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.

First Niagara Financial Group(FNFG Quote), holding company for First Niagara Bank, has been upgraded to buy. The company's revenue growth and expanding profit margins are expected to outweigh its somewhat disappointing return on equity. The company recently reported second-quarter income of $16.6 million, or 16 cents per share, down from $24.8 million, or 23 cents a share, a year earlier.

The most recent quarter includes $7.5 million charge for an "improvement initiative," which reduced net income by 5 cents per share. Revenue growth greatly exceeded the industry average.

First Niagara's gross profit margin, while still high, decreased during the most recent reporting period. Nevertheless, its net profit margin of 12.20% compares favorably to the industry average. The company had been rated hold since June.