Analyst upgrades:

• Deutsche Bank upgraded Freeport McMoRan (NYSE: FCX) to Buy from Hold to reflect the company's better than expected Q3 results and improved volume outlook. Deutsche raised its target on shares to $100 from $72.
• Thomas Weisel upgraded Motorola (NYSE: MOT) to Overweight from Market Weight and raised its target to $11 from $7 and said they expect Motorola to benefit from several upcoming catalysts that include new Android-based smartphone products and they believe the handset division could break even by year end of 2010.
• Janney Montgomery upgraded Regal Entertainment (NYSE: RGC) and Cinemark (NYSE: CNK) to Buy from Neutral on expectations both companies will benefit from a strong box office in Q4. The firm has a $14 price target on Regal shares and a $13.50 target on Cinemark shares.
• Marshall & llsley (NYSE: MI) was upgraded to Neutral from Underweight at JPMorgan.
• F5 Networks (NASDAQ: FFIV) was upgraded to Neutral from Sell at UBS.
• William Blair upgraded Lindsay Corporation (NYSE: LNN) to Outperform from Market Perform.

Cinemark Holdings (NYSE: CNK), a leading owner of movie theaters, is a recent buy candidate from Leo Fasciocco, whose Ticker Tape Digest seeks stocks poised for technical breakouts.

"CNK an excellent intermediate-term play due to the strong profit outlook. The stock came public in 2007 at $20. It fell during the bear market. The stock formed a bottom, rallied and is now in position to breakout to the upside.

"With annual revenues of $1.8 billion, Cinemark is the third-largest motion picture exhibitor in the United States, operating 4,568 screens in 37 states and 12 Latin American countries.

Analyst upgrades:

• Goldman upgraded BT Group (NYSE: BT) to Buy from Neutral on valuation and improved earnings visibility.
  
• Soleil upgraded shares of Jo Ann Stores (NYSE: JAS) to Buy from Hold following the company's Q2 upside surprise to reflect strong fundamentals and market share gains. The firm raised Jo Ann's target to $30 from $25.
  
• Amylin Pharma (NASDAQ: AMLN) was upgraded to Buy from Neutral at Merrill Lynch.
  
• Energen (NYSE: EGN) was upgraded to Buy from Neutral at UBS.

Analyst downgrades:

• Roth Capital downgraded shares of Warner Chilcott (NASDAQ: WCRX) to Hold from Buy pending patent clarity for the company's lead drug, Loestrin 24 for birth control. The firm lowered their target to $18 from $20.
• JP Morgan cut China Mobile (NYSE: CHL) to Underweight from Overweight as they believe increased competition may limit earnings growth.
  
• Cantor downgraded shares of Cell Genesys (NASDAQ: CEGE) to Hold from Buy following the termination of the VITAL-2 Phase III clinical trial. The firm also lowered their target to $2 from $10.
• Coca-Cola (NYSE: KO) was lowered to Neutral from Outperform at Credit Suisse.
  
• Gilead Sciences (NASDAQ: GILD) was downgraded to Equal Weight from Overweight at Lehman.
  
• Cinemark (NYSE: CNK) was downgraded at BMO Capital to Market Perform from Outperform.

MOST NOTEWORTHY: Citrix Systems, Acadia Pharmaceuticals and Toreador Resources were today's noteworthy downgrades:

• Friedman Billings downgraded Citrix Systems (NASDAQ: CTXS) to Market Perform from Outperform citing the departure of key executive John Burris, head of CTXS's sales and services organization. The firm lowered the target to $37 from $43.
  
• Banc of America cut Acadia Pharmaceuticals (NASDAQ: ACAD) to Sell from Buy following news the company's Phase IIb trial with ACP-104 for the treatment of schizophrenia did not meet its primary endpoint.
  
• Jefferies downgraded shares of Toreador Resources (NASDAQ: TRGL) to Underperform from Hold as they believe the breakdown in negotiations to sell a portion of the company's Black Sea interests raises concerns over financing and development efforts.

OTHER DOWNGRADES:

• Calgon Carbon (NYSE: CCC) was downgraded to Sell from Hold at Morgan Joseph.
  
• Deutsche Bank downgraded W-H Energy Services (NYSE: WHQ) to Hold from Buy.
  
