Analyst Upgrades

• Intel (INTC) was upgraded to buy from neutral at UBS.
• Wells Fargo upgraded MetroPCS (PCS), Coventry Health (CVH) and Scientific Games (SGMS) to outperform from market perform.
• Estee Lauder (EL) was upgraded to overweight from equal weight at Barclays.
• Simon Property (SPG) was upgraded to buy from hold at Jefferies.
• Citigroup upgraded BreitBurn Energy (BBEP) to buy from hold.

Analyst Upgrades

• JPMorgan upgraded Coca-Cola (KO) to overweight from neutral due to valuation and expectations that developed market volume should improve. The firm raised its target price for shares to $66.
• BB&T upgraded Nordson (NDSN) to buy from hold and has an $82 price target on the stock. The firm believes certain drivers of Nordson's Advanced Tech unit are becoming more secular vs. cyclical and that the company's EBIT margins can go higher.
• Credit Suisse upgraded Embraer (ERJ) to outperform from underperform, citing the positive announcements from the Famborough Air Show. The firm raised its price target to $37 from $21.
• Universal Health (UHS) was upgraded to outperform from sector perform at RBC Capital.
• Mead Johnson (MJN) was upgraded to conviction buy from buy at Goldman.
• Coventry Health (CVH) was upgraded to outperform from market perform at Leerink.

Coventry Health Care (CVH - option chain) shares are rising Tuesday after the company reported a fourth-quarter profit of $109.08 million, or 74 cents per share, on revenue of $3.42 billion. Analysts had forecast a profit of 56 cents per share on revenue of $3.49 billion. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on CVH.

CVH opened this morning at $23.81. So far today the stock has hit a low of $22.83 and a high of $23.99. As of 11:40, CVH is trading at $23.22 up 78 cents (3.5%). The chart for CVH looks bullish bullish and S&P gives CVH a positive 4 STARS (out of 5) buy ranking.

Analyst Upgrades

• FBR Capital upgraded New York Community Bancorp (NYB) to outperform from market perform following the FDIC-assisted acquisition of AmTrust. The firm raised its target price on shares to $16 from $11.
• Oppenheimer upgraded Brocade (BRCD) to outperform from perform to reflect valuation, low investor expectations, and the company's potential to gain market share in IP/Ethernet switching. The firm set a target price of $8.50 on shares.
• Stifel Nicolaus upgraded National Health Investors (NHI) to buy from hold following the announcement that the litigation vs. Care Foundation has been dismissed. The firm has a $37 target on the stock.
• American Express (AXP) was upgraded to neutral from underperform at BofA/Merrill.
• ACE Ltd. (ACE) was upgraded to buy from neutral at Goldman.
• Kohl's (KSS) was raised to outperform from neutral at Baird.

Analyst upgrades:

• Deutsche Bank upgraded Portland General Electric (NYSE: POR) to Buy from Hold on valuation as it finds the risk/reward on shares attractive at current levels. The firm raised its target price to $22 from $20.
  
• FBR Capital upgraded Abercrombie & Fitch (NYSE: ANF) to Outperform from Market Perform after channel checks indicated recent sales are driving increased traffic and easing market share losses. The firm raised its target price on shares to $37 from $21.
• Barclays upgraded Yahoo (NASDAQ: YHOO) to Overweight from Equal Weight as it believes the company is well positioned for a rebound in advertising and that the valuation is compelling at current levels. The firm raised its target on shares to $20 from $15.
• Kohl's (NYSE: KSS) was raised to Overweight from Market Weight at Thomas Weisel.
  
• U.S. Steel (NYSE: X) and CB Richard Ellis (NYSE: CBG) were upgraded at Goldman to Neutral from Sell.
  
