FTI Consulting (NYSE: FCN) provides forensic/litigation services to major corporations, financial institutions and law firms. Company experts offer investigative services to firms facing fraud, disclosure, and malpractice issues, to assist them in their legal defense or pursuit of recoveries. FTI also serves its clients with expert testimony and corporate restructuring services. In addition, FTI offers economic consulting and advises clients on merger & acquisition deals and regulatory matters. The firm serves more than 1,000 clients through about 30 offices in the US, the UK and the Asia/Pacific region.

The company pleased investors last week, when it reported Q4 EPS of 60 cents and revenues of $280.5 million. Analysts had been expecting 58 cents and $260.2 million. Management also guided FY08 EPS to $2.40-$2.50 ($2.36 consensus) and FY08 revenues to $1.27-$1.30 billion ($1.15B consensus). Stifel Nicolaus and Boenning & Scattergood subsequently reiterated "buy" and "market outperform" ratings on the issue, respectively.

MOST NOTEWORTHY: Banco Santander, Solera, FTI Consulting and Blue Coat Systems were today's noteworthy initiations:

• Societe Generale expects the Banco Santander's (NYSE: STD) strong organic growth in earnings to continue with the purchase of ABN Amro's (NYSE: ABN) assets in Brazil and Italy, starting shares off with a Buy rating. Shares were started at Merrill Lynch with a Neutral rating.
  
• William Blair initiated Solera Holdings (NYSE: SLH) with an Outperform rating, as they believe underlying trends for auto insurance claims are favorable.
  
• FTI Consulting (NYSE: FCN) was initiated at Deutsche Bank, as they believe the company is positioned to sustain double-digit growth, and with a Buy rating and $65 target and at Goldman with a Neutral rating and $62 target.
  
• Pacific Crest initiated Blue Coat Systems (NASDAQ: BCSI) with a Sector Perform rating on valuation and estimates fair value at $50/share.

OTHER INITIATIONS:

• BNP Paribas started shares of China Netcom (NYSE: CN) and China Telecom (NYSE: CHA) with Buy ratings and China Mobile Limited (NYSE: CHL) with a Hold rating.
  
• Cosan Limited (NYSE: CZZ) was initiated with a Neutral rating at Goldman.
  
• Methanex Corporation (NASDAQ: MEOH) was started at HSBC with an Overweight rating.

MOST NOTEWORTHY: Encore Energy, Corporate Executive Board, FTI Consulting and Great Lakes Dredge were today's noteworthy initiations:

• Stanford believes shares of Encore Energy Partners LP (NYSE: ENP) are reasonably valued, and started shares with a Hold rating and $20.50 target.
• The Corporate Executive Board Company (NASDAQ: EXBD) was initiated with a Neutral at Baird, as they have concerns regarding the slowing economy near-term.
• Baird also started shares of FTI Consulting Inc (NYSE: FCN) with an Outperform rating and a $64 target, as they believe the company is well-positioned for continued strong growth driven by positive macro demand and specific company drivers.
• Banc of America initiated Great Lakes Dredge and Dock Corporation (NASDAQ: GLDD) with a Neutral rating and $10 target. The firm believes near-term visibility is closed by an unsettled Army Corps/domestic funding policy and is looking for a more attractive valuation.

OTHER INITIATIONS:

• Jefferies initiated Wal-Mart Stores Inc (NYSE: WMT) and BJ's Wholesale Club Inc (NYSE: BJ) with Buy ratings and a $58 target and $46 target and shares of Target Corporation (NYSE: TGT) and Costco Wholesale Corporation (NASDAQ: COST) with Hold ratings and a $62-$65 target and $66-$69 target, respectively.
• Cisco Systems Inc (NASDAQ: CSCO) was initiated with an Outperform rating at Wachovia.

MOST NOTEWORTHY: The business services sector, Monster, Robert Half International and Javelin were today's noteworthy downgrades:

• Merrill Lynch lowered their estimates on the majority of business services stocks they cover to reflect the potential for a recession in the U.S. To reflect the lowered estimates, Merrill downgraded FTI Consulting (NYSE: FCN) and Korn/Ferry International (NYSE: KFY) to Sell from Neutral, Heidrick & Struggles (NASDAQ: HSII) to Sell from Buy and Manpower Inc (NYSE: MAN) to Neutral from Buy.
  
• UBS downgraded shares of Monster Worldwide Inc (NASDAQ: MNST) and Robert Half International (NYSE: RHI) to Neutral from Buy and Heidrick & Struggles and Korn/Ferry to Sell from Neutral.
  
• JP Morgan removed shares of Javelin Pharmaceuticals (NYSE: JAV) from its Focus List following the recent share price decline given their stop-out rule. The firm continues to have a high conviction for the company's three unpartnered late-stage products and maintained its Overweight rating.

OTHER DOWNGRADES:

• Hambrecht downgraded shares of Gateway Incorporated (NYSE: GTW) to Hold from Buy.
  
• Deutsche Bank downgraded shares of Kaydon Corporation (NYSE: KDN) to Hold from Buy.
  
• Goldman Sachs lowered Bristol-Myers Squibb Company (NYSE: BMY) to Sell from Neutral.
  
• Bernstein downgraded Dominion Resources (NYSE: D) to Market Perform from Outperform.
  
• Research in Motion Limited (NASDAQ: RIMM) was downgraded at Bear Stearns to Peer Perform from Outperform.

It's a complex business environment and managers can sometimes use outside help with important investigations, high-stakes litigation, and overall corporate performance issues. There is an outfit in Baltimore known for its expertise along those lines.

FTI Consulting (NYSE: FCN) provides forensic/litigation services to major corporations, financial institutions and law firms. Company experts offer investigative services to firms facing fraud, disclosure, and malpractice issues, to assist them in their legal defense or pursuit of recoveries. FTI also serves its clients with expert testimony and corporate restructuring services. In addition, FTI offers economic consulting and advises clients on merger & acquisition deals and regulatory matters. The firm serves more that 1,000 clients through about 30 offices in the US, the UK and the Asia/Pacific region.

The company pleased investors earlier in the month, when it reported Q2 EPS of 53 cents and revenues of $239.7 million. Analysts had been expecting 44 cents and $222.86 million. Management also guided FY07 EPS to $1.92-2.00 ($1.81 consensus) and FY07 revenues to $944-962 million ($922.41M consensus).