MOST NOTEWORTHY:

• Merriman believes FY07 is a transitional year for Bluefly (NASDAQ: BFLY), starting the company with a Neutral rating, and finds the stock fairly valued at current levels.

• Robert W. Baird expects growth at Leap Wireless International (NASDAQ: LEAP) to be fueled by upcoming market launches, starting shares with an Outperform rating.

• Thomas Weisel is positive on Kona Grill's (NASDAQ: KONA) expansion, same-store sales growth, ramping unit volumes and corporate G&A leverage, starting shares with an Outperform rating.

• Robert W. Baird expects MetroPCS Communications (NYSE: PCS) growth to be fueled by upcoming market launches and initiated shares with an Outperform rating and $14 target.

• Needham believes shares of Beacon Roofing Supply (NASDAQ: BECN) have overreacted to the weak residential new construction market, which represents only 20% of business, and started shares with a Buy rating and $22 target...

• JP Morgan started Array BioPharma Inc (NASDAQ: ARRY) with an Overweight rating.

• Lehman initiated shares of McGraw-Hill Cos, Inc (NYSE: MHP) with an Overweight rating and $81 target.

• MVC Capital, Inc (NYSE: MVC) was started with a Neutral rating and UBS.

• Morgan Joseph started Cash Systems, Inc (NASDAQ: CKNN) with a Buy rating and $9 target.

Analyst initiations 5-23-07: BECN, LEAP, MHP and PCS originally appeared on BloggingStocks on Wed, 23 May 2007 11:37:00 EST. Please see our terms for use of feeds.