Analyst upgrades:

• RBC Capital upgraded Fidelity National (FIS) to outperform from sector perform. The firm upgraded the stock due to valuation, and its belief that the company will clear up issues related to its merger on its Analyst Day, scheduled for Dec. 7. The firm set a $28 target on the stock.
• Citigroup upgraded Smith International (SII) to buy from hold, citing the sell-off in shares following its 28M share equity offering. Note that Smith International priced 28M shares Tuesday at $26.50.
• Wells Fargo upgraded DynCorp (DCP) to outperform from market perform. The firm upgraded the stock on valuation, and because it believes that the impact on DynCorp of a possible indictment of PWC will be minimal, if any.
• Rockwell (ROK) was upgraded to overweight from neutral at HSBC.
• Omega Healthcare (OHI) was upgraded to outperform from market perform at JMP Securities.
• Analog Devices (ADI) was upgraded to conviction buy from buy at Goldman.

"My mantra for investing in this dicey market is to focus on three non-negotiable demands: very solid balance sheet; large, installed customer base; steady cash flows; and dividends," says Jack Adamo.

In his Insiders Plus newsletter he looks at a technology stock that meets his criteria: Sybase (NYSE: SY). He notes, "Overall, this is a company I'm comfortable owning, even in a bad ongoing recession."

The advisor explains, "Sybase is an industry leader in software to manage, analyze and distribute information in the most data-intensive enterprises, such as financial services, telecoms, manufacturing and government.

"To put it concisely: It manages data and makes it available to the many different devices that use it, across the myriad communication protocols that must be traversed to accomplish that.

Analyst upgrades:

• Citigroup upgraded Kraft Foods (NYSE: KFT) to Buy from Hold as it believes the company's domestic retail business is improving while input cost inflation pressures are beginning to moderate. Citi raised its target on shares to $32 from $28.
• Jefferies upgraded Sybase (NYSE: SY) to Buy from Hold as it believes slowing core IPG licenses in the second half of 2009 are now reflected in guidance. The firm raised its target on shares to $41 from $34.
• Canaccord said Apple's (NASDAQ: AAPL) decision to ad video functionality into the iPod lineup is "very positive" as it expands its market into the low-end camcorder area. The firm, which upgraded shares to Buy from Hold and raised its target to $200 from $150, also views the launch of iPhone 3GS in all countries by the end of Q4 as another catalyst.
• Rio Tinto (NYSE: RTP) was upgraded to Buy from Hold at Societe Generale.
• Renasant Corp. (NASDAQ: RNST) was upgraded to Overweight from Equal Weight at Stephens.
• America Movil (NYSE: AMX) was upgraded to Neutral from Sell at Pali Capital.

Analyst upgrades:

• Citigroup upgraded MEMC Electronic (NYSE: WFR) to Buy from Hold after channel checks indicated solar poly price pressures are easing. The firm added MEMC to its Top Picks Live list and raised its price target on shares to $24 from $15.
  
• FBR Capital upgraded PHH Corp (NYSE: PHH) to Outperform from Market Perform to reflect an improvement in mortgage banking fundamentals and recent management changes at the company. The firm raised its target on shares to $23 from $13.
  
• Deutsche Bank upgraded PerkinElmer (NYSE: PKI) to Hold from Sell on valuation, seeing a balanced risk/reward at current levels. The firm raised its target on shares to $19 from $14.
• Pearson plc (NYSE: PSO) was upgraded to Outperform from Neutral at Credit Suisse.
  
• Dell (NASDAQ: DELL) was upgraded to Conviction Buy from Neutral at Goldman.
  
• Nymagic (NYSE: NYM) was upgraded to Market Perform from Underperform at Keefe Bruyette.

"We screened our database for standouts based on meaningful profit surprises," says quantitative analyst Richard Moroney.

In Upside, a service focused on applying in-depth quantitative analysis to small to mid-cap growth companies, he looks at a trio of stocks earning his "Best Buy" rating -- Priceline (NASDAQ: PCLN), Sybase (NYSE: SY), and Synaptics (NASDAQ: SYNA).

"All things equal, the better a stock's earnings momentum and profit outlook, the more likely it is to outperform in the year ahead.

