Analyst Upgrades

• Ryder (R) to outperform from sector perform at RBC Capital.
• HCP (HCP) to outperform from neutral at RW Baird.
• Hertz Global (HTZ) to overweight from equal weight at Barclays.
• Lincoln National (LNC) to buy from neutral and T. Rowe Price (TROW) to conviction buy from neutral at Goldman.
• Protective Life (PL) and Janus Capital (JNS) to neutral from sell at Goldman.
• Newell Rubbermaid (NWL) to overweight from equal weight at Morgan Stanley.
• National Instruments (NATI) to overweight from neutral at JPMorgan.
• Team Health (TMH) to buy from hold at Deutsche Bank.

Earlier today, real estate investment trust HCP Inc. (HCP) announced that it will purchase all the real estate assets of HCR ManorCare. HCP will purchase HCR's roster of rehab and nursing facilities, which totals more than 300, for $6.1 billion in cash and stock. The breakdown is $3.53 billion in cash and $852 million in stock and the deal also includes $1.72 billion worth of funds that HCP already invested in HCR. HCP will also have an option to purchase a 9.9% stake in HCR for an additional $95 million. HCP also announced that it will buy out its partner in a joint venture deal that is valued at $860 million. The board of directors of both HCP and HCR have approved the deal.

Analyst Upgrades

• TD Newcrest upgraded Agrium (AGU) to action list buy from hold based on a higher valuation supported by BHP's (BHP) bid for Potash (POT). The firm raised its price target for Agrium to $95 from $76.
• Wells Fargo upgraded Weingarten Realty (WRI) to outperform from market perform, citing valuation and stronger retail occupancy.
• Deutsche Bank upgraded Aegon (AEG) to buy from hold after the company won European Union approval for its recapitalization using state aid.
• HCP Inc. (HCP) was upgraded to buy from hold at Argus.
• MedAssets (MDAS) was upgraded to buy from accumulate at Madison Williams.
• BreitBurn Energy (BBEP) was upgraded to outperform from sector perform at RBC Capital.

Analyst Upgrades

• FBR Capital upgraded Nike (NKE) to outperform from market perform. The firm believes the company's momentum is building following the better-than-expected Q3 report and raised its target for the stock to $84 from $67.
• Thomas Weisel upgraded Corning (GLW) to overweight from market weight, citing improving profitability and cash flow trends. The firm has a $24 price target for shares.
• Deutsche Bank upgraded Burger King (BKC) to buy from hold, citing valuation and potential positive catalysts from the bottoming of sales trends and easy comparisons. The firm raised its price target on shares to $24 from $19.
• Broadcom (BRCM) was upgraded to buy from neutral at Goldman.
• Energizer (ENR) was upgraded to overweight from neutral at JPMorgan.
• Guess (GES) was upgraded to buy from hold at Lazard Capital.

Analyst Upgrades

• Keefe Bruyette upgraded MSCI Inc. (MXB) to outperform from market perform on valuation following Monday's sell-off as it views the acquisition of RiskMetrics (RISK) favorably. The firm has a $36 price target on shares. UBS also upgraded MSCI, to buy from neutral, and raised its target to $40 from $34, citing the recent pullback in shares and the accretive acquisition of RiskMetrics.
• Deutsche Bank upgraded Suncor (SU) to hold from sell on valuation and raised its price target on shares to $28 from $20. The firm continues to prefer Canadian Natural (CNQ) to Suncor, however, and raised its target on shares to $80 from $78.
• JMP Securities upgraded Grubb & Ellis (GBE) to outperform from market perform based on the improved operating environment and balance sheet, and valuation, among other reasons.
• Dell (DELL) was upgraded to buy from neutral at UBS.
• FEMSA (FMX) was upgraded to overweight from neutral at HSBC.
• Westar Energy (WR) was upgraded to outperform from market perform at Wells Fargo.

