MOST NOTEWORTHY: Blockbuster Inc (BBI), Molson Coors Brewing Co (TAP), Illumina, Inc (ILMN), and ARM Holdings plc (ARMHY) were today's more noteworthy upgrades:

• Citigroup upgraded Blockbuster Inc (NYSE: BBI) to Buy from Hold based on valuation, improving box office visibility and their belief that the lower-priced online-only rental product will help improve costs.

• Molson Coors Brewing (NYSE: TAP) was upgraded to Buy from Neutral at UBS based on valuation, volume strength and pricing.

• Matrix believes strong demand for genetic analysis equipment is boosting profits for Illumina (NASDAQ: ILMN), upgrading shares to Strong Buy from Sell; Matrix sees upside to their Intrinsic Value Calculation of $50/share.

• ARM Holdings (NASDAQ: ARMHY) was upgraded to Overweight from Underweight at JP Morgan to reflect the strength in the high-end handset market...

OTHER UPGRADES:

• Bristol Myers Squibb Co (NYSE: BMY) was upgraded to Buy from Hold at Citigroup.

• RBC Capital raised Sapient Corp (NASDAQ: SAPE) to Outperform from Sector Perform.

• Sandler upgraded Chemical Financial Corp (NASDAQ: CHFC) to Hold from Sell.

• UBS raised WESCO International, Inc (NYSE: WCC) to Buy from Neutral.

• Piper Jaffray upgraded shares of Omnicell, Inc (NASDAQ: OMCL) to Outperform from Market Perform.

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

Things are not easy for Sapient Corporation (NASDAQ:SAPE). It's a small player in a market full of giants; its competitors are companies such as EDS, IBM and Accenture.

But even worse: lately, the company has been undergoing lots of drama in the boardroom. Because of stock options backdating, the CEO and CFO departed in disgrace.

So, the stock should tank, right? Not necessarily. Why? Well, the company might be buyout bait -- that is, according to Jason Kupferberg, an analyst with UBS. After all, the tech sector has been undergoing lots of consolidation. There is also private equity money coming flooding in.

What's more, Kupferberg believes that Sapient has a solid business (there are lucrative long-term contracts with big customers). According to his analysis, he sees a price tag of $7 to $8 per share in a buyout scenario. That would be a nice premium compared to the current stock price of $5.38.

And Kupferberg is not alone. Bryan Keene, who is an analyst with Prudential, thinks Sapient would make a good buyout prospect. But, as always, buyouts are not easy. And, given the turmoil, Sapient may be more focused on fixing things, not selling out.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.