• Dolby Laboratories (NYSE: DLB) was upgraded at JP Morgan to Overweight from Neutral.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Alcoa Inc. (NYSE: AA) kicked off the new season with a larger-than-expected loss due to the economic slump.
• Allscripts-Misys Healthcare Solutions (NASDAQ: MDRX) reported better-than-expected Q2 earnings.
• Apollo Group Inc. (NASDAQ: APOL) share price soared after its strong Q1 earnings and guidance.
• Apple Inc. (NASDAQ: AAPL) earnings prospects without CEO Steve Jobs led to an analyst's downgrade.
• Autodesk Inc. (NASDAQ: ADSK) lowered its guidance as business slows at an unprcedented rate.
• Bank of America Corp. (NYSE: BAC) reported terrible Q4 results and receivbed additional TARP money.
• Bunge Ltd. (NYSE: BG) lowered its 2008 earnings estimate due to soft soybean commodity markets.
• Citigroup Inc. (NYSE: C) posted a much bigger-than-expected loss and said it would split in two.
• Coventry Health Care Inc. (NYSE: CVH) offered full-year guidance that was less than analysts expectations.
• CSX Corp. (NYSE: CSX) forecast Q4 earnings would come in below analysts' expectations.
• CVS Caremark Corp. (NYSE: CVS) increased its quarterly dividend despite the recent lowered guidance.
• Deutsche Bank (NYSE: DB) reported a net loss for Q4 and the full year, dragging down the sector.
• Genentech Inc. (NASDAQ: DNA) revenue and earnings surged but were lower than analysts estimated.
• Intel Corp. (NASDAQ: INTC) Q4 results were in line with low expectations as the gross margin declined.
• JPMorgan Chase & Co. (NYSE: JPM) reported a huge drop in Q4 earnings but it stayed in the black.
• Lexmark International Inc. (NYSE: LXK) slashed its Q4 outlook and announced job cuts.
• Pentair Inc. (NYSE: PNR) efforts to limit an earnings decline led to a buy recommendation.
• Precision Cast Corp. (NYSE: PCP) earnings prospects following the recent rally led to an analyst's downgrade.

Coventry Health Care (NYSE: CVH - option chain) stock is falling today after the company forecast 2009 adjusted earnings of $2.00 per share, below analysts' estimates of $2.28 per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CVH.

This morning, CVH opened at $10.07. So far today the stock has hit a low of $10.78 and a high of $11.74. As of 12:10, CVH is trading at $11.36, down $0.68 (-5.7%). The chart for CVH looks neutral and S&P gives CVH a 3 STARS (out of 5) hold ranking.

For a bearish hedged play on this stock, I would consider an April bear-call credit spread above the $15 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in three months as long as CVH is below $15 at April expiration. Coventry would have to rise by more than 31% before we would start to lose money. Learn more about this type of trade here.

CVH hasn't been above $15 by more than a few cents since October and shown resistance around $14 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in CVH.

Analyst upgrades:

• Jefferies upgraded shares of Genentech (NYSE: DNA) to Buy from Hold and raised its target to $100 from $95 on increased likelihood of an acquisition after Roche (OTC: RHHBY) reaffirmed commitment to its $100/share offer.
  
• Baird expects Broadcom (NASDAQ: BRCM) to gain market share in 2009 in mobile phones, IPTVs, and digital TVs. Shares were upgraded to Outperform from Neutral.
  
• Keefe Bruyette upgraded shares of Torchmark (NYSE: TMK) to Outperform from Market Perform as they see limited earnings risk and an attractive risk/reward.
• Apple (NASDAQ: AAPL) was raised to Buy from Add at Calyon.
  
• Tellabs (NASDAQ: TLAB) was upgraded to Buy from Neutral at UBS and to Hold from Underperform at Jefferies.
  
• Goldman upgraded AK Steel (NYSE: AKS) to Neutral from Sell and Steel Dynamics (NASDAQ: STLD) to Buy from Neutral.

Analyst downgrades:

Analyst upgrades:

• Goldman upgraded shares of BP Plc (NYSE: BP) to Buy from Neutral on valuation as they believe the recent pullback provides an attractive entry point.
  
• VF Corp. (NYSE: VFC) was raised to Outperform from Neutral at Credit Suisse citing its acquisition platform and international growth. The company's target was increased to $100 from $88.
  
• Deutsche Bank upgraded shares of Tenet Healthcare (NYSE: THC) to Buy from Hold and increased its target to $8.50 from $7 to reflect increased confidence in the company's ability to beat expectations over the next 12 months and reduce its net debt.
• US Steel (NYSE: X) was raised to Sector Outperformer from Sector Performer at CIBC.
  
• United Technologies (NYSE: UTX) was upgraded at UBS to Buy from Neutral.

Analyst downgrades:

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• CarMax Inc. (NYSE: KMX) Q1 profits tumbled despite its aggressive expansion program.
• Chiquita Brands International Inc. (NYSE: CQB) warned it would miss earnings due to cost hikes.
• Circuit City Stores Inc. (NYSE: CC) Q1 loss widened as same-store sales dwindled.
• Commercial Metals Co. (NYSE: CMC) Q3 profits declined despite strong demand, but beat estimates.
• Coventry Healthcare Inc. (NYSE: CVH) lowered its Q2 and full-year outlooks after a disappointing April.
• FedEx Corp. (NYSE: FDX) missed estimates on higher fuel prices and offered lackluster guidance.
• Ford Motor Co. (NYSE: F) warned that 2008 full-year results would be worse than those of 2007.
• General Electric Co. (NYSE: GE) was downgraded by JP Morgan because of risk to earnings.
• J.M. Smucker Co. (NYSE: SJM) missed Q4 earnings expectations despite acquisitions-based growth.
• La-Z-Boy Inc. (NYSE: LZB) said it swung to a Q4 loss due to diminishing retail sales.
• Lehman Brothers Holdings Inc. (NYSE: LEH) CEO expressed his disappointment in the Q2 results.
• Merrill Lynch & Co. (NYSE: MER) profit warnings and write-downs hit the rumor mill.
• Morgan Stanley (NYSE: MS) beat low expectations despite a hefty decline in Q2 profits (see transcript).
• Pier 1 Imports Inc. (NYSE: PIR) narrowed its Q1 loss but still fell short of expectations.
• Winnebago Industries Inc. (NYSE: WGO) posted dismal Q3 results but still beat low expectations.