Analyst Upgrades

• Deutsche Bank upgraded Wells Fargo (WFC) to buy from hold as it believes the TARP repayment should remove uncertainty and that the company will report strong Q4 results. The firm raised its target price on shares to $36 from $29. Keefe Bruyette upgraded Wells Fargo to market perform from outperform following the TARP repayment and raised its target on shares to $28 from $24.
• Wells Fargo believes News Corp's (NWS) newspaper and TV station segments are finally outperforming budget, while cable nets continue to perform well. The firm upgraded shares to outperform from market perform and has a $16 to $17 Valuation range.
• BofA/Merrill upgraded Starwood Hotels (HOT) to buy from underperform as they expect "strong cyclical recovery in lodging earnings" in late 2010. The firm raised its target to $40 from $25.
• ArcelorMittal (MT) was upgraded to buy from neutral at UBS.
• JA Solar (JASO) was upgraded to hold from sell at ThinkEquity.
• Acxiom (ACXM) was upgraded to overweight from equal weight at Stephens.

Analyst upgrades:

• Citigroup raised Ann Taylor (NYSE: ANN) to Hold from Sell. The firm upgraded shares following the company's Q2 upside and believes guidance for the second half of 2008 is appropriately conservative.
  
• Jefferies upgraded China Sunergy (NASDAQ: CSUN) based on valuation,and improved liquidity and silicon supply outlook.
  
• Stephens upgraded infoUSA (NASDAQ: IUSA) shares to Overweight from Equal Weight to reflect the stock's valuation, new management, improvements in expense controls and the potential to become a takeover target.
  
• Citigroup raised BB&T (NYSE: BBT) to Buy from Hold.
• Stifel upgraded Leggett & Platt (NYSE: LEG) to Buy from Hold.

Analyst downgrades:

• Citigroup downgraded Cablevision (NYSE: CVC) to Sell from Buy as they do not expect the company's structural moves to unlock value.
  
• Wachovia dropped Knight Transportation (NYSE: KNX) to Market Perform from Outperform based on valuation.
  

Over the last few months, real estate investment trusts (REITs) have shown that they are able to survive in tough conditions, at least compared with most other stocks. However, there have been signs of weakness for REITs lately and this is likely to continue.

With recession fears still looming, real estate operators are facing yet another difficult situation brought on by rising unemployment, which could result in lower office and retail space demand. And rising inflation will come with higher interest rates, leading to higher borrowing expenses for REITs. Considering these circumstances, the outlook for REITs is not all that promising.

With all these concerns and obstacles tied to the market and the industry, you may think it wise to stay away from real estate, at least until we see an improvement in consumer spending and the banking sector. Kiplinger suggests that we reconsider these thoughts, and actually suggests some names to invest in that could offer us the advantages we are all looking for.

The United States' uncertain, near-term economic prospects, combined with the housing sector's woes, have led many to, understandably, steer clear of real estate investments.

But that does not mean windows of opportunity do not exist, and one worth a review is Health Care Properties, Inc..

HCP (NYSE: HCP) is a self-administered real estate investment trust that invests exclusively in health care real estate throughout the United States.

Analysts like HCP's diverse portfolio, investments in life sciences facilities, and overall rental rates. Another positive: analysts like HCP's portfolio footprint, and modest pricing power, which has enabled it to increase both revenue and earnings at a healthy rate, no pun intended. The Reuters F2008/F2009 EPS consensus estimates for HCP are $2.30/$2.45.

Further, although HCP is expected to deliver low-signal-digit net income growth in F2008, there is a sense building in Wall Street circles that both of the above EPS estimates may be a tad low, and assuming that is the case, the time to consider purchasing HCP's shares is now, not after earnings guidance is raised, should that occur.

