Analyst Upgrades

• Bunge (BG) to buy from hold at Deutsche Bank.
• Textron (TXT) to overweight from neutral at JPMorgan.
• CSX (CSX) to buy from neutral and Pulte Group (PHM) to conviction buy from neutral at Goldman.
• Aol (AOL) to buy from neutral at UBS.
• Kohlberg Capital (KCAP) to outperform from market perform at JMP Securities.
• Owens Corning (OC) to buy from neutral at BofA/Merrill.
• Jefferies (JEF) to buy from neutral at Ticonderoga.
• Harris (HRS) to outperform from perform at Oppenheimer.

Analyst Upgrades

• Credit Suisse upgraded Netflix (NFLX) to neutral from underperform and raised its price target to $140 from $90. The firm's survey work indicates Netflix's streaming offering is compelling and will continue to grow as it acquires additional streaming content.
• Barclays upgraded Ford (F) to overweight from equal weight, citing the company's earnings power, reduced cost base, expectations for a return to prior peak margins and valuation. The firm raised its target to $16 from $15.
• Merriman upgraded OpenTable (OPEN) to buy from neutral based on increased visibility into international expansion from the toptable.com acquisition and upside from its Spotlight product.
• Siemens (SI) was upgraded to conviction buy from buy at Goldman.
• Medicis (MRX) was upgraded to buy from hold at Jefferies.
• IDEX (IEX) was upgraded to outperform from neutral at Baird.

"Since the global financial meltdown and ensuing recession, there's been a lot of prognosticating about defense spending; most Wall Street analysts expected the Obama administration to use the economic crisis as a pretense to rein in the enormous defense budget," says Gregg Early, editor of Personal Finance.

"Nevertheless, in my view, if you buy into the best names now, there's plenty of upside left. With over a quarter of million troops stationed in active war zones, the administration is obligated to ensure that they're safe and effective. And combat zones are the ideal testing ground for new equipment.

Analyst Upgrades

• JPMorgan upgraded Alliance Data Systems (ADS) to overweight from neutral to reflect potential upside to 2010 estimates. The firm raised its target on shares to $84 from $68.
• JMP Securities upgraded SVB Financial (SIVB) to outperform from market perform and has a $54 target on the stock. The firm believes industry conditions are improving and that the recent TARP repayment is a positive sign regarding credit and liquidity.
• Citigroup upgraded Agrium (AGU) to buy from hold on expectations that 2010 will bring a recovery in fertilizer volumes. The firm raised its target price on shares to $82 from $64.
• Edwards Lifesciences (EW) was upgraded to conviction buy from buy at Goldman.
• Barclays (BCS) was upgraded to buy from neutral at UBS.
• Tower Bancorp (TOBC) was upgraded to outperform from market.

"Technology stocks are helping drive the stock market higher; one under-the-radar quality tech issue is Harris Corp. (HRS)," says Brandon Clay.

In his Invest with an Edge, he observes, "This company is proving a tech company doesn't need to do anything flashy to generate flashy returns.

The advisor continues, "At its core, Florida-based Harris is an information technology company. Admittedly, this is a stodgy area in the tech world, but don't let that deter you. There's a lot to like with Harris. For instance, the U.S. government is one of the company's biggest customers.

Analyst upgrades:

• Citigroup upgraded shares of Corning (NYSE: GLW) to Buy from Hold as it believes LCD glass production and sales have bottomed and will pick-up in Q2. The firm raised its target price to $16 from $11.25.
  
• Thomas Weisel upgraded Celera (NASDAQ: CRA) to Overweight from Market Weight based on valuation and its strong business model.
  
• ThinkEquity upgraded Varian Semi (NASDAQ: VARI) to Buy from Accumulate and raised its target to $32 from $20 based on valuation and weakness at its sole competitor.
• Sanofi-Aventis (NYSE: SNY) was upgraded to Hold from Underperform at Jefferies.
  
• Agilent (NYSE: A) was raised to Outperform from Neutral at Credit Suisse.
  
• Liberty Interactive (NASDAQ: LINTA) was upgraded at JP Morgan to Neutral from Underweight.

With a turn of the calendar page, we drift into the middle portion of the current quarter, but the earnings season rolls on. Among the many companies scheduled to report quarterly results this coming week are Time Warner Inc. (NYSE: TWX), Cisco Systems Inc. (NASDAQ: CSCO), News Corp. (NYSE: NWS), and Whole Foods Market International (NASDAQ: WFMI). Let's take a look at which companies Wall Street analysts are expecting to be among the top earnings gainers and decliners this week.

