Analyst upgrades:

• UBS upgraded Wendy's/Arby's (NYSE: WEN) to Buy from Neutral and raised its target to $5.50 from $4.90 based on improving sales momentum at Wendy's and potential improvements at Arby's.
• Goldman upgraded 3M (NYSE: MMM) to Buy from Neutral and raised its target to $85 from $78. The firm cites 3M's short-cycle exposure and relative valuation for the upgrade.
• Thomas Weisel upgraded JCPenney (NYSE: JCP) to Market Weight from Underweight citing comfort in the company's intermediate-term recovery potential.
• UBS AG (NYSE: UBS) was upgraded to Buy from Hold at ING Group.
• Gap (NYSE: GPS) was upgraded to Overweight from Equal Weight at Barclays.
• Alliance Healthcare (NYSE: AIQ) was upgraded to Outperform from Market Perform at Wells Fargo.

Analyst upgrades:

• Janney Montgomery upgraded Aqua America (NYSE: WTR) to Buy from Neutral on valuation, viewing the recent weakness as a buying opportunity. The firm has a $19 target on the stock.
• UBS upgraded Gildan Activewear (NYSE: GIL) to Buy from Neutral due to customer Broder's improved liquidity and the improved outlook for margins.
• RBC Capital upgraded State Street (NYSE: STT) to Top Pick from Outperform and raised its target to $55 from $40. The analyst said the $2B capital raise addresses TCE ratio concerns and large unrealized losses in the investment portfolio.
• Sherwin-Williams (NYSE: SHW) was upgraded to Overweight from Neutral at JP Morgan.
• Advance Auto Parts (NYSE: AAP) was upgraded to Buy from Underperform at Banc of America/Merrill.
• M&T Bank (NYSE: MTB) was upgraded to Outperform from Market Perform at Bernstein.

Analyst upgrades:

• Baird upgraded URS Corp. (NYSE: URS) to Outperform from Neutral and raised its target to Outperform from Neutral based on momentum of new wins from stimulus funds and expectations for additional nuclear contracts.
• Jefferies upgraded EnerSys (NYSE: ENS) to Buy from Hold following the recent share weakness as it believes volumes have stopped declining and the June quarter is likely the bottom. The firm raised its target price to $18 from $11.
• RBC Capital upgraded Camden Property (NYSE: CPT) to Outperform from Sector Perform citing the company's improved financial capacity and portfolio position. The firm raised its target price to $34 from $23.
• CBS Corp (NYSE: CBS) was upgraded to Equal Weight from Underweight at Barclays.
• UDR (NYSE: UDR) was raised to Sector Perform from Underperform at RBC Capital and to Outperform from Market Perform at Keefe Bruyette.
• Zale (NYSE: ZLC) was upgraded to Buy from Neutral at BofA/Merril.

United Therapeutics (NASDAQ: UTHR - option chain) stock is falling today after the company announced it expects a probable delay in receiving FDA approval for Tyvaso, its inhaled drug to treat pulmonary hypertension. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on UTHR.

This morning, UTHR opened at $59.90. So far today the stock has hit a low of $59.35 and a high of $62.34. As of 11:40, UTHR is trading at $61.08, down $5.20 (-7.9%). The chart for UTHR looks bearish.

ConocoPhillips (NYSE: COP) closed at $47.39 Friday. WTI crude oil futures are recently down 2.16% to $55.81 according to Bloomberg. Berkshire Hathaway reported an 84 million stake in COP. COP December option implied volatility is at 80, January is at 75; is above its 26-week average of 43 according to Track Data, suggesting larger price movement.

Eaton (NYSE: ETN) closed at $41.15 Friday. Deutsche Bank has a Hold rating on ETN. Berkshire Hathaway reported a 2.9 million stake in ETN. ETN December option implied volatility of 76 is above its 26-week average of 46 according to Track Data, suggesting larger price movement.

