Analyst upgrades:

• Keefe Bruyette upgraded shares of Colonial Bancgroup (NYSE: CNB) to Outperform from Market Perform on valuation following the recent weakness and believes the company will be eligible to receive TARP funds. Morgan Stanley believes the company's valuation adequately reflects risk to the loan portfolio; the firm raised shares to Equal Weight from Underweight.
• Merrill upgraded Ericsson (NASDAQ: ERIC) and ASML Holding (NASDAQ: ASML) to Buy from Underperform and believes their valuation reflects the worst-case for bad news.
• Oppenheimer upgraded Trimble Navigation to Outperform from Perform on valuation as they believe the company's long-term growth story is intact.
• Celestica (NYSE: CLS) was upgraded to Sector Outperformer from Sector Performer at CIBC.
• KeyCorp (NYSE: KEY) was added to Goldman's Conviction Buy List.
• Wachovia raised EastGroup Properties (NYSE: EGP) to Outperform from Market Perform.

Analyst downgrades:

• UBS cut Barclays (NYSE: BCS) to Neutral from Buy as they believe capital raises could negatively impact earnings and that the dividend is likely to be cut.
• JP Morgan downgraded Discovery Holdings (NASDAQ: DISCA) to Underweight from Neutral based on valuation and the deteriorating economic outlook.
• Friedman Billings downgraded shares of Janus Capital (NYSE: JNS) to Underperform from Market Perform and lowered its target to $7 from $23 as they see further risk to the downside following the company's weaker-than-expected results.
• LKQ Corp (NASDAQ: LKQX) was cut to Sector Perform from Outperform at RBC Capital.
• Affymetrix (NASDAQ: AFFX) was lowered to Sell from Hold at Deutsche Bank.
• RightNow Tech (NASDAQ: RNOW) was downgraded at Baird to Neutral from Outperform.

Here are a few highlights from this past week's earnings coverage from BloggingStocks:

• BJ's Wholesale Club Inc. (NYSE: BJ) beat fourth-quarter estimates on lower costs and strong sales.
• Ciena Corp. (NASDAQ: CIEN) first-quarter profit doubled on strong sales, lifting the sector.
• Clean Harbors Inc. (NASDAQ: CLHB) trounced expectations as it completes acquisitions.
• Del Monte Foods Co. (NYSE: DLM) beat estimates on cost cutting and raised its guidance.
• HSBC Holdings PLC ADS (NYSE: HBC) profit soared in 2007, beating analysts' expectations.
• Intel Corp. (NASDAQ: INTC) lowered its first quarter earnings forecast, citing weak chip prices.
• LeapFrog Enterprises Inc. (NYSE: LF) narrowed its losses for the fourth quarter and full year.
• LKQ Corp. (NASDAQ: LKQX) beat fourth-quarter estimates and raised its guidance.
• Midway Games Inc. (NYSE: MWY) widened its losses in both the fourth quarter and full year.
• Staples Inc. (NASDAQ: SPLS) reported a solid fourth quarter and increased its annual dividend.
• TiVo Inc. (NASDAQ: TIVO) posted a smaller-than-expected fourth-quarter loss due to licensing deals.
• Trump Entertainment Resorts Inc. (NASDAQ: TRMP) fourth-quarter and full-year losses widened.
• Universal Health Services (NYSE: UHS) beat earnings expectations but matched revenue estimates.

Also, Dell Inc. (NASDAQ: DELL) struggles to maintain profitability against competitor Hewlett-Packard Co. (NYSE: HPQ). See Timothy Sykes's take on Warren Buffett's annual letter to Berkshire Hathaway (NYSE: BRK.A) shareholders. And Zac Bissonnette is interested in where earnings actually come from.

Upcoming results to watch for include Kroger Co. (NYSE: KR), Boston Beer Co. (NYSE: SAM), J. Crew Group Inc. (NYSE: JCG), Jones Soda Co. (NASDAQ: JSDA), Blackstone Group (NYSE: BX), and Men's Wearhouse Inc. (NYSE: MW).

Visit AOL Money & Finance for more earnings coverage.

LKQ Corporation (NASDAQ: LKQX) is the largest nationwide provider of aftermarket collision replacement products, recycled original equipment products and refurbished replacement products used to repair light vehicles. The company operates approximately 300 facilities, offering its customers such components and systems as engines, front end assemblies, doors, transmissions, bumper assemblies, wheels, head and tail lamp assemblies, mirrors, fenders and axles. Clients include repair shops and insurance firms, including extended warranty companies.

