Analyst upgrades:

• Microsoft (NASDAQ: MSFT) was upgraded to Buy from Hold by Canaccord, which cited the company's strong Q1 results.
• Pali Capital raised T. Rowe Price (NASDAQ: TROW) to Neutral from Sell following the company's better-than-expected Q3 results.
• Under Armour (NYSE: UA) was upgraded to Neutral from Negative at Susquehanna following positive checks ahead of the company's Tuesday's Q3 report.
• Stifel Nicolaus raised American Express (NYSE: AXP) to Buy from Hold, as the firm thinks the company is close to reaching "normalized" earnings.
• Goldman Sachs upgraded Garmin (NASDAQ: GRMN) to Sell from Conviction Sell.
• RBC Capital upgraded Noble Energy (NYSE: NBL) to Outperform from Sector Perform.
• American Superconductor (NASDAQ: AMSC) was upgraded to Outperform from Sector Perform by Pacific Crest.

Analyst upgrades:

• Deutsche Bank upgraded Coca-Cola (NYSE: KO) to Buy from Hold on expectations that stable volumes and a better outlook for currency and commodities will lead to higher earnings visibility. The firm raised its price target on shares to $62 from $52.
• FBR Capital upgraded Goodrich (NYSE: GR) to Outperform from Market Perform as it finds the stock's valuation compelling following the recent pullback. The firm raised its target on shares to $65 from $46.
• William Blair upgraded Cisco (NASDAQ: CSCO) to Outperform from Market Perform after channel checks indicated demand is accelerating as the firm finds the stock's valuation compelling at current levels.
• Robbins & Myers (NYSE: RBN) was upgraded to Outperform from Neutral at Baird.
• Disney (NYSE: DIS) and Viacom B (NYSE: VIA.B) were upgraded to Neutral from Underperform at BofA/Merrill, while News Corp. (NASDAQ: NWS) was upgraded to Buy from Neutral.

Analyst upgrades:

• FBR Capital upgraded AutoZone (NYSE: AZO) to Market Perform from Underperform on valuation following the company's Q4 results but lowered its target on shares to $134 from $137.
• Citigroup upgraded Calpine (NYSE: CPN) to Buy from Hold on valuation following Wednesday's sell-off. The firm believes Harbinger's share sale reflects an issue with the shareholders, not with the company, and raised its price target on the stock to $16.50 from $13.
• Credit Suisse upgraded Knight Transportation (NYSE: KNX) to Neutral from Underperform and raised its target to $17 from $16 based on valuation and the improved freight environment.
• Citrix Systems (NASDAQ: CTXS) was upgraded to Conviction Buy from Buy at Goldman.
• Webster Financial (NYSE: WBS) was upgraded to Outperform from Sector Perform at RBC Capital.
• Dr. Reddy's Labs (NYSE: RDY) was upgraded to Overweight from Equal Weight at Morgan Stanley.

Analyst upgrades:

• Piper Jaffray upgraded PetMed Express (NASDAQ: PETS) to Overweight from Neutral following the better-than-expected Q1 results. The firm raised its target on shares to $22 from $19.
• Deutsche Bank upgraded International Paper (NYSE: IP) and Packaging Corp. (NYSE: PKG) to Buy from Hold to reflect stabilization in the containerboard industry. The firm raised its target price on Packaging Corp. to $24 from $14, and on International Paper to $24 from $16.
• Bernstein upgraded Human Genome Sciences (NASDAQ: HGSI) to Outperform from Market Perform following the positive Phase III data for Benlysta in lupus.
• IBM (NYSE: IBM) was upgraded to Hold from Sell at Societe Generale.
• British Airways (OTC: BAIRY) was upgraded to Buy from Sell at Goldman.
• Continental AG (OTC: CTTAY) was upgraded to Hold from Sell at Citigroup.

Analyst upgrades:

• Jefferies upgraded MSC Industrial (NYSE:MSM) to Buy from Hold after meeting with management as they believe shares are attractive at current levels. The firm raised their target price to $44 from $32.
  
• UBS upgraded DuPont Fabros (NYSE:DFT) to Buy from Neutral and raised their target to $7 from $2. The firm believes DuPont Fabros will receive a waiver on its CH1 Construction loan for at least a year.
  