United Therapeutics (NYSE: UTHR) is recently down $25.90 to $64.62 in pre-open trading. UTHR ph.3 FREEDOM-C trial for oral treprostinil failed to its meet endpoint. UTHR November 90 straddle went out at $21.10, December 90 straddle is priced at $27.40 according to Track Data, suggesting large price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Analyst upgrades:

• Baird upgraded Optimer Pharm (NASDAQ: OPTR) to Outperform from Neutral and raised its target to $13 from $8 citing the decidedly positive data from the OPT-80 trial.
  
• Banc of America upgraded Quest Diagnostics (NYSE: DGX) to Buy from Neutral on valuation and believes management has set expectations well.
  
• Credit Suisse views Jacobs Engineering (NYSE: JEC) as a high quality name given the quality of management, execution track record, and relationship business model. Shares were upgraded to Outperform from Neutral.
• Horizon Lines (NYSE: HRZ) was upgraded to Overweight from Equal Weight at Stephens.
  
• Bancolombia SA (NYSE: CIB) was raised to Buy from Neutral.
  
• Great Lakes Dredge (NASDAQ: GLDD) was upgraded to Buy from Hold at Morgan Joseph.

Analyst downgrades:

Analyst upgrades:

• Wachovia upgraded shares of Exelon (NYSE: EXC) to Outperform from Market Perform to reflect the company's attractive nuclear fleets and strong operational track record.
  
• Jesup & Lamont upgraded Ormat Technologies Inc. (NYSE: ORA) to Buy from Hold on valuation and increasing visibility on near-term Products revenue.
  
• RBC Capital upgraded Memc Electronic (NYSE: WFR) to Outperform from Sector Perform on expectations of improved demand growth following the likely eight-year extension of the US solar tax credit program.
• AmBev (NYSE: ABV) was raised to Outperform from Neutral at Credit Suisse.
  
• AmerisourceBergen (NYSE: ABC) was upgraded at Merrill Lynch to Buy from Neutral.
  
• Piper upgraded Anadys Pharma (NASDAQ: ANDS) to Neutral from Sell.

Analyst downgrades:

MOST NOTEWORTHY: Today's more noteworthy upgrades include Verizon Communications Inc (VZ), Priceline.com Inc (PCLN) Intel Corp (INTC), NYSE Euronext (NYX) and Top Tankers Inc (TOPT):

• Citigroup upgraded Verizon Commuications (NYSE: VZ) to Buy from Sell and raised their target to $48 from $33 as the firm believes earnings-per-share growth will override cap ex concern.

• Citigroup also upgraded shares of Priceline.com (NASDAQ: PCLN) to Buy from Hold on valuation as the firm believes the company's growth prospects are underestimated in the stock following the recent sell-off.

• Intel Corp (NASDAQ: INTC) was upgraded to Buy from Neutral at Merrill Lynch citing the company's robust product road map and its ability to compete against Advanced Micro Devices (AMD).

• JP Morgan upgraded NYXE Euronext (NYSE: NYX) to Neutral from Underweight and believes the risks that attributed NYX's downgrade in February have played out and sees limited downside at these levels.

• Cantor upgraded Top Tankers (NASDAQ: TOPT) to Hold from Sell following better-than-expected Q1 results...

OTHER UPGRADES:

• UBS upgraded shares of CACI International Inc (NYSE: CAI) to Buy from Neutral.

• Leerink Swann raised United Therapeutics Corp (NASDAQ: UTHR) to Outperform from Market Perform.

• Calyon upgraded Nabors Industries Ltd (NYSE: NBR) to Add from Neutral.

• Murphy Oil Corp (NYSE: MUR) was raised to Hold from Sell at Benchmark.

• Banc of America upgraded shares of Tanger Factory Outlet Centers Inc (NYSE: SKT) to Buy from Neutral.

• Baird upgraded Brady Corp (NYSE: BRC) to Outperform from Neutral.

