Analyst upgrades:

• FBR Capital upgraded McAfee (NYSE: MFE) to Outperform from Market Perform after channel checks indicated the company's September quarter deal flow has been stronger than expected. FBR raised its target on shares to $50 from $41.
• Thomas Weisel upgraded Adtran (NASDAQ: ADTN) to Overweight from Market Weight, citing increased wireless backhaul capex spending by Tier-1 carriers. The firm raised its target to $32 from $21.
• RBC Capital upgraded Brunswick (NYSE: BC) to Outperform from Sector Perform as the firm thinks the company no longer has liquidity risk and can generate significant profits by 2012. The firm set a $17 target on the stock.
• Bronco Drilling (NASDAQ: BRNC) was upgraded to Hold from Underperform at Jefferies.
• LSI Corp. (NYSE: LSI) was upgraded to Buy from Hold at Deutsche Bank.
• UBS upgraded U.S. Airways (NYSE: LCC) and UAL Corp. (NASDAQ: UAUA) to Buy from Neutral.

Analyst upgrades:

• Goldman upgraded shares of Daimler (NYSE: DAI) to Buy from Neutral as it believes the company's restructuring and greater visibility on its outlook could be positive for the stock.
  
• JP Morgan upgraded shares of Goodyear Tire (NYSE: GT) and Cooper Tire (NYSE: CTB) to Overweight from Neutral on expectations that industry volumes will improve in the coming quarters.
  
• Friedman Billings upgraded Websense (NASDAQ: WBSN) following the company's better than expected preliminary Q1 results. The firm maintains a $17 target on shares.
• Ruby Tuesday (NYSE: RT) was upgraded to Buy from Hold at KeyBanc.
  
• Portfolio Recovery (NASDAQ: PRAA) was raised to Buy from Neutral at SunTrust.

Analyst upgrades:

• Axys Tech (NASDAQ: AXYS) was upgraded to Outperform from Market Perform at Morgan Keegan on valuation.
  
• Credit Suisse upgraded Cemex (NYSE: CX) to Neutral from Underperform following the company's refinancing announcement.
  
• Patni Computer (NYSE: PTI) was upgraded to Buy from Neutral at UBS.

Analyst downgrades:

• Merriman downgraded Environmental Power (NASDAQ: EPG) to Neutral from Buy citing a lack of visibility into the company's capital raise and lowered their estimates to reflect a slippage in project schedules.
  
• Jefferies cut inVentiv Health (NASDAQ: VTIV) to Hold from Buy as they believe budget cuts at the company's client base make 2009 estimates too high. The firm lowered their target to $11 from $15.
  
• Oppenheimer downgraded RSC Holdings (NYSE: RRR) to Perform from Outperform to reflect the continued deterioration in non-residential construction and valuation following the recent rally.
• Smurfit-Stone (NASDAQ: SSCC) was lowered to Hold from Buy at Deutsche Bank.
  
• Distribucion Y Servicio (NYSE: DYS) was downgraded to Sell from Hold at Deutsche Bank.
  
• Key Energy (NYSE: KEG) was downgraded at SMH Capital to Neutral from Accumulate.

Analyst initiations:

• AECOM Technology (NYSE: ACM) was initiated with an Outperform rating and $34 target at Baird. The firm is positive on AECOM's diverse portfolio of services and global reach.
  
• Baird also initiated Checkpoint (NYSE: CKP) with a Neutral rating and $11 target, citing the weak macro environment.
  
• Thomas Weisel said Integra LifeSciences (NASDAQ: IART) has little exposure to economically sensitive areas of healthcare and has a varied mix of products that provide a platform for sustainable organic growth. Shares were initiated with an Overweight rating.
• Piper Jaffray assumed CBS Corp (NYSE: CBS) with a Neutral rating.
  
• BioMarin (NASDAQ: BMRN) was started at Stanford with a Hold rating.
  
• Websense (NASDAQ: WBSN) was initiated with an Equal Weight at First Analysis.

