Analyst Upgrades

• Goldman upgraded Yum! Brands (NYSE: YUM) to Buy from Neutral on expectations business in the U.S. and China will improve in the second half of 2009. Goldman raised its target price on shares to $40 from $36.
• Canaccord upgraded Exco Resources (NYSE: XCO) to Buy from Speculative Buy citing the company's financial transactions to reduce debt. The firm, which has a $17 target on the stock, says Exco now has a stronger balance sheet, a greater geographic focus, and the ability to expedite drilling programs.
• ThinkEquity upgraded Shanda (NASDAQ: SNDA) to Accumulate from Source of Funds and raised its target to $60 from $50. The firm believes recent weakness on regulatory concerns is overdone and that Q2 estimates are conservative.
• Mack-Cali Realty (NYSE: CLI) was upgraded to Overweight from Equal Weight at Barclays.
• Marvel Entertainment (NYSE: MVL) was upgraded to Overweight from Neutral at JPMorgan.
• France Telecom (NYSE: FTE) was upgraded to Outperform from Underperform at Credit Suisse.

MOST NOTEWORTHY: Syntroleum, Pervasive Software and Ardea Biosciences were today's noteworthy initiations:

• Merrriman believes Syntroleum (NASDAQ: SYNM) possesses the technological platforms with its Biofining process and the cost structures with its Tyson Foods (NYSE: TSN) relationship needed to commercialize clean synthetic fuels. The firm started shares with a Buy rating.
  
• Pervasive Software (NASDAQ: PVSW) was assumed with a Buy rating and $7 target at B. Riley, as they find shares attractive in this market given the company's solid balance sheet with a sizeable cash balance and positive operating cash flow. They believe the stock is undervalued at current levels.
  
• Ardea Biosciences (NASDAQ: RDEA) was assumed with an Outperform rating at Cowen. The firm believes Ardea has a promising clinical pipeline for HIV, gout, and cancer.

OTHER INITIATIONS:

• Deutsche Bank initiated Nissan (NASDAQ: NSANY), Honda (NYSE: HMC) and Toyota (NYSE: TM) with Buy ratings.
  
• UBS initiated SanDisk (NASDAQ: SNDK) with a Neutral rating and $28 target.