Analyst Upgrades

• Yingli Green (YGE) to outperform from market perform at Wells Fargo.
• National Semiconductor (NSM) to outperform from market perform at FBR Capital.
• DuPont (DD) to buy from hold at Citigroup.
• Blackboard (BBBB) to overweight from neutral at JPMorgan.
• Kindred Healthcare (KND) to buy from hold at Jefferies.
• Peabody Energy (BTU) to outperform from market perform at BMO Capital.
• Savvis (SVVS) to buy from neutral and InterActiveCorp (IACI) to neutral from underperform at BofA/Merrill.

Analyst Upgrades

• Goldman upgraded Reliance Steel (RS) to buy from neutral and The Buckle (BKE) to neutral from sell.
• RAM Energy (RAME) was upgraded to outperform from market perform at Rodman & Renshaw.
• RBC Capital upgraded H&E Equipment (HEES) and Cameco (CCJ) to outperform from sector perform, and Denison Mines (DNN) to sector perform from underperform.
• Alexandria Real Estate (ARE) was upgraded to overweight from neutral at JPMorgan.
• Investment Technology (ITG) was upgraded to outperform from neutral at Wedbush.

Sonic Solutions (SNIC) announced Wednesday that is plans to compress sweet, sweet music by acquiring DivX (DIVX) in a $323 million stock and cash deal.

This is a fantastic move for Sonic -- especially if you believe smart phones and iPads are the future of media -- because it will allow the company to expand its online and mobile media reach by combining its Roxio product line with the DivX codec (video and audio compression/decompression software) library and the DivX Player application.

Best Buy (NYSE: BBY) may be the world's largest electronics retailer, but it realizes that it faces a huge threat to a hefty chunk of its business. Apple (NASDAQ: AAPL) is moving plenty of movies and other soon-to-be former DVD fare through iTunes, staking a claim on a business that once belonged to Best Buy. The big box store is getting ready to fight back (finally?).

Using technology it's licensing from Sonic Solutions (NASDAQ: SNIC), Best Buy is opening an online store for movies and television shows. Best Buy CEO Brian Dunn says this move will expand the company's presence in services and will bolster company loyalty. That's the press release version, of course. The reality is that Best Buy needed to do something to protect this portion of its revenue and probably should have made the move several years ago.

MOST NOTEWORTHY: AmeriCredit (ACF), LTX Corp (LTX) and Foot Locker (FL) were today's noteworthy downgrades:

• Goldman cut AmeriCredit (NYSE: ACF) shares to Sell from Neutral to reflect the challenging rate and credit environment.

• Friedman Billings has concerns about LTX Corp's (NYSE: LTX) largest customer, Texas Instruments (TXN), losing market share in the handset baseband market, which has already impacted Texas' equipment test orders from LTX. Friedman Billings cut LTX Corp to Market Perform from Outperform.

• Foot Locker (NYSE: FL) was downgraded to Neutral from Overweight at JP Morgan, citing the disappointing Q2 results...

OTHER DOWNGRADES:

• Genesco (NYSE: GCO) was cut to Neutral from Positive at Susquehanna.

• Soleil downgraded Sonic Solutions (NASDAQ: SNIC) to Hold from Buy.

• Raymond James downgraded New York & Co (NYSE: NWY) to Underperform from Sell.

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

MOST NOTEWORTHY: Big 5 Sporting Goods (BGFV), Nutrition 21 (NXXI), Sonic Solutions (SNIC), AeroGrow (AERO) and Sequenom (SQNM) were today's noteworthy initiations:

• Nollenberger believes Big 5 Sporting Goods' (NASDAQ: BGFV) shares are fairly valued and would likely get more constructive near the $20 level and initiated shares with a Neutral rating.

• ThinkEquity said Nutrition 21 (NASDAQ: NXXI) has a number of clinically proven nutritional supplements that target the rapidly growing obesity and diabetes markets, and initiated shares with a Buy rating.

• SMH Capital initiated shares of Sonic Solutions (NASDQ: SNIC) with a Buy rating, on the belief that shares have been oversold.

• ThinkEquity is positive on AeroGrow's (NASDAQ: AERO) proprietary aeroponic technology and recurring revenue model and initiated shares with a Buy rating.

• Leerink Swann started shares of Sequenom (NASDAQ: SQNM) with an Outperform rating as MEDACorp researchers are positive regarding the company's MassARRAY system for genetic analysis, which is well-positioned for growth in follow-on SNP fine-mapping studies; Leerink anticipates in 2008, the company will launch iPLEX 3, which is currently in development, and reduce the cost of acquiring fine-mapping SNP data...

OTHER INITIATIONS:

• Dover (NYSE: DOV) was initiated at Morgan Stanley with an Overweight rating.

• Merrill started Akamai (NASDAQ: AKAM) with a Neutral rating.

• Pacific Crest started Wipro Ltd (NYSE: WIT) with a Sector perform.

• Susquehanna initiated Herman Miller (NASDAQ: MLHR) with a Positive rating.

