Analyst upgrades:

• Barclays upgraded the Integrated Oil sector to Positive from Neutral citing valuations. Note that Exxon Mobil (NYSE: XOM) was upgraded to Overweight from Equal Weight based on valuation.
  
• After Force Protection (NASDAQ: FRPT) reported that its 1H08 sales increased more than 200%, Stanford thinks that Force Protection could be poised for several new opportunities in 2009 and they believe the company's risk is already priced into the stock; the firm raised Force Protection to Hold from Sell.
  
• Cowen expects eHealth (NASDAQ: EHTH) to benefit from the steady decline in employer-sponsored health insurance offered by small businesses and reduced regulatory risk, among other reasons. The firm upgraded shares to Outperform from Neutral.
• Allied Capital (NYSE: ALD) was upgraded to Market Perform from Underperform at BMO Capital.
  
• Caris upgraded Carmike Cinemas (NASDAQ: CKEC) to Above Average from Average.
  
• International Flavors & Fragrances (NYSE: IFF) was upgraded to Neutral from Underweight at JP Morgan.

As you saw in a Market tankola note earlier, today can be blamed on oil or many other things. But the charts are likely the real culprit as old resistance levels didn't hold as the new support levels. The bears may have gotten an upper hand for a while if today's sentiment holds.

To top it off, worker productivity data came out strong enough today that it might even allow companies to make more layoffs. Below are the unofficial closing bell prices today:

• DJIA 12,814.35 (-206.48; -1.59%)
• S&P500 1,392.56 (-25.70; -1.81%)
• NASDAQ 2,438.49 (-44.82; -1.80%)
• 10YR-TBond 3.867% (-0.026)
• 52-WEEK LOWS.
• TOP 10 ANALYST CALLS

Cisco Systems (NASDAQ: CSCO) beat Street estimates for earnings Tuesday with $1.77 billion in net income, or $0.29 EPS, a 5.4% drop from first quarter 2007. Sales of $9.79 billion beat estimates of $9.75 million. Cisco gave 2008 guidance that met expectations as demand for Cisco's costly networking systems may still be slow during the economic slowdown. Shares fell 2% to $25.78 despite being positive earlier this morning.

MOST NOTEWORTHY: Motorola, Williams-Sonoma and Synchronoss were today's noteworthy downgrades:

• Thomas Weisel downgraded Motorola Inc (NYSE: MOT) to Market Weight from Overweight based on the general uncertainty in the company's core markets and the likelihood that the spin off may not occur for several quarters.
• Piper believes Williams-Sonoma Inc (NYSE: WSM) faces a challenging environment, and their checks reveal weakness at Pottery Barn. Shares were cut to Neutral from Buy.
• ThinkPanmure downgraded Synchronoss Technologies Inc (NASDAQ: SNCR) to Accumulate from Buy. The firm expects a strong Q1 report but expects shares to sell-off following the Q1 conference call due to modest guidance and the lack of a major customer win announcement.

OTHER DOWNGRADES:

• RBC Capital downgraded Bank of Nova Scotia Halifax (NYSE: BNS) to Underperform from Sector Perform.
• JP Morgan cut The Goodyear Tire & Rubber Company (NYSE: GT) to Neutral from Overweight.
• Goldman removed Potash Corporation of Saskatchewan Inc (NYSE: POT) from its Conviction Buy List.

MOST NOTEWORTHY: Air Products, Eaton and Pharmaceutical Product Development were today's noteworthy downgrades:

• Jefferies downgraded shares of Air Products (NYSE: APD) to Hold from Buy and lowered their target to $105 from $112 as they believe investors should wait for a better entry point given the company's more cyclical growth portfolio. They see downside risks to its electronics, chemicals and equipment businesses.
  
• Eaton Corp. (NYSE: ETN) was downgraded to Neutral from Buy at Goldman due to its high exposure to the U.S. economy.
  
• Baird downgraded Pharmaceutical Product Development (NASDAQ: PPDI) to Neutral from Outperform as its 2008 development guidance appears full and margins look full.

OTHER DOWNGRADES:

• Goldman downgraded the U.S. non-life insurance sector to Neutral from Attractive and removed Synchronoss (NASDAQ: SNCR) from its Conviction Buy List.
  
• ING downgraded Fortis (OTC: FORSY) to Hold from Buy.

The market's choppy/consolidating pattern characterized much of the last 5 months of 2007. However, with the start of 2008 and the entrance of new-year money flows, it's prudent to add a growth play or two, to be well-positioned for improving economic conditions, should they occur, and a growth stock worth a review is Synchronoss Tech.

Synchronoss Technologies, Inc. Tech (Nasdaq: SNCR) provides software and services that communications service providers use to manage tasks such as service activation and customer transactions, including additions, subtractions, and changes to service plans.

Analysts see 2008 revenue advancing 40-50% following a likely 60-70% revenue gain in 2007. Subscriber growth should be strong, with solid margins.