LKQ pleased investors last week, when it reported Q4 EPS of 15 cents and revenues of $414.7 million. Analysts had been expecting 11 cents and $392.9 million. Management also guided FY08 EPS to 73-77 cents (66 cent consensus). RBC Capital Markets and Barrington Research subsequently reiterated "outperform" ratings on the stock and declared price targets in the $24-$27 range.

MOST NOTEWORTHY: Double Hull Tankers, Comverge and Cardica were today's noteworthy initiations:

• Double Hull Tankers (NYSE: DHT) was initiated with a Buy rating and $20 target at Jefferies, as they believe shares are attractively valued given the company's time charter contract coverage and upside potential through profit sharing arrangement.
• Broadpoint views Comverge (NASDAQ: COMV) as the industry leader in the high-growth demand response market. The firm assumed coverage with a Buy rating.
• Oppenheimer expects Cardica's (NASDAQ: CRDC) proximal device, which is awaiting FDA approval, to change cardiothoracic surgery and that adoption should be rapid. The firm initiated shares with a Buy rating and $11 target.

OTHER INITIATIONS:

• Bear Stearns started Brady Corp (NYSE: BRC) with a Neutral rating and $40 target.
• Bill Barrett (NYSE: BBG) was initiated with a Market Perform rating and Morgan Keegan.
• William Blair initiated LKQ (NASDAQ: LKQX) with a Market Perform rating.

MOST NOTEWORTHY: SuperValu, SunPower, LKQ and Charter Comm were today's noteworthy initiations:

• Banc of America started shares of SuperValu Inc (NYSE: SVU) with a Sell rating and $34 target as they believe the company will struggle to modernize its store base and reset its pricing to more competitive levels over the next 12 months.
  
• William Blair initiated SunPower (NASDAQ: SPWR) shares with an Outperform rating, citing the company's large market opportunity and strong technology/market positioning.
  
• LKQ (NASDAQ: LKQX) was started at Deutsche Bank with a Hold rating and $35 target. The firm believes the company's growth projections are priced into shares.
  
• JP Morgan initiated Charter Communications (NASDAQ: CHTR) with an Overweight rating, as they expect the company to be able to refinance its maturing debt over the next five years and generate attractive returns.

OTHER INITIATIONS:

• B. Riley started Wsfs Financial Corporation (NASDAQ: WSFS) with a Buy rating and $69 target.
  
• Bear initiated Commercial Vehicle Group (NASDAQ: CVGI) with a Peer Perform rating and Tenneco Inc (NYSE: TEN) with an Underperform rating.
  
• Cowen started Micrus Endovascular Corporation (NASDAQ: MEND) with an Outperform rating.

Wall Street's equity market marches into Fall with a full schedule this week, with three IPOs and eight Secondaries on the docket.

Those deals tentatively scheduled to price include:

IPOs:

Seanergy Maritime (SRG), a 20M-share IPO for this blank check financing company. Maxim is the lead manager. Filing price: $10.

For 10% higher than its most recent close, Keystone Automotive (NASDAQ: KEYS) has agreed to be acquired by LKQ (NASDAQ: LKQX) for a total purchase price of $811 million. LKQ stepped up and made the move in order to expand its presence in the distribution of replacement auto parts, according to LKQ CEO, Joe Holsten.

LKQ is funding the deal with a credit commitment from Deutsche Bank and Lehman Brothers(NYSE:LEH). In addition, this $1.09 billion in senior financing will also be used to refinance the company's existing debt, probably at more economic interest rates.

This is a very significant acquisition for LKQ considering the financials behind the deal. During the last twelve months, Keystone has done $713 million in sales. This compares to about $833 million in sales for LKQ. In addition, the acquisition price represents more than half of LKQ's existing market capitalization.

I believe this deal makes sense for LKQ shareholders because I think Keystone's earnings will be more appropriately valued under LKQ. For example, at the close yesterday Keystone was trading for just 1x sales and roughly 17.5x next year's earnings. LKQ on the other hand fetches 1.65x sales and nearly 21x forward earnings. Granted Keystone's operating margins were inferior to those of LKQ, As a result of these factors, I tend to believe that Keystone's earnings and sales will receive a higher multiple valuation as part of Keystone.

LKQ is a very interesting stock at these levels - especially considering this acquisition which should close in the fourth quarter of this year. At only 21x forward earnings with projected growth of 19% over the next five years this seems like a very interesting Growth At A Reasonable Price proposition.