Analyst upgrades:

• Citigroup upgraded Research in Motion (NASDAQ: RIMM) to Buy from Hold and added the stock to its Top Picks Live List. The firm believes RIMM's outlook is more secure given its unit growth trajectory and stabilizing margins. Citi raised its target on the stock to $100 from $65.
  
• Morgan Stanley upgraded Microsoft (NASDAQ: MSFT) to Overweight from Equal Weight following the company's Q3 results it believes growth is accelerating and expectations are low. The firm raised its target on the stock to $24 from $21.
  
• Deutsche Bank upgraded Huron (NYSE: HURN) to Buy from Hold as it believes bad news is already priced in and FY09 expectations are achievable. The firm keeps a $46 target on the stock.
• Credit Suisse (NYSE: CS) was upgraded to Neutral from Sell at UBS.
  
• Quicksilver (NYSE: KWK) was raised to Buy from Neutral at Banc of America/Merrill.
  
• EIG Resources (NYSE: EOG) was lifted at Goldman to Conviction Buy from Neutral.

MOST NOTEWORTHY: Energy companies, Regulated and Diversified Utilities and Tailsman Energy were today's noteworthy upgrades:

• Bernstein raised its 2008 oil forecast to $92.30/bbl, up 27%, and 2008 natural gas forecast to $8.30/mcf, up 7%. By 2012, the firm expects oil prices to be around $86/bbl and for gas to be $9.2/mcf. The firm upgraded Apache Corp (NYSE: APA) and XTO Energy (NYSE: XTO) to Outperform from Market Perform and EnCana (NYSE: ECA) to Market Perform from Underperform.
  
• Goldman upgraded the Regulated and Diversified Utilities sub-sectors to Attractive from Neutral citing expected economic weakness, positive commodity exposure, and earnings growth. The firm upgraded American Electric Power (NYSE: AEP) to Buy from Neutral.
  
• Citigroup upgraded shares of Tailsman Energy (NYSE: TLM) to Buy from Hold ahead of the company's annual meeting as they believe it will announce a new strategy of low risk resource development on existing acreage and that shares will react positively.

OTHER UPGRADES:

• UBS raised Watson Wyatt (NYSE: WW) to Buy from Neutral.
  
• Jefferies upgraded Clear Channel Outdoors (NYSE: CCO) to Buy from Hold.
  
• Bear upgraded Telecom Italia (NYSE: TI) to Peer Perform from Underperform.

As it looks forward to the shareholder vote on the tumultuous $19.5 billion, $39.20 a share takeover offer from Bain Capital Partners LLC and Thomas H. Lee Partners LP, Clear Channel Communications Inc. (NYSE: CCU) reported strong second-quarter earnings from its roadside billboard business. Overall revenue rose to $1.8 billion, up 5% from 2006, and net income climbed from $48 million to $68.6 million. Diluted EPS before discontinued operations was $.42, up from $.34 from 2006 but below the $.44 projected by analysts surveyed by Thompson.

Clear Channel Outdoor Holdings (NYSE: CCO), of which CCU owns 90%, continued to drive the corporate earnings with net income up 45% to $68 million and EPS of $.19 vs $.14. The radio segment, which CCO is in the process of selling off, was up only 1%.

The company's stock has followed the general market trend in the past few days, off $1.35 from its $38.20 month high, but on the rebound today.

MOST NOTEWORTHY: Shire Plc (SHPGY), Cablevision Systems Corp (CVC), Yahoo! (YHOO), Ensco International (ESV) and Clear Channel Outdoor Holdings (CCO) were today's noteworthy downgrades:

• JP Morgan downgraded shares of Shire Plc (NASDAQ: SHPGY) to Neutral from Overweight to reflect risk of Adderall XR patients switching to Vyvanse.

• Deutsche Bank cut Cablevision (NYSE: CVC) to Hold from Buy, saying shares reflect a likely higher bid from the Dolan family.

• ThinkEquity downgraded shares of Yahoo! (NASDAQ: YHOO) to Accumulate from Buy following checks that indicate marginal Panama upside, poor execution in premium display and an incomplete/vulnerable non-premium display strategy.

• Credit Suisse cut Ensco International (NYSE: ESV) to Underperform from Neutral on valuation.

• SMH Capital downgraded Clear Channel Outdoors (NYSE: CCO) to Sell from Neutral and recommended investors to swap into Lamar Advertising Co (NASDAQ: LAMR), based on the company's higher-quality name in the outdoor advertising sub-space...