• Cinemark (NYSE: CNK) and WPP Group (NASDAQ: WPPGY) were downgraded to Equal Weight from Overweight at Morgan Stanley.

MOST NOTEWORTHY: AVX Corp (AVX), Vishay Intertechnology Inc (VSH), Buffalo Wild Wings (BWLD) and three car-rental companies were today's noteworthy downgrades:

• American Technology downgraded both AVX Corp (NYSE: AVX) and Vishay Intertechnology Inc (NYSE: VSH) to Sell from Buy after channel checks suggested weaker than expected demand for the June quarter from Europe, EMS, and distribution.

• Sanders Morris believes investors should take profits in Buffalo Wild Wings Inc (NASDAQ: BWLD), cutting shares to Sell from Buy, and sees limited catalysts on the horizon that could drive shares higher.

• Morgan Stanley downgraded car rental companies Avis Budget Group (NYSE: CAR), Dollar Thrifty Automotive (NYSE: DTG) and Hertz Global Holdings (NYSE: HTZ) to Underweight from Equal-Weight to reflect weak Q2 rental prices.

OTHER DOWNGRADES:

• Lehman downgraded Amgen Inc(NASDAQ: AMGN) to EqualWeight from Overweight.

• Caris cut Limited Inc (NYSE: LTD) to Below Average from Average.

• Goldman downgraded Nvidia Corp (NASDAQ: NVDA) to Neutral from Buy.

• Soleil downgraded Cinemark Holdings Inc (NYSE: CNK) to Hold from Buy.

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

MOST NOTEWORTHY: The auto parts retail sector, Electronics Arts (ERTS), Cinemark Holdings (CNK) and Monster Worldwide (MNST) were today's more noteworthy initiations:

• Wachovia initiated coverage on AutoZone (NYSE: AZO), Advance Auto Parts (NYSE: AAP) and O'Reilly Automotive (NASDAQ: ORLY) with Outperform ratings. The firm sees upside for AutoZone from share buybacks, Advance Auto Parts from improved cost control and margins, and O'Reilly Automotive from share gains and fundamental performance.

• First Albany started Electronic Arts (NASDAQ: ERTS) with a Buy rating and sees significant upside in the first-half of 2008.

• BMO Capital started Cinemark (NYSE: CNK) with an Outperform rating, citing Cinemark's internal growth opportunities as well as its international opportunities in Latin America.

• American Tech started Monster Worldwide (NASDAQ: MNST) with a Neutral rating, saying fundamentals and the macro backdrop remain uncertain...

OTHER INITIATIONS:

• Bernstein initiated coverage on Google (NASDAQ: GOOG) and eBay (NASDAQ: EBAY) with Outperform ratings and a $635 target and $39 target, respectively, and Amazon.com (NASDAQ: AMZN), InterActive Corp (NASDAQ: IACI) and Yahoo! (NASDAQ: YHOO) with Market Perform ratings and a $65 target, $38 target and $29 target, respectively.

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

MOST NOTEWORTHY: Select theater stocks, Equity Inns (ENN), Talbots (TLB) and Starbucks (SBUX) filled today's noteworthy downgrade segment:

• Banc of America said summer blockbusters have fallen off faster than they expected and there are fewer mid-tier films to support growth:

• The firm downgraded Carmike Cinemas (NASDAQ: CKEC), Cinemark Holdings (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC) to Neutral from Buy.

• Equity Inns (NYSE: ENN) was cut to Sell from Hold at AG Edwards after the Whitehall acquisition. JMP Securities and Friedman Billings cut shares to Market Perform from Outperform and KeyBanc downgraded Equity Inns to Hold from Buy.

• Matrix USA downgraded Talbots (NYSE: TLB) to Sell from Hold based on the eroding return of capital because of the company using capital to acquire and open new stores. Friedman Billings downgraded shares of

• Starbucks (NASDAQ: SBUX) to Market Perform from Outperform and removed the company from their FBR Top Picks list on expectations that 2H07 same-store sales will no longer improve, removing a catalyst...

OTHER DOWNGRADES:

• Fairchild Semiconductor (NYSE: FCS) was cut to Market Perform from Outperform at Piper.

• Abercrombie & Fitch (NYSE: ANF) was downgraded to Equal Weight from Overweight at Lehman.

