MOST NOTEWORTHY: Energy East, SunTrust Banks and Suncor were today's noteworthy upgrades:

• Jefferies upgraded shares of Energy East (NYSE: EAS) to Buy from Hold on valuation, pointing out the return on the transaction if the Iberdrola/EAS merger deal closes is 21.9%. The firm raised their target to $28.50 from $25.50.
  
• Baird upgraded SunTrust Banks (NYSE: STI) to Outperform from Neutral citing valuation and notes the company is unlikely to need to raise capital.
  
• CIBC raised Suncor (NYSE: SU) to Outperformer from Sector Performer following news that Alberta's Energy Resource Conservation Board has lifted restrictions on production on the company's Firebag SAGD project.

OTHER UPGRADES:

• Sterling Bancshares (NASDAQ: SBIB) was lifted to Outperform from Market Perform at Keefe Bruyette.
  
• Vodafone (NYSE: VOD) was upgraded at Morgan Stanley to Equal Weight from Underweight.
  
• Kinetic Concepts (NYSE: KCI) was upgraded to Neutral from Sell at Goldman.

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.

"My top speculative idea for 2008 is Kinetic Concepts (NYSE: KCI), which makes products for advanced wound care and other therapeutic applications," says quantitative analyst Vahan Janjigian, editor of The Forbes Growth Investor.

"KCI's therapeutic categories include advanced products for wound care and tissue repair, which accounted for 79% of first half 2007 revenues.

"The company's proprietary Vacuum Assisted Closure (VAC) technology uses negative pressure wound therapy (NPWT) to treat and promote healing in acute and chronic wounds caused by severe trauma, failed surgical closures, amputations, and serious pressure ulcers.

"VAC systems consist of a pump that provides a controlled level of negative pressure to the wound, foam dressings, occlusive drapes and specialized canisters that collect body fluids, filter odors, and facilitate the safe disposal of medical waste.

MOST NOTEWORTHY: Celgene (CELG), Sysco (SYY), Kinetic Concepts (KCI), BioMimtic Therapeutics (BMTI) and Lifecell Corp (LIFC) were today's noteworthy initiations:

• William Blair believes Celgene (NASDAQ: CELG) has the best growth profile in large-cap biotechnology and initiated shares with an Outperform rating.

• Citigroup views Sysco (NYSE: SYY) as the dominant leader in the foodservice distribution industry, initiating shares with a Buy rating, and feels the company will continue to take market share from its peers. The firm thinks the current valuation reflects the perception that Sysco may perform poorly in the near-term, which they disagree with.

• Wachovia started Kinetic Concepts (NYSE: KCI) with a Market Perform, citing competitive pressures and mature markets for its rating.

• Wachovia is positive on BioMimetic Therapeutics (NASDAQ: BMTI), initiating shares with an Outperform, based on strong rhPDGF technology, strategy, and management team.

• Wachovia is positive on Lifecell Corp's (NASDAQ: LIFC) Strattice, a porcine tissue matrix, which improves the company's international exposure and provides opportunities in new markets, initiating shares with an Outperform...

OTHER INITIATIONS:

• Credit Suisse initiated Community Health (NYSE: CYH) and Universal Health (NYSE: UHS) with Outperform ratings, LifePoint (NASDAQ: LPNT) with a Neutral rating, and Health Management (NYSE: HMA) and Tenet Healthcare (NYSE: THC) with Underperform ratings.

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

Although patient needs in the hospital room may not be not quite so immediate as those in the operating theater, they can still be quite pressing. There is an outfit in San Antonio that addresses the requirements of the healing patient with a series of special beds and "negative pressure wound therapy" dressings.

Kinetic Concepts (NYSE: KCI) makes lines of therapeutic and wound care products for acute and long-term care facilities, home health agencies and individuals. The firm's therapeutic surfaces include specialty hospital beds, mattress replacement systems and overlays. They are designed to address pulmonary complications associated with immobility, prevent skin breakdown and assist caregivers in the safe handling of obese patients. The company's wound healing and tissue repair systems use a vacuum assisted closure technology to treat trauma wounds, failed surgical closures, amputations and serious pressure ulcers.

The firm surprised the Street last week, when it reported Q2 EPS of 81 cents and revenues of $396.7 million. Analysts had been looking for 74 cents and $374.7 million. Management also guided FY07 EPS to $3.10-$3.20 ($3.10 consensus) and FY07 revenues to $1.56-$1.59 billion ($1.54B consensus).