Analyst upgrades:

• Oppenheimer upgraded Gymboree (NASDAQ: GYMB) to Outperform from Perform following the company's Q2 results to reflect valuation and square footage growth from Crazy 8. The firm has a $52 target on the stock.
• KeyBanc upgraded Lululemon (NASDAQ: LULU) to Buy from Hold on expectations sales and margins will improve in the near-term due to clean inventory levels. The firm recommends a pair trade of long Lululemon, short Under Armour (NYSE: UA).
• Keefe Bruyette upgraded Allied Capital (NYSE: ALD) to Market Perform from Underperform following the company's Q2 results and raised its target on shares to $3.50 from $1.
• Jack in the Box (NASDAQ: JACK) was upgraded to Overweight from Neutral at JPMorgan.
• LogMeln (NASDAQ: LOGM) was upgraded to Overweight from Neutral at Piper Jaffray.
• Barclays (NYSE: BCS) was reinstated with an Outperform from Neutral at Credit Suisse.

Analyst upgrades:

• Banc of America/Merrill upgraded Gymboree (NASDAQ:GYMB) to Buy from Underperform and raised their target to $33 from $15 following the company's Q1 comparable store sales guidance.
  
• Oppenheimer upgraded Lam Research (NASDAQ:LRCX) to Outperform from Perform after channel checks indicated the company's shipments are gaining momentum. The firm raised their price target on the stock to $35 from $20.
  
• Owens & Minor (NYSE:OMI) was raised to Outperform from Neutral at Credit Suisse. The firm upgraded shares but lowered their target to $45 from $46 citing underappreciated earnings growth and valuation.
• Albermarle (NYSE:ALB) was upgraded to Conviction Buy from Neutral at Goldman.
  
• Protective Life (NYSE:PL) was upgraded to Neutral from Sell at UBS.
  
• Maxim (NASDAQ:MXIM) was lifted to Buy from Hold at Canaccord.

Analyst upgrades:

• Goldman upgraded Applied Materials (NASDAQ: AMAT) to Buy from Sell and added shares to its Conviction Buy List citing valuation. The firm also upgraded the Semiconductor Capital Equipment Sector to Attractive.
  
• Morgan Keegan believes Cisco Systems (NASDAQ: CSCO) will emerge from the slowdown as a stronger company with greater market share and expansion into adjacent markets. Shares were upgraded to Outperform from Market Perform.
• Pfizer (NYSE: PFE) was upgraded to Overweight from Equal Weight at Barclays.
  
• Daimler (NYSE: DAI) was upgraded at UBS to Neutral from Sell.
• Friedman Billings upgraded Mariner Energy (NYSE: ME) to Market Perform from Underperform on valuation and the company's upcoming catalysts in the deepwater GOM.
• Swiss Reinsurance (OTC: SWCEY) was raised to Buy from Hold at Citigroup.

Analyst downgrades:

• Intel (NASDAQ: INTC) was downgraded to Neutral from Buy at Goldman.
• Deutsche Bank cut Hess Corp (NYSE: HES) and Marathon Oil (NYSE: MRO) to Hold from Buy and Suncor (NYSE: SU) and ConocoPhillips (NYSE: COP) to Sell from Hold after cutting their oil price forecast for 2009 to $60/bbl and 2010 to $58/bbl.
  
• Merrill downgraded Akzo Nobel (OTC: AKZOY) to Neutral from Buy on expectations the company's coatings end markets will worsen and chemicals division will see pressure next year.
• Monster (NASDAQ: MNST) was lowered at Citigroup to Hold from Buy.

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: Air France, BHP Billiton, AstraZeneca, Broadcom and Savvis were today's noteworthy downgrades:

• Goldman removed shares of Air France (NYSE: AKH) from its Conviction Buy List due to the increase in the price of fuel and the possibility of an economic slowdown.
  
• Goldman downgraded BHP Billiton (NYSE: BHP) to Neutral from Buy and removed the stock from its Pan-Europe Buy List due to valuation.
  
• Merrill Lynch downgraded shares of AstraZeneca (NYSE: AZN) to Sell from Neutral to reflect increased competition from generic-drug makers, a poor pipeline and slow earnings growth.
  
