Analyst initiations: BDSI, NWK, BRL and TEVA

MOST NOTEWORTHY: BioDelivery Sciences, Network Equipment, Barr Pharmaceuticals and Teva Pharmaceutical were today's noteworthy initiations:

• Merriman believes BioDelivery Sciences (NASDAQ:BDSI) is significantly undervalued given the positive results for BEMA Fentanyl and potential milestone payments of $60M, initiating shares with a Buy rating. They estimate fair value is in the $8-$10 range.
• Broadpoint believes Network Equipment (NYSE:NWK) is well-positioned for growth in the IP space, starting shares with a Buy rating.
• Banc of America started Barr Pharma (NYSE:BRL) with a Buy rating and $60 target, noting that the company's generic pipeline represents $30B in brand revenues and views Fosamax as the largest immediate opportunity. The firm also assumed coverage of Teva (NASDAQ:TEVA) with a Buy rating and $55 target, as they believe Teva's scale makes it the only generic company that can make a profit from aged generic products.

OTHER INITIATIONS:

• JP Morgan initiated Wintrust Financial (NASDAQ:WTFC) with a Neutral rating.
• Credit Suisse initiated Psychiatric Solutions (NASDAQ:PSYS) with an Underperform rating and $30 target.
• UBS started Weight Watchers (NYSE:WTW) with a Neutral rating and $51 target.