Analyst Upgrades

• Stephens upgraded Martin Marietta (MLM) to overweight from equal weight on valuation and expectations that infrastructure and highway spending will increase. The firm raised its target on shares to $105 from $95.
• Janney Montgomery upgraded Shutterfly (SFLY) to buy from neutral to reflect valuation and a reduced pricing overhang after Kodak (EK) raised its 4x6 prices. The firm raised its target on shares to $21 from $18.
• Thomas Weisel upgraded Entropic Communications (ENTR) to overweight from market weight. The firm thinks the company is well-positioned for revenue growth in 2010, partly due to MoCA deployments from new customers and design wins for its silicon tuner product. The firm set a $5 target.
• T. Rowe Price (TROW) was upgraded to buy from hold at Jefferies.
• Dick's Sporting Goods (DKS) was upgraded to buy from neutral at BofA/Merrill.
• Massey Energy (MEE) was upgraded to overweight from neutral at JPMorgan.

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MOST NOTEWORTHY: Airline stocks, LDK Solar and AU Optronics were today's noteworthy upgrades:

• UBS upgraded legacy airline stocks based on the recent pullback in the group. The firm upgraded Continental Airlines (NYSE: CAL) and Delta (NYSE: DAL) to Buy from Neutral and AMR Corp. (NYSE: AMR) to Neutral from Sell.
  
• CIBC upgraded shares of LDK Solar (NYSE: LDK) to Sector Performer from Sector Underperformer following a meeting with management as they have greater visibility on polysilicon supply for 2008 as well as comfort that average sales price declines will be lower than previously expected in 2009.
  
• Lehman upgraded shares of AU Optronics (NYSE: AUO) to Overweight from Equal Weight after raising the Asia Display industry to Positive from Neutral.

OTHER UPGRADES:

• Repsol SA (NYSE: REP) was upgraded to Equal Weight from Underweight.
  
• Jefferies raised its rating on Shutterfly (NASDAQ: SFLY) to Buy from Hold.
  
• Baird upgraded Shire Plc (NASDAQ: SHPGY) to Outperform from Neutral.

MOST NOTEWORTHY: GPC Biotech, Akamai, Qwest, Shutterfly and LDK Solar were today's noteworthy downgrades:

• GPC Biotech (NASDAQ: GPCB) was downgraded to Sell from Neutral at Goldman, to Sell from Hold at Deutsche Bank and to Underweight from Overweight at Lehman after the company's phase III trial of satraplatin to treat prostate cancer did not meet its primary endpoint.
  
• Deutsche Bank downgraded shares of Akamai Technologies (NASDAQ: AKAM) to Hold from Buy on valuation following the recent rally as they believe concerns around slowing growth, margins and capital efficiency will limit upside.
  
• Qwest Communications (NYSE: Q) was downgraded to Sector Performer from Outperformer at CIBC and to Neutral from Overweight at JP Morgan following the company's disappointing Q3 results.
  
• Jefferies downgraded shares of Shutterfly (NASDAQ: SFLY) following the better-than-expected Q3 results due to valuation.
  
• Piper downgraded shares of LDK Solar (NYSE: LDK) to Market Perform from Outperform, as they expect higher blended poly cost for the company due to tightening scrap poly supply and increased competition.

OTHER DOWNGRADES:

• Maxwell Technologies (NASDAQ: MXWL) was downgraded to Underperform from Market Perform at JMP Securities.
  
• UBS downgraded Estee Lauder (NYSE: EL) to Sell from Neutral.
  
• Merrill downgraded CommScope (NYSE: CTV) to Neutral from Buy.
  
• Under Armour (NYSE: UA) was downgraded to Underperform from Market Perform at Raymond James.
  
• RBC Capital downgraded Beckman Coulter (NYSE: BEC) to Sector Perform from Outperform.

MOST NOTEWORTHY: Shutterfly, Drugstore.com, S.Y. Bancorp and Stericycle were today's noteworthy initiations:

• Oppenheimer started shares of Shutterfly Inc (NASDAQ: SFLY) with a Buy rating and $42 target. The firm believes secular growth in digital photography and increasing adoption of user generated print publishing will drive EBITDA growth of 30%-40% over the next 2-3 years.
  
• Oppenheimer also initiated Drugstore.com Inc (NASDAQ: DSCM) with a Buy rating and $5 target, as they expect growth in the company's higher margin beauty segment could drive EBITDA above consensus estimates.
  
• Baird is positive on S.Y. Bancorp Inc's (NASDAQ: SYBT) valuation, capital-rich balance sheet, and top-tier profitability and resumed coverage with an Outperform rating.
  
• The firm also started shares of Stericycle Inc (NASDAQ: SRCL) with a Neutral rating, noting it would be more aggressive on shares in the mid-$40s or if earnings catch up with the passing of time.

OTHER INITIATIONS:

• UBS initiated Praxair Inc (NYSE: PX) with a Buy rating and $94 target and added shares to its Strategic Stock Selection List.
  
