Analyst Upgrades

• Janney Montgomery upgraded Dreamworks (DWA) to buy from neutral on valuation and believes Dragon will be a major hit. The firm has a $45 target on the stock.
• Thomas Weisel upgraded Gildan Activewear (GIL) to market weight from underweight, citing expectations for increased market shares in the U.S. screen print channel. The firm raised its target to $17 from $12.
• P.F. Chang's (PFCB) was upgraded to overweight from equal weight at Morgan Stanley.
• PEPCO Holdings (POM) was upgraded to outperform from neutral at Credit Suisse.
• Arris (ARRS) was upgraded to buy from neutral at UBS.

Analyst upgrades:

• JMP Securities upgraded CB Richard Ellis (NYSE: CBG) to Outperform from Market Perform. The analyst believes the new Public-Private Investment Program will create liquidity, which will result in some degree of activity. Shares were also upgraded at JP Morgan to Overweight from Neutral.
  
• Thomas Weisel upgraded Linear Tech (NASDAQ: LLTC) to Overweight from Market Weight due to stabilizing business and favorable end market exposure.
  
• UBS upgraded PepsiCo (NYSE: PEP) to Buy from Neutral and raised its target to $60 from $57 due to moderating input costs, earnings and investment flexibility, improving U.S. beverage business, and leverage from its market share in food.
• Tibco (NASDAQ: TIBX) was raised to Buy from Neutral at Goldman.
  
• Philips Electronics (NYSE: PHG) was upgraded at ING Group to Buy from Hold.
  
• Hospira (NYSE: HSP) was upgraded to Outperform from Market Perform at Leerink.

MOST NOTEWORTHY: Beckman Coulter, BT Group and Micromet were today's noteworthy initiations:

• Oppenheimer believes Beckman Coulter (NYSE:BEC) is well-positioned to leverage its broad installed base in the clinical lab market to increase sales of its consumable and a new molecular diagnostics instrument expected in 2010. The firm initiated shares with an Outperform rating and $80 target.
  
• Societe Generale expects BT Group's (NYSE:BT) domestic revenues to deteriorate as line erosion accelerates; shares were assumed with a Sell rating.
  
• Roth Capital started Micromet (NASDAQ:MITI) with a Buy rating and $3 target. The firm expects the company's proprietary 'BiTE' antibody platform to gain validation as its lead candidate MT103 starts accumulating clinical data in multiple hematology indications.

OTHER INITIATIONS:

• Yahoo! (NASDAQ:YHOO) was initiated with a Neutral rating at Merrill.
  
• Piper resumed coverage of Alexion Pharma (NASDAQ:ALXN) with a Buy rating and $88 target.
  
• MedAssets (NASDAQ:MDAS) was started at Jefferies with a Buy rating and $25 target.

MOST NOTEWORTHY: Abbott Lab, Fannie Mae, Freddie Mac and Micromet were today's noteworthy upgrades:

• Wachovia upgraded Abbott Lab (NYSE: ABT) to Outperform from Market Perform as they believe their earlier concerns have been addressed. Past concerns included the potential for a negative outcome from the FDA panel on Xience and slowing prescription growth of lead drug Humira.
  
• Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) were raised to Outperform from Market Perform at Keefe Bruyette citing recent government actions to stabilize the mortgage markets.
  
• Micromet (NASDAQ: MITI) was upgraded at RBC Capital to Outperform from Sector Perform as they expect positive data for its lead candidate, MT103, by year-end.

OTHER UPGRADES:

• ThinkEquity raised Atheros Comm (NASDAQ: ATHR) to Buy from Accumulate.
  
• Goldman upgraded US Steel (NYSE: X) to Buy from Neutral.
  
• General Electric (NYSE: GE) was upgraded at Merrill to Buy from Neutral.