MOST NOTEWORTHY: BMC Software, Smart Modular and Entropic Comm were today's noteworthy initiations:
Stanford initiated BMC Software (NYSE: BMC) with a Buy rating and $45 target. The firm highlights the company's broad product portfolio and configuration management database leadership and thinks margin expansion should continue.
ThinkPanmure assumed Smart Modular (NASDAQ: SMOD) with an Accumulate rating and $5.50 target. The firm expects better DRAM pricing but expects SMOD to experience some headwinds with Hewlett-Packard (HPQ) losing share in the server market.
Broadpoint expects Entropic Comm (NASDAQ: ENTR) to benefit from the adoption of applications that allow video through numerous devices, especially high definition and data content. Shares were started with a Buy rating and $6 target.
MOST NOTEWORTHY: IBM, Entropic Comm and FARO Tech were today's noteworthy initiations:
BMO Capital is positive on IBM (NYSE: IBM) given the company's reduced pension and stock buyback, opportunity to increase the mix of software, new mainframe cycle, and the company's diverse revenue stream. Shares were initiated with an Outperform rating and $138 target.
Merriman views Entropic Comm (NASDAQ: ENTR) as a core holding for investors seeking exposure to the rapidly growing home networking market and finds the current valuation attractive; the firm started shares with a Buy rating.
Friedman Billings assumed FARO Tech (NASDAQ: FARO) with an Outperform rating and $42 target. The firm expects FARO's secular growth to drive sales as the company's products meet the needs of the largest emerging market for software-based manufacturing measurement systems.
OTHER INITIATIONS:
Oppenheimer initiated MedAssets (NASDAQ: MDAS) with a Perform rating and $20 target.
Broadcom (NASDAQ: BRCM) was initiated at Baird with a Neutral rating and $29 target.
LoopNet (NASDAQ: LOOP) was assumed with an Equal Weight rating and $15 target at Stephens.
MOST NOTEWORTHY: Nvidia, Entropic Comm and Cleveland Cliffs were today's noteworthy initiations:
Piper initiated Nvidia (NASDAQ: NVDA) with a Neutral rating and $23 target and believes the rate at which the company gained market share over the past two years is unsustainable. The firm expects EPS deceleration over the next few years.
Piper believes Entropic Comm (NASDAQ: ENTR) is a key benefactor from the general adoption of high definition video consumer goods, as well as from growth in multi-room DVRs. The firm assumed shares with a Buy rating and $10 target.
Cleveland Cliffs (NYSE: CLF) was started with a Buy rating and $135 target at Deutsche Bank. The firm believes CLF is a leveraged play on bulk commodities' momentum.
MOST NOTEWORTHY: Entropic Comm, Epix Pharma and Hiland Partners were today's noteworthy initiations:
JMP Securities is positive on Entropic's (NASDAQ: ENTR) business with Verizon (NYSE: VZ) Fios and Dish/Echostar (NASDAQ: DISH) and expects other high volume deployments to be announced with other cable service providers. The firm assumed coverage with a Strong Buy rating and $10 target.
RBC Capital initiated Epix Pharma (NASDAQ: EPIX) with an Outperform rating and $6 target, as they are positive on the company's four programs targeting novel GPCR receptors, partnership deals with GlaxoSmithKline (NYSE: GSK) and Amgen (NASDAQ: AMGN), and low valuation.
Morgan Keegan initiated Hiland Partners (NASDAQ: HLND) with an Outperform rating, as they view the company's units as undervalued.
OTHER INITIATIONS:
JP Morgan initiated Comverge (NASDAQ: COMV) with a Market Perform rating.
UBS initiated Danaher (NYSE: DHR) with a Buy rating and $95 target.
Benchmark Electronics (NYSE: BHE) was initiated with an Equal Weight rating and $18 target at Lehman.
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