Analysts surveyed by Thomson Financial expect the following to report strong earnings growth when compared to the same period of the previous year.

• DRS Technologies Inc. (NYSE: DRS): $0.85 EPS (+95.3%) on revenue of $823.8 million (+12.0%)
• Integrys Energy Group Inc. (NYSE: TEG): $0.40 EPS (+70.0%) on revenue of $2.6 billion (+9.7%)
• Cimarex Energy Co. (NYSE: XEC): $2.53 EPS (+64.4%) on revenue of $599.9 million (+75.4%)
• Forest Oil Corp. (NYSE: FST): $1.51 EPS (+55.6%) on revenue of $456.1 million (+79.1%)
• Devon Energy Corp. (NYSE: DVN): $3.28 EPS (+48.5%) on revenue of $4.1 billion (+38.5%)
• CMS Energy Corp. (NYSE: CMS): $0.13 EPS (+46.2%) on revenue of $1.4 billion (+6.7%)
• Transocean Inc. (NYSE: RIG): $3.23 EPS (+43.0%) on revenue of $3.1 billion (+112.9%)
• Sara Lee Corp. (NYSE: SLE): $0.26 EPS (+38.5%) on revenue of $3.5 billion (+8.9%)
• Williams Companies Inc. (NYSE: WMB): $0.69 EPS (+37.7%) on revenue of $3.4 billion (+20.0%)
• Harris Corp. (NYSE: HRS): $0.99 EPS (+28.3%) on revenue of $1.4 billion (+18.0%)

Bloomberg News reports that Harris Corp. (NYSE: HRS) denied rumors that it is seeking a takeover. The stock is down 16% on that announcement. However, Harris did say that it has received expressions of interest.

This shows how treacherous it can be to invest in takeover rumors. I reported on such a rumor on May 16. Between that report and Friday, Harris stock rose 6% from $62 to $65.78. But with this morning's denial of takeover rumors, that entire gain is lost -- and more. A look at Harris's stock chart suggests that I was late to the party.

The interesting thing about the denial is that it comes in the wake of reports that Harris had received offers that valued the company at $10 billion -- or $74 a share -- which is less than the $75 to $85 a share it expected. It looks like Harris could be playing a game to encourage a higher bid. I'll keep watching.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Acorda Therapeutics (NASDAQ: ACOR) shares are up 18% on news of positive drug trials.

GM (NYSE: GM) is up over 4% after a positive article in Barrons.

Novartis (NYSE: NVS) is up almost 4% on news that one of it cancer drugs has new applications.

Harris Bank (NYSE: HRS) is up 3% on comments by its CEO that the bank is not for sale.

Wachovia (NYSE: WB) is off over 3% on news that it has fired its CEO.

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

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

Today was an odd day, and despite the mixed index levels it should be considered a win. Oil rose sharply and was over $127.00 at one point after the Saudi's said that demand didn't justify increasing production in oil; Goldman Sachs put oil's average target for the second half of 2008 above $140/barrel. To top it off, the controversial University of Michigan consumer confidence level came in at the lowest reading since 1980. Even housing saw strange information as the rise in building permits and housing starts came out much higher than expected: so much for house prices stabilizing.

DJIA 12,983.13 (-9.53; -0.07%)
S&P500 1,425.06 (+1.49; +0.10%)
NASDAQ 2,528.79 (-4.94; -0.19%)
10 Yr Bond 3.850% (+0.007%)
52-week lows
TOP 10 ANALYST CALLS

Ascent Solar Technologies, Inc. (NASDAQ: ASTI) saw a drop-off after it priced a 3.8 million share secondary offering at $14.00, well under yesterday's close. In the final minutes, shares were down 6% at $14.93.

Radio World reported that Harris Corp. (NYSE: HRS) might sell itself. I just spoke with an analyst who said that there's a rumor that the suitor might be military contractor General Dynamics (NYSE: GD).

Harris is based in Melbourne, Fla., and has a market capitalization of $7.3 billion. Perhaps Harris thinks its growth potential in the defense industry is "less attractive" than anytime since Sept. 11, 2001. Harris has 16,000 employees and reported $5.1 billion in revenues and net income of $410 million over the last 12 months, ending March 28, 2008.

General Dynamics may be able to cut costs and increase revenues by combining the two firms. And Harris stock is clearly rising -- it's up 2.8%. Could it be due to this rumor? Please comment if you know more.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Harris (NYSE: HRS), an electronics and defense company, is recently trading at $60.22 in pre-open trading, above its close of $54.41 Thursday.

