Analyst Upgrades

• FBR Capital upgraded Franklin Resources (BEN) to outperform from market perform and raised its target price for shares to $127 from $105 to reflect its belief the company is well positioned in the current environment.
• UBS upgraded Nuance (NUAN) to buy from neutral and has an $18 price target on the stock. The firm upgraded shares based on valuation and believes the company could be an acquisition target.
• Morgan Stanley upgraded DryShips (DRYS) to equal weight from underweight and has a $5.50 target on the stock. The firm cites the firmer ultra-deepwater drilling market for the upgrade.
• Becton Dickinson (BDX) was upgraded to neutral from sell at Goldman.
• Edwards Lifesciences (EW) was upgraded to market perform at Rodman & Renshaw.
• Arkansas Best (ABFS) was upgraded to neutral from underperform at BofA/Merrill.

Analyst Upgrades

• Citigroup upgraded OpenTable (OPEN) to buy from hold, citing stronger than expected near-term trends and traction for the company's Spotlight offering. Citi upped its price target for shares to $70 from $46.
• Wells Fargo upgraded Werner (WERN) to outperform from market perform, citing valuation, the company's reduction in cost, and its above peer exposure to the pricing cycle.
• Goldman upgraded CarMax (KMX) to neutral from sell based on valuation and higher used car profitability. The firm has a $24 target on the stock.
• Apollo Group (APOL) was upgraded to overweight from equal weight at Morgan Stanley.
• Nokia (NOK) was upgraded to overweight from equal weight at Barclays.
• Zions Bancorp (ZION) was upgraded to outperform from market perform at Bernstein.

Analyst Upgrades

• BMO Capital upgraded Concho (CXO) to outperform from market perform and has a $73 price target on the stock. The firm cites valuation and sustainable growth for the upgrade.
• Sterne Agee upgraded City Holding (CHCO) to buy from neutral based on valuation. The firm has a $34 target on the stock.
• UBS upgraded Werner Enterprises (WERN) to neutral from sell based on valuation. The firm raised its price target to $21.50 from $21.
• Nvidia (NVDA) was upgraded to equal weight from underweight at Morgan Stanley.
• Colfax (CFX) was upgraded to neutral from underperform at BofA/Merrill.
• Camden Property (CPT) was upgraded to top pick from outperform at RBC Capital.

Analyst Upgrades

• Piper Jaffray upgraded MWI Veterinary Supply (MWIV) to overweight from neutral and raised its target for shares to $50.
• UBS believes Nokia (NOK) is well positioned for smartphone growth. The firm upgraded shares to buy from neutral and has a $19.55 price target.
• Wells Fargo upgraded Cedar Fair (FUN) to outperform from market perform. After the company's merger agreement with Apollo was terminated, the firm thinks the company will be able to refinance its debt, removing an uncertainty.
• Darden (DRI) was upgraded to outperform from neutral at Cowen.
• KeyCorp (KEY) was upgraded to buy from neutral at Goldman.
• Bank of Ireland (IRE) was upgraded to hold from sell at RBS.

Analyst Upgrades

• Kaufman Bros. upgraded Vancelnfo (VIT) to buy from hold, citing better earnings visibility. The firm raised its target price for shares to $26 from $22.
• Janney Montgomery upgraded Progressive (PGR) to buy from neutral with an $18.50 price target, citing valuation and market share gains.
• JPMorgan upgraded Marriott (MAR) to overweight from neutral. The firm has a $36 price target on the stock.
• eBay (EBAY) was upgraded to outperform from neutral at Credit Suisse.
• Werner Enterprises (WERN) was upgraded to neutral from underperform at Credit Suisse.
• CNOOC (CEO) was upgraded to neutral from underperform at Macquarie.

Analyst upgrades:

• Wells Fargo upgraded Qualcomm (QCOM) to outperform from market perform. The firm believes key risks have been eliminated, such as the license dispute with Nokia (NOK) and litigation with Broadcom (BRCM), and thinks Qualcomm is well-positioned for handset unit shipments growth. Wells has a $50 to $60 target range on shares.
• Oppenheimer upgraded Juniper Networks (JNPR) to outperform from perform as it views shares as compelling at current levels and thinks the company is well positioned for 2010. Opco set a $31 price target on the stock.
• FBR Capital upgraded Frontline (FRO) to outperform from market perform after raising its rating on the tanker industry to overweight. The firm raised its target on shares to $33 from $23.
• PetSmart (PETM) was upgraded to buy from neutral at Goldman.
• Career Education (CECO) was upgraded to equal weight from underweight at Barclays.
• Rosetta Resources (ROSE) was upgraded to buy from neutral at SunTrust.

Analyst upgrades:

• Goldman upgraded SanDisk (NASDAQ: SNDK) to Buy from Neutral and raised their target to $22 from $16 citing the renegotiated royalty agreement with Samsung.
• Goldman also upgraded Starwood Hotels (NYSE: HOT) to Buy from Sell and raised their target to $27 from $11 citing strong operating leverage as RevPAR recovers.
• KeyBanc upgraded Werner Enterprises (NASDAQ: WERN) to Hold from Underweight citing a recent improvement in freight demand.
• J.C. Penney (NYSE: JCP) was upgraded to buy from Underperform at Banc of America/Merrill.
• Savvis (NASDAQ: SVVS) was raised to Outperform from Perform at Oppenheimer.
• Sanofi-Aventis (NYSE: SNY) was upgraded at Citigroup to Buy from Hold.