• Royal Bank of Scotland upgraded Credit Suisse (NYSE:CS) to Buy from Hold to reflect the company's derisking of its trading book.
• Smith & Nephew (NYSE:SNN) was upgraded to Buy from Neutral at Goldman and added to the Conviction Buy List; Cigna (NYSE:CI) was also added to the Conviction Buy List.
  
• Affymetrix (NASDAQ:AFFX) was raised to Equal Weight from Underweight at Morgan Stanley.
  
• Airtran Holdings (NYSE:AAI) was upgraded to Buy from Hold at Jesup & Lamont.

MOST NOTEWORTHY: American Eagle, Hologic and British Airways were today's noteworthy downgrades:

• Friedman Billings downgraded American Eagle (NYSE: AEO) to Underperform from Market Perform citing slowing top-line growth, difficult macro-environment, and the challenging women's category.
  
• Soleil cut Hologic (NASDAQ: HOLX) to Hold from Buy as it believes the cancellation of the FDA Radiological Devices Panel means a further delay in the tomosynthesis pre-market approval application.
  
• ABN downgraded shares of British Airways (Other OTC: BAIRY) to Sell from Hold as it believes the recent rally in the face of higher oil prices is unjustified. Shares were also lowered at Deutsche Bank to Sell from Buy as it believes the company may not be able to raise ticket prices enough to offset higher fuel costs.

OTHER DOWNGRADES:

• ArthroCare (NASDAQ: ARTC) was cut to Accumulate from Buy at ThinkPanmure.
  
• ING downgraded J Sainsbury (Other OTC: JSAIY) to Sell from Hold.
  
• RBC Capital downgraded Ceragon Networks (NASDAQ: CRNT) to Sector Perform from outperform.

MOST NOTEWORTHY: First Financial, TriZetto and General Electric were today's noteworthy downgrades:

• Keefe Bruyette downgraded shares of First Financial (NASDAQ: FFBC) to Underperform from Market Perform on valuation, as they believe the stock trades at a premium to the group despite limited upside to normalized earnings and near term revenue headwinds.
  
• TriZetto (NASDAQ:TZIX) was cut at Jefferies to Hold from Buy based on Friday's go-private announcement, as they view the $22 deal price as fair.
  
• General Electric (NYSE: GE) was downgraded to Peer Perform from Outperform at Bear Stearns and to Perform from Outperform at Oppenheimer following the company's earnings miss and reduced guidance.

OTHER DOWNGRADES:

• Deustche Bank downgraded SPX Corp (NYSE: SPW) to Hold from Buy.
  
• Morgan Stanley cut British Airways (OTC:BAIRY) to Underweight from Equal Weight.
  
• Cymer (NASDAQ: CYMI) was lowered at Credit Suisse to Underperform from Neutral.

MAJOR PAPERS:

• In an effort to increase sales in the Middle East, the Wall Street Journal reported that Dell Inc (NASDAQ: DELL) is in talks with a government-owned vehicle in Dubai called Tecom about establishing a joint venture.
• The Wall Street Journal also reported that Washington Mutual Incorporated (NYSE: WM), which obtained a $7B capital infusion from TPG and other investors, had reportedly been working on the TPG deal while negotiating with JP Morgan Chase & Co (NYSE: JPM), which made a preliminary takeover bid of about $7B, people familiar with the deal said.
• Citigroup Incorporated (NYSE: C) is close to reaching a deal to sell $12B in leveraged loans at a discount to a group of leading private equity firms, the Financial Times reported. Although details of the deal were still being worked out, inside sources said Apollo Management, The Blackstone Group LP (NYSE: BX) and TPG would buy the loan portfolio at a discount that could come in at about 90 cents on the dollar.

OTHER PAPERS:

• The UK Times reported that The Boeing Company (NYSE: BA) is today expected to announce that its 787 Dreamliner has been delayed by 18 months, a setback which will affect all airlines that have ordered the 787, including British Airways Plc (OTC: BAIRY) and Virgin Atlantic.

MOST NOTEWORTHY: British Airways, ADC Telecomm and Qwest were today's noteworthy upgrades:

• Goldman upgraded shares of British Airways (OTC: BAIRY) to Buy from Neutral on valuation, and believes the company is the "jewel in the crown" in European aviation.
  
