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.
MOST NOTEWORTHY: The ethanol sector, BT Group, AMR Corp and Kyphon were today's noteworthy downgrades:
Friedman Billings downgraded Aventine Renewable Energy (NYSE: AVR) and Pacific Ethanol Inc (NASDAQ: PEIX) to Underperform and VeraSun Energy Corporation (NYSE: VSE) was downgraded to Market Perform from Outperform. The firm said the ethanol market has become increasingly challenging as spot market prices have declined by 30% in the past few months and expect pressure to remain through 2008 as the industry's growing pains continue.
Morgan Stanley downgraded shares of BT Group (NYSE: BT) to Underweight from Equal Weight on valuation and regulation uncertainty ahead of Ofcom's first consultation document next week.
AMR Corporation (NYSE: AMR) was downgraded to Sell from Neutral at Goldman to reflect the company's U.S. exposure as they expect the U.S. economy to slow.
Banc of America downgraded shares of Kyphon Inc (NASDAQ: KYPH) to Neutral from Buy on valuation as the spread on the acquisition by Medtronic Inc (NYSE: MDT) has now narrowed.
MOST NOTEWORTHY: Halozyme Therapeutics (HALO), Rosetta Genomics (ROSG), U.S. Steel (X) and BioFuel Energy (BIOF) were today's noteworthy initiations:
Halozyme (NASDAQ: HALO) was initiated with a Buy rating and $14 target at Oppenheimer. The firm is positive on Halozyme's prospects for signing additional multi-product Enhanze deals in the next 12 months and the company's expanding internal pipeline.
Oppenheimer also initiated shares of Rosetta Genomics (NASDAQ: ROSG) with a Buy rating and $11 target, as the firm is positive on Rosetta's intellectual property position in the emerging microRNA field related to the development and commercialization of research, diagnostic and therapeutic products, and other applications.
Goldman Sachs resumed coverage of U.S. Steel Group (NYSE: X) with a Neutral rating.
BioFuel Energy (NASDAQ: BIOF) was initiated with a Neutral rating at Cowen, as the firm sees a lack of catalysts until the company's plants under construction come on line in Q108...
OTHER INITIATIONS:
Brightpoint (NASDAQ: CELL) was initiated with an Outperform rating and $18 target at Credit Suisse.
MasterCard (NYSE: MA) was initiated with a Market Perform rating at Wachovia on valuation.
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MOST NOTEWORTHY: Invesco, Visa and Netscout Systems were today's noteworthy initiations:.gif){kind=logo}
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