MOST NOTEWORTHY: JP Morgan Chase (JPM), Symantec (SYMC), Advanced Micro Devices (AMD), Nvidia (NVDA) and SVB Financial Group (SIVB) were today's more notable upgrades:

• Keefe Bruyette upgraded JP Morgan Chase (NYSE: JPM) to Outperform from Market Perform based on valuation and superior execution.

• Symantec Corp (NASDAQ: SYMC) was raised to Outperform from Neutral at Baird as they believe integration issues from Veritas (CGV) are behind the company and expectations that shares will benefit from investments made during the past two years.

• Stifel upgraded Advanced Micro Devices (NYSE: AMD) to Short-Term Trading Buy from Neutral and recommends buying shares of AMD ahead of the Q2 report given market stabilization, the seasonally stronger 2H, and any positive commentary during the call that may be enough to encourage renewed investor interest.

• Lehman upgraded Nvidia (NASDAQ: NVDA) to Overweight from Equal Weight citing checks that indicate a strong product cycles & shares gains in notebooks, improving seasonal demand, and new product traction.

• Citigroup upgraded shares of SVB Financial (NASDAQ: SIVB) to Hold from Sell to reflect less earnings volatility due to more later-stage customers and growing funds management...

OTHER UPGRADES:

• Matrix USA raised Panera Bread (NASDAQ: PNRA) to Buy from Hold on valuation.

• Citigroup upgraded MBIA Inc (NYSE: MBI) to Buy from Hold.

• Banc of America upgraded Sybase (NYSE: SY) to Buy from Neutral.

• Interline Brands (NYSE: IBI) was raised to Outperform from Market Perform.

• Lehman raised Swisscom (NYSE: SCM) to Overweight from Equal Weight.

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

Yes, it's June already, and as the heat begins to rise, so does rumor rage.

PACKETEER INC (NASDAQ: PKTR)

On the block? If some investors have their way it is. The developer of wide area network, or WAN, Application Optimization systems expects first quarter revenues to fall about 20% from the fourth quarter's $42.7M. Leading the insurgency is "activist investor" Elliott Associates which holds 6.3% of the shares. In a letter to the firm's board, Elliott wrote that the company has "proven unable" to take advantage of its "leading technology." Better to be in the arms of a bigger company? The vultures think so.

GUITAR CENTER INC (NASDAQ: GTRC)

Quicker than you can strum your guitar, this number appears to be up. Up for sale. The information is coming faster than a high strung solo. Goldman Sachs Group Inc (NYSE: GS) is playing the lead. What an auction it will be. For the leading retailer of musical instruments, the stock disappoints, the direct response business is out of tune. A Goldman analyst reportedly said the company is a turnaround candidate, but may sell. Talk about blowing your own horn. We hear the LBOs are lined up right outside the Westlake Village headquarters in California. Everyone have a number?

INFOSPACE INC (NASDAQ: INSP)

How many pesetas, uh Euros, does it take to make about a billion dollars? Ask Spain's LaNetro Zed. That's about what some think they're offering to buy InfoSpace, the developer of tools and technology that helps "regular" folk find content and information on the Internet or on their mobile. Privately-held LaNetro Zed provides mobile phone content and services. What's the hook here that they'd pay that much? Access to the U.S. market, of course. The answer, by the way, is about 800M Euros.

OFFICE DEPOT INC (NYSE: ODP)

If you just lined up $1B worth of borrowing, which could go up to $1.25B, what would you do with it? Buy something, maybe? Sound like a good idea? Well, that's what Office Depot just did, and may do. Now who are they going to buy? OfficeMax Inc (NYSE: OMX), maybe? Maybe. If true, then, along with Staples Inc (NASDAQ: SPLS), there would be just two biggies in retail office supplies, and the Depot would be number one.

OPENWAVE SYSTEMS INC (NASDAQ: OPWV)

And we're off! The stock has been on an upward trend for about a month. Volume is increasing. Sybase Inc (NYSE: SY) is in the lead to buy the phone browser and messaging company. What about Harbinger's push on the inside? Now it's BridgePort Networks in the pack. Will Openwave overtake it? The field is tightening. Others could move up and take the lead. No one knows for sure how this one gwill end, folks. What a finish it's going to be!

DILLARD'S INC (NYSE: DDS)

The founders may be seeking "strategic alternatives." Eyes wide open, please.