• Merriman upgraded Smith & Wesson (NASDAQ:SWHC) to Buy from Neutral on valuation after channel checks indicated an increase in gun sales in October after an Obama win became apparent. The firm believes shares can trade up into the $4 to $5 range.
  
• Credit Suisse upgraded Wells Fargo (NYSE:WFC) to Outperform from Neutral citing the company's improved balance and potential earnings power following its $11B equity offering.
  
• JP Morgan upgraded Coca-Cola Enerprises (NYSE:CCE) to Overweight from Neutral on valuation and easing commodity and labor costs.
• Manulife (NYSE:MFC) was raised to Outperform from Sector Perform at RBC Capital.
  
• SL Green Realty (NYSE:SLG) was upgraded at UBS to Buy from Neutral.
  
• Molina Healthcare (NYSE:MOH) was upgraded to Equal Weight from Underweight at Barclays.

• Barclays downgraded General Motors (NYSE:GM) to Underweight from Equal Weight on cash concerns and believes any assistance from the government would substantially dilute equity holders. Barclays set a $1 target on GM shares.
  
• Stephens cut LandAmerica (NYSE:LFG) to Underweight from Equal Weight following the Fidelity National (NYSE:FNF) takeover as they expect no other bidders to emerge and believe shares could go back to under $5 if Fidelity National walks away.
  
• Deutsche Bank downgraded solar companies to reflect deteriorating fundamentals in the sector, an adequate supply of c-Si modules, the strengthening dollar and restricted access to capital. First Solar (NASDAQ:FSLR), Canadian Solar (NASDAQ:CSIQ), Energy Conversion (NASDAQ:ENER) and Sunpower (NASDAQ:SPWRA) were downgraded to Hold from Buy.
• Urban Outfitters (NASDAQ:URBN) and Aeropostale (NYSE:ARO) were downgraded to Underweight from Equal Weight at Barclays.
  
• FMC Technologies (NYSE:FTI) was lowered to Underweight from Neutral at JP Morgan.

• Freeport McMoRan, HLS Systems, and Kimberly Clark were today's noteworthy initiations:
  
• Banc of America expects Freeport McMoRan's (NYSE:FCX) earnings will decline sharply in 2009 and thinks the dividend could be at risk. Shares were initiated with a Neutral rating and $29 target.
  
• Roth Capital initiated HLS Systems (NASDAQ:HOLI) with a Buy rating and $5 target. The firm is positive on the company's management team and the company's outlook for EPS growth.
  
• Citigroup thinks Kimberly Clark's (NYSE:KMB) margins have bottomed and that the current valuation is too low. Shares were assumed with a Buy rating and $65 target.
• Synaptics (NASDAQ:SYNA) and Intercontinental Exchange (NYSE:ICE) were initiated at Merrill Lynch with Neutral ratings.
  
• Tim Hortons (NYSE:THI) was assumed with a Sell rating at Goldman.

Molina Healthcare (NYSE: MOH) is a multi-state managed care organization that arranges for the delivery of healthcare services to persons eligible for Medicaid and other government-sponsored programs for low-income families and individuals. The firm has about 1.2 million members in California, Michigan, Missouri, Nevada, New Mexico, Ohio, Texas, Utah and Washington. It also offers preventive health education, disease management and pharmacy management services. As well, it operates nineteen primary care clinics in California.

Shareholders were pleased with the company's investor day presentations last week, when management highlighted potential positive catalysts for the year and maintained the firm's 2008 profit guidance. Deutsche Bank, Credit Suisse and Wachovia analysts subsequently issued favorable remarks about Molina's prospects. The guidance was termed "conservative" and confidence was expressed in the firm's ability to meet it. M&A growth opportunities were also mentioned.

Managing the healthcare needs of those dependent on government programs requires expertise on both the medical and regulatory sides of the equation. There is an outfit in Long Beach, California that handles the demands well enough to put up some solid financial numbers.

Molina Healthcare (NYSE: MOH) is a multi-state managed care organization that arranges for the delivery of healthcare services to persons eligible for Medicaid and other government-sponsored programs for low-income families and individuals. The firm has more than a million members in California, Michigan, New Mexico, Ohio, Texas, Utah and Washington. It also offers preventive health education, disease management and pharmacy management services. As well, it operates about twenty primary care clinics in California.

The company pleased investors last week, when it raised its earnings outlook for fiscal 2007. Management now sees EPS of $1.85-1.95, up from a prior forecast of $1.75-1.90. Analysts had been expecting $1.87.