Analyst upgrades:

• UBS upgraded Salesforce.com (CRM) to Buy from Neutral based on positive feedback on the Chatter product and increasing confidence the company can beat FY11 guidance. The firm raised its price target to $111 from $90.
• Leerink upgraded Vivus (VVUS) to Outperform from Market Perform. The firm believes Qnexa issues raised by the FDA are labeling and marketing issues, and not approval issues. The firm expects a positive panel vote for Qnexa.
• Goldman upgraded AK Steel (AKS) to Buy from Netural citing lower iron ore prices. The firm has a $17 price target on the stock.
• Kinder Morgan Energy (KMP) was upgraded to Equal Weight at Morgan Stanley.
• Shire (SHPGY) was upgraded to Outperform from Neutral at Credit Suisse.
• Canadian National (CNI) was upgraded to Outperform from Market Perform at Raymond James.

Analyst Upgrades

• Auriga upgraded Intel (INTC) to buy from hold to reflect the stock's relative valuation after channel checks indicated PC shipment plans continue to be solid. The firm raised its target price on shares to $24 from $20.
• Deutsche Bank upgraded RenaissanceRE (RNR) to buy from hold on valuation and believes stock buybacks and reserve releases will drive the company's growth. The firm raised its target price on shares to $65 from $59.
• UBS upgraded Philip Morris (PM) to buy from neutral based on increased confidence in its earnings outlook and relative valuation. The firm raised its target to $54 from $49.
• Chevron (CVX) was raised to outperform from market perform at Bernstein.
• Barnes & Noble (BKS) was upgraded to sell from conviction sell at Goldman Sachs.
• Deutsche Bank (DB) was upgraded to outperform from neutral at Credit Suisse.

"The U.S. Energy Department is sponsoring a race to develop an obscure industrial process -- carbon capture and sequestration (CCS) -- and the winners of the race will receive $1.4 billion -- yes, billion, with a B," says Andy Obermueller.

In Government-Driven Investing, he says, "My pick to profit from among the 12 companies selected to compete in this scientific 'Olympiad' is Praxair (NYSE: PX)."

"This industrial-gas company owns hundreds of CCS patents, technology that could turn a coal-fired power plant -- about the dirtiest thing in the world, emissions-wise -- into one of the cleanest.

Andy Obermueller is the chief investment strategist of an intriguing new service that focuses on developing government legislation to find investment opportunities.

In his Government-Driven Investing the advisor looks at Praxair (NYSE: PX) as a play on clean coal technology, more-technically known as carbon capture and sequestration. Here, he explains the opportunity:

"U.S. Energy Secretary Steven Chu recently announced an $8.4 million project to ensure that the nation's innovators are up to speed on the latest carbon-capture and sequestration technology.

Analyst upgrades:

• Oppenheimer upgraded FTI Consulting (NYSE:FCN) to Outperform from Perform on expectations the stock will outperform in the second half of 2009 due to easier comparisons and a "deeper and longer" restructuring cycle. The firm has a $62 target on shares.
• Citigroup upgraded Cigna (NYSE:CI) to Hold from Sell to reflect reduced balance sheet risk following the company's capital raise and the potential for a PBM sale. The firm raised its target price to $23 from $13.
• Goldman expects Coca-Cola Enterprises (NYSE:CCE) to benefit from favorable soda demand and lower commodity costs. The firm upgraded shares to Conviction Buy from Buy and has a $20 target on the stock.
• Novellus (NASDAQ:NVLS) was raised to Buy from Neutral at Bank of America/Merrill.
• CME Group (NASDAQ:CME) was upgraded at JP Morgan to Neutral from Underweight.
• Allegiant (NASDAQ:ALGT) was upgraded to Overweight from Equal Weight at Morgan Stanley.
  

Analyst upgrades:

• Jefferies upgraded Brocade (NASDAQ: BRCD) to Buy from Hold on expectations expanding OEM partnerships, new products and entry into new markets will drive long-term growth. The firm's channel checks indicate the first phase of an IBM (NYSE: IBM) deal for ethernet products will be announced next week. Jefferies raised its target price on the stock to $6 from $3.50.
  
• JMP Securities upgraded Broadcom (NASDAQ: BRCM) to Market Perform from Underperform citing the potential settlement with Qualcomm (NASDAQ: QCOM). The firm said Broadcom has far more to gain than Qualcomm has to lose.
  
• Citigroup upgraded Air Products (NYSE: APD) and Praxair (NYSE: PX) to Buy from Hold on expectations that an improvement in customer operating rates will benefit gas companies. The firm raised its target price on Air Products to $70 from $55 and on Praxair to $79 from $63.
  
• Royal Bank of Scotland upgraded BP Plc (NYSE: BP) to Buy from Hold to reflect its dividend yield at current levels.
• Apple (NASDAQ: AAPL) was raised to Outperform from Underperform at RBC Capital.
  
• T. Rowe Price (NYSE: TROW) was upgraded at Sandler O'Neill to Hold from Sell.
  
• Morgan Stanley (NYSE: MS) was lifted to Neutral from Underperform at Banc of America/Merrill.

Analyst upgrades:

• RW Baird upgraded LHC Group (NASDAQ: LHCG) to Outperform from Neutral based on valuation and expectations for raised 2009 guidance. The firm has a $36 target on the stock.
  
• Deutsche Bank upgraded Swiss Reinsurance (OTC: SWCEY) to Buy from Hold following the CEO change as the firm views it as a positive move.
  
• Wachovia upgraded DuPont Fabros (NYSE: DFT) to Outperform from Market Perform because it thinks the company has taken major measures to mitigate its liquidity risk by obtaining additional debt. The firm also notes that the company signed several new leases.
• Goldman added Air Products (NYSE: APD) and Burger King (NYSE: BKC) to the Conviction Buy List.
  