• Wachovia downgraded shares of Broadcom Corporation (NASDAQ: BRCM) to Hold from Buy to reflect valuation and the company's lower than expected Q3 results. Shares were also lowered to Hold from Buy at Deutsche Bank.
  
• Stanford lowered Savvis (NASDAQ: SVVS) to Hold from Buy and notes that the company's Q3 results and Q4 revenue guidance brings the company's 2007 revenue outlook $15M below the consensus, and advises investors to remain on the sidelines. The firm believes the company's strategy is sound, but that its execution has been slow.

OTHER DOWNGRADES:

• Blockbuster (NYSE: BBI) and Akzo Nobel (OTC: AKZOY) were downgraded to Neutral from Overweight at JP Morgan.
  
• Friedman Billings downgraded the E&P sector, including Brigham Exploration Company (NASDAQ: BEXP), Mariner Energy (NYSE: ME) and Nobel Energy (NYSE: NBL) to Market Perform from Outperform.
  
• Baird downgraded Plantronics (NYSE: PLT) to Neutral from Outperform.
  
• Goldman downgraded Boston Scientific (NYSE: BSX) to Neutral from Buy.

MOST NOTEWORTHY: Dreamworks Animation (NYSE: DWA), BlackRock (BLK), Mariner Energy (ME) and Franklin Resources (BEN) and RightNow Technologies (RNOW) were today's noteworthy initiations:

• Stifel expects Dreamworks Animation's (NYSE: DWA) fundamental outlook for film to improve given a more accommodating home entertainment market, while next-gen DVD format adoption and the introduction of 3D exhibition in theaters creates incremental opportunities for film studios. The firm started shares off with a Buy rating.
  
• Wachovia believes BlackRock (NYSE: BLK) is one of the best-positioned managers in both product and geographic perspectives and initiated shares with an Outperform rating.
  
• BMO Capital believes Mariner Energy (NYSE: ME) has a number of catalysts that could push shares higher, but feels current trading levels are not attractive. BMO started shares with a Market Perform rating.
  
• William Blair views Franklin Resources (NYSE: BEN) as a premier global firm with an advantage in many attractive international markets and started shares with an Outperform rating.
  
• Cantor believes RightNow Tech's (NASDAQ: RNOW) transition creates significant execution risk, initiated shares with a Hold rating...

OTHER INITIATIONS:

• China Sunergy (NASDAQ: CSUN) was initiated with a Neutral rating at Cowen.
  
• Banc Of America initiated shares of The Stanley Works (NYSE: SWK) with a Neutral rating.
  
• Yamana Gold (NYSE: AUY) was started with a Buy rating and Credit Suisse.
  
• Deutsche Bank initiated Cree (NASDAQ: CREE) with a Hold rating.

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

MOST NOTEWORTHY: Onyx Pharmaceuticals (ONXX) and CommVault (CVLT) top the list of today's initiations.

• Citigroup started Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) with a Hold rating and $22 target as the broker expects shares to be range bound until clarity is given into the company's cancer indications. A bunch firms initiated recent IPO CommVault Systems this morning, including IPO managers First Boston and Goldman Sachs.
• Goldman started shares of CommVault Systems, Inc. (NASDAQ:CVLT) with a Buy and $21 target, and added shares to its prestigious Conviction Buy List, as they expect the company to benefit from relationships with DELL and HDS. First Boston is more lukewarm on the name, starting shares with a Neutral rating and the same target of $21. Other firms' imitating the stock this morning was Merrill Lynch with a Buy, and Thomas Weisel and RBC Capital with Outperform ratings.

OTHER INITIATIONS:

• Caris initiated three retail names this morning: American Eagle Outfitters, Inc. (NASDAQ:AEOS), Limited Brands, Inc. (NYSE:LTD) and Men's Wearhouse, Inc. (NYSE:MW). The broker favors Limited and Men's Wearhouse with Above Average ratings, thinking inventory and cost management can bring margin expansion. Caris is less excited about American Eagle, starting shares with an Average rating, believing shares are fairly valued at current levels.

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