Most young companies dream of getting their first heavyweight customer -- a huge player, central to their industry, like Google Inc. (NASDAQ: GOOG), or better yet, a General Electric (NYSE: GE).

Snaring such a customer can change an entrepreneur's fortunes overnight. Of course. But how do you gain the attention and trust of a large and important company? It's certainly tough -- but there are some strategies to help out.

First of all, make sure you are in a niche that large companies don't consider core to their business, advises Steve Waldis, who is the CEO and founder of Synchronoss Technologies (NASDAQ: SNCR). The company develops software for the telecom industry and even powers the activation for Apple's (NASDAQ: AAPL) iPhone. This was the result of a deep customer relationship with AT&T (NYSE: T).

MOST NOTEWORTHY: Aruba Networks (ARUN), the aesthetic energy devices sector and Emeritus Corp (ESC) were today's noteworthy initiations:

• JP Morgan initiated shares of Aruba Networks (NASDAQ: ARUN) with a Neutral rating. The firm believes Aruba shares are fully valued at these levels and reflects strong growth with operating leverage.Pacific Crest believes Aruba, initiated with a Sector Perform rating and $19 target, is a strong alternative to Cisco Systems (NASDAQ: CSCO) in the WLAN market and its strong position as a point vendor makes the company an attractive acquisition candidate.

• Leerink Swann estimates the aesthetic energy devices sector is likely to experience 20% revenue growth over the next five years. The firm finds Thermage (NASDAQ: THRM) a turnaround-story which has a compelling mix of revenues from disposable tips while Cynosure (NASDAQ: CYNO) is capitalizing successfully on new product cycles with Affirm and SmartLipo. Palomar Medical Technologies (NASDAQ: PMTI) is viewed as the IP leader for hair removal products; Leerink initiated Thermage and Cynosure with Outperform ratings and Palomar with a Market Perform rating.

• Emeritus Corp (AMEX: ESC) was initiated with a Buy rating and $33 target at Stifel, which believes ESC has one of the best cash earnings growth stories among any of the traded senior housing companies.

OTHER INITIATIONS:

• CE Unterberg started shares of Synchronoss (NASDAQ: SNCR) with a Buy rating and $41 target.

• Rodman & Renshaw started shares of Array Biopharma (NASDAQ: ARRY) and Tapestry Pharma (NASDAQ: TPPH) with Market Outperform ratings and an $18 target and $5 target, respectively.

• Blackstone Group (NYSE: BX) was initiated with an Overweight rating and $41 target at Morgan Stanley.

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

"Get ready for a bumpy ride as the market digests tighter credit, unfavorable future economic policy, and limited options for fighting inflation," says growth stock money manager Jim Oberweis Jr. Nevertheless, he advises, "But don't get all depressed on us; valuations for U.S. companies, relative to the rest of the world, are cheaper than we have seen in awhile."

In his The Oberweis Report he sees upside potential in two high tech communications stocks that he considers suitable for risk-oriented investors: Ceragon Networks Ltd. (NASDAQ: CRNT) and Synchronoss Technologies (NASDAQ: SNCR).

Ceragon Networks Ltd. he says, is a leading provider of high-capacity wireless backhaul solutions for cellular and fixed wireless operators, enterprises and government organizations.

Synchronoss Technologies (NASDAQ:SNCR) provides transaction management software used by communications service providers. The company's flagship ActivationNow platform allows clients to manage such tasks as service activation, changes to service plans and the management of wireline, wireless and IP services across existing networks. Synchronoss clients include AT&T, Cablevision, Cingular Wireless, Level 3 Communications, Time Warner Cable, Verizon Business Solutions and Vonage.

Synchronoss had good news for investors earlier in the week, when it announced that its ActivationNow software had been selected by Cingular to provide transaction order management for the new Apple (NASDAQ:AAPL) iPhone. The firm also guided Q4 EPS to 11-12 cents (10 cent consensus), Q4 revenues to $20.2-$20.5 million ($21.75M consensus), FY07 EPS to 44-48 cents (44 cent consensus) and FY07 revenues to $99-$100 million ($99.94M consensus). The quarterly revenue expectation was a little light, but that was apparently forgiven. Deutsche Securities reiterated its "buy" rating on the issue and boosted its price target to $20. SNCR shares popped on the news and then began formation of a bullish "flag" pattern. Stocks frequently exit a flag with a move in the same direction they were traveling when they entered it. In this case, that would be to the upside.

Altogether, brokers recommend the issue with three "buys" and one "hold". Analysts see a 42 percent growth rate, through the next year. The stock's Sales Growth rate (33.97%), Net Profit Margin (18.63%), Revenue per Employee ($559k) and Net Income per Employee ($104k) compare favorably with industry and sector averages. Institutional investors hold about 22 percent of the outstanding shares. Over the past 52 weeks, SNCR has traded between $6.25 and $17.47. A stop-loss of $14.60 looks good here. Note that the firm is expected to report Q4 results in early February.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.