UPGRADES:
Goldman Sachs upgrades GameStop (NYSE: GME) from Neutral to Buy and added the stock to their Conviction Buy List with a $28 price target, representing 19% upside.

JMP Securities upgrades KKR Financial Holdings (NYSE: KFN) from Market Perform to Market Outperform.

Raymond James upgrades KB Home (NYSE: KBH) from Underperform to Market Perform.

Wells Fargo upgrades BorgWarner (NYSE: BWA) to Outperform. Valuation Range: $39-$42 from $32-$34. Click here for more color on the upgrade.

For daily real-time Upgrades go to http://www.streetinsider.com/Upgrades

DOWNGRADES:
BofA/Merrill downgrades Morgan Stanley (NYSE: MS) from Buy to Neutral.

Raymond James downgrades Standard Pacific (NYSE: SPF) from Market