The Wall Street Journal reported HRS has begun exploring its strategic options, and could eventually choose to sell itself, according to people familiar with the matter.

HRS overall option implied volatility of 30 is below its 26-week average of 34 according to Track Data, suggesting decreasing price risk.

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

MAJOR PAPERS:

• Harris Corporation (NYSE: HRS), concerned about its future growth, may see limited opportunity and may consider selling itself, the Wall Street Journal reported. If it does decide to sell, suitors could include Raytheon Company (NYSE: RTN), BAE Systems Plc (OTC: BAESY) and Northrop Grumman Corporation (NYSE: NOC).
• The Wall Street Journal reported that, in an attempt to toughen its regulation standards, SEC chairman Christopher Cox said earlier this week the agency would push Wall Street investment houses will have to reduce borrowing and rely less on short-term financing.
• As part of plans to reduce costs and restore profit growth, people close to the situation said that Citigroup Incorporated (NYSE: C) is likely to today identify up to $400B in non-core assets that could be sold. Additionally, the Financial Times reported that Citigroup CEO Vikram Pandit will confirm his pledge to cut the bank's cost base by about 20% at a meeting with analysts today. Sources familiar with the matter believe Pandit will dismiss calls for a break-up of the company.

OTHER PAPERS:

• According to sources, the New York Post reported that the ax may fall as early as next week on some investment bankers at The Bear Stearns Companies Inc (NYSE: BSC).

MOST NOTEWORTHY: WSP Holdings, Harris and XTO Energy were today's noteworthy initiations:

• Oppenheimer believes WSP Holdings (NYSE: WH) is benefiting from rapid growth in the oil and gas exploration market and a move toward deeper and harsher environment drilling. The firm has an Outperform rating and $9.50 target on the stock.
  
• UBS assumed Harris (NYSE: HRS) with a Buy rating and $63 target, as they see upside to the company's FY09 estimates driven by RF Communications. UBS views the recent pullback as a buying opportunity.
  
• Morgan Keegan is positive on XTO Energy's (NYSE: XTO) projected 20% production growth, value building through acquisitions, and valuation; shares were initiated with an Outperform rating.

OTHER INITIATIONS:

• Goldman started Philip Morris (NYSE: PM) with a Buy rating and $60 target.
  
• Lamar Advertising (NYSE: LAMR) was assumed with a Sell rating at Merrill Lynch.
  
• Broadpoint initiated Nova BioSource (AMEX: NBF) with a Buy rating.

The earnings crunch continues, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) posted its biggest quarterly loss since its creation in 2006.
• Archer Daniels Midland Co. (NYSE: ADM) missed earnings estimates despite revenue up 50%.
• Biogen Idec Inc. (NASDAQ: BIIB) fourth-quarter profit soared on strong sales of Avonex and Tysabri.
• Chevron Corp. (NYSE: CVX) reported record profits due to surging oil prices.
• CNET Networks Inc. (NASDAQ: CNET) revenue rose but the forecast was not encouraging.
• Data Domain Inc. (NASDAQ: DDUP) third-quarter revenues spiked due to aggressive overseas expansion.
• Elizabeth Arden Inc. (NASDAQ: RDEN) benefitted from overseas growth, which offset weak holiday sales.
• GlaxoSmithKline (NYSE: GSK) warned that 2008 earnings would be affected by competition from generics.
• Harris Corp. (NYSE: HRS) beat estimates and raised its guidance.
• Micros Systems (NASDAQ: MCRS) beat expectations and offered guidance in line with estimates.
• News Corp. (NYSE: NWS) fell short of earnings expectations despite strength in MySpace and Fox News.
• PepsiCo Inc. (NYSE: PEP) results met estimates and it announced further share buybacks.
• Polo Ralph Lauren Corp. (NYSE: RL) beat estimates and raised its guidance.
• SiRF Technology Holdings Inc. (NASDAQ: SIRF) missed expectations due to a seasonal decline.
• Toll Brothers Inc. (NYSE: TOL) expects to report its seventh straight quarterly revenue decline.
• Toyota Motor Corp. (NYSE: TM) attributed solid earnings to growth in China, Russia, emerging markets.
• Wendy's International Inc. (NYSE: WEN) missed earnings estimates, despite beating revenue forecast.
• Western Union Co. (NYSE: WU) posted results just ahead of Wall Street estimates.
• Yum! Brands (NYSE: YUM) posted solid results on overseas growth and share buybacks.