Analyst upgrades:

• Citigroup raised Ann Taylor (NYSE: ANN) to Hold from Sell. The firm upgraded shares following the company's Q2 upside and believes guidance for the second half of 2008 is appropriately conservative.
  
• Jefferies upgraded China Sunergy (NASDAQ: CSUN) based on valuation,and improved liquidity and silicon supply outlook.
  
• Stephens upgraded infoUSA (NASDAQ: IUSA) shares to Overweight from Equal Weight to reflect the stock's valuation, new management, improvements in expense controls and the potential to become a takeover target.
  
• Citigroup raised BB&T (NYSE: BBT) to Buy from Hold.
• Stifel upgraded Leggett & Platt (NYSE: LEG) to Buy from Hold.

Analyst downgrades:

• Citigroup downgraded Cablevision (NYSE: CVC) to Sell from Buy as they do not expect the company's structural moves to unlock value.
  
• Wachovia dropped Knight Transportation (NYSE: KNX) to Market Perform from Outperform based on valuation.
  

MOST NOTEWORTHY: UAL Corp, WPP Group, Aventine Renewable and VeraSun Energy were today's noteworthy upgrades:

• JP Morgan upgraded UAL Corp (NASDAQ: UAUA) to Overweight from Neutral based on valuation and expectations for the company to make a capital announcement on next week's conference call.
  
• Citigroup upgraded shares of WPP Group (NASDAQ: WPPGY) to Buy from Hold as they believe the company's diversification will lead to low earnings volatility.
  
• UBS upgraded Aventine Renewable (NYSE: AVR) and VeraSun Energy (NYSE: VSE) to Buy from Neutral based on expectations for margin improvements following recent corn price declines.

OTHER UPGRADES:

• Werner Enterprises (NASDAQ: WERN) was upgraded to Neutral from Underweight at JP Morgan and to Neutral from Underperform at Merrill.
  
• Wachovia raised Yum! Brands (NYSE: YUM) to Outperform from Market Perform.
  
• Entergy (NYSE: ETR) was lifted to Buy from Hold at Jefferies.

MOST NOTEWORTHY: Polaris Industries, Edwards Lifesciences, BearingPoint and Fortis were today's noteworthy upgrades:

• Rochdale upgraded Polaris Industries (NYSE: PII) to Buy from Hold, as they have increased confidence in the company's ability to achieve estimates.
  
• Piper upgraded shares of Edwards Lifesciences (NYSE: EW) as they believe the bad news is behind the company with a U.S. turnaround expected in 2008.
  
• Jefferies raised shares of BearingPoint (NYSE: BE) to Hold from Underperform on valuation as they believe the risk/reward is neutral following the recent pullback.
  
• Fortis (OTC: FORSY) was upgraded to Outperform from Peer Perform at Bear Stearns. The firm upgraded shares on valuation as they believe the recent weakness is overdone.

OTHER UPGRADES:

• Goldman Sachs added Research in Motion Limited (NASDAQ: RIMM) and Commercial Metals (NYSE: CMC) to its Conviction Buy List.
• Credit Suisse upgraded Varian Semiconductor (NASDAQ: VSEA) to Outperform from Neutral.
  
• Bear upgraded Bruker Biosciences (NASDAQ: BRKR) and Hutchison Telecom (NYSE: HTX) to Outperform from Peer Perform.
  
• Banc of America upgraded Werner Enterprises (NASDAQ: WERN) and J.B. Hunt (NASDAQ: JBHT) to Neutral from Sell.

In July, trucking and transportation logistics company Werner Enterprises Inc. (NASDAQ: WERN) announced 2Q 2007 earnings that essentially repeated all of the problems that bedeviled the company in 1Q 2007: soft demand for freight shipping due to slowdowns in the housing and automotive industries; rising costs for fuel, insurance and claims; too many trucks chasing too few truckloads; too much lower profit margin freight; inefficiencies matching trucks to freight resulting in too many empty miles. Well, at least the weather was better in the spring quarter than during the winter. Given the continuing problems, it should come as no surprise that 2Q results pretty much mirror 1Q's disappointing results. Revenues were just above flat at $531 million for the quarter. EPS declined 15% to $0.30.

On a more positive note, Werner Enterprises has a very proactive management team that is trying to position Werner to be one of the survivors in the trucking industry when the dust settles over the next 18 months or so. At that time, Werner management is betting that freight shipment prices will rise, possibly dramatically, as demand will finally exceed supply of available trucks. Werner is reducing its truck fleet size to match demand, and has developed a much more efficient system to match cyclical freight load demands to available trucks. With increased scheduling efficiencies, Werner is going after higher profit margin freight loads and aggressively cutting the number of empty miles its trucks run. Werner is also running a truck remarketing program to clear its inventory of used trucks and trailers. During 2Q 2007, sales of used equipment added $7.6 million to the bottom line.

