Analyst initiations 7-03-07: CAI, MANT and YUM

Posted Jul 3rd 2007 10:31AM by Kevin Shult
Filed under: Before the Bell, Yum Brands (YUM), Analyst Initiations

MOST NOTEWORTHY: Kenexa Corp (KNXA), CACI International (CAI), SI International (SINT), Tyco Electronics (TEL) and YUM! Brands (YUM) were today's noteworthy initiations:

ThinkEquity started Kenexa Corp (NASDAQ: KNXA) with an Accumulate rating, citing the company's attractive business model that can deliver high-value, high-margin content, but questions the company's plans to compete with best-of-breed vendors.

Banc of America initiated CACI International (NYSE: CAI) with a Neutral, citing the challenging budget environment and margin trends.

Banc of America believes shares of SI International (NASDAQ: SINT) offers a compelling risk/reward given the improving civilian funding environment and upside potential from recent M&A activity, and assumed coverage with a Buy rating and $38 target.

Tyco Electronics (NYSE: TEL) was started with a Hold rating at Deutsche Bank, citing risks to the company's potential turnaround.

Yum! Brands (NYSE: YUM) was re-initiated with an Outperform rating at Friedman Billings on valuation and considers any stock price weakness from the increased costs as a buy opportunity.

OTHER INITIATIONS:

Banc of America assumed the following Government IT Services companies with Buy ratings: SRA International (NYSE: SRX) and SI International.

Banc of America assumed the following Government IT Services companies with Neutral ratings: CACI International, MTC Technologies (NASDAQ: MTCT), SAIC (NYSE: SAI), and ManTech International Corp (NASDAQ: MANT).

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Tags: analyst, caci, cai, initiation, kenexa, knxa, mant, mantech, mtc, mtct, rating, sai, saic, si, sint, sra, srx, tel, theflyonthewall.com, tyco, yum, yum!