Early Morning Tidbits:

- Baird is upgrading Alliance Data (NYSE:ADS) to Outperform with a $70 tgt as they believe the stock's recent sell off provides an attractive risk/reward opportunity. Trading at roughly 10x FY08E EPS, they believe the market is pricing the stock as though 1) the Blackstone deal is dead (firm handicaps it at 50/50) and 2) the company's revenue/earnings are solely derived from its private-label credit-card business, which actually accounts for only about half the company's EBITDA.

- SunTrust is upgrading Alliance Data (NYSE:ADS) to Buy with a $60 tgt saying risk/reward too compelling to ignore.