Websense (NASDAQ: WBSN) is up almost 5% on news it beat street estimates.

Mitcham Industries (NASDAQ: MIND) is trading higher by over 4% on announcement of strong quarterly numbers.

FormFactor (NASDAQ: FORM) is off over 8% on job cuts and a poor quarter.

AMAG Pharmaceuticals (NASDAQ: AMAG) one day after its CEO sold a number of shares.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

Silicon Labs (NASDAQ: SLAB) is trading up 12% on strong earnings.

Harmonic (NASDAQ: HLIT) is up almost 10% on a good quarter.

Websense (NASDAQ: WBSN) is trading higher by 8% on earnings.

Align Technology (NASDAQ: ALGN) is off almost 20% on weak earnings.

Yahoo! (NASDAQ: YHOO) is trading down 10% on a poor 2008 outlook.

China Life (NYSE: LFC) is down 6% on sell-off in Chinese stocks.

Stocks may trade differently in the regular session than the do in the pre-market.

Douglas A. McIntyre is an editor at 247wallst.com.

Websense (NASDAQ: WBSN) develops and markets web filtering and security software that helps organizations to manage usage of their computer networks. Programs monitor network access, protect confidential information from web-based attacks, monitor e-mail and instant messaging, prohibit employee access to certain content, and restrict access to employer-defined time periods. The company hosts a service that allows subscribers to upgrade their Websense software to protect against new web-based and application-based threats.

The firm pleased investors earlier in the week when it said that Q4 non-GAAP revenues were expected to exceed previous guidance of $76-$79 million. Wall Street had been looking for $77.3 million. Management also remarked that quarterly billings would top the previous estimate of $92-$95 million. In discussing the upside adjustments, the CEO particularly cited positive results from the recent acquisition of SurfControl. WBSN shares popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

MOST NOTEWORTHY: Websense (WBSN), OSI Pharma (OSIP), Gap (GPS), Tiffany & Co (TIF) and Callaway Golf (ELY) were today's more noteworthy upgrades:

• Jefferies upgraded Websense (NASDAQ: WBSN) to Hold from Underperform to reflect the strong recent results from SurfControl as well as the possibility for 2H software seasonality.

• Lehman upgraded shares of OSI Pharma (NASDAQ: OSIP) to Overweight from Underweight on valuation as well as expectations for price increases and growth in Europe.

• Susquehanna upgraded shares of Gap (NYSE: GPS) to Positive from Neutral citing management's ability to control costs & manage inventories, share buybacks, and streamlining of organizational structure.
  

• Tiffany & Co (NYSE: TIF) was upgrade to Accumulate from Neutral at Buckingham based on valuation and strong worldwide luxury trends outside of Japan.

• Matrix upgraded shares of Callaway Golf (NYSE: ELY) to Strong Buy from Hold to reflect positive fundamentals and the recent share weakness...

OTHER UPGRADES:

• Valueclick (NASDAQ: VCLK) was upgraded to Buy from Hold at Needham.

• WestLB raised Swisscom (NYSE: SCM) to Add from Hold and Ericsson (NASDAQ: ERIC) to Buy from Hold.

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

McAfee (NASDAQ: MFE) volatility of 39 above 26-week average of 30. MFE, an intrusion prevention and security risk management provider, is recently up .22 to $33.75. MFE over all option implied volatility of 39 is above its 26-week average of 30 according to Track Data, suggesting decreasing risks.

Symantec (NASDAQ: SYMC) over all option implied volatility at 36. SYMC provides solutions to help individuals and enterprises assure the security and availability of their information. Soleil Securities says "we are reiterating our SYMC Buy rating and our $27 price target." SYMC over all option implied volatility of 36 is above its 26-week average of 33 according to Track Data, suggesting slightly larger risks.

