MOST NOTEWORTHY: Invesco, Visa and Netscout Systems were today's noteworthy initiations:

• Keefe Bruyette believes Invesco's (NYSE:IVZ) initiatives will drive significant revenue and operating leverage to any improvement in the operating environment. The firm started shares with an Outperform rating and $28 target. Visa was started ast Cowen with an Outperform rating, as they are positive on the Visa's growth prospects and attractive business model.
  
• Keefe Bruyette also recommends owning Visa (NYSE:V), assuming coverage with an Outperform rating and $80 target, and established FY08, FY09, and FY10 EPS estimates of $1.89, $2.33 and $2.80.
  
• Netscout Systems (NASDAQ:NTCT) was initiated at ThinkEquity with a Buy rating and $13 target. ThinkEquity believes Netscout is well positioned to outperform and win share in its addressable market niche following the Network General acquisition. Additionally, the firm views NTCT as an attractive takeover candidate for larger infrastructure management players.

OTHER INITIATIONS:

• JP Morgan initiated Signature Bank (SBNY) with a Neutral rating.
  
• Wendy's (WEN) was reinstated at Goldman with a Sell rating and $21 target.
  
• Needham started NeuStar (NSR) with a Hold rating.

MOST NOTEWORTHY: Advanced Micro Devices, Intel Corporation, Netscout Systems, Guidance Software and Nasdaq were today's noteworthy initiations:

• Morgan Stanley started shares of Advanced Micro Devices Inc (NYSE: AMD) and Intel Corporation (NASDAQ: INTC) with Underweight ratings and a $11 target and $22 target, respectively. The firm recommends selling shares of both as they expect an inventory correction and increasingly aggressive price environment.
  
• Kaufman Brothers initiated shares of Netscout Systems Inc (NASDAQ: NTCT) with a Buy rating and $13.50 target. The firm is positive on the Network General acquisition and believes successful integration as well as continued improvement in sales execution will drive shares higher.
  
• Roth Capital resumed coverage of Guidance Software Inc (NASDAQ: GUID) with a Buy rating and $15 target and said the company is the market leader for digital forensics and that new regulations have accelerated electronic discovery in the forensic market.
  
• Jefferies started shares of The Nasdaq Stock Market Inc (NASDAQ: NDAQ) with a Buy rating and $45 target and believes the company's relative underperformance over the past two years creates an attractive entry point as earnings are poised to accelerate.

OTHER INITIATIONS:

• Credit Suisse initiated the small-cap biotechnology sector, starting shares of Poniard Pharmaceuticals Inc (NASDAQ: PARD), Dyax Corp (NASDAQ: DYAX) and Dynavax Technologies Corporation (NASDAQ: DVAX) with Outperform ratings and targets of $9, $7 and $8, respectively.
  
• Broadpoint initiated Lululemon Athletica Inc (NASDAQ: LULU) with a Neutral rating.
  
• JP Morgan started shares of Vornado Realty Trust (NYSE: VNO) and Douglas Emmett Inc (NYSE: DEI) with Neutral ratings.

When you want to gauge the efficiency of a computer network, it makes sense to monitor its performance at various points along the way. A leading provider of products designed to collect and analyze such information is headquartered in Westford, Massachusetts.

NetScout Systems (NASDAQ: NTCT) provides a family of integrated software and hardware products that enable an enterprise to monitor the performance of its computer network. Administrators place NetScout monitoring appliances throughout the network and then use associated software to collect information about traffic flow to optimize efficiency. The products ensure that critical business applications such as e-mail, Voice over IP, supply chain management and customer resource management run effectively and reliably. The firm works with such strategic partners as AT&T (NYSE: T). Verizon Communications (NYSE: VZ) and Merrill Lynch (NYSE: MER) are major customers.

The company pleased investors about two weeks ago, when it raised its Q2 EPS guidance to 9-10 cents and revenue guidance to $29-$30 million. Analysts had been looking for 8 cents and $28.33 million. The CEO cited increased demand across the firm's various markets for the upside view. Also, the company announced that it would acquire network management hardware firm Network General for $205 million. NetScout officials anticipated that the combined firm would enjoy significant cost savings, better operating margins and improved EPS. Brean Murray subsequently reiterated its "buy" rating on the shares and boosted its price target to $15.

When you want to check the efficiency of a process, you monitor its performance at various points along the way. There is an outfit in Westford, Massachusetts that successfully applies that principle to computer networks.

NetScout Systems (NASDAQ: NTCT) provides a family of integrated software and hardware products that enable an enterprise to monitor the performance of its computer network. Administrators place NetScout monitoring appliances throughout the network and then use associated software to collect information about traffic flow to optimize efficiency. The products ensure that critical business applications such as e-mail, Voice over IP, supply chain management and customer resource management run effectively and reliably. The firm works with such strategic partners as AT&T (NYSE: T). US Airways Group (NYSE: LCC) is a major customer.

The company pleased investors early in the week, when it raised its Q1 EPS guidance to 6-8 cents and its revenue guidance to $27-$28 million. Analysts had been looking for 6 cents and $26.21 million. The CEO cited unexpected strength in bookings, which followed product improvements. The share price popped through 90-day moving average resistance on the news and subsequently began consolidating the gain in a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys" and one "buy." Analysts see a 35% growth rate, through the next year. The NTCT Price to Sales ratio (2.74), Price to Book ratio (2.02) and EPS Growth rate (50.00%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 82% of the outstanding shares. Over the past 52 weeks, the stock has traded between $6.06 and $9.59. A stop-loss of $7.50 looks good here. Note that the firm is expected to report Q1 results in late July.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.