MOST NOTEWORTHY: Siemens , Siliconware Precision and Palm were today's noteworthy upgrades:

• Goldman upgraded Siemens AG (NYSE: SI) to Buy from Neutral and views shares as defensive in the current environment.
  
• Merriman upgraded shares of Siliconware Precision (NASDAQ: SPIL) to Buy from Neutral on valuation, as they believe the negative sentiment regarding the U.S. economy is already priced into shares.
• JP Morgan upgraded Palm (NASDAQ: PALM) to Overweight from Underweight citing new smart-phone products expected in 2008 and stronger-than-expected Centro sales.

OTHER UPGRADES:

• Pep Boys (NYSE: PBY) was raised to Neutral from Underperform at Credit Suisse.
• Jefferies upgraded Pioneer Drilling (NYSE: PDC) to Buy from Hold.
• Deutsche Bank upgraded Cablevision (NYSE: CVC) to Buy from Hold.

MOST NOTEWORTHY: Gander Mountain, Lev Pharmaceuticals, Intermune, Aetna and Medco Health were today's noteworthy initiations:

• Nollenberger initiated shares of Gander Mountain Company (NASDAQ: GMTN) with a Sell rating and $5.00 target, and believes the company's goal of reaching profitability in 2007 could prove overly optimistic.
  
• Lev Pharmaceuticals (OTC: LEVP) was initiated with a Sector Outperformer rating and $3 target at CIBC, as the firm believes Cinryze will likely be approved in 1Q08 and they expect the company to have significant pricing leverage.
  
• JP Morgan resumed coverage of Intermune Inc (NASDAQ: ITMN) with an Overweight rating and expects shares to be driven by the company's pipeline in IPF and HCV.
  
• Aetna Incorporated (NYSE: AET) was initiated with an Outperform rating at Wachovia. The firm feels Aetna is positioned for better growth and higher quality earnings than its peers.
  
• William Blair started shares of Medco Health Solutions Inc (NYSE: MHS) with an Outperform rating, as they believe an aging population, rising health care costs, and an acceleration in new product introductions should increase demand for PBM services over the next five years.

OTHER INITIATIONS:

• ABN Amro started shares of Siliconware Precision Industries Company Ltd (NASDAQ: SPIL) and Advanced Semiconductor Engineering Inc (NYSE: ASX) with Buy ratings.
  
• Goldman initiated Silicon Image Inc (NASDAQ: SIMG) with a Sell rating and $4.50 target, and initiated Sigma Designs Inc (NASDAQ: SIGM) and SiRF Technology Holdings Inc (NASDAQ: SIRF) with Neutral ratings and a $43 target and $19 target, respectively.

MOST NOTEWORTHY: Nuvelo (NUVO) and the Asian Semiconductor sector were today's most notable downgrades:

• Nuvelo (NASDAQ:NUVO) was downgraded to Neutral from Buy at Oppenheimer and Sector Performer from Sector Outperformer at CIBC World Markets, both companies citing negative clinical data;
• additionally, Merrill Lynch downgraded the Semiconductor sector to Market Weight from Overweight,
  • specifically downgrading Chartered Semiconductor (NASDAQ:CHRT), Siliconware Precision Inds Ltd (NASDAQ:SPIL) and STATS ChipPAC (NASDAQ:STTS) to Neutral from Buy
  • and United Microelectronic (NYSE:UMC) to Sell from Neutral, citing valuation.

OTHER DOWNGRADES:

• JP Morgan downgraded Wendy's (NYSE:WEN) to Underweight from Neutral as they believe shares are already pricing in years of sales and earnings growth at a time when competition is intensifying; they are also concerned over Wendy's new breakfast roll-out.
• Jefferies downgraded Autodesk (NASDAQ:ADSK) to Hold from Buy citing valuation.
• Bank of America said there are risks to Federated Dept. (NYSE:FD) comps at MAY stores and downgraded the company to Neutral from Buy, with a $43 target.

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