Werner repaid $30 million in debt during 2Q 2007, leaving $50 million in debt still on the books. The company repurchased 1.5 million worth of its own stock for a total of $28.6 million. Given that most of the news from Werner has been negative for months, why is the stock up 10% since the beginning of the year, reaching a 52-week high of $22.00 last week before closing Friday at $20.22?

Most of the major long-haul trucking companies have reported quarterly earnings by now, and the news has been about as welcome as a state trooper with a ticket quota to meet. All trucking companies were affected by the same negative factors for the winter quarter:

1. Slowing economy, with particular weakness in the housing and auto sales sectors, resulting in weakening demand for the past eight months.

2. Excess capacity, though not necessarily excess drivers, as many companies bought new truck engines prior to the deadline for more fuel efficient (and expensive) and less polluting engines.

3. Soaring fuel costs, up 17 cents per gallon in March alone, with no end in sight for the next several quarters.

4. Wretched weather for days on end in many parts of the country.

Despite what might initially appear to be a uniformly negative scenario, the long-haul trucking sector is more fragmented than investors may realize, so results were NOT NEGATIVE across the board. In many cases, revenues were up, but then again, so were operating expenses. The degree to which senior management can control costs and utilize existing equipment effectively often made the difference.

MOST NOTEWORTHY: ABN Amro Holding NV (ABN), Werner Enterprises, Inc (WERN), Affiliated Computer Services, Inc (ACS) and Express Scripts (ESRX) were today's more notable upgrades:

• Citigroup upgraded ABN Amro Holding NV (NYSE: ABN) to Hold from Sell as the firm believes value can be realized by breaking the company up and selling units to top bidders.

• UBS upgraded both Werner Enterprises (NASDAQ: WERN) and Affiliated Computer Services to Neutral from Reduce, based on valuation.

• Express Scripts (NASDAQ: ESRX) was upgraded to Outperform from Market Perform at Leerink Swann.

OTHER UPGRADES:

• JP Morgan upgraded Clorox Co (NYSE: CLX) to Overweight from Neutral.

• Bank of America upgraded shares of Tiffany & Co (NYSE: TIF) to Buy from Neutral with a $52 target. The firm believes Tiffany can improve profitability through better operations, efficiency and downside protection from the strong luxury cycle.

• Credit Suisse added Office Depot, Inc (NYSE: ODP) to its U.S. Focus List. The firm believes that Office Depot has the most attractive risk/reward profile in the industry and sees limited downside risk given recent weakness and reduced investor expectations.

• Kaufman upgraded Best Buy Co, Inc (NYSE: BBY) to Buy from Hold with a $59 target.

• Goldman Sachs upgraded Nvidia Corp (NASDAQ: NVDA) to Buy from Neutral with a $33 target, citing valuation.

• Lehman Brothers upgraded Cadbury Schweppes plc (NYSE: CSG) to Overweight from Equal Weight.

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

MOST NOTEWORTHY: The trucking sector, PepsiCo (PEP) and Electronic Arts (ERTS) were the most notable upgrades today.

• Wachovia upgraded the trucking sector to Market Weight from Underweight, as they believe the negative sentiment towards the group is starting to bottom, also noting that trucking stocks tend to rally before fundamentals fully bottom. Wachovia upgraded Con-Way Inc (NYSE: CNW) and Covenant Transport 'A' NASDAQ: CVTI) to Outperform from Market Perform, and Arkansas Best (NASDAQ: ABFS), Heartland Express Inc (NASDAQ: HTLD), Werner Enterprises (NASDAQ: WERN), US Xpress Enterprises 'A' (NASDAQ: XPRSA) to Market Perform from Underperform.

• JP Morgan added PepsiCo (NYSE: PEP) to their Focus List, as the firm believes the recent pullback due to concerns over commodities costs and margins is overdone.

• Janco upgraded Electronic Arts (NASDAQ: ERTS) to Buy from Hold with a $69 target, citing valuation.

OTHER UPGRADES:

• Amgen Inc (NASDAQ: AMGN) was upgraded to Outperform from Peer Perform with a $77 target at Bear Stearns; the firm views Amgen's risk/reward as favorable as the most reasonable of CERA's launch scenarios, owned by Roche Holdings AG (OTC: RHHBY), are priced into valuation, and sees significant upside if CERA does not launch.

• Caris upgraded LSI Logic (NYSE: LSI) to Buy from Above Average with a $12 target; they believe investors are underestimating the synergies involved with the Agere Systems (NYSE: AGR) deal. The broker sees upside to earnings estimates and raised their target of LSI Logic to $12 from $11.

• Merrill Lynch upgraded shares of ImClone Systems (NASDAQ: IMCL) to Neutral from Sell, and sees a short-term trading opportunity due to the overly negative sentiment into the upcoming sales figures. The broker thinks Imclone could meet its Erbitux sales estimates despite weak prescription data.

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