Analyst initiations: ARUN, BX and ESC
Posted Aug 13th 2007 12:24AM by Kevin Shult
Filed under: Before the Bell, Analyst Reports, Analyst Initiations, Blackstone Group L.P (BX), Stocks to Buy, Stocks to Sell
MOST NOTEWORTHY: Aruba Networks (ARUN), the aesthetic energy devices sector and Emeritus Corp (ESC) were today's noteworthy initiations:
- JP Morgan initiated shares of Aruba Networks (NASDAQ: ARUN) with a Neutral rating. The firm believes Aruba shares are fully valued at these levels and reflects strong growth with operating leverage.Pacific Crest believes Aruba, initiated with a Sector Perform rating and $19 target, is a strong alternative to Cisco Systems (NASDAQ: CSCO) in the WLAN market and its strong position as a point vendor makes the company an attractive acquisition candidate.
- Leerink Swann estimates the aesthetic energy devices sector is likely to experience 20% revenue growth over the next five years. The firm finds Thermage (NASDAQ: THRM) a turnaround-story which has a compelling mix of revenues from disposable tips while Cynosure (NASDAQ: CYNO) is capitalizing successfully on new product cycles with Affirm and SmartLipo. Palomar Medical Technologies (NASDAQ: PMTI) is viewed as the IP leader for hair removal products; Leerink initiated Thermage and Cynosure with Outperform ratings and Palomar with a Market Perform rating.
- Emeritus Corp (AMEX: ESC) was initiated with a Buy rating and $33 target at Stifel, which believes ESC has one of the best cash earnings growth stories among any of the traded senior housing companies.
OTHER INITIATIONS:
- CE Unterberg started shares of Synchronoss (NASDAQ: SNCR) with a Buy rating and $41 target.
- Blackstone Group (NYSE: BX) was initiated with an Overweight rating and $41 target at Morgan Stanley.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required). Tags: analyst, array, arry, aruba, arun, blackstone, bx, cisco, csco, cyno, cynosure, emeritus, esc, initiation, palomar, pmti, rating, sncr, synchronoss, tapestry, thermage, thrm, tpph