More earnings highlights from this week: Goldman Sachs, Best Buy, General Mills, Carnival and others

Cigna (NYSE: CI) shares are falling today after competitor Coventry Health Care (NYSE: CVH) lowered its fiscal 2008 earnings forecast to a range between $3.65 and $3.75 for the year, well below the $4.43 per share expected by analysts. Investors are really punishing CVH today and the stock is down 22% currently. Cigna is getting caught in the crossfire as investors worry that similar stocks may also disappoint come earnings time. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CI.

After hitting a one-year high of $56.98 in January, the stock hit a one-year low of $36.75 in March. This morning, CI opened at $38.24. So far today the stock has hit a low of $36.28 and a high of $38.34. As of 12:15, CI is trading at $36.86, down 2.84 (-7.1%). The chart for CI looked neutral and improving until today's drop, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

For a bearish hedged play on this stock, I would consider an October bear-call credit spread above the $45 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 9.9% return in four months as long as CI is below $45 at October expiration. Cigna would have to rise by more than 19% before we would start to lose money.

CI hasn't been above $45 since February and has shown resistance around $42 recently. This trade could be risky if legislation that hurts health insurance companies fails to make it through the government, but even if that happens, this position could be protected by resistance CI might find at its 50-day moving average, which is currently around $42 and falling.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in CI, CVH, or AET.

MOST NOTEWORTHY: UBS AG, Coventry Health, Express Scripts and Medco Health were today's noteworthy downgrades:

• Credit Suisse downgraded shares of UBS (NYSE:UBS) to Neutral from Outperform as they believe UBS will have difficulty rebuilding the franchise and do not expect a quick recovery for its private bank unit.
  
• Wachovia downgraded Coventry Health (NYSE:CVH) to Market Perform from Outperform citing concerns regarding visibility around higher than expected inpatient/outpatient costs following reduced 2008 guidance.
  
• UBS downgraded Express Scripts (NASDAQ:ESRX) and Medco Health to Neutral from Buy citing the Pfizer (NYSE:PFE)/Ranbaxy settlement, which reduces the likelihood of a generic Lipitor launch in 2010.

OTHER DOWNGRADES:

• Goldman downgraded ENI SpA (NYSE:E) to Neutral from Buy and removed the stock from the Pan-Europe Conviction Buy List.
  
• Huntsman (NYSE:HUN) was downgraded to Underperform from hold at Jefferies.
  
• Commercial Metals (NYSE:CMC) was cut at Citigroup to Hold from Buy.

Coventry Health (NYSE: CVH) is recently trading at $32.10 in pre-open trading, below its close of $40.

CVH lowered EPS guidance because of a delayed recognition of higher medical costs.

Stifel Nicolaus says: "Maintain Hold rating as the managed care industry continues a period of transition prior to the 2008 election.

CVH July option implied volatility of 35 is near its 26-week average according to Track Data, suggesting non-directional price movement.

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

Before the bell: Futures mixed after selloff

Coventry Health (NYSE: CVH) shares were down nearly 17% in after-hours trading Wednesday after the managed-care provider lowered estimates for second-quarter and full-year earnings due to disappointing April and May results. Wachovia downgraded CVH to Market Perform from Outperform. Other healthcare stocks felt the pressure and were down in after-hours or premarket trading: UnitedHealth (NYSE: UNH) -7%, Aetna (NYSE: AET) -9.9%, WellPoint (NYSE: WLP) -6%, Humana (NYSE: HUM) -5% and Cigna (NYSE: CI) -5%.

Evergreen Solar (NASDAQ:ESLR) is up almost 10% ahead of its analyst meeting.

Huntsman (NYSE:HUN) is down over 30% after Apollo pulled out of a deal to buy the company.

Coventry Health (NYSE:CVH) is down almost 17% after cutting its forecasts.

United Healthcare (NYSE:UNH) is down over 7% on the Coventry news.

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

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