MOST NOTEWORTHY: American Eagle, Hologic and British Airways were today's noteworthy downgrades:

• Friedman Billings downgraded American Eagle (NYSE: AEO) to Underperform from Market Perform citing slowing top-line growth, difficult macro-environment, and the challenging women's category.
  
• Soleil cut Hologic (NASDAQ: HOLX) to Hold from Buy as it believes the cancellation of the FDA Radiological Devices Panel means a further delay in the tomosynthesis pre-market approval application.
  
• ABN downgraded shares of British Airways (Other OTC: BAIRY) to Sell from Hold as it believes the recent rally in the face of higher oil prices is unjustified. Shares were also lowered at Deutsche Bank to Sell from Buy as it believes the company may not be able to raise ticket prices enough to offset higher fuel costs.

OTHER DOWNGRADES:

• ArthroCare (NASDAQ: ARTC) was cut to Accumulate from Buy at ThinkPanmure.
  
• ING downgraded J Sainsbury (Other OTC: JSAIY) to Sell from Hold.
  
• RBC Capital downgraded Ceragon Networks (NASDAQ: CRNT) to Sector Perform from outperform.

Hologic (NASDAQ: HOLX), a medical imaging company, is recently trading down 71 cents to $20.22 in pre-open trading.

Soleil says: "downgrading HOLX from Buy to Hold following our confirmation from the FDA that the tentative date for Radiological Devices Panel (8.12.08) has been canceled-an action which reads negative for HOLX."

HOLX over all option implied volatility of 46 is above its 26-week average of 43 according to Track Data, suggesting larger price uncertainty.

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

In a choppy/consolidating (or perhaps worse) market, discretion dictates that one look for companies where the demographics are running in the company's favor. Health care services in the United States is one sector, and in this category Hologic is worth an evaluation.

Hologic (NASDAQ: HOLX) manufactures mammography tests/products, workstations, and detection systems, as well as cervical cancer screening systems, among other health care service business lines.

Analysts see solid-to-robust growth for HOLX on favorable demographic trends and increased health education awareness to undergo regular, as-required tests for the conditions HOLX screens. Margins remain solid in both the breast cancer and cervical cancer detection areas, with promising opportunities to increase market share. The Reuters F2007/F2008 EPS consensus estimates for HOLX are $1.69/$2.25.

The risks: Negative changes to Medicare and/or private insurer reimbursement rates would hurt HOLX's results, if clinics consequently reduce tests with machines/devices manufactured by HOLX. Analysts also are monitoring intensifying competition across HOLX's revenue streams.

The First Call mean rating for HOLX is: Buy. [13 firms.] Mean 2008 target: $73.00. [high: $77, low: $65.]

Stock Analysis: Hologic is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from HOLX's shares. Sell / Stop Loss if you were to purchase shares in this company: $42.

DISCLOSURE: Joseph Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"Hologic, Inc. (NASDAQ: HOLX), my top more conservative idea for 2008, is fast becoming the 'Amazon' of women's health care," says Benson George, editor of Top Stocks Insights.

"The company, which specializes in diagnostic and medical imaging systems, bought complementary Cytyc Corp. in October, making Hologic the warrior of reckoning in the growing women's health market.

Hologic develops products for mammography and breast care, osteoporosis assessment and general use radiology. Cytyc's products cover a range of cancers and women's health concerns, including cervical cancer screening, prenatal diagnostics and partial breast radiation therapy.

"The combined company offers a broad and diversified mix of products and services focused only on women's health -- a multi-billion-dollar market growing 16% compounded annually.

Activision, Inc. (NASDAQ: ATVI): Revised it's outlook upward. Shares moved up to $27.98 from 52-week low of $16.05.

Hologic, Inc. (NASDAQ: HOLX): Company is to be added to the Nasdaq 100. Traded up to $69.75 from 52-week low of $45.88.

Archer Daniels Midland Company (NYSE: ADM): The company is still moving up on strength of legislation of new law to increase ethanol production. It hit $43.37 up from 52-week low of $30.20.

Tribune Company (NYSEL: TRB): Deal to take company private finally closes. Up to $34 from 52-week low of $22.78.

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

Hologic (NASDAQ: HOLX) develops, manufactures and supplies diagnostic, medical imaging and radiology systems. The Radiological Society of North America (RSNA) 2007 Annual Meeting is this week in Chicago at McCormick Place. CIBC says "HOLX maintains Strong lead over competition." HOLX overall option implied volatility of 38 is near its 26-week average according to Track Data, suggesting non-directional risk.

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

MOST NOTEWORTHY: In addition to Genomic Health (GHDX) and Intercontinental Hotels Group (IHG), airliners Continental Airlines (CAL) and ExpressJet Holdings (XTJ) were some of today's most notable initiations:

• RBC Capital Markets started Genomic Health Inc (NASDAQ: GHDX) with an Underperform rating, with a $17 target. The firm views shares as fairly valued and believes competitive noise and FDA concerns will weigh on shares.

• HSBC started Intercontinental Hotels (NYSE: IHG) with an Overweight rating, believing asset sales and stronger than expected room growth could prove near-term positive catalysts.

• Soliel started both Continental Airlines (NYSE: CAL) and ExpressJet Holdings Inc (NYSE: XJT) with Sell ratings.

OTHER INITIATIONS:

• William Blair started Alexion Pharmaceuticals (NASDAQ: ALXN) with an Outperform rating. They believe Alexion's lead compound, Soliris, is the key driver of shareholder value, and they believe the company is well positioned to receive final FDA approval.

• Bear Stearns initiated Baldor Electric Company (NYSE: BEZ) with an Outperform rating.

• RBC initiated Hologic, Inc (NASDAQ: HOLX) with an Outperform rating.

• Citigroup started GMarket Inc (NASDAQ: GMKT) with a Sell rating and $18 target, citing valuation.

• Drew Industries, Inc (NYSE: DW) was initiated with a Buy rating and $35 target at Ferris Baker Watts.

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