Analyst Upgrades

• Citigroup (C) to outperform from market perform at Bernstein.
• Cubist Pharma (CBST) to outperform from neutral at RW Baird.
• Pentair (PNR) to buy from hold at Citigroup.
• Heritage Financial (HFWA) to outperform from market perform at Keefe Bruyette.
• SL Green Realty (SLG) and Digital Realty (DLR) to market perform from underperform at FBR Capital.
• MGM Resorts (MGM) to neutral from Sell at Janney Capital.
• Ciena (CIEN) to buy from neutral and Olin (OLN) to buy from underperform at BofA/Merrill.
• Mellanox (MLNX) to overweight from equal weight at Barclays.
• ConocoPhillips (COP) and Canadian Natural (CNQ) to overweight from neutral at JPMorgan.
• IDEX (IEX) to outperform from perform at Oppenheimer.
• Taiwan Semiconductor (TSM) to buy from hold at Deutsche Bank.
• Ctrip.com (CTRP) to positive from neutral at Susquehanna.
• Linear Technology (LLTC) and Analog Devices (ADI) to hold from sell at Auriga.
• Quicksilver (KWK) to outperform from market perform at BMO Capital.

Analyst Upgrades

• NYSE Euronex (NYX) to conviction buy from neutral at Goldman.
• General Dynamics (GD) to buy from hold at Citigroup.
• Deere (DE), Parker-Hannifin (PH) and ExlService (EXLS) to overweight from neutral at JPMorgan.
• Aflac (AFL) to outperform from market perform at FBR Capital.
• Wynn Resorts (WYNN) to buy from neutral at Janney Capital.
• Amdocs (DOX) to buy from neutral at UBS.
• Juniper (JNPR) to buy from hold at ThinkEquity.
• Rudolph Tech (RTEC) and KLA-Tencor (KLAC) to perform from underperform at Oppenheimer.
• Hershey (HSY) and Pinnacle Entertainment (PNK) to outperform from market perform at Wells Fargo.
• Spirit AeroSystems (SPR) to equal weight from underweight at Morgan Stanley.
• Micron (MU) to outperform from neutral at RW Baird.

MOST NOTEWORTHY: Horace Mann, Sonus Networks and Mellanox were today's noteworthy initiations:

• Keefe Bruyette views Horace Mann (NYSE: HMN) as fairly valued and expects the competitive personal lines environment and deteriorating loss trends to act as strong headwinds. Shares were assumed with a Market Perform rating and $19 target.
  
• Thomas Weisel initiated Sonus Networks (NASDAQ: SONS) with a Market Weight rating and $3.50 target and believes management's expectation for 20% FY08 revenue growth is too aggressive.
  
• Susquehanna expects Mellanox (NASDAQ: MLNX) to benefit from the growing end markets for InfiniBand technology, and started shares with a Positive rating and $20 target.

OTHER INITIATIONS:

• Jefferies initiated McKesson (NYSE: MCK) with a Buy rating and $67 target.
  
• Philip Morris (NYSE: PM) was initiated at JP Morgan with an Overweight rating and $62 target, and added to the firm's Analyst Focus List.
  
• Baird started Pharmasset (NASDAQ: VRUS) with a Neutral rating and $21 target.
  

MOST NOTEWORTHY: Synthesis Energy, Lamar Advertising and Urban Outfitters were today's noteworthy initiations:

• Merriman believes Synthesis Energy Systems Inc (NASDAQ: SYMX) is well-positioned as it begins to leverage its exclusive global license for U-GAS technology and commences the deployment of its coal-to-methanol production facilities in China. The firm started shares with a Buy rating.
• Lamar Advertising Company (NASDAQ: LAMR) was initiated with a Buy rating and $51 target at Jefferies, as they believe shares are oversold at current levels.
• William Blair believes Urban Outfitters Inc (NASDAQ: URBN) will benefit from both strong sales and a steep margin recovery in the coming two years. The firm assumed coverage of Urban with an Outperform rating.

OTHER INITIATIONS:

• Lehman started United Rentals Inc (NYSE: URI) with an Equal Weight rating and $22 target.
• Credit Suisse assumed coverage of Mellanox Technologies (NASDAQ: MLNX) with a Neutral rating.
• EPIQ Systems Inc (NASDAQ: EPIQ) was initiated with a Market Perform rating at Wachovia.

MAJOR PAPERS:

• The Wall Street Journal (subscription required) reported that Saudi Arabia is cutting oil output by an additional 158,000 barrels a day, part of a broader campaign by OPEC to shrink inventories and shore up prices.
• Also in the Journal, Delta Air Lines (OTC: DALRQ) said that if it defeats U.S. Airways Group Inc's (NYSE: LCC) hostile takeover it won't rule out possibly merging with another airline.
• The Financial Times Deutschland (subscription required) reported that Dow Chemical Company (NYSE: DOW) is in talks with Gazprom over a joint development.

OTHER PAPERS:

• The Economic Times noted that Standard & Poor's raised India's debt rating to investment grade for the first time in 14 years on the strength of record growth and foreign exchange reserves.
• The New York Times wrote that Sony Corporation (NYSE: SNE) profits fell on losses for PlayStation 3 as the company faulted a strategic decision to set the price of PS 3 below the cost of production as a way to bolster market share.
  
• The Investor's Business Daily's "New Issue America" column highlighted Mellanox Technologies, a tech startup that is expected to come public the week of February 5 with an offering price of $12-$14.