MOST NOTEWORTHY: Riverbed Technology (RVBD), Silicon Storage (SSTI), Regal Entertainment (RGC), Fannie Mae (FNM) and Freddy Mac (FRE) were today's more noteworthy initiations:

• CIBC initiated shares of Riverbed Technology (NASDAQ: RVBD) with a Sector Performer rating, citing valuation. The firm believes the mobile opportunity is a wild card, and cites increased Cisco Systems (CSCO) risk.

• Silicon Storage (NASDAQ: SSTI) as announced several new products in late 2006 and 1H07 with shipments expected to start in 2H07 along with significant revenues in 2008; Barrington initiated shares with a Market Perform rating.

• Ferris Baker Watts initiated Regal Entertainment (NYSE: RGC) with a Neutral rating, seeing annual top-line growth only in the low- to mid-single digits.

• Fox-Pitt Kelton believes both Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) are finally set to emerge from restatement issues with new accounting procedures and operating systems in place, initiating both companies with an Outperform rating...

OTHER INITIATIONS:

• Needham initiated Tennant (NYSE: TNC) with a Buy rating.

• Merrill Lynch started TriZetto Group (NASDAQ: TZIX) and Eclipsys (NASDAQ: ECLP) with Neutral ratings.

• CIBC started Centene (NYSE: CNC) with a Sector Performer rating.

• Deutsche initiated Thomson (NYSE: TOC) with a Buy rating.

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

MOST NOTEWORTHY: SanDisk (SNDK), Indevus Pharmaceuticals (IDEV), Integra LifeSciences (IART) and Level 3 Communications (LVLT) were today's noteworthy initiations:

• SanDisk (NASDAQ: SNDK) was initiated with a Neutral rating at Cowen, as the firm believes it could face challenges in Q4 NAND flash memory demand given supply.

• Rodman & Renshaw initiated shares of Indevus (NASDAQ: IDEV) with a Market Outperform rating and $10 target. The firm believes Indevus Nebibo and Sanctura XR upcoming events provide an attractive entry point.

• Morgan Stanley initiated shares of Integra LifeSciences (NASDAQ: IART) with an Equal Weight rating and $55 target, citing competitive risks from larger competitors.

• Shares of Level 3 Communications (NASDAQ: LVLT) were initiated at Raymond James with an Underperform rating, as the firm believes estimates will be difficult to achieve given high debt levels and free cash flow.

OTHER INITIATIONS:

• Cowen initiated shares of STEC Inc (NASDAQ: STEC) and Spansion (NASDAQ: SPSN) with Neutral ratings and shares of Silicon Motion Technology Corp (NASDAQ: SIMO) with an Outperform rating.

• Pacific Crest initiated shares of Universal Electronics (NASDAQ: UEIC) with a Sector Perform rating on valuation.

• Merrill Lynch started shares of FirstFed Financial (NYSE: FED) with a Sell rating.

• Goldman Sachs started shares of Herbalife (NYSE: HLF) with a Buy rating and $50 target.

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

MOST NOTEWORTHY: Today's more noteworthy downgrades included L-1 Identity Solutions, Inc (ID), THQ Inc (THQI), JetBlue Airways Corp (JBLU), Brinker International, Inc (EAT) and Lexmark International, Inc (LXK):

• JP Morgan downgraded L-1 Identity Solutions (NYSE: ID) to Underweight from Neutral based on valuation.

• THQ Inc (NASDAQ: THQI) was cut to Neutral from Buy at Banc of America, as the firm believes further upside to estimates is limited.

• JetBlue Airways (NASDAQ: JBLU) was cut to Neutral from Add at Calyon and to Peer Perform from Outperform at Bear Stearns following reduced guidance and higher fuel costs.

• JP Morgan downgraded Brinker International (NYSE: EAT) to Neutral from Overweight citing challenging fundamentals after the restructuring announcement. Stephens cut Brinker International to Equal Weight from Overweight.

• Elsewhere, Citigroup cut Lexmark Int'l (NYSE: LXK) to Hold from Buy with a $58 target based on valuation...

OTHER DOWNGRADES:

• Hutichinson Technology Inc (NASDAQ: HTCH) was cut to Underweight from Overweight at JP Morgan.
  

