Analyst upgrades:

• Keefe Bruyette upgraded Popular (NASDAQ: BPOP) to Outperform from Market Perform as it believes the issuance of new common stock in exchange for outstanding preferred and trust preferred stock is a net positive. The firm has a $3.50 target on the stock.
• Merriman upgraded Super Micro Computer (NASDAQ: SMCI) to Buy from Neutral as if finds the currrent valuation compelling and believes the company should directly benefit from improving IT budgets. The firm thinks fair value is in the $9.11-$11.13 range.
• Kaufman Bros. upgraded Netflix (NASDAQ: NFLX) to Buy from Hold after its proprietary survey indicated the company is well positioned longer term. The firm finds the valuation on shares attractive at current levels and raised its target price to $53 from $48.
• Taleo (NASDAQ: TLEO) was upgraded to Buy from Neutral at Janney Montgomery.
• Boardwalk Pipeline (BWP) was upgraded to Neutral from Underperform at BofA/Merrill.
• Lloyds Banking (NYSE: LYG) was upgraded to Buy from Hold at RBS.

MOST NOTEWORTHY: Steven Madden, Ltd (SHOO), Expedia, Inc (EXPE), Oracle Corp (ORCL) and Tim Horton's Inc (THI) round up today's noteworthy upgrade list:

• Steve Madden, Ltd (NASDAQ: SHOO) was upgraded to Buy from Neutral at Nollenberger as they believe Madden is well positioned going into the back half of 2007 with clean inventories and focused products.

• Matrix believes increasing marketing efforts and European growth are contributing to significant improvement in fundamental trends for Expedia Inc (NASDAQ: EXPE), and upgraded shares to Hold from Sell.

• Pacific Crest upgraded shares of Oracle Corp (NASDAQ: ORCL) to Outperform from Sector Perform to reflect improved channel checks and the probability of continued success.

• CIBC upgraded Tim Horton's (NYSE: THI) to Sector Outperformer from Sector Performer based on valuation...

OTHER UPGRADES:

• Banc of America upgraded Intersil Corp (NASDAQ: ISIL) to Buy from Neutral.

• Bear Stearns upgraded Illumina, Inc (NASDAQ: ILMN) to Outperform from Peer Perform.

• Buckingham raised Kohl's Corp (NYSE: KSS) to Strong Buy from Neutral.

• Matrix USA raised Titanium Metals Corp (NYSE: TIE) to Buy from Hold.

• Merrill Lynch upgraded Kulicke and Soffa Industries Inc (NASDAQ: KLIC) to Buy from Neutral.

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

MOST NOTEWORTHY: SanDisk (SNDK), JetBlue (JBLU), and the Semiconductor Equipment Sector filled out today's notable downgrades:

• Baird downgraded SanDisk Corp. (NASDAQ:SNDK) to Neutral from Outperform with a $43 target, citing the company's reduced gross margin outlook.
• Morgan Stanley downgraded JetBlue Airways Corp. (NASDAQ:JBLU) to Equal Weight from Overweight.
• The Semiconductor Equipment sector was downgraded to Market Weight from Overweight at Credit Suisse, citing first quarter memory chip margins that are lower for the first time in three years.
• Credit Suisse also downgraded Lam Research Corp (NASDAQ:LRCX) to Neutral from Outperform, citing negative catalysts ahead, despite the cheap valuation, and Varian Semiconductor Equipment Associates, Inc. (NASDAQ:VSEA) to Underperform from Neutral, citing valuation.

OTHER DOWNGRADES:

• Soleil Securities downgraded AK Steel Holding Corp. (NYSE:AKS) to Sell from Hold on valuation.
  
• Merriman cut the Nautilus, Inc (NYSE:NLS) to Sell from Neutral. They believe shifts in spending patterns to "big box" retailers are hurting direct channel results. The firm also believes Nautilus lacks near-term catalysts.
• Citigroup downgraded Volkswagen (OTC:VLKAY) to Sell from Hold.
• Matrix USA downgraded Kulicke & Soffa Industries, Inc. (NASDAQ:KLIC) to Strong Sell from Strong Buy, citing decreasing revenues and growing valuation.
• Wedbush downgraded LeapFrog Enterprises, Inc. (NYSE:LF) to Sell from Hold and expects a better entry point in the future.
• RBC cut Abercrombie & Fitch Co. (NYSE:ANF) to Sector Perform from Outperform citing the lack of near-term catalysts.

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