Analyst upgrades:

• Oppenheimer upgraded Gymboree (NASDAQ: GYMB) to Outperform from Perform following the company's Q2 results to reflect valuation and square footage growth from Crazy 8. The firm has a $52 target on the stock.
• KeyBanc upgraded Lululemon (NASDAQ: LULU) to Buy from Hold on expectations sales and margins will improve in the near-term due to clean inventory levels. The firm recommends a pair trade of long Lululemon, short Under Armour (NYSE: UA).
• Keefe Bruyette upgraded Allied Capital (NYSE: ALD) to Market Perform from Underperform following the company's Q2 results and raised its target on shares to $3.50 from $1.
• Jack in the Box (NASDAQ: JACK) was upgraded to Overweight from Neutral at JPMorgan.
• LogMeln (NASDAQ: LOGM) was upgraded to Overweight from Neutral at Piper Jaffray.
• Barclays (NYSE: BCS) was reinstated with an Outperform from Neutral at Credit Suisse.

MOST NOTEWORTHY: HSBC Holdings, Piper Jaffray and Rogers Communications were today's noteworthy downgrades:

• ABN Amro downgraded shares of HSBC (NYSE: HBC) to Sell from Hold as they believe the realignment of the American business could take 3-5 years. ABN expects a $2.5B loss in 2008.
  
• Wachovia downgraded Piper Jaffray (NYSE: PJC) to Market Perform from Outperform citing weaker market conditions.
  
• CIBC downgraded Rogers Communications (NYSE: RCI) to Sector Performer from Outperformer. Shares were also downgraded to Peer Perform from Outperform at Bear Stearns following the Canadian government's new wireless spectrum rules to only allow new entrants to bid in the upcoming AWS spectrum auction in May 2008.

OTHER DOWNGRADES:

• Tyler Tech (NYSE: TYL) was downgraded to Neutral from Buy at Banc of America.
  
• SunTrust lowered its rating on Aeropostale (NYSE: ARO) to Neutral from Buy.
  
• Piper downgraded State Auto Financial (NASDAQ: STFC) and Donegal Group (NASDAQ: DGICA) to Sell from Neutral.