CHANGE IN RATINGS

Boeing

upgraded at Goldman: Goldman said it is upgrading BA to Inline from Underperform based on updated earnings growth. Raised 2006 estimates to $3.50 from $3.35.

Bowater

upgraded at Prudential: Prudential said it is upgrading BOW to a Neutral Weight rating due to share price decline and growth of free publications.

Celestica

upgraded at UBS: UBS said it is upgrading CLS to Buy from Neutral based on valuation. Stock has dropped about 28% since April. Maintained $12 target price.

Disney

downgraded at A.G. Edwards: A.G. Edwards is downgrading DIS to Hold from Buy due to deceleration in revenue growth in core businesses.

Emerson Electric

upgraded at AG Edwards: EMR was upgraded from Hold to Buy, AG Edwards said. Estimates also raised, as recent order trends have been strong. Company facing easy comps in the third quarter, and there is upside potential to the consensus estimates.

Goodman Global

coverage initiated at Goldman: Goldman Sachs is initiating coverage of GGL with an In-Line rating. Positive competitive positioning weakened by raw material costs and looming housing slowdown.

Gamestop

upgraded at UBS: UBS said it is upgrading GME to Buy from Neutral based on valuation. Stock has dropped about 20% since early May. Maintained $48 target price.

Goldman Sachs

upgraded at Sandler O'Neill: GS was upgraded from Hold to Buy, Sandler O'Neill said. $165 price target. Estimates also raised, as every other business outside of equity trading still appears strong.

Eli Lilly

upgraded at Bernstein: LLY was upgraded from Market Perform to Outperform, Bernstein said. $60 price target. Rate of Zyprexa's market share loss has decelerated in 2006. Cymbalta has also seen a rise in demand of late.

Legg Mason

upgraded at Friedman Billings Ramsey: FBR said it is upgrading shares of LM to Outperform due to improving margins and attractive valuation. Price target of $125.

Allscripts

coverage initiated at Goldman Sachs: Goldman said it is initiating coverage of MDRX with an In-Line rating. Positive view of sales growth tempered by valuation concerns. See implied value around $20 based on 37.5x multiple on 2007 estimate of $0.52.

Maxim Integrated

downgraded at Goldman Sachs: Goldman said it is downgrading MXIM to Inline from Outperform due to continuing channel overhang and deteriorating notebook demand.

National Financial Partners

upgraded at Merrill Lynch: Merrill said it is upgrading NFP based on valuation. After recent price decline, shares trade at 11.3x 2007 estimates. Expect 15% annual EPS growth. Price objective at $54.

Northrop Grumman

downgraded at Goldman Sachs: NOC downgraded to Underperform from Inline, according to Goldman Sachs. Noted high valuation relative to below average Return on Invested Capital and 2007 earnings growth.

National Semiconductor

upgraded at Goldman Sachs: NSM is being upgraded to Outperform from Inline, Goldman said. See decision to cut channel inventory removing pressure on stock. Estimate fair value at $28.

Newell Rubbermaid

upgraded at Oppenheimer: Oppenheimer said it is upgrading NWL to Buy from Neutral based on sales growth and margin improvements. Price target of $31.

Omnicare

coverage initiated at Goldman: Goldman Sachs said it is initiating coverage on OCR with an outperform rating. Company poised for high-teens earnings growth. See fair value at $57.

Phoenix Companies

upgraded at Merrill: Merrill said it is upgrading PNX to Neutral from Sell based on valuation. See both limited downside due to private market valuation. See limited upside due to continuing poor ROE.

Sycamore Networks

upgraded at Citigroup: SCMR was upgraded from Sell to Hold, Citigroup said. $4 price target. Valuation call. Eastern purchase should dilute earnings.

Tower Group

upgraded at Piper: Piper said it is upgrading TWGP to an outperform rating on valuation as stock has slid 14% since May 16.

STOCK COMMENTS / EPS CHANGES

Agrium

estimates cut at Goldman:Goldman said it is cutting its 2006 estimates on AGU to $1.58 from $1.85 due to weakness in fertilizer demand. Maintain Inline rating.

Best Buy

estimates raised at Goldman: Goldman said it is raising its 2006 estimates on BBY by 11 cents to $2.88 due to cost controls and increasing earnings visibility. Maintain Inline rating.

Best Buy

estimates raised at Piper: Piper said it is raising its 2007 estimates on BBY by 3 cents to $2.83 a share to reflect very strong first quarter results. Maintained Outperform rating.

Best Buy

estimates raised at Prudential: Prudential said it is raising its 2007 estimates on BBY by 5 cents to $2.80 a share to reflect strong flat panel tv demand and SG&A improvement. Maintained Neutral Weight rating.

Best Buy

estimates raised at Jefferies: Jefferies said it is raising its 2006 estimates on BBY to $2.85 from $2.77 after the company beat Q1 expectations. Reiterated Hold rating, citing valuation concerns. Reduced price target to $52.50 from $55.

Cardinal Health

estimates raised at Goldman: Goldman said it is upping its 2006 estimates on CAH by 3 cents to $3.15 based on company update of revenue growth. Maintain Outperform rating.

Fifth Third

estimates lowered at Goldman: Goldman said it is lowering its 2006 estimates on FITB by 3 cents to $2.72 due to net interest income challenges. Inline rating.

Fifth Third

estimates lowered at Morgan Stanley: FITB estimates were cut through 2008, Morgan Stanley said. Company said in its mid-quarter updates that expenses are rising faster than expected. Fee growth has been solid, but competition for deposits is increasing. Underweight rating and $35 price target.

Goldman Sachs

estimates raised at Prudential: Prudential said it is raising its 2006 estimates on GS by 40 cents to $17.10 a share to reflect strong second quarter results. Maintained Overweight rating.

Kerzner

estimates raised at Goldman Sachs: Goldman said it is raising its 2006 estimates on KZL by $0.08 to $2.90 based on Q1 results and outperformance of One&Only properties. Shares not currently rated.

Qualcomm

estimates upped at Goldman: Goldman said it is raising its 2006 estimates on QCOM by 2 cents to $1.47 due to stronger royalty revenues from W-CDMA handset sales. Reiterated Outperform rating.

Qualcomm

estimates raised at Jefferies: Jefferies said it is upping its 2006 estimates on QCOM by 2 cents to $1.62 after the company raised its June quarter guidance. Reiterated Buy rating and $54 price target.

Sears Holdings

estimates boosted at Morgan Stanley: SHLD estimates raised through fiscal 2008, according to Morgan Stanley. Company should continue to expand margins, even if sales growth remains low. Underweight rating.

STRATEGY CALLS / MARKET CALLS

Semiconductors upgraded at Goldman Sachs:Goldman said it is upgrading INTC to Outperform from Inline and AMD, SNDK, and AMAT to Inline from Underperform based on valuations. See likely share gains by Intel. AMD and Sandisk closer to fair value after selloff.