• Lehman initiated Infosys Technologies Ltd (NASDAQ: INFY) with an Equal Weight rating and Wipro Limited (NYSE: WIT) with an Underweight rating.
  
• William Blair reinstated coverage of the commercial real estate services sector, starting FirstService Corporation (NASDAQ: FSRV) with an Outperform rating, Jones Lang LaSalle Incorporated (NYSE: JLL) with a Market Perform rating and CB Richard Ellis Group Inc (NYSE: CBG) with a Market Perform rating.

MOST NOTEWORTHY: ORBComm Inc (NASDAQ: ORBC), Weingarten Realty Investors (NYSE: WRI) and Regency Centers Corporation (NYSE: REG) were today's noteworthy initiations:

• ORBComm was initiated with a Market Perform rating and $16 target at Piper Jaffray, as the firm believes the company may need to launch at least 25 satellites over the next few years to continue servicing its existing subscribers, which could lead to further losses. The company was initiated with an Outperform rating at Raymond James.
• Baird initiated Weingarten Realty with an Outperform rating and $56 target due to its strategy to accelerate growth and initiated Regency Realty with a Neutral rating and $88 target citing valuation and lack of catalysts.

OTHER INITIATIONS:

• OceanFreight Inc (NASDAQ: OCNF) was initiated with a Buy rating and $24 target at Cantor.
• UBS initiated shares of Ocean Power Technologies Inc (NASDAQ: OPTT) with a Buy rating and $20 target and shares of Omega Healthcare Investors Inc (NYSE: OHI) with a Neutral rating and $18 target.
• Shutterfly Inc (NASDAQ: SFLY) was initiated at JMP Securities with a Strong Buy rating and $25 target.
• Corn Products International Inc (NYSE: CPO) was initiated with a Buy rating and $48 target at BB&T Capital Mkts, as the firm believes CPO will be able to generate strong earnings growth, as well as use its strong cash flow to grow its specialty ingredients business, raise its dividend, use for a share repurchase or a combination of the above.

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

MOST NOTEWORTHY: Shutterfly, Inc (SFLY), Marvel Entertainment, Inc (MVL), National CineMedia, Inc (NCMI) and Wal-Mart Stores (WMT) were some of today's noteworthy initiations:

• Cantor sees significant opportunities for growth at Shutterfly Inc (NASDAQ: SFLY), driven by new business lines, international expansion and new products, among other things, and started SFLY Shares with a Buy rating.

• Stifel initiated Marvel Entertainment (NYSE: MVL) with a Buy rating and believes the impending film slate provides a long-term growth opportunity and serves as a catalyst.

• Thomas Weisel started National CineMedia Inc (NASDAQ: NCMI) with an Overweight rating, as the firm still believes the company is among the fastest-growing, ad-supported media companies in the U.S. given its ownership in NCM LLC, which has established a leadership position in the cinema advertising market.

• FTN Midwest started Wal-Mart Stores Inc (NYSE: WMT) with a Neutral rating.

OTHER INITIATIONS:

• Jefferies started Conexant Systems, Inc (NASDAQ: CNXT) with a Hold rating.

• Wachovia initiated NYMEX Holdings, Inc (NYSE: NMX) with an Outperform rating.

• Goldman Sachs started LSI Corp (NYSE: LSI) with a Neutral rating.

• Citigroup started Kroger Co (NYSE: KR) with a Buy rating.

• Stein Mart, Inc (NASDAQ: SMRT) was initiated Morgan Joseph with a Buy rating.

• Citigroup started Time Warner Cable (NYSE: TWC) with a Hold rating based on valuation.

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

MOST NOTEWORTHY: Shutterfly (SFLY) tops today's list of initiations. JP Morgan, Jefferies and Piper Jaffray initiated Shutterfly today.

• The group of firms believe Shutterfly, Inc. (NASDAQ:SFLY) is positioned to be the dominant play in the photo-based personal publishing space, which allows for premium pricing.

OTHER INITIATIONS:

• Bank of America initiated Leisure stocks today:
  • Bank of America would buy cruise line stocks as they believe the worst is over. As such, the broker initiated Royal Caribbean Cruises (NYSE:RCL) and Carnival Corp. (NYSE:CCL) with Buy ratings.
  • The firm is also bullish on the video game cycle and initiated Activision, Inc. (NASDAQ:ATVI) and THQ Inc. (NASDAQ:THQI) with Buy ratings, Electronic Arts (NASDAQ:ERTS) and Take Two (NASDAQ:TTWO) with Neutral ratings, and recommends buying Activision and THQ Inc today.
  • Bank of America would stay out of toy stocks at current levels due to valuation, and initiated Hasbro, Inc. (NYSE:HAS) and Mattel, Inc. (NYSE:MAT) with Neutral ratings.
  • They are also cautious on powersport companies and initiated Harley-Davidson (NYSE:HOG) and Brunswick Corp. (NYSE:BC) with Neutral ratings. The bank also started Polaris Industries (NYSE:PII) with a Sell rating.

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