MOST NOTEWORTHY: Alliance Imaging, Calpine and CommVault were today's noteworthy initiations:
Stanford finds shares of Alliance Imaging (NYSE: AIQ) fairly valued and believes the company's transition to providing imaging services to hospitals from mobile imaging equipment to fixed imaging equipment will take at least several years. The firm initiated coverage with a Hold rating.
Calpine (NYSE: CPN) was initiated with a Buy rating and $21.50 target at Jefferies. The firm views Calpine as a low-cost valuation generation company and expects earnings growth from its Western and Texas power plants to drive improved results.
Cowen assumed CommVault (NASDAQ: CVLT) with a Neutral rating and sees limited upside to 2009 estimates due to sales and marketing investments, as well as competition.
OTHER INITIATIONS:
UBS initiated Omrix Biopharm (NASDAQ: OMRI) with a Buy rating and $17 target.
Susquehanna initiated Align Tech (NASDAQ: ALGN) with a Neutral rating.
Zions Bancorp (NASDAQ: ZION) was assumed with a Neutral rating and $13 target at Baird.
Genomic Health Inc (NASDAQ: GHDX) was raised to Outperform from Sector Perform at RBC Capital, as they believe momentum for the company's Oncotype Dx test is building based on inclusion in new clinical guidelines and expanded reimbursement.
Alphatec Holdings Inc (NASDAQ: ATEC) was upgraded to Buy from Source of Funds at Think Equity, citing the new CEO's efforts to overhaul the company, which has positioned it for growth.
Auxilium Pharmaceuticals (NASDAQ: AUXL) was initiated with an Outperform rating at Cowen, which said AUXL's lead candidate, AA4500, is in pivotal testing for Dupuytren's contracture, which could be a $400M+ revenue opportunity.
BioSante Pharmaceuticals (AMEX: BPA) was initiated with a Positive rating at Susquehanna, as the firm is positive on BPA's growth prospects for the transdermal estrogen market, upside potential from the female dysfunction market, and valuation.
OTHER INITIATIONS:
Morgan Stanley initiated shares of Lamar Advertising (NASDAQ: LAMR) with an Overweight rating and $77 target.
SunTrust Robinson Humphrey initiated shares of Texas Roadhouse (NASDAQ: TXRH) with a Neutral rating.
Morgan Joseph initiated shares of Metalico (AMEX: MEA) with a Hold rating.
Stifel Nicolaus initiated shares of Tenet Healthcare (NYSE: THC) with a Sell rating and a $5 target.
MOST NOTEWORTHY: Brocade Communications Systems, Inc (BRCD), AT&T Inc (T), DaimlerChrysler (DCX), AMR Corp (AMR) and Continental Airlines, Inc (CAL) were today's more noteworthy upgrades:
JP Morgan upgrade shares of Brocade Communications Systems, Inc (NASDAQ: BRCD) to Overweight from Neutral, citing positive trends in networked storage; shares were also added to the firm's Focus List.
Matrix believes improving product mix and demand for new products is driving strong fundamental trends in AT&T (NYSE: T). Matrix upgraded T shares to Strong Buy from Buy and sees upside to their intrinsic value of $56.
Bernstein believes the divestiture of Chrysler from DaimlerChrysler AG (NYSE: DCX) is a positive for the company and upgraded shares to Outperform from Market Perform.
Soleil upgraded shares of AMR Corp (NYSE: AMR) to Buy from Hold on valuation and Continental Air Lines Inc (NYSE: CAL) to Hold from Sell based on a more constructive industry outlook...
OTHER UPGRADES:
Morgan Stanley upgraded NTT DoCoMo, Inc (NYSE: DCM) to Overweight from Equal-Weight.
MOST NOTEWORTHY: Onyx Pharmaceuticals (ONXX) and CommVault (CVLT) top the list of today's initiations.
Citigroup started Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) with a Hold rating and $22 target as the broker expects shares to be range bound until clarity is given into the company's cancer indications. A bunch firms initiated recent IPO CommVault Systems this morning, including IPO managers First Boston and Goldman Sachs.
Goldman started shares of CommVault Systems, Inc. (NASDAQ:CVLT) with a Buy and $21 target, and added shares to its prestigious Conviction Buy List, as they expect the company to benefit from relationships with DELL and HDS. First Boston is more lukewarm on the name, starting shares with a Neutral rating and the same target of $21. Other firms' imitating the stock this morning was Merrill Lynch with a Buy, and Thomas Weisel and RBC Capital with Outperform ratings.
OTHER INITIATIONS:
Caris initiated three retail names this morning: American Eagle Outfitters, Inc. (NASDAQ:AEOS), Limited Brands, Inc. (NYSE:LTD) and Men's Wearhouse, Inc. (NYSE:MW). The broker favors Limited and Men's Wearhouse with Above Average ratings, thinking inventory and cost management can bring margin expansion. Caris is less excited about American Eagle, starting shares with an Average rating, believing shares are fairly valued at current levels.
.gif){kind=logo}
MOST NOTEWORTHY: Alliance Imaging, Calpine and CommVault were today's noteworthy initiations:.gif){kind=logo}
Before the bell: Wall Street headed higher; automakers, retailers in focus
Waiting for the other shoe to drop: The looming credit crisis
Bet on T&A with J&J (JNJ)
