Deutsche Banc Alex. Brown cut its rating on International Paper (IP) - Get Report to buy from strong buy after the company made an unsolicited bid of $6.2 billion for Champion (CHA) - Get Report.

Upgrades

Corning

(GLW) - Get Report

: UP to near-term buy from accumulate at

Merrill Lynch

.

Grubb & Ellis

(GBE)

: UP to buy from market performer at

Banc of America Securities

.

Ivex Packaging

(IXX)

: UP to attractive from neutral at

Bear Stearns

.

Kemet

(KEM) - Get Report

: price target UP to 125 from 115 at Merrill Lynch.

Silicon Valley Bancshares

(SIVB) - Get Report

: UP to buy from neutral at Bear Stearns. .

Initiations

Applebee's International

(APPB)

: NEW buy at Bear Stearns; price target: 48.

Arrowpoint Communications

(ARPT)

: NEW buy at

J.P. Morgan

and NEW market performer at

Goldman Sachs

; price target: 150 at J.P. Morgan .

Bottomline Technologies

(EPAY) - Get Report

: NEW near-term accumulate/buy rating at Merrill Lynch; 12-18 month price target: 60.

Gadzoox

(ZOOX)

: NEW buy at

Credit Suisse First Boston

; 12-month price target: 50.

Mercator Software

(MCTR)

: NEW buy at

Lehman Brothers

; price target: 50.

Mercury Interactive

(MERQ)

: NEW buy at Lehman Brothers; price target: 80.

Oracle

(ORCL) - Get Report

: NEW buy at Lehman; price target: 100.