Analyst Upgrades

• U.S. Steel (X) to buy from neutral and Barnes & Noble (BKS) to neutral from sell at Goldman.
• Salesforce.com (CRM) to buy from hold at Jefferies.
• Dollar Tree (DLTR) to overweight from equal weight at Barclays.
• Edison International (EIX) to hold from sell at Citigroup.
• Analog Devices (ADI) to overweight from neutral at JPMorgan.

MOST NOTEWORTHY: Sonus Networks, Kenexa, Canadian Pacific, Applied Materials and Powerwave Tech were today's noteworthy upgrades:

• Merriman upgraded Sonus Networks (NASDAQ: SONS) to Neutral from Sell following its win at BT Group (NYSE: BT) for its ASX platform, which the firm believes endorses the company's technology.
  
• Cantor upgraded Kenexa (NASDAQ: KNXA) to Buy from Hold. The firm finds the stock being 40%+ off due to the 3Q weak earnings report as quite an overreaction and believes there is more than enough upside to advise buying shares. Management announced a 2M share buyback program.
  
• Shares of Canadian Pacific (NYSE: CP) was upgraded to Sector Outperformer from Sector Performer at CIBC, as they believe the strong Canadian Dollar and the delay in STB approval of the DM&E acquisition is priced into shares.
  
• Applied Materials (NASDAQ: AMAT) was upgraded to Outperform from Neutral at JP Morgan and to Buy from Hold at Citigroup; Citigroup expects capex revisions to start to reverse in mid-08 and views solar as a free option.
  
• Piper Jaffray raised its rating on Powerwave Technologies (NASDAQ: PWAV) to Outperform from Market Perform on valuation and seasonally strong Q4 capex trends.

OTHER UPGRADES:

• eBay (NASDAQ: EBAY) was upgraded to Outperform from Market Perform at Piper Jaffray.
  
• Morgan Joseph upgraded Perini (NYSE: PCR) to Buy from Hold and Shuffle Master (SHFL) to Hold from Sell.
  
• Goldman upgraded China Petroleum & Chemical Corp (NYSE: SNP) to Buy from Neutral.

MOST NOTEWORTHY: SanDisk Corp (SNDK), Nationwide Financial Services (NFS), Unica Corp (UNCA), International Paper Co (IP) and the Apartment REIT sector topped the day's noteworthy downgrades:

• CIBC cut SanDisk Corp (NASDAQ: SNDK) to Sector Performer from Outperformer on valuation.

• Nationwide Financial (NYSE: NFS) was downgraded to Underweight from Equal-Weight at Morgan Stanley on valuation.

• Ferris Baker cut Unica Corp (NASDAQ: UNCA) to Sell from Hold following the company's announcement that it has dismissed auditors Ernst & Young. Montgomery downgraded Unica to Hold from Buy on valuation.

• International Paper (NYSE: IP) was downgraded to Neutral from Outperform at Credit Suisse on valuation.

• UBS downgraded the Apartment REIT sector to Underweight and downgraded BRE Properties (NYSE: BRE), Camden Property Trust (NYSE: CPT) and Meruelo Maddux Properties (NASDAQ: MMPI) to Neutral from Buy...

OTHER DOWNGRADES:

• JP Morgan cut Moody's Corp (NYSE: MCO) to Neutral from Overweight.

• Lehman downgraded Powerwave Technologies (NASDAQ: PWAV) to Equal-Weight from Overweight.

• Goldman downgraded Target Corp (NYSE: TGT) to Neutral from Buy.

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

MOST NOTEWORTHY: Sirius Satellite (SIRI), Harley-Davidson (HOG), and New York Times (NYT) top today's list of downgrades.

• UBS downgraded Sirius Satellite Radio, Inc. (NASDAQ:SIRI) to Market Perform from Outperform. The firm cited the end of its paired trade opportunity with XM Satellite Radio (XMSR), aggressive fourth-quarter subscriber forecasts and weakening consumer interest for satellite radio products.
• Harley-Davidson, Inc. (NYSE:HOG) was downgraded to Hold from Buy on valuation at A.G. Edwards. The motorcycle giant was also downgraded to Neutral from Outperform by Robert W. Baird on valuation and the potential for slower seasonal fourth-quarter growth.
• Morgan Stanley downgraded New York Times Company (NYSE:NYT) to Underweight from Equal Weight on valuation.

OTHER DOWNGRADES:

• Ferris Baker Watts downgraded Powerwave Tech Inc. (NASDAQ:PWAV) to Neutral from Buy on valuation.
• William Blair downgraded W.W. Grainger Inc. (NYSE:GWW) and MSC Industrial (NYSE:MSM) to Market Perform from Outperform due to weakened macroeconomic indicators and softness in the construction and transportation end markets.
• Finally, Goodrich Petroleum Corp. (NYSE:GDP) was downgraded to Reduce from Neutral at SunTrust Robinson Humphrey based on lower production and higher operating tax expenses.

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