MOST NOTEWORTHY: Full House Resorts, Starent Networks and Capital Trust were today's noteworthy initiations:

• Morgan Joseph said Full House Resorts Inc.'s (AMEX: FLL) valuation does not reflect the present value of its tribal management contract with the FireKeepers Casino. Shares were initiated with a Buy rating and $3.50 target.
• Starent Networks Corporation (NASDAQ: STAR) was assumed with an Overweight rating at Thomas Weisel. The firm said STAR offers a compelling risk/reward profile given strong gross margins and expanding operating margins.
• Keefe Bruyette initiated Capital Trust Inc. (NYSE: CT) with a Market Perform rating and $30 target, and believes the expected deterioration of commercial real estate fundamentals is likely to remain a headwind for valuations of the shares.

OTHER INITIATIONS:

• Thomson Reuters Plc. (NASDAQ: TRIN) was started at UBS with a Neutral rating.
• Piper initiated Heritage-Crystal Clean Inc. (NASDAQ: HCCI) with a Buy rating and $20 target.
• Goldman Sachs initiated The Sherwin-Williams Company (NYSE: SHW) with a Neutral rating.

MOST NOTEWORTHY: The broadline retail sector, Coca-Cola Enterprises, PepsiCo, Pepsi Bottling and Discovery Holdings were today's noteworthy initiations:

• BMO Capital believes the broadline retail sector will be pressured until valuations reflect a potential recession in 2008, or the housing market begins to stabilize. The firm initiated the sector with an Underperform rating, and started shares of Wal-Mart (NYSE: WMT) and JC Penney (NYSE: JCP) with Outperform ratings and a $52 target and $68 target, Macy's (NYSE: M) with a Market Perform rating and $35 target, and Nordstrom (NYSE: JWN) with an Underperform rating and $38 target.
  
• Bear Stearns started shares of Coca-Cola Enterprises (NYSE: CCE), PepsiCo (NYSE: PEP) and Pepsi Bottling Group (NYSE: PBG) with Peer Perform ratings on valuation.
  
• Wachovia initiated Discovery Holding (NASDAQ: DISCA) with a Market Perform rating on valuation.

OTHER INITIATIONS:

• Genzyme (NASDAQ: GENZ) was initiated with a Sector Performer rating at CIBC.
  
• UBS resumed coverage of Capital Trust (NYSE: CT) and CapitalSource (NYSE: CSE) with Neutral ratings and targets of $35 and $18, respectively.

MOST NOTEWORTHY: Komag Incorporated (NASDAQ: KOMG), commercial mortgage REITs, Getty Images Inc (NYSE: GYI) and Rural/Metro Corporation (NASDAQ: RURL) were today's noteworthy downgrades:

• Komag was downgraded to Neutral from Buy at Craig-Hallum, to Market Perform from Outperform at Piper Jaffray, to Hold from Buy at Deutsche Bank and to Neutral from Outperform at Robert W Baird & Co following the announcement it would be acquired by Western Digital Corporation (NYSE: WDC).
  
• Morgan Stanley downgraded Commercial Mortgage REITs to Underweight from Neutral. Specifically, the firm downgraded shares of Capital Trust, Inc (NYSE: CT) to Equal Weight from Underweight and Gramercy Capital Corp (NYSE: GKK) to Underweight from Equal Weight, citing increased credit spreads and subordination levels.
  
• Getty Images was downgraded to Sell from Hold at Matrix as the firm believes margins are declining and sees downside to their $40/share intrinsic value calculation.
  
• Rural/Metro was downgraded by Ferris, Baker Watts to Neutral from Buy on valuation.

OTHER DOWNGRADES:

• PMI Group Inc (NYSE: PMI) was downgraded to Neutral from Buy at UBS.
  
• Deutsche Bank downgraded Palm, Inc (NASDAQ: PALM) to Sell from Hold.
  
• BMO Capital downgraded shares of Carrizo Oil & Gas Incorporated (NASDAQ: CRZO) to Market Perform from Outperform.
  
• Morgan Stanley downgraded shares of Cemex (NYSE: CX) to Equal Weight from Overweight.
  
• Barnes & Noble Inc (NYSE: BKS) was downgraded to Hold from Buy at Matrix.

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