OTHER DOWNGRADES:

• Baidu.com (NASDAQ: BIDU) was cut to Hold from Buy at Citigroup.

• Brinker International (NYSE: EAT) was downgraded to Underweight from Equal Weight at Morgan Stanley.

• Hilliard Lyons downgraded Nike Inc (NYSE: NKE) to Neutral from Long-Term Buy.

• Buckingham cut Ashland Inc (NYSE: ASH) and Cabot Corp (NYSE: CBT) to Neutral from Accumulate.

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

MOST NOTEWORTHY: Dominion Resources (D), Digene (DIGE) and Deutsche Bank (DB) were today's noteworthy downgrades:

• BMO Capital downgraded shares of Dominion Resources Inc. (NYSE: D) to Market Perform from Outperform citing the sale proceeds for its onshore U.S. E&P properties that were below expectations.
• Digene Corp. (NASDAQ: DIGE) was downgraded to Sell from Neutral at Ferris Baker Watts based on the acquisition by Qiagen (NASDAQ: QGEN). Digene was also downgraded at SummerStreet to Neutral from Buy, as the firm views the Qiagen's acquisition for $1.6B as reasonable.
• Deutsche Bank (NYSE: DB) was downgraded to Underweight from Neutral at JP Morgan, as the firm sees better value in traditional credit-exposed banks.

OTHER DOWNGRADES:

• Norsk Hydro (NYSE: NHY) and BP PLC (NYSE: BP) were downgraded to Hold from Buy at Citigroup.
• Quiksilver Inc. (NYSE: ZQK) was downgraded to Neutral from Outperform at Robert W Baird due to valuation.
  
• Banc of America downgraded shares of SunTrust Banks Inc. (NYSE: STI) to Neutral from Buy on valuation as they believe further sales of Coke may not be very accretive to EPS.
• LifePoint Hospitals Inc. (NASDAQ: LPNT) was downgraded to Hold from Buy at Jefferies based on valuation.
• Clear Channel Outdoors Holdings Inc. (NYSE: CCO) was downgraded to Hold from Buy at DBAB on valuation.
• Matrix USA downgraded shares of Apollo Group Inc. (NASDAQ: APOL) to Hold from Buy to reflect rising costs and lower enrollment rates.
• Matrix also downgraded True Religion Apparel Inc. (NASDAQ: TRLG) to Hold from Buy on valuation.

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

Today, Clear Channel Communications (NYSE: CCU) reported its Q1 results. Revenues increased from $1.49 billion to $1.61 billion, while net income rose from $96.8 million or $0.19 per share to $102.2 million, or $0.21 per share.

But the stock barely moved. Then again, Clear Channel is in the process of a leveraged buyout and the deal is looking iffy.

Recently, Clear Channel's private equity buyers -- Bain Capital Partners and Thomas H. Lee Partners -- upped their bid from $37.60 to $39. But it may not be enough to satisfy major investors like Fidelity Investments and Highfields Capital Management.

Looking at the five-year stock chart of Clear Channel is depressing. The stock price is off about a third. The largest radio operator can't seem to find growth opportunities, and then there are the threats from Internet radio, Apple (NASDAQ: AAPL) iPods, satellite radios, and other digital alternatives.

So if things are so bleak, why would Bain and Thomas H. Lee want to buy the company? Aren't these folks smart and have a history of posting strong returns?

I think the answer is fairly obvious. These investors see a value play.

On tonight's MAD MONEY show on CNBC Jim Cramer was comparing new, and old, media stocks. While his first pick was Daktronics, Inc. (NASDAQ:DAKT), with its focus on digital advertising, his second pick was decidedly old media. Cramer mentioned that the companies buying the billboards are a good "play." In that market, Cramer thinks Lamar Advertising Company (NASDAQ:LAMR) is a winner. Could it be? Yep, the "A" word... he thinks it could even be an acquisition target. There is a new rating system for outdoor advertising, and the company doesn't even have 1% of its billboards as digital.

LAMR is up almost 2% in after-hours trading at $64.43. It closed up 0.5% at $63.30 in regular trading and has a $44.99 to $63.36 trading range over the last 52-weeks. So it is at a new high and the only time it was ever this high was back at the 1999-2000 turn when the ad economy was on fire. It has a $6.4 billion market cap and he thinks a management buyout or private equity offer could provide a floor for the stock.

He thinks this is more acquirable than Clear Channel Outdoor Holdings, Inc. (NYSE:CCO).

[Photo CodyR]