The battered, vacillating semiconductor sector was given a shot in the arm today by Joe Osha, analyst for

Merrill Lynch

. He said the "mid-cycle correction has ended" and is specifically recommending the "communications-oriented and foundry businesses."

He's focusing on names including

Analog Devices

(ADI) - Get Analog Devices, Inc. Report

,

Taiwan Semiconductor

(TSM) - Get Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR Report

,

Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report

,

Cypress Semiconductor

(CY) - Get Cypress Semiconductor Corporation Report

and

Atmel

(ATML)

. He estimates global revenue growth for the sector will be 40%, up from his earlier 32% estimate.

Upgrades

Ciena

(CIEN) - Get Ciena Corporation Report

: UP to outperform from hold at

ABN Amro

.

Corixa

(CRXA)

: UP to outperform from neutral at Lehman Brothers.

Elan

(ELN)

:

Goldman Sachs

raised price target to 70.

TheStreet Recommends

Sprint PCS

(PCS)

: UP to strong buy from buy at

ING Barings

.

Varian Semicondcutor

(VSEA)

: UP to buy from neutral at

Lehman Brothers

.

Downgrades

MetLife

(MET) - Get MetLife, Inc. (MET) Report

: DOWN to neutral from outperform at Lehman Brothers.

Initiations

Concord EFS

(CEFT)

: NEW buy at Lehman Brothers; price target: 50.

Kana

(KANA)

: NEW buy at

First Union

; price target: 50.

Kohl's

(KSS) - Get Kohl's Corporation (KSS) Report

: NEW buy at

U.S. Bancorp Piper Jaffray

; price target: 65.

Martha Stewart Living

(MSO)

: NEW buy at U.S. Bancorp Piper Jaffray; price target: 39.

Target

(TGT) - Get Target Corporation Report

: NEW buy at U.S. Bancorp Piper Jaffray; price target: 43.