• UBS downgraded Big 5 Sporting Goods Corp (NASDAQ: BGFV) to Neutral from Buy.

• Banc of America downgraded Cognos (NASDAQ: COGN) to Neutral from Buy.

• Roth downgraded Fuel Tech Inc (NASDAQ: FTEK) to Hold from Buy.

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

MOST NOTEWORTHY: Leap Wireless (LEAP), Cergaon Networks (CRNT), Cinemark (CNK), Regal Entertainment (RGC) and Ocean Power Tech (OPTT) were today's noteworthy initiations:

• Leap Wireless International Inc. (NASDAQ: LEAP) was initiated with an Outperform rating and $103 target at Pacific Crest, as the firm believes the company's long-term opportunity with new-market expansion is underappreciated.
• Pacific Crest also initiated shares of Ceragon Networks Ltd. (NASDAQ: CRNT) with an Outperform rating and $12 target, as the firm believes accelerating wireless data growth is driving backhaul demand.
• Cinemark Holdings Inc. (NYSE: CNK) was initiated with an Overweight rating at Morgan Stanley, a Buy rating and $21 target at Banc of America and a Buy rating at Merrill Lynch; Banc of America believes the current box office strength could drive upside to estimates.
• Morgan Stanley also initiated shares of Regal Entertainment Group (NYSE: RGC) with an Equal Weight rating.
• Ocean Power Technologies Inc. (NASDAQ: OPTT) was initiated with a Buy rating and $24 target at Banc of America and a Neutral rating at First Albany.

OTHER INITIATIONS:

• Telanetix Inc. (NASDAQ: TNXI) was initiated with a Buy rating and $8.50 target at Kaufman Bros, as the firm believes the company's market opportunity is significant and thinks it could be an interesting acquisition target if the telepresence market development accelerates.
• Banc of America initiated shares of OceanFreight Inc. (NASDAQ: OCNF) with a Buy rating and $23 target.
• Goldman Sachs initiated shares of Kinder Morgan Energy Partners (NYSE: KMP) with a Neutral rating and $54 target and shares of Kinder Morgan Management (NYSE: KMR) with a Neutral rating and $53 target.
• Deutsche Bank initiated shares of Guess Inc. (NYSE: GES) with a Buy rating and $49 target.

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

Shrek 3 and Spider-Man 3 are coming to a movie theater near you, just as the sector is coming out of an ugly downturn.

Overcapacity and over-leverage had led to an ogre-ish performance causing theater operators to file for bankruptcy or get picked up by private equity.

Now theater companies are going public or emerging from bankruptcy with little fanfare. However, according to Buzz Zaino, long-time great stock picker at Royce Opportunity Fund, it is time to start looking at these stocks again. In Barron's fund-manager interview (subscription required), Zaino said box-office receipts are up 7.2% year-to-date with a summer of good new releases expected to keep the momentum going.

Carmike Cinemas Inc (NASDAQ: CKEC) looks particularly attractive since it has upgraded 75% of its screens to digital, on which, in addition to showing movies, new alternative concepts are expected to generate additional revenue. Other movie chains Zaino likes are Regal Entertainment Group (NYSE: RGC) and Cinemark Holdings Inc (NYSE: CNK).

Expected improvements in box-office receipts should lead to nice incremental EBITDA margins especially for Carmike since its theater upgrade is mostly completed.

Few have mentioned theater stocks as a place to invest in. Zaino is one of the best at find long-forgotten industries as fundamentals are on the upswing. This ogre of an industry appears ready to return some princely profits to shareholder.

I was surprised when I first learned that AMC Entertaiment, which operates movie theaters, was planning to raise up $790 million in an initial public offering. After Cinemark Holdings' (NYSE: CNK) disappointing IPO last week, AMC's bid for money may get even tougher. Regal Entertainment Group (NYSE: RGC), one of the leaders in the industry, has been flat for several years

With competition from other forms of entertainment like video games, television (OnDemand), and the Internet, there appears to be little room for strong growth in movie theaters. And with services like Coinstar (NASDAQ: CSTR) RedBox and Netflix (NASDAQ: NFLX) making movie rentals an even better value compared to theaters, the studios will have to put out top-notch movies with a lot of buzz to lure people out of their living rooms.

But then again, I might just be a tightwad. The last movie I saw in the theater was Empire Strikes Back.