Analyst Upgrades

• Soleil upgraded Baxter (BAX) to buy from hold on expectations the company will benefit from supply disruptions at privately-held plasma manufacturer Octapharma. The firm raised its price target for shares to $56 from $45.
• Deutsche Bank upgraded Dolby (DLB) to buy from hold, citing valuation following the recent underperformance of shares. The firm upped its price target to $75 from $70.
• Bernstein upgraded Alexion (ALXN) to outperform from market perform based on increased Soliris forecasts for PNH and potential in aHUS. The firm also raised its price target to $75 from $60.
• Agrium (AGU) was upgraded to buy from neutral at BofA/Merrill.
• Roche (RHHBY) was upgraded to conviction buy from neutral at Goldman.
• BMO Capital upgraded Energizer (ENR) to outperform from market perform.

MOST NOTEWORTHY: Winn-Dixie Stores (WINN), TIB Financial Corp (TIBB), Energy East Corp (EAS), Baidu.com, Inc (BIDU) and SINA Corp (SINA) were today's noteworthy upgrades:

• Friedman Billings upgraded shares of Winn-Dixie Stores (NASDAQ: WINN) to Outperform from Market Perform citing valuation, sustainable Q3 margins, and share gains from both Wal-Mart Stores (WMT) and Publix.

• Sandler raised TIB Financial Corp (NASDAQ: TIBB) off the ground, to Hold from Sell, citing valuation.

• Jefferies upgraded shares of Energy East (NYSE: EAS) to Hold from Sell after Iberdrola agreed to acquire the company.

• Pacific Crest upgraded both Baidu.com (NASDAQ: BIDU) and SINA Corp (NASDAQ: SINA) to Outperform from Sector Perform following their trip to Asia, citing China's strong online ad market. They believe Baidu.com is benefiting from its sales-force integration and SINA Corp's brand strength should lead to further market-share gains...

OTHER UPGRADES:

• Lehman upgraded Celgene Corp (NASDAQ: CELG) and Genzyme Corp (NASDAQ: GENZ) to Overweight from Equal Weight.

• Matrix USA upgraded Jo-Ann Stores (NYSE: JAS) to Sell from Strong Sell.

• Dolby Laboratories (NYSE: DLB) was upgraded to Overweight from Neutral at JP Morgan.

• Wachovia raised U-Store-It Trust (NYSE: YSI) to Market Perform from Underperform.

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

On tonight's MAD MONEY show on CNBC, Jim Cramer had a new pick that is up and, he says, is heading higher. He was blown away by Dolby Laboratories, Inc. (NYSE:DLB) 45% recent climb. He said it is everywhere and in everything you hear. Cramer calls it "the Microsoft of the digital experience."

It closed at $28.95 tonight, up from $23 recently and up from a low of well under $20 over the last year. He thinks the past doesn't matter and this is going higher. The stock soared after its last earnings release, in which the company beat analyst estimates by $0.11 and management guided higher, but he doesn't think it soared enough. The new information they divulged signals to Cramer that the estimates are too low and need to go higher. The estimate is $0.83 to $0.92 projected for next year, but Cramer said he would eat his yellow hard hat if the company doesn't earn $1.07 next year (he then said he thinks they'll do $1.00 next year).

Naturally Dolby is a leader in the music market, but Cramer said this is also a "stealth play" on the new flat panel TV's because the HD requires to have new Dolby-compliant specs. The company has a huge margin on its licensing, and the company has even been able to squeeze royalties out of Microsoft Corporation (NASDAQ:MSFT), not an easy task. The company's balance sheet is strong, with $4.55 in cash per share. It trades with a lower multiple than its growth rate.

For a reference DLB has been public less than two years, and it came public at just under $25.00 in early 2005. DLB has trailing EPS of $0.80 and has a 36 P/E ratio. Now at $30.00 this is a new all-time high.