MOST NOTEWORTHY: Delta Air Lines (DAL), Diana Shipping Inc (DSX), Adobe Systems Inc (ADBE), Eagle Materials, Inc (EXP), ACR Group (BRR) and Autodesk, Inc (ADSK) were today's noteworthy initiations:

• Goldman is positive on Delta Air Lines (NYSE: DAL), starting shares with a Buy rating and $25 target based on above average growth, best-in-class unit costs, free cash flow and less labor cost risk.

• Diana Shipping (NYSE: DSX) was started at JP Morgan with an Overweight rating based on valuation and positioning. Lazard started Diana with a Buy rating, expecting demand for dry bulk shipping will outperform supply through 2010.

• Soleil expects Adobe Systems (NASDAQ: ADBE) recently released Creative Suite 3 to be the near-and-medium term growth driver and started shares with a Buy rating.

• JP Morgan started Eagle Materials Inc (NYSE: EXP) with an Underweight rating, expecting a decline in wallboard industry profitability due to increased capacity and lower demand.

• B. Riley started ACR Group (AMEX: BRR) with a Buy rating calling the stock "cheap."

• Soleil believes a catch up on the Autodesk's (NASDAQ: ADSK) SEC filings and a strong Q1 will prove near-term catalysts and started shares off with a Buy rating and $56 target.

OTHER INITIATIONS:

• Merrill Lynch started Super Micro Computer, Inc (NASDAQ: SMCI) and Capital Product Partners LP (NASDAQ: CPLP) with Buy ratings.

• Banc of American started Verigy Ltd (NASDAQ: VRGY) with a Buy rating and $32 target.

• Stephens initiated Kaman Corp (NASDAQ: KAMN) with an Overweight rating and $34 target.

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

MOST NOTEWORTHY:

The IT hardware and the toy Industry top today's extensive list of initiations.

Prudential initiated the IT Hardware sector with an Unfavorable rating. The firm expects earnings below consensus after checks indicated slower corporate IT spending. Within the sector, Prudential initiated Dell (DELL) and Lexmark (LXK) with Overweight ratings. They initiated Apple Computer (AAPL) with a Neutral and a $74 target. The firm cited valuation, a slowing media market and increased competition from Microsoft (MSFT).

In addition, Prudential initiated Hewlett-Packard (HPQ), Seagate (STX), Sun Microsystems (SUNW) and Western Digital (WDC) with Underweight ratings.

Elsewhere, BMO Capital Markets initiated the toy industry with an Outperform rating on the belief the industry is positioned for a turnaround. They started Mattel (MAT) and RC2 CORP (RCRC) with an Outperform rating, Jakks Pacific (JAKK), Hasbro (HAS) and Leapfrog Enterprises (LF) with Market Perform ratings and Mega Brands (MB) with an Underperform rating.

OTHER INITIATIONS:

• Safeco (SAFC) was initiated with an Add and $70 target at Calyon. The firm is positive on management's focus on restoring relationships with independent agents.
• BB&T initiated Diana Shipping (DSX) with a Buy and $16 target. The firm is positive on Diana's growth story and improving fundamentals.
• And finally, American Technology initiated Silicon Image (SIMG) with a Buy and $17 target, believing consensus estimates for 2007 are too conservative as investors have underestimated the acceleration in HDMI adoption going forward.

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