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

MOST NOTEWORTHY: Crocs, Inc (CROX), Plantronics, Inc (PLT), MasterCard Inc (MA) and American Express Co (AXP) top Wednesday's noteworthy list:

• JP Morgan started Crocs Inc (NASDAQ: CROX) with an Overweight rating based on the company's strong growth model.

• JMP Securities upgraded Plantronics Inc (NYSE: PLT) with a Market Perform citing price competition and visibility in the speaker market.

• MasterCard Inc (NYSE: MA) was started with an Underweight rating at Thomas Weisel citing concerns regarding increased pressure from bank issuing partners regarding fees and reduced cross border pricing benefits. Additionally,

• Thomas Weisel started American Express Co (NYSE: AXP) with an Overweight rating, expecting increased card issuance migration and merchant migration due to increased pressure on bank fees and increasing consumer demand for rewards...

OTHER INITIATIONS:

• Stifel started Microsemi Corp (NASDAQ: MSCC) with a Buy rating and $28 target.

• JP Morgan initiated shares of Deckers Outdoor Corp (NASDAQ: DECK) with an Overweight rating.

• Goldman started Eastman Kodak Co (NYSE: EK) with a Neutral rating.

• Soleil initiated shares of Urban Outfitters, Inc (NASDAQ: URBN) with a Buy rating.

• United Therapeutics Corp (NASDAQ: UTHR) was initiated with a Sector Outperformer rating and $83 target at CIBC.

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

MOST NOTEWORTHY: American Home Mortgage Investment Corp (AHM), MasterCard Inc (MA) and the selective railroad companies were today's more notable initiations:

• JMP Securities started American Home Mortgage (NYSE: AHM) with a Market Perform frating citing the challenging mortgage market.

• UBS started MasterCard (NYSE: MA) with a Buy and doesn't believe margin upside is fully reflected in the stock's valuation.

• Morgan Stanley initiated five railroad companies: Union Pacific Corp (NYSE: UNP) and Norfolk Southern Corp (NYSE: NSC) with Overweight ratings and Burlington Northern Santa Fe Corp (NYSE: BNI), Canadian Natural Resource Ltd (NYSE: CNQ) and CSX Corp (NYSE: CSX) with Equal Weight ratings.

OTHER INITIATIONS:

• Ceradyne, Inc (NASDAQ: CRDN) was initiated with a Neutral rating at First Albany.

• United Therapeutics Corp (NASDAQ: UTHR) was started with a Buy rating and $81 target at Citigroup.

• Goldman Sachs initiated shares of Aruba Networks, Inc (NASDAQ: ARUN) with a Neutral rating and $16.50 target.

• Saks Inc (NYSE: SKS) was started at Bear Stearns with a Peer Perform rating.

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

MOST NOTEWORTHY: WebMD Health Corp (WBMD) was today's only noteworthy initiation:

• William Blair started the online health information portal, WebMD Health Corp (NASDAQ: WBMD) with an Outperform rating. The firm believes WebMD is positioned to benefit from various trends in the industry, including the increasing use of the Internet for information and patients' assuming more responsibility for their health care decisions.

OTHER INITIATIONS:

• Pacific Growth initiated United Therapeutics Corp (NASDAQ: UTHR) with a Neutral rating. The firm sees potential revenue risk from patient switching and reduced new patient starts in response to reports about higher incidence of serious Gram negative infections resulting in a Dear Doctor letter being sent to all IV-Remodulin prescribers in September 2006.

• Soleil Securities started Genuine Parts Co (NYSE: GPC) with a Buy rating and $65 target, noting that Genuine has the highest yield in the auto sector.

• Nollenberger doesn't see a catalyst for double-digit growth in Lam Research Corp (NASDAQ: LRCX) for the next 12-18 months and initiated the company with a Neutral rating and $40 target.

• ConAgra Foods Inc (NYSE: CAG) was initiated with a Hold rating at AG Edwards on valuation.

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