• Morgan Keegan expects ADC Telecomm (NASDAQ: ADCT) to benefit from carrier upgrade activity and views expectations as conservative. The firm raised shares to Outperform from Market Perform.
  
• Qwest (NYSE: Q) was raised to Buy from Hold at Soleil on valuation and yield support.

OTHER UPGRADES:

• VistaCare (NASDAQ: VSTA) was upgraded to Hold from Sell at Deutsche Bank.
  
• Banc of America raised Boston Scientific (NYSE: BSX) to Buy from Neutral.
• Lehman upgraded Kindred Healthcare (NYSE: KND) to Overweight from Equal Weight.

MOST NOTEWORTHY: UBS AG, Cepheid and ICT Group were today's noteworthy upgrades:

• Credit Suisse upgraded shares of UBS AG (NYSE: UBS) to Outperform from Neutral on valuation, as they believe the current share price implies a negative valuation of the company's securities unit.
• Piper upgraded shares of Cepheid (NASDAQ: CPHD) to Buy from Neutral to reflect the better-than-expected quarter to date GeneXpert placements and management's bullish outlook during their Annual Health Care Conference.
• ICT Group (NASDAQ: ICTG) was upgraded to Market Perform from Underperform at Friedman Billings following the company's reiteration of guidance last night. The firm believes shares are near a floor and that the company could be an attractive takeout candidate once business stabilizes.

OTHER UPGRADES:

• Deutsche Bank upgraded British Airways (OTC: BAIRY) to Buy from Hold.
• Lehman upgraded the packaging sector to Positive from Neutral and upgraded AptarGroup (NYSE: ATR) to Equal Weight from Underweight.
• JP Morgan upgraded Potash Corp. (NYSE: POT) to Overweight from Neutral.

MOST NOTEWORTHY: Brokers and asset managers, Credit Suisse, Barclays and HBOS PLC were today's noteworthy downgrades:

• Lehman downgraded the brokers and asset managers sector to Neutral from Positive and Merrill Lynch (NYSE: MER) and Bear Stearns (NYSE: BSC) to Equal Weight from Overweight. The firm cited weakness in the credit markets for the Bear Stearns downgrade and potential further write downs at Merrill Lynch for its downgrade.
  
• Bear Stearns downgraded shares of Credit Suisse (NYSE: CS) to Peer Perform from Outperform as they see risks to 2008 estimates from an expected decline in investment-banking revenue.
  
• Barclays (NYSE: BCS) was downgraded to Underweight from Neutral and HBOS PLC (OTC: HBOOY) was downgraded to Underweight from Overweight at HSBC to reflect the potential for higher write downs on debt securities and slower revenue growth.

OTHER DOWNGRADES:

• British Airways (OTC: BAIRY) was downgraded to Sell from Hold at ABN Amro.
  
• Merrill downgraded British Sky Broadcasting (NYSE: BSY) to Neutral from Buy.
  
• Merriman downgraded Zoran (NASDAQ: ZRAN) to Neutral from Buy.
  
• Deutsche Bank downgraded Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) to Hold from Buy.

MAJOR PAPERS:

• In a potential breakthrough for Google (NASDAQ: GOOG) , Verizon Communications (NYSE: VZ) and Vodaphone Group's (NYSE: VOD) Verizon Wireless, and Sprint Nextel Corporation (NYSE: S) are both in talks about Google's new mobile phone operating system, reported the Wall Street Journal (subscription required).
• Congress approved a seven year extension of ban on Internet tax, voting 402-0, and President Bush is expected to sign the bill, according to the Wall Street Journal.
• Stan O'Neal may be gone, but the SEC's enforcement staff is now looking at how Merrill Lynch (NYSE: MER) informed investors about its $8.4B write-down that forced O'Neal out, reported the Wall Street Journal.
• CLP Holdings (OTC: CLPHY), Hong Kong's largest power company, is planning to bid for electricity assets in Australia, India, Singapore and other countries in Southeast Asia, reported the Financial Times (subscription required).