• RBC Capital initiated Warren Resources (NASDAQ: WRES) with an Outperform rating.

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

MOST NOTEWORTHY: Seagate Technology (STX), SAP AG (SAP), Western Digital (WDC), BAE Systems (BAESY) and Manpower (MAN) are today's noteworthy upgrades:

• Hambrecht upgraded shares of Seagate Tech (NYSE: STX) on improving demand and second half of 2007 prospects. Bear Stearns upgraded shares to Outperform from Peer Perform based on stabilizing industry conditions.

• ING upgraded shares of SAP AG (NYSE: SAP) to Buy from Hold shares to reflect the migration within the company's large installed base and growing opportunities in the small business market.

• Hambrecht upgraded Western Digital (NYSE: WDC) to Buy from Hold on improving demand for 2H07 growth prospects.

• HSBC raised BAE Systems (OTC: BAESY) off the ground, upgrading shares to Neutral from Underweight.

• Banc of America upgraded Manpower (NYSE: MAN) to Buy from Neutral to reflect the change in French payroll tax subsidies, which they view as a positive change to the company's ongoing margin structure.

OTHER UPGRADES:

• First Albany upgraded ATMI Inc (NASDAQ: ATMI) to Buy from Hold.

• The Medicines Co (NASDAQ: MDCO) was raised to Sector Perform from Underperform at RBC Capital.

• Sonic Solutions (NASDAQ: SNIC) was upgraded to Buy from Hold at Kaufman.

• ThinkEquity upgraded Interwoven (NASDAQ: IWOV) to Accumulate from Source of Funds.

• BB&T upgraded Omnicell (NASDAQ: OMCL) to buy from Hold.

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

MOST NOTEWORTHY: Tenet Healthcare Corp (THC), Furniture Brands International, Inc (FBN), Sepracor Inc (SEPR), ValueClick, Inc (VCLK) and Altria Group, Inc (MO) were today's noteworthy downgrades:

• Bear Stearns downgraded shares of Tenet Healthcare (NYSE: THC) to Underperform from Peer Peform citing difficulties in California and weak margins.

• Stifel downgraded Furniture Brands (NYSE: FBN) to Sell from Hold citing concerns regarding continued weakness in the housing industry.

• Summer Street downgraded Sepracor (NASDAQ: SEPR) to Sell from Neutral after the HCPCS website indicated Xopenex and Albuterol will have the same code as of July 1.The firm believes this eliminates the optimistic scenarios that Sepracor can garner a minimal-or-no-reimbursement cut.

• RBC downgraded shares of ValueClick (NASDAQ: VCLK) to Underperform from Sector Perform as the firm believes the FTC letter poses a risk to earnings and that the company is unlikely to be acquired.

• Matrix downgraded Altria Group (NYSE: MO) to Buy from Strong Buy to reflect decreasing cigarette sales and increasing valuation...

OTHER DOWNGRADES:

• American Technology cut Autodesk, Inc (NASDAQ: ADSK) to Neutral from Buy.

• Matrix downgraded Fluor Corp (NYSE: FLR) to Sell from Buy.

• Jackson Hewitt Tax Service (NYSE: JTX) was cut to Market Perform from Outperform at William Blair.

• Baird sent Alliance Data Systems Corp (NYSE: ADS) to Neutral from Outperform.

• Roth Capital downgraded shares of Sonic Solutions (NASDAQ: SNIC) to Hold from Buy.

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

MOST NOTEWORTHY: Sonic Solutions led today's downgrade list:.

• Kaufman Brothers downgraded the digital media software maker Sonic Solutions (NASDAQ:SNIC) to Hold from Buy, following checks indicating that consumers are buying electronics but not computers; the firm also noted that the consumer release of Microsoft Corporation's (NASDAQ:MSFT) Vista will likely be used by early adapters, and expects further consumer adoption in the second-half of 2007.

OTHER DOWNGRADES:

• Baird downgraded Saul Centers (NYSE:BFS) to Neutral from Outperform on valuation, with a $55 target.

• Shiloh Industries (NASDAQ:SHLO) was downgraded by Matrix USA to Sell from Hold based on slowing sales.

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

MOST NOTEWORTHY: Cisco (CSCO), and Sonic Solutions (SNIC) top today's modest-sized list of initiations.

• Cisco Systems, Inc. (NASDAQ:CSCO) was upgraded to Buy from Neutral at UBS following the company's strong first-quarter earnings and guidance.
• JP Morgan upgraded Sonic Solutions (NASDAQ:SNIC) to Overweight from Neutral following the weak second-quarter results and light third-quarter guidance. The firm said weak PC demand ahead of the Vista launch has already been priced into shares of Sonic Solutions.

OTHER UPGRADES:

• Watson Pharmaceuticals, Inc. (NYSE:WPI) was reinstated with a Sector Performer rating, up from an Underperformer rating, citing valuation.
• Urban Outfitters, Inc. (NASDAQ:URBN) was upgraded to Buy from Hold at Roth Capital. The firm said expectations for Urban have come down this quarter and that news going forward is likely to be positive, not negative.

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