• Punk, Ziegel & Co downgraded KeyCorp (NYSE: KEY) to Sell from Market Perform.

• WR Hambrecht downgraded shares of Silicon Storage Technology, Inc (NASDAQ: SSTI) to Sell from Hold to reflect negative fundamentals in the NOR Flash memory market.

• CIBC downgraded Ipsco Inc (NYSE: IPS) to Sector Underperformer from Sector Performer on valuation.

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

Following up on our earlier blog on pollution in Hong Kong, SunPower Corporation (NASDAQ: SPWR) is a way to play solar power as this technology is finally ready for prime time.

Some numbers according to Think Equities Partners:

• Revenue expected to grow from $237 million to $649 million to $982 million from 2006 to 2008.
• EPS during this time period is expected to increase from $0.50 to $0.98 to $1.67.

These are big numbers. One big issue holding SunPower has been its ability to get the silicon to produce its solar-powered chips. However, silicon producers around the world have been building capacity to meet demand, therefore, supply constraints will become less severe.

David Edwards of Think Equities, due to a more abundant supply of silicon and continued strength in demand for SunPower's products, increased his price target to $60 late last week.

Buy this stock and go for the ride. TJ Rodgers, the CEO of Cypress Semiconductor Corporation (NYSE: CY), who is the founding investor of SunPower, says SunPower reminds him of Intel in its early days. Alternative energy is a big area and SunPower will be one to the main players.

A few days ago, the U.S. Department of energy has seen fit to throw its hat into a $40 million solar energy development project launched by BP Plc ADS (NYSE:BP) BP Solar. A DOE Solar America Initiative grant of up to $7.5 million will be awarded to BP Solar for assistance in Phase 1 of the project. GreenProgress reported that BP America Chairman and President Bob Malone stated, "Our shared goal is to lower the cost and increase the supply of clean, renewable energy. BP is working with other companies, with leading research institutions and universities and with government... to make that possible."

The BP Solar program has identified a multi-tiered approach to making solar conversion to electricity a competitive adjunct to the current methods of producing electricity. BP seeks to increase the supply of solar grade silicon, reduce the amount of silicon required in the manufacture of solar panels and to increase the efficiency of those panels. BP also plans to pursue an aggressive program to reduce the costs associated with the manufacturing, distribution and installation of solar conversion equipment.

BP Solar President Lee Edwards is confident that the goals of the program can be fully realized, so that by 2015 solar produced electricity will be marketable in parity with electricity generated from other sources. BP seeks to reduce solar cell mass by 50% while at the same time increasing solar cell efficiency by 25%.

MOST NOTEWORTHY: Roche Holdings AG (RHHBY), US Steel Corp (X) and Penn National Gaming (PENN) topped today's list of most notable downgrades:

• Bear Sterns downgraded Roche Holdings AG (OTC: RHHBY), to Peer Perform from Outperform after they lowered estimates to reflect higher taxes, slowing pharmaceutical sales, increased payments to third-party groups and reduced diagnostics profitability. Bernstein also downgraded Roche to Market Perform from Outperform.

• CIBC downgraded U.S. Steel Corp (NYSE: X) to Sector Performer from Sector Outperformer based on valuation. Bank of America also downgraded shares to Neutral from Buy with a $90 target citing the good news is reflected in the valuation.

• Penn National Gaming (NASDAQ: PENN) was downgraded to Hold from Buy on valuation with a $48.50 target.

OTHER DOWNGRADES:

• Silicon Image Inc (NASDAQ: SIMG) was downgraded to Underperform from Hold with a $7.50 target at Jefferies to reflect slow 1.3 HDMI adoption, aggressive 2007 guidance and deteriorating ASPs and margins; the firm recommends investors sell the stock. Silicon Image was also downgraded to Hold from Buy at Stanford and Needham, to Sector Performer from Outperformer at CIBC and to Neutral from Buy at DA Davidson.

• Spectrum Brands Inc (NYSE: SPC) was downgraded to Underweight from Neutral with a $7 target at Prudential following the company's disappointing first quarter results.

• Bear Stearns downgraded Forward Air Corp (NASDAQ: FWRD) to Underperform from Peer Perform.

• AG Edwards downgraded Callaway Golf Corp (NYSE: ELY) to Hold from Buy on valuation.

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