Websense NASDAQ: WBSN) implied volatility of 42 above 26-week average of 32. WBSN, a web security and web filter software company, has a market cap of $907 million with zero long term debt. WBSN reported total 2006 revenues of $178 million. WBSN is recently down .02 to $19.97. WBSN over all option implied volatility of 42 is above its 26-week average of 32 according to Track Data, suggesting larger price risks.

Aladdin Knowledge Systems-(NASDAQ: ALDN) implied volatility Elevated at 39. ALDN is a global provider of security solutions that reduce software theft and protects network users from undetected spam & viruses. ALDN has market cap of $298 million with zero long term debt. ALDN reported 2006 annual total revenue of $89 million. ALDN over all option implied volatility of 39 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX down 1.61 to 28.38.

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

MOST NOTEWORTHY: Websence (WBSN), RF Micro Devices (RFMD), Fiserv (FISV), Qwest (Q), and OSI Pharma (OSIP) were today's noteworthy upgrades:

• JP Morgan upgraded shares of Websence (NASDAQ: WBSN) to Overweight from Underweight ahead of the renewal period starting in the December quarter and expects this momentum to drive shares higher.

• RF Micro Devices (NASDAQ: RFMD) was raised to Buy from Hold at Citigroup, who said the Sirenza Microdevices (SMDI) deal gives the company its first real prospect for gross margin expansion in years.

• Matrix USA upgraded Fiserv (NASDAQ: FISV) to Buy from Sell, and expects the company to benefit from the Checkfree (CKFR) acquisition.

• Lehman upgraded shares of Qwest (NYSE: Q) to Overweight from Equal Weight, citing the hiring of industry veteran Ed Mueller as CEO. The firm believes the new CEO removes an overhang and could lead to a change in strategic direction and significantly increase capital spending.

• JP Morgan upgraded OSI Pharma (NASDAQ: OSIP) to Overweight from Underweight based on valuation and upcoming catalysts for Tarceva that should be seen in the next year...

OTHER UPGRADES:

• UBS upgraded Allstate (NYSE: ALL) to Neutral from Sell.

• ThinkEquity raised Hansen Medical (NASDAQ: HNSN) to Buy from Accumulate.

• Stanford upgraded Leap Wireless (NASDAQ: LEAP) to Buy from Hold.

• FTN Midwest upgraded shares of Lexmark (NYSE: LXK) to Neutral from Sell.

• Hambrecht upgraded NetGear (NASDAQ: NTGR) to Buy from Hold.

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

MOST NOTEWORTHY: Websense Inc (WBSN), Dow Jones & Co, Inc (DJ), Krispy Kreme Doughnuts (KKD), US Airways Group, Inc (LLC), Starwood Hotels & Resorts Worldwide, Inc (HOT) were today's more noteworthy downgrades:

• Jefferies downgraded Websense Inc (NASDAQ: WBSN) to Underperform from Hold with a $20 target to reflect slowing growth in the URL market, near-term business disruption from the pending SRF deal and summer software seasonality.

• Dow Jones & Co (NYSE: DJ) was cut to Hold from Buy at Gabelli and to Market Perform from Outperform at Wachovia.

• Krispy Kreme (NYSE: KKD) was downgraded to Neutral from Overweight at Prudential.

• Merrill Lynch downgraded US Airways Group (NYSE: LCC) to Neutral from Buy.

• Goldman downgraded Starwood Hotels (NYSE: HOT) to Neutral from Buy to reflect the weaker-than-expected quarterly fundamentals reported by the major hotel companies. The firm believes investors should stay away from the lodging sector...

OTHER DOWNGRADES:

• JP Morgan cut Federated Investors, Inc (NYSE: FII) to Underweight from Neutral on valuation.

• Genesco Inc (NYSE: GCO) was downgraded to Market Perform from Outperform at Piper Jaffray.

• UBS cut Liz Claiborne (NYSE: LIZ) to Neutral from Buy.

• Tibco Software Inc (NASDAQ: TIBX) was cut to Hold from Buy at Jefferies.

• Baird downgraded Watts Water Technologies, Inc (NYSE: WTS) to Underperform from Neutral.

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