Analyst upgrades:

• Target (NYSE: TGT) was upgraded two ratings to Buy from Sell at Citigroup, and it raised its price estimate on shares to $61 from $44. The firm sees significant earnings upside as the company's same-store sales improve and finds the valuation attractive at current levels.
• Motorola (NYSE: MOT) was upgraded to Outperform from Sector Perform at RBC Capital citing valuation, new product launches, and expectations that the Mobile Devices division will be profitable. The price target is $11.
• AK Steel (NYSE: AKS) was upgraded to Buy from Hold at Citigroup as it believes the company's Q3 results were solid and the China steel market is stabilizing. The firm raised its target to $21 from $17.
• Ceradyne (NASDAQ: CRDN) was upgraded at Wells Fargo to Market Perform from Underperform. The firm thinks that earnings expectations for the company have now reached more reasonable levels, limiting risk.
• FormFactor (NASDAQ: FORM) was upgraded to Outperform from Market Perform at FBR Capital ahead of the company's Q3 results due to valuation as it views the risk/reward on shares compelling. The firm raised its price target to $25 from $19.
• Texas Instruments (NYSE: TXN) was upgraded at Goldman to Buy from Neutral, citing 2H10 margin expansion and analog share gains. Target was raised to $29 from $27.
• Barrett Business Services (NASDAQ: BBSI) was upgraded to Buy from Hold at Roth Capital as the firm thinks the company will benefit from a labor market recovery next year. Roth notes that the stock's valuation has lagged behind most of its peers in recent months and it set an $18 target.

Analyst upgrades:

• FBR Capital upgraded CapitalSource (NYSE: CSE) to Outperform from Market Perform on valuation as it sees an attractive risk/reward at current levels. The firm raised its target on shares to $5 from $3.
• Kaufman Bros. upgraded The Knot (NASDAQ: KNOT) to Buy from Hold following the company's Q2 results to reflect stable national advertising and a better bottom-line outlook. The firm raised its target on shares to $11 from $8.50.
• Baird upgraded Obagi Medical (NASDAQ: OMPI) to Outperform from Neutral and raised its target to $10 from $7 following the strong Q2 report. The firm believes business bottomed in Q1 and the outlook is improving.
• IPC The Hospitalist Co. (NASDAQ: IPCM) was upgraded to Overweight from Equal Weight at Stephens.
• King Pharma (NYSE: KG) was upgraded at BofA/Merrill to Buy from Hold.
• Infinera (NASDAQ: INFN) was upgraded to Hold from Underperform at Jefferies.

Analyst upgrades:

• Citigroup upgraded Allergan (NYSE: AGN) to Buy from Hold to reflect increased estimates for Botox and its belief Latisse guidance looks conservative. The firm raised its target on shares to $57 from $45.
  
• Jefferies upgraded Texas Instruments (TXN) to Hold from Underperform after channel checks indicated business is strengthening. Jefferies believes Texas Instruments' September quarter guidance will come in better than expected and raised its target on shares to 23 from $16.
  
• FBR Capital upgraded Peabody Energy (BTU) to Outperform from Market Perform to reflect "strong" long-term steel and steam demand trends from China and India. The firm raised its target on shares to $44 from $36.
  
• Elan Corp (ELN) was upgraded to Buy from Neutral at UBS.
  
• Affymetrix (AFFX) was upgraded to Equal Weight from Underweight at Morgan Stanley.
  
• ASML Holding (ASML) was upgraded to Buy from Neutral at BofA/Merrill.

Barclays (NYSE:BCS) is up about 5% on news that interest rates are unlikely to rise in the UK.

Alcatel-Lucent (NYSE:ALU) is up about 4% on news it has gotten a $1 billion contract from China Mobile (NYSE:CHL).

Infinera (NASDAQ:INFN) is down 25% after revising its growth forecast down.

La-Z-Boy (NYSE:LZB) is down over 12% on a report of a quarterly loss.

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

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

MOST NOTEWORTHY: Infinera, Dawson Geophysical and Electro-Optical Sciences were today's noteworthy initiations:

• Thomas Weisel said Infinera (NASDAQ: INFN) has unique technology that will result in a sustained competitive differentiation, increases customer diversification and improving margins. The firm started shares with an Overweight rating and $13 target.
  
• Dawson Geophysical (NASDAQ: DWSN) was initiated with a Hold rating and $72 target at Jefferies, as they believe the stock is fairly-valued at current levels.
  
• Jesup & Lamont initiated Electro-Optical Sciences (NASDAQ: MELA) with a Buy rating and $8 target. The believes MELA's Melafind is a breakthrough technology for the diagnosis of melanoma.

OTHER INITIATIONS:

• Piper resumed coverage of PMI Group (NYSE: PMI) with a Neutral rating and $6 target.
  
• Susquehanna initiated Immunocor (NASDAQ: BLUD) and Given Imaging (NASDAQ: GIVN) with Positive ratings.
  
• Merrill started Liberty Entertainment (NASDAQ: LMDIA) with a Neutral rating.

MOST NOTEWORTHY: Disney, GlaxoSmithKline and Owens Illinois were today's noteworthy upgrades:

• Oppenheimer upgraded shares of Disney (NYSE: DIS) to Outperform from Perform ahead of the company's Q1 results, as they expect in the quarter and find the valuation attractive at current levels.
  
• GlaxoSmithKline (ASE: GSK) was raised to Neutral from Underweight at HSBC on valuation as they believe the dividend yield provides support.
  
• Owens Illinois (NYSE: OI) was upgraded to Buy from Hold at Deutsche Bank following the Q4 upside, as they believe the company is gaining traction with its pricing initiatives.

OTHER UPGRADES:

• PepsiAmericas (NYSE: PAS) was upgraded to Peer Perform from Underperform at Bear Stearns.
  
• Goldman added Simon Property (NYSE: SPG) to its Conviction Buy List.
  
• Jefferies upgraded Infinera (NASDAQ: INFN) to Buy from Hold.

MOST NOTEWORTHY: The Wet Seal (WTSLA), Brocade Communications Systems(BRCD), IAC/InteractiveCorp (IACI), CME Group (CME) and Rogers Communications (RCI) were today's noteworthy initiations:

• Merriman believes the turnaround at Arden B is well underway and both it and the Wet Seal chains have tremendous opportunities for long-term growth, initiating The Wet Seal (NASDAQ: WTSLA) with a Buy rating.

• Pacific Growth is positive on Brocade's (NASDAQ: BRCD) diversification into new products and services, starting shares with a Buy rating.

• Banc of America initiated shares of InterActiveCorp (NASDAQ: IACI) with a Neutral rating.

• William Blair believes the newly-formed CME Group (NYSE: CME) has an even more dominant competitive position within the growing futures exchange industry, reinstating shares with an Outperform rating.

• JP Morgan said Canada is an attractive wireless market and that Rogers Communications (NYSE: RCI) is well positioned, starting shares with an Overweight rating...

OTHER INITIATIONS:

• Deutsche Bank initiated Waters Corp (NYSE: WAT) with a Hold rating.

• Goldman started Infinera Corp (NASDAQ: INFN) with an Equal Weight.

• Kaufman reinstated Savvis (NASDAQ: SVVS) with a Hold.

• Pacific Growth initiated Network Appliance (NASDAQ: NTAP) with a Buy.

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