• MSC Industrial (NYSE: MSM) was upgraded to Outperform from Market Perform at William Blair.
  
• Northrop Grumman (NYSE: NOC) was raised to Outperform from Market Perform at Bernstein.

Air Products (NYSE: APD) reported Q1 EPS of 97 cents versus consensus estimates of 97 cents. APD sees Q2 EPS 80 cents -90 cents versus consensus estimates of $1.07. APD closed at $52.64. February option implied volatility of 68 is above its 26-week average of 50, according to Track Data, suggesting larger price movement.

Praxair (NYSE: PX), a large industrial gas company, closed at $59.21. PX is scheduled to report Q4 EPS on January 28. PX February option implied volatility of 57 is above its 26-week average of 48, according to Track Data, suggesting larger price movement.

Airgas (NYSE: ARG) closed at $37.03. ARG will release EPS on January 28. ARG February option implied volatility of 71 is above its 26-week average of 57, according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Praxair (NYSE: PX) closed at $50.06 Monday. PX is scheduled to report Q3 EPS on October 29. Deutsche Bank lowered EPS estimates for PX to reflect the strengthening U.S. dollar and the slowdown in global GDP growth. PX November option implied volatility of 87 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Air Products (NYSE: APD) closed at $47.30 Monday. APD overall option implied volatility of 77 is above its 26-week average of 38 according to Track Data, suggesting larger price movement.

Airgas (NYSE: ARG) closed at $31.40 Monday. ARG November option implied volatility of 97 is above its 26-week average of 44 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

MOST NOTEWORTHY: Weyerhaeuser, Infineon and Intuit were today's noteworthy downgrades:

• Deutsche Bank downgraded shares of Weyerhaeuser (NYSE: WY) to Hold from Buy following the company's investor day, as they were disappointed that no REIT conversion will occur before 2010. Deutsche lowered their target price to $65 from $95.
  
• Citigroup assumed coverage of IFX (NYSE: IFX) and downgraded the stock to Hold from Buy on valuation following the recent rally.
  
• Merrill Lynch cut Intuit (NASDAQ: INTU) to Underperform from Neutral. The rating changes reflect Merrill's new rating system based on relative recommendations within the sector.

OTHER DOWNGRADES:

• Morgan Stanley lowered ReneSola (NYSE: SOL) to Underweight from Equal Weight.
  
• RBC Capital downgraded Canadian Pacific (NYSE: CP) to Sector Perform from Outperform.
  
• Praxair (NYSE: PX) was downgraded at HSBC to Neutral from Overweight.

MOST NOTEWORTHY: Shutterfly, Drugstore.com, S.Y. Bancorp and Stericycle were today's noteworthy initiations:

• Oppenheimer started shares of Shutterfly Inc (NASDAQ: SFLY) with a Buy rating and $42 target. The firm believes secular growth in digital photography and increasing adoption of user generated print publishing will drive EBITDA growth of 30%-40% over the next 2-3 years.
  
• Oppenheimer also initiated Drugstore.com Inc (NASDAQ: DSCM) with a Buy rating and $5 target, as they expect growth in the company's higher margin beauty segment could drive EBITDA above consensus estimates.
  
• Baird is positive on S.Y. Bancorp Inc's (NASDAQ: SYBT) valuation, capital-rich balance sheet, and top-tier profitability and resumed coverage with an Outperform rating.
  
• The firm also started shares of Stericycle Inc (NASDAQ: SRCL) with a Neutral rating, noting it would be more aggressive on shares in the mid-$40s or if earnings catch up with the passing of time.

OTHER INITIATIONS:

• UBS initiated Praxair Inc (NYSE: PX) with a Buy rating and $94 target and added shares to its Strategic Stock Selection List.
  
• Lehman initiated Infosys Technologies Ltd (NASDAQ: INFY) with an Equal Weight rating and Wipro Limited (NYSE: WIT) with an Underweight rating.
  
• William Blair reinstated coverage of the commercial real estate services sector, starting FirstService Corporation (NASDAQ: FSRV) with an Outperform rating, Jones Lang LaSalle Incorporated (NYSE: JLL) with a Market Perform rating and CB Richard Ellis Group Inc (NYSE: CBG) with a Market Perform rating.

MOST NOTEWORTHY: Arthur J. Gallagher (AJG), Akamai Technologies (AKAM) and three railcar companies were today's noteworthy initiations:

• Citigroup believes Arthur J. Gallagher (NYSE: AJG) is at a disadvantage to smaller rivals who accept contingent commissions and lacks the global presence of larger competitors, and started shares with a Sell rating and $25 target.

• Friedman Billings believes Akamai (NASDAQ: AKAM) can leverage its broad product portfolio, global network deep pockets and extensive track record to remain the leader in the content delivery market, starting shares with an Outperform.

• Keefe Bruyette started coverage of three railcars with a Buy rating: Greenbrier (NYSE: GBX), Wabtec Corporation (NYSE: WAB) and FreightCar America (NASDAQ: RAIL)...

OTHER INITIATIONS:

• Citigroup started Goodyear Tire (NYSE: GT) with a Buy rating.

• CIBC initiated Praxair (NYSE: PX) with a Sector Performer rating.

• Crucell NV (NASDAQ:CRXL) was initiated with an Outperform rating at Lehman.

• FTN Midwest initiated RadioShack (NYSE: RSH) with a Neutral rating.

• Cowen initiated Penwest Pharmaceuticals (NASDAQ: PPCO) with an Outperform rating.

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