Analyst Upgrades

• Chesapeake (CHK) to buy from hold at Canaccord.
• Biogen (BIIB) and Regeneron (REGN) to outperform from sector perform at RBC Capital.
• Caribou Coffee (CBOU) to outperform from neutral and Encore Energy (ENP) to neutral from underperform at RW Baird.
• Fluor (FLR) to market perform from underperform at BMO Capital.
• Hornbeck Offshore (HOS) to conviction buy from neutral at Goldman.
• Saks (SKS) and Zale (ZLC) to neutral from underperform at BofA/Merrill.

"Longer term, crude will best the old highs at $145/barrel set in 2008. That is certain. Just how much higher is uncertain, but I would not be surprised at $200 plus," assert resource expert Curtis Hesler.

The editor of The Profession Timing Service reviews a trio of favorites in the energy sector: Kinder Morgan Energy Partners (KMP), Legacy Reserves (LGCY), and Northern Oil & Gas (NOG).

He explains, "The financial press has been forecasting a crash in crude oil prices for some time. Some are basing this on a resumption of the recession, some on new discoveries and energy innovation, and some on a host of other reasons.

Analyst Upgrades

• Goldman Sachs upgraded BJ's Wholesale (BJ) to neutral from sell and has a $43 target on the stock. Note that private equity firm Green Equity took a 9.5% stake in the company. Shares were also upgraded at Jefferies to buy from hold.
• Stephens upgraded Covenant Transportation (CVTI) to overweight from equal weight after the company positively preannounced Q2 results. The firm raised its target for shares to $12 from $5.
• Leerink upgraded Arena Pharmaceuticals (ARNA) to outperform from market perform after the company signed a partnership deal with Eisai for U.S. commercialization rights to lorcaserin. The firm believes the deal removes a major concern and upped its target for shares to $6 from $5.
• Fortune Brands (FO) was upgraded to hold from sell at Citigroup.
• KeyBanc upgraded NiSource (NI) to buy from hold.
• Akzo Nobel (AKZOY) was upgraded to buy from neutral at UBS.

Dividend Yield: 9.6%
Market Cap: $785 million

Legacy Reserves (LGCY) is an independent oil and natural gas limited partnership. The company develops oil and natural gas properties in the western U.S., primarily in the Permian Basin and Rocky Mountain regions.

With oil prices up about 75% in the past year, this energy company has had a steady flow of revenue to maintain its strong dividend.

Dividends are an often overlooked but crucial part of a successful retirement strategy. These quarterly offerings can provide a regular "paycheck" for retirees -- especially when the company is a high-yielding blue chip with a track record of boosting its dividend year after year.

But dividends don't just have to be a quiet way to grow your nest egg. They can really supercharge your returns when you buy into a great stock that also happens to be cash-rich. On top of the appreciation you see in your shares, you'll also get a great bonus checked mailed four times a year -- or more, depending on the dividend schedule.

Analyst Upgrades

• Barclays upgraded Anglo American (NASDAQ: AAUK) to Overweight from Equal Weight based on a potentially higher bid from Xstrata (OTC: XSRAY) or a white night willing to pay a premium for the group, higher copper prices, and improving operating performance.
• Janney Montgomery upgraded Chiquita Brands (NYSE: CQB) to Buy from Neutral citing improved bagged salad margins, strong free cash flow, solid banana trends, and valuation. The firm has a $13 target on the stock.
• Wunderlich upgraded Legacy Reserves (NASDAQ: LGCY) to Buy from Hold due to the firm's belief that the back of the crude board is still very cheap, the firm's increased distribution outlook, and the movement of the stock after the discontinuation of the company's talks with Apollo.
• Deutsche Bank (NYSE: DB) was upgraded to Buy from Neutral at UBS.
• UBS (NYSE: UBS) was upgraded to Outperform from Neutral at Credit Suisse.
• Illinois Tool Works (NYSE: ITW) was upgraded to Outperform from Market Perform at Wachovia.

Analyst upgrades:

• Morgan Stanley upgraded shares of Apple (NASDAQ: AAPL) to Overweight from Equal Weight on expectations of continued iPhone growth. The firm raised its target on the stock to $180 from $105.
• FBR Capital upgraded Bank of America (NYSE: BAC) to Market Perform from Underperform as it sees limited downside with half of the company's capital plan completed. The firm keeps a $12 target on the stock.
• Jefferies upgraded Cash America (NYSE: CSH) to Buy from Hold to reflect a strengthened balance sheet following the capital raise and easing regulatory risk. The firm raised its target price to $30 from $22.
• Ericsson (NASDAQ: ERIC) was upgraded to Outperform from Market Perform at Bernstein.
• MB Financial (NASDAQ: MBFI) was raised to Outperform from Neutral at Baird.
• Pinnacle West (NYSE: PNW) was upgraded at Credit Suisse to Outperform from Neutral.

MOST NOTEWORTHY: Acorda Therapeutics Inc (ACOR) and Coach, Inc (COH) were some of today's most notable initiations:

• Morgan Joseph started Acorda Therapeutics Inc (NASDAQ: ACOR) with a Sell rating and $15 target citing seizure rates for Fampridine-SR and limited efficacy for its rating.

• Coach, Inc (NYSE: COH) was started at Soleil with a Buy rating and $58 target; the firm believes continuing market share gains should create a long-term EPS growth rate of 23%.

OTHER INITIATIONS:

• Morgan Stanley initiated Time Warner Cable (OTC: TWCA) with an Equal Weight rating.

• Raymond James started Legacy Reserves LP (NASDAQ: LGCY) with an Outperform rating and $27 target.

• Wedbush initiated Avaya Inc (NYSE: AV) with a Hold rating and $14 target.

• Nollenberger initiated Rudolph Technologies Inc (NASDAQ: RTEC) with a Buy rating and $26 target, citing valuation.

• Precision Drilling Trust (NYSE: PDS) was initiated at CIBC with a Sector Performer rating.

• Lehman Brothers started Polo Ralph Lauren Corp (NYSE: RL) with an Overweight rating and $100 target.

• Bank of America reinstated The Nasdaq Stock Market Inc (NASDAQ: NDAQ) with a Neutral rating and $33 target.

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