MOST NOTEWORTHY: GSI Technology, Array Biopharma and Continental Resources were today's noteworthy initiations:

• Merriman believes GSI Technology Inc (NASDAQ: GSIT) is positioned to benefit as growing bandwidth demand and increasingly complex protocols drive the need for faster and higher density memory in networking equipment. The firm started shares with a Buy rating.
• Array Biopharma Inc (NASDAQ: ARRY) was assumed with an Outperform rating at William Blair. The firm thinks the company's pipeline contains significant value, which will be catalyzed over the next 12-18 months by continued clinical progress and potential partnerships.
• Continental Resources Inc (NYSE: CLR) was initiated with a Buy rating and $30 target at Jefferies, and points to the company's double-digit growth and strong reserve growth potential.

OTHER INITIATIONS:

• Lehman initiated Ventas Inc (NYSE: VTR) with an Equal Weight rating $46 target and HCP Inc (NYSE: HCP) with an Overweight rating.
• The Boston Beer Company Inc (NYSE: SAM) was assumed with an Overweight rating and $43 target at HSBC.

MOST NOTEWORTHY: Sprint Nextel, Tesoro, VeriSign, Healthcare Property and Resources Connection were today's noteworthy downgrades:

• Goldman downgraded shares of Sprint Nextel Corporation (NYSE: S) to Neutral from Buy to reflect continuing turnaround delays, macro headwinds and competition.
  
• Tesoro Corporation (NYSE: TSO) was downgraded to Neutral from Outperform at Credit Suisse, citing increased concerns regarding West Coast margins.
  
• The firm also lowered VeriSign Inc (NASDAQ: VRSN) to Neutral from Outperform, as they believe the company's reorganization could require more time than investors anticipate.
  
• Friedman Billings downgraded Healthcare Property (NYSE: HCP) to Market Perform from Outperform on valuation. Shares were also downgraded to Neutral from Buy at UBS.
  
• Resources Connection (NASDAQ: RECN) was downgraded to Hold from Buy at Stifel, to Market Perform from Outperform at JMP Securities and to Peer Perform from Outperform at Bear following its Q1 report.

OTHER DOWNGRADES:

• Walgreen (NYSE: WAG) was downgraded to Neutral from Overweight at JMP Securities.
  
• JP Morgan downgraded Staples Inc (NASDAQ: SPLS) to Underweight from Neutral.
  
• UBS downgraded Under Armour Inc (NYSE: UA) to Neutral from Buy.
  
• Bear downgraded CNOOC Ltd (NYSE: CEO) to Underperform from Peer Perform.

MOST NOTEWORTHY: EDO Corp, General Motors, Cameron, Getty Images and Micrus Endovascular were today's noteworthy downgrades:

• EDO Corporation (NYSE: EDO) was downgraded to Neutral from Outperform at Credit Suisse following the acquisition by ITT Corporation (NYSE: ITT). Shares were also downgraded to Market Weight from Overweight at Thomas Weisel and to Hold from Buy at B&T Capital.
  
• Goldman downgraded shares of General Motors Corporation (NYSE: GM) to Neutral from Buy to reflect risk to the company's international and the slowing U.S. economy. Further, Goldman believes expectations for a deal over healthcare costs with unions are now priced into the stock.
  
• Wachovia downgraded Cameron International (NYSE: CAM) to Market Perform from Outperform on valuation.
  
• Kaufman Bros. downgraded shares of Getty Images Inc (NYSE: GYI) to Sell from Hold to reflect reduced expectations following the company's announced price reductions.
  
• CIBC downgraded shares of Micrus Endovascular Corporation (NASDAQ: MEND) to Sector Performer from Outperformer following the company's lowered guidance..

OTHER DOWNGRADES:

• BB&T downgraded Champion Enterprises (NYSE: CHB) and Palm Harbor Homes (NASDAQ: PHHM) to Hold from Buy.
  
• Stifel downgraded HCP Inc (NYSE: HCP) and Medical Properties Trust Inc (NYSE: MPW) to Hold from Buy.
  
• Goldman downgraded E-Trade Financial Corporation (NASDAQ: ETFC) to Neutral from Buy.
  
• Kellwood Company (NYSE: KWD) was downgraded to Neutral from Buy at Broadpoint.