Analyst upgrades:

• Janney Montgomery upgraded Kenexa (NASDAQ: KNXA) and SuccessFactors (NASDAQ: SFSF) to Buy from Neutral on expectations corporate IT spending will accelerate in the second half of 2009. The firm raised its target on Kenexa to $14 from $8 and on SuccessFactors to $12 from $9.
• Jefferies upgraded PSS World Medical (NASDAQ: PSSI) to Buy from Hold to reflect the company's cost-cutting measures and efforts to gain market share. The firm raised its target on shares to $25 from $17.50.
• FBR Capital upgraded Sunpower (NASDAQ: SPWRA) to Outperform from Market Perform following the company's Q2 results to reflect increased business prospects in the "rooftop" segment of the market. FBR raised its target on shares to $40 from $22.
• Cooper Industries (NYSE: CBE) was upgraded to Outperform from Perform at Oppenheimer.
• Temple-Inland (NYSE: TIN) was upgraded to Buy from Neutral at UBS.
• Juniper Networks (NASDAQ: JNPR) was upgraded to Buy from Neutral at Goldman.

MOST NOTEWORTHY: PSS World Medical (PSSI), Rockwell (ROK), Open Text (OTEX), Sanderson Farms (SAFM) and Mentor (MNT) were today's noteworthy upgrades:

• PSS World Medical (NASDAQ: PSSI) was upgraded to Outperform from Neutral at Robert W. Baird. Baird said the quarter was impacted by one-time items and that core operations remain strong while private label, home care and HCIT initiatives may contribute to substantial margin improvement.
  
• Friedman Billings added Rockwell Automation (NYSE: ROK) to its Top Picks list based on valuation and growth drivers.
  
• Merrill Lynch upped shares of Open Text Corporation (NASDAQ: OTEX) to Neutral from Sell. Kaufman Brothers upgraded shares of the stock to Buy from Hold with a $27 target to reflect the company's better-than-expected Q4 results.
• Sanderson Farms Inc (NASDAQ: SAFM) was upgraded to Strong Buy from Strong Sell on valuation and accelerating sales of the company's poultry products.
  
• The firm upgraded shares of Mentor Corporation (NYSE: MNT) to Buy from Sell given the company's good performance and low risk.

OTHER UPGRADES:

• Cache Inc (NASDAQ: CACH) was upgraded to Buy from Neutral with a $19 target at First Albany and to Outperform from Market Perform at Piper Jaffray.
  
• Gabelli upgraded shares of Diageo (NYSE: DEO) to Buy from Hold.
  
• RBC Capital Markets raised shares of Knology Inc (NASDAQ: KNOL) to Outperform from Sector Perform.
  
• Goldman Sachs upgraded shares of Maxygen Inc (NASDAQ: MAXY) to Neutral from Sell.

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