Stock Upgrades, Downgrades from TheStreet.com Ratings

Each weekday, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Brocade(BRCD Quote) has been downgraded to a hold from a buy. The company develops and markets data storage solutions for computer networks. Its net income fell 93.8% in the second quarter of fiscal 2007 compared with the year-earlier period. Net operating cash flow also decreased 16.9% during that same time frame. Brocade's stock price jumped 32.2% during the past 12 months. However, the company's valuation is now in line with many of its competitors. TheStreet.com Ratings sees little upside potential left. BRCD had been rated a buy since December 2006.

Biopharmaceutical firm ImClone(IMCL Quote) has been downgraded to a hold from a buy. The company's earnings per share were down 86.9% in the first quarter of fiscal 2007 compared with the same quarter a year earlier. Net operating cash flow has also dropped 93.4% during that time period. ImClone had been rated a buy since April 2007.