Analyst Upgrades

• Valero Energy (VLO) to outperform from perform at Oppenheimer.
• Changyou.com (CYOU) to overweight from equal weight at Morgan Stanley.
• Albermarle (ALB) to overweight from neutral at JPMorgan.
• ICU Medical (ICUI) to buy from neutral at Roth Capital.
• Check Point (CHKP) to outperform from market perform at Bernstein.
• FMC Corporation (FMC) to buy from neutral at BofA/Merrill.
• Rangold Resources (GOLD) to neutral from sell at Goldman.
• Global Cash Access (GCA) to buy from hold at Duncan-Williams.

Analyst Upgrades

• Dynegy (DYN) was upgraded to buy from neutral at Pritchard.
• Itron (ITRI) was upgraded to neutral from underperform at Macquarie.
• Goldman upgraded Ameren (AEE) to sell from conviction sell.
• Signet Jewelers (SIG) was upgraded to buy from hold at Societe Generale.
• JPMorgan upgraded Synopsys (SNPS) to overweight from neutral.

Analyst upgrades:

• Jefferies upgraded Ansys (NASDAQ: ANSS) shares to Buy from Hold following the company's reduced guidance as it now believes estimates are much more achievable. Despite the upgrade, the firm lowered its target price to $25 from $29.
  
• Deutsche Bank upgraded shares of Signet Jewelers (NYSE: SIG) to Buy from Hold on expectations the company will benefit from a capacity reduction in U.S. jewelry retailing.
  
• Thomas Weisel upgraded Omnicare (NYSE: OCR) to Overweight from Market Weight citing improving fundamentals and misunderstandings regarding Obama's healthcare proposal.
• Verizon (VZ) was lifted to Outperform from Sector Perform at RBC Capital.
  
• The Inventure Group (NYSE: SNAK) was raised to Buy from Hold at Roth Capital.
  
• Chico's FAS (NYSE: CHS) was upgraded at Friedman Billings to Outperform from Market Perform.

Analyst downgrades:

• Stephens downgraded Wilbros Group (NYSE: WG) to Equal Weight from Overweight to reflect a lack of visibility into earnings and deterioration in the company's end markets. The firm lowered its target price to $9.
• Jefferies downgraded Limelight Networks (NASDAQ: LLNW) to Hold from Buy as it believes the company can not sustain profits or cash flow this year given its capex requirements. The firm lowered its target price to $3 from $4.
  
• Barclays cut SLM Corp (NYSE: SLM) to Equal Weight from Overweight following President Obama's proposal to eliminate Federal Family Education Loan Program.
• Synta Pharma (NASDAQ: SNTA) was lowered to Hold from Buy at Roth Capital and to Sector Perform from Outperform at RBC Capital.
  
• U.S. Cellular (NYSE: USM) was downgraded at Baird to Underperform from Neutral.
  
• Paychex (NASDAQ: PAYX) was downgraded to Sell from Neutral at Goldman.

Analyst initiations:

• ThinkEquity expects Emulex (NYSE: ELX) to generate positive FCF in 2010 and views valuation as attractive. Shares were initiated with a Buy rating and $7 target.
  
• Lazard Capital initiated Constant Contact (NASDAQ: CTCT) with a Buy rating and $19 target. The firm believes the company is well positioned in the Software as a Service category of E-mail Marketing.
• Morgan Stanley assumed Dollar Tree (NASDAQ: DLTR) with an Overweight rating and $45 target and Family Dollar (NYSE: FDO) with an Equal Weight rating.
  
• Regal Entertainment (NYSE: RGC) was started at Barclays with an Overweight rating and $14 target.

Analyst upgrades:

• Citigroup upgraded shares of Cadbury (NYSE: CBY) to Hold from Sell on the company's pricing initiatives and their expectations for margin expansion.
  
• Jefferies upgraded shares of Medicis (NYSE: MRX) to Buy from Hold and raised its target to $16 from $12.50 as they believe the company's settlement with Impax should lift valuation and drive higher earnings.
  
• Cowen upgraded Williams-Sonoma (NYSE: WSM) to Neutral from Underperform on valuation. Shares were also upgraded at Merrill Lynch to Buy from Underperform.
• Signet Group (NYSE: SIG) was raised to Neutral from Sell at Goldman.
  
• EMC Corp (NYSE: EMC) was upgraded to Buy from Accumulate at ThinkPanmure.
  
• DSP Group (NASDAQ: DSPG) was upgraded at RBC Capital to Sector Perform from Underperform.

Analyst downgrades:

As the price of gold climbs, I wondered how this might impact jewelers such as Tiffany & Co. (NYSE: TIF), Signet Group plc (ADR) (NYSE: SIG), Blue Nile, Inc. (NASDAQ: NILE) and even Berkshire Hathaway (NYSE: BRK.A), which has large holdings in the industry. To explore this question, I talked with Amanda Gizi, Spokesperson for the Jewelry Information Center, which represents the fine jewelry and watch industries.

How will the increase in gold prices impact jewelers this Christmas season?

According to Gizi, most of the stock for the upcoming season has already been purchased, and while the price of gold might fluctuate, jewelers are not prone to adjust prices with every blip of the market.

How does this market differ from 1980, when jewelry sales suffered greatly under $900 gold?

Gizi pointed out that, given inflation, the current $700+ gold is not nearly as expensive as $900 gold was in 1980 dollars. Using the Bureau of Labor Statistic's inflation calculator, I found that gold would have to reach $2,270.94 in today's market to equal the value at its 1980 peak.

How would you assess the conjecture of CLSA Chief Strategist Christopher Wood, as reported by BloggingStock's Weld Royal, that gold could reach $3,400 in the next three years?

Gizi considered this unrealistic, given the market's history.

She went on to tell me that despite its sharp price increase, platinum continues to be a popular jewelry choice, especially in bridal selections, and other metals such as palladium and tungsten carbide are increasingly found in men's jewelry.

In gemstones, she told me fancies (gems in colors other than their common form, such as pink sapphires, blue diamonds, etc.) are very hot on the market now.

Her take on the industry? $700 gold isn't going to scare the merchants, and they don't expect it to scare away the customers, either.

My take? The cost of the gold in a piece of fine jewelry, at best, represents no more than 5-10% of the sale price, so the price of gold will have to increase a great deal before it severely impacts the jewelry trade. Don't sell your Tiffany and Co. out of gold fear.