NASDAQ: SFSF) to Buy from Neutral on expectations corporate IT spending will accelerate in the second half of 2009. The firm raised its target on Kenexa to $14 from $8 and on SuccessFactors to $12 from $9.
• Jefferies upgraded PSS World Medical (NASDAQ: PSSI) to Buy from Hold to reflect the company's cost-cutting measures and efforts to gain market share. The firm raised its target on shares to $25 from $17.50.
• FBR Capital upgraded Sunpower (NASDAQ: SPWRA) to Outperform from Market Perform following the company's Q2 results to reflect increased business prospects in the "rooftop" segment of the market. FBR raised its target on shares to $40 from $22.
• Cooper Industries (NYSE: CBE) was upgraded to Outperform from Perform at Oppenheimer.
• Temple-Inland (NYSE: TIN) was upgraded to Buy from Neutral at UBS.
• Juniper Networks (NASDAQ: JNPR) was upgraded to Buy from Neutral at Goldman.

MOST NOTEWORTHY: Psychiatric Solutions, hhgregg and Ulta Salon were today's noteworthy initiations:

• Stanford started Psychiatric Solutions (NASDAQ: PSYS) with a Buy rating and $46 target and believes the recent pullback provides an attractive entry point given the company's stable growth and fundamentally strong business.
  
• Oppenheimer initiated hhgregg (NYSE: HGG) with a Perform rating. The firm believes the company's TV business could become much more challenging while housing market weakness could continue to hinder appliance sales.
• Oppenheimer also assumed Ulta Salon (NASDAQ: ULTA) with an Outperform rating and $13 target. The firm believes the company's fundamentals are solid and sees potential upside to valuation.

OTHER INITIATIONS:

• Piper initiated Ormat Tech (NYSE: ORA) with a Neutral rating and $49 target and Raser Technologies (NYSE: RZ) with a Sell rating and $7 target.
  
• The9 (NASDAQ: NCTY) was assumed at Roth Capital with a Hold rating and $27 target.
  
• Masimo (NASDAQ: MASI) was initiated with an Outperform rating and $44 target at BMO Capital.

MOST NOTEWORTHY: BioDelivery Sciences, Network Equipment, Barr Pharmaceuticals and Teva Pharmaceutical were today's noteworthy initiations:

• Merriman believes BioDelivery Sciences (NASDAQ:BDSI) is significantly undervalued given the positive results for BEMA Fentanyl and potential milestone payments of $60M, initiating shares with a Buy rating. They estimate fair value is in the $8-$10 range.
• Broadpoint believes Network Equipment (NYSE:NWK) is well-positioned for growth in the IP space, starting shares with a Buy rating.
• Banc of America started Barr Pharma (NYSE:BRL) with a Buy rating and $60 target, noting that the company's generic pipeline represents $30B in brand revenues and views Fosamax as the largest immediate opportunity. The firm also assumed coverage of Teva (NASDAQ:TEVA) with a Buy rating and $55 target, as they believe Teva's scale makes it the only generic company that can make a profit from aged generic products.

OTHER INITIATIONS:

• JP Morgan initiated Wintrust Financial (NASDAQ:WTFC) with a Neutral rating.
• Credit Suisse initiated Psychiatric Solutions (NASDAQ:PSYS) with an Underperform rating and $30 target.
• UBS started Weight Watchers (NYSE:WTW) with a Neutral rating and $51 target.

The Volunteer State is the home of Elvis Presley and the Grand Old Opry, former Vice President Al Gore, presidential candidate Fred Thompson, and the NFL's Tennessee Titans. Economically, Tennessee is the home of textiles, cotton, cattle, and electricity production, as well as mega corporations such as FedEx Corp. (NYSE: FDX) and International Paper Co. (NYSE: IP). And it is also the home of four companies from Fortune's 2007 list of the fastest growing public companies in the U.S.: Psychiatric Solutions Inc. (NASDAQ: PSYS), Pinnacle Financial Partners (NASDAQ: PNFP), Miller Industries Inc. (NYSE: MLR), and First Acceptance Corp. (NYSE: FAC).

At number 49 on Fortune's list was Psychiatric Solutions (PSI), the Franklin-based health care provider, which has grown in part through acquisitions. It has 900 psychiatric hospitals in 30 states, and operates in-patient facilities for other hospitals and government organizations. PSI's three-year revenue growth was 50%; three-year earnings per share growth at 76%. In July, PSI reported a record second quarter and a Lehman Brothers analyst expects PSI to meet or beat expectations in the current quarter. The consensus of analysts surveyed by Thomson Financial is that PSI is a buy, but Standard & Poor's is among those that consider PSI a strong buy. The share price was $39.90 on at the close on Friday.

Nashville-based Pinnacle Financial Partners is the holding company for Pinnacle National Bank, and holds assets of more than $2 billion. Pinnacle's three-year revenue growth was 81%, and its three-year earnings per share growth was 46%. Despite a strong second quarter report, the share price dropped to a 52-week low of $21.62 in August, but has bounced back since to $30.63 at the close on Friday. In September, a Pinnacle director bought 5,000 common shares of PNFP, and Pinnacle was among southern regional banks considered good bets despite the current credit climate. Analysts surveyed by Thomson Financial consider Pinnacle Financial a buy.