Analyst upgrades:

• Janney Montgomery upgraded City Holding Company (NASDAQ: CHCO) to Buy from Neutral due to valuation and a belief the banking franchise is strong. The firm has a $33 price target on the stock.
  
• JMP Securities upgraded Acadia (NASDAQ: ACAD) to Outperform from Market Perform following the announcement that it has partnered with Biovail to develop and commercialize Pimavanserin. The firm has a $7 price target on the stock.
  
• RBC Capital upgraded Methanex (NASDAQ: MEOH) to Outperform from Sector Perform and raised its price target to $18 from $11 based on its improving free cash flow outlook.
• MGM Mirage (NYSE: MGM) was raised to Buy from Underperform at Banc of America/Merrill.
• Research in Motion (NASDAQ: RIMM) was lifted to Neutral from Underweight at JP Morgan.
• Con-Way (NYSE: CNW) was upgraded to Overweight from Equal Weight at Stephens.

MAJOR PAPERS:

• Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK.A) and Mars are in talks to purchase Wm. Wrigley Jr. Co. (NYSE: WWY) for over $22B, the Wall Street Journal reported. An announcement may come as soon as today.
• The Royal Bank of Scotland Group Plc (NYSE: RBS) will start the integration of ABN Amro Holding's (NYSE: ABN) investment bank into its global markets division, the Financial Times reported. This process will most likely result in the paring of 7,000 jobs.

OTHER PAPERS:

• According to the New York Post, IAC/InterActiveCorp. (NASDAQ: IACI) Chairman Barry Diller is expected to meet with his board this week to restart the process of breaking up his company into five separate pieces, sources said. At the same time, Diller and Liberty Media Corporation (NASDAQ: LMDIA) Chairman John Malone are continuing to talk about a deal that would trade one or more of IAC's assets for Liberty's ownership stake in IAC.
• The UK Times has learned that Numis Securities, the stockbroking group headed by Michael Spencer, is in "advanced talks" to buy the UK equities business of The Bear Stearns Companies Inc (NYSE: BSC). Numis may look to hire a team of 25 from Bear.

MOST NOTEWORTHY: PetSmart, Marsh & McLennan and Pinnacle Airlines were today's noteworthy upgrades:

• Banc of America upgraded PetSmart (NASDAQ:PETM) to Buy from Neutral on valuation, as they believe the market is overly negative on the company's cyclicality.
  
• Keefe Bruyette upgraded shares of Marsh & McLennan (NYSE:MMC) to Outperform from Market Perform on increased confidence management will be able to improve margins.
  
• JP Morgan upgraded Pinnacle Airlines (NASDAQ:PNCL) to Overweight from Underweight citing the company's FCF and contract certainty.

OTHER UPGRADES:

• Hasbro (NYSE:HAS) was upgraded to Buy from Hold at Needham.
  
• Calyon raised Airtran Holdings (AAI) to Add from Neutral.
  
• Liberty Entertainment (LMDIA) was raised at Merrill to Buy from Neutral.

MOST NOTEWORTHY: GTX Inc, Akeena Solar and NexMed were today's noteworthy initiations:

• Rodman & Renshaw is positive on GTX Inc's (NASDAQ: GTXI) opportunity for Acapodene in prostate cancer and Ostarine for muscle wasting. The firm started shares with an Outperform rating and $22 target.
  
• Akeena Solar (NASDAQ: AKNS) was initiated with a Buy rating at Merriman. The firm believes the company is positioned to generate a high margin recurring revenue stream through the licensing of its Andalay proprietary rack mounting system.
  
• Roth Capital expects NexMed's (NASDAQ: NEXM) Phase III data for its antifungal Lamisil, expected in mid-2008, to be positive. The firm, which started NexMed with a Buy rating and $2.50 target, said early clinical data demonstrated a roughly 7-8X improvement in fungal reductions versus the competitive topical formulation sold as Penlac. The analyst said Phase III trial will admittedly have a different end point, but this data makes them bullish.

OTHER INITIATIONS:

• Lehman initiated Liberty Entertainment (NASDAQ: LMDIA) with an Overweight rating and $30 target.
  
• Canaccord Adams assumed Priceline.com (NASDAQ: PCLN) with a Hold rating and $120 target.
  
• Home Inns (NASDAQ: HMIN) was started at Morgan Stanley with an Overweight rating and $28 target.

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: Chipotle Mexican Grill, Micrus Endovascular and Acorda Therapeutics were today's noteworthy initiations:

• Jefferies expects the quality gap between Chipotle Mexican Grill (NYSE: CMG) and its peers will become more apparent in a weakening consumer environment. The firm started shares with a Buy rating and $110 target.
  
• Micrus Endovascular (NASDAQ: MEND) was initiated with an Outperform rating and $20 target at Barrington, citing the company's strong product line, improving salesforce, leading market share position and their expectation for continued strong transition from clipping to coiling.
  
• Acorda Therapeutics (NASDAQ: ACOR) was assumed with an Overweight rating at JP Morgan, as they believe the company's Fampridine-SR for multiple sclerosis is a $500M + opportunity

OTHER INITIATIONS:

• Stanford initiated Mariner Energy (NYSE: ME) with a Buy rating and $35 target.
  
• Deutsche Bank assumed Liberty Entertainment (NASDAQ: LMDIA) with a Buy rating and $29 target.
  
• EnerNoc (NASDAQ: ENOC) was initiated with a Neutral rating at Broadpoint.

MOST NOTEWORTHY: Microsoft, IPC The Hospitalist Co and DuPont were today's noteworthy initiations:

• Jefferies believes Microsoft's (NASDAQ: MSFT) bid for Yahoo (NASDAQ: YHOO) and more conciliatory tone towards regulators signals a shift in strategy from defense to offense. The firm started shares with a Buy rating and $33 target.
  
• Wachovia believes IPC The Hospitalist (NASDAQ: IPCM) is well-positioned to gain share in the fragmented hospitalist market given its experienced management team, operating history, and proven track-record; shares were initiated with an Outperform rating at Wachovia and with an Outperform rating and $27 target at Credit Suisse.
  
• DuPont (NYSE: DD) was initiated with an Outperform rating and $57 target at Credit Suisse, as they believe the company's number two seed position in North America looks secure.

OTHER INITIATIONS:

• B. Riley initiated VASCO Data Security (NASDAQ: VDSI) with a Buy rating and $18 target.
  
• Morgan Stanley initiated Liberty Entertainment (NASDAQ: LMDIA) with an Overweight rating; shares were also initiated with an Outperform rating at Wachovia.
  
• Credit Suisse added shares of Elan Corp (NYSE: ELN) to its Focus List and started shares with an Outperform rating.