OTHER PAPERS:

• The Star reported that life insurance company Manulife Financial Corporation (NYSE: MFC) is open to making acquisitions in Malaysia if suitable opportunities in the country arise, according to Manulife's senior executive vice-president and general manager for Asia, Robert A. Cook.
• The U.K. Times reported that British Airways' (OTC: BAIRY) plans to create a new airline offering flights between Europe and New York have been thrown into disarray after the Federal Aviation Administration threatened to block any increase of air traffic into New York's chronically congested JFK Airport.

British Airways (OTC: BAIRY) ordered $8.2 billion worth of new airplanes including 24 Boeing (NYSE: BA) 787 Dreamliners and eight Airbus super-jumbo A380s. As Reuters points out, it ends the airline's exclusive use of the 747 as its large passenger plane. The aircrafts will be delivered between 2010 and 2014.

British Airways said that there was no political pressure to buy from Airbus, which has complained to the WTO that Boeing gets money from the US government to underwrite its development. The claim is that this help comes in the form of military contracts.

So, is this a win or loss for Boeing?

The news is probably bad for the U.S. company. It lost its exclusive 747 franchise with British Airways, one of the world's largest carriers. Although Boeing got a large order for its Dreamliner, the British Airways move gives the Airbus super-jumbo A380 new life. Development of the plane has been repeatedly delayed giving Boeing the chance to market the new stretch version of the 747.

There may never been an answer to the question of whether there's pressure on European airlines to buy from the "local" Airbus. But, the perception will linger that the EU members may be willing to help one of their own.

Douglas A McIntyre is a partner at 24/7 Wall St.

MOST NOTEWORTHY: British Airways (BAIRY), Symantec (SYMC), OfficeMax (OMX), Qwest (Q) and Metlife (MET) were today's noteworthy upgrades:

• ABN Amro upgraded British Airways (OTC: BAIRY) to Hold from Sell on valuation.

• Friedman Billings believes Symantec's (NASDAQ: SYMC) fundamentals are about to show significant improvement over the next year and upgraded shares to Outperform from Market Perform.

• JP Morgan raised OfficeMax (NYSE: OMX) shares to Overweight from Neutral on valuation.

• Qwest (NYSE: Q) was upgraded to Sector Outperformer from Sector Performer, expecting revenue growth to be driven by the improving enterprise business. JP Morgan added Qwest to its Focus List.
  

• Metlife (NYSE: MET) was upgraded to Buy from Neutral at Merrill, based on valuation...
  

OTHER UPGRADES:

• ValueClick (NASDAQ: VCLK) was upgraded to Sector Perform from Underperform at Pacific Crest.

• Penn West (NYSE: PWE) was upgraded to Sector Perform from Underperform at RBC Capital.

• Friedman Billings upgraded Cubic (AMEX: CUB) to Market Perform from Underperform.

• Morgan Stanley upgraded shares of Jones Apparel (NYSE: JNY) to Equal Weight from Underweight.

• Broadcom (NASDAQ: BRCM) was raised to Sector Outperformer from Sector Performer at CIBC.

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

MAJOR PAPERS:

• Bear Stearns Companies Inc (NYSE: BSC), already forced to shut two hedge funds that bet heavily on the risky subprime-mortgage market, is now facing big losses in a third fund that has roughly $900 million in mortgage investments, according to people familiar with the matter, reported the Wall Street Journal (subscription required).
• Three months after announcing that it may sell itself to Morgan Stanley (NYSE: MS), Crescent Real Estate Equities Company (NYSE: CEI) is expected to move ahead with the $2.9B sale for its exit from the public market, reported the Wall Street Journal.

OTHER PAPERS:

• According to people familiar with the matter, Dow Chemical Company (NYSE: DOW), the largest chemicals group in the U.S., is considering making a counter-bid for ICI, which has a GBP7.8B bid from Akzo Nobel (NASDAQ: AKZOY), reported the Telegraph.
• The Telegraph reported that British Airways (OTC: BAIRY) has agreed to pay a fine of GBP121.5M to the U.K.'s Office of Fair Trading and will also pay a fine to the U.S. Department of Justice because of its involvement in an alleged price-fixing scandal.

WEBSITES:

• Home Depot Inc (NYSE: HD) has fired four purchasing managers for their involvement in a purchasing scandal involving millions of dollars in kickbacks regarding the display of flooring products, reported CBS News.