MOST NOTEWORTHY: Data Domain, ESCO Technologies and NetApp were today's noteworthy initiations:
ThinkPanmure said Data Domain's (NASDAQ:DDUP) installed base, strong product, technology lead, and partner network provides a sustainable competitive advantage in the high-growth market for capacity-optimized data storage powered by de-duplication software. Shares were initiated with a Buy rating and $30 target.
Friedman Billings expects ESCO Tech's (NYSE:ESE) utility solutions segment to drive sales growth as secular demand for advanced metering gains traction. The firm started shares with an Outperform rating and $60 target.
Merriman initiated NetApp (NASDAQ:NTAP) with a Neutral rating. The firm is cautious on the name as the company seeks to reaccelerate top-line growth in a challenging economic environment in North America.
OTHER INITIATIONS:
Citizens Comm (NYSE:CZN) was assumed with a Buy rating and $13 target at Stanford.
R.H. Donnelley (NYSE:RHD) was initiated at JP Morgan with a Neutral rating.
MOST NOTEWORTHY: Telefonica, Affymax and Hatteras Financial were today's noteworthy initiations:
Deutsche Bank initiated Telefonica (NYSE: TEF) with a Buy rating and believes concerns of an economic slowdown in Spain are overdone and that company is on track to make 2008 guidance.
Baird assumed coverage of Affymax (NADAQ: AFFY) with an Outperform rating and $25 target. The firm believes the market has discounted the regulatory and commercial prospects of lead compound Hematide, which they believe is a $800M revenue opportunity, and recommends buying shares aggressively in the mid-$20s.
Shares of Hatteras Financial (NYSE: HTS) were started with an Outperform rating and $35 target at Friedman Billings. The firm believes management has the opportunity to stabilize its agency portfolio and generate a return on invested capital of about 20%.
OTHER INITIATIONS:
Caris assumed OmniVision (NASDAQ: OVTI) with a Buy rating and $15 target.
Pioneer Natural (NYSE: PXD) was initiated at UBS with a Buy rating and $110 target.
UBS also initiated CME Group (NYSE: CME) with a Neutral rating and $430 target.
Allied Capital (NYSE: ALD) was assumed with a Buy rating and $14.40 target at Merrill Lynch.
MOST NOTEWORTHY: Lehman Brothers, Nokia and Intuitive Surgical were today's noteworthy initiations:
Morgan Stanley initiated Lehman Brothers (NYSE:LEH) with an Overweight rating and $31 target. The firm believes Lehman's discount to book value prices in significant write-downs.
Bernstein believes Nokia (NYSE:NOK) will see a slowdown in demand for devices and could loss market share. Shares were initiated with an Underperform rating.
Merriman assumed Intuitive Surgical (NASDAQ:ISRG) with a Neutral rating and believes the tightened credit markets could impact capital equipment spending for small and mid-sized hospitals. They find shares appropriately valued at current levels.
MOST NOTEWORTHY: British Sky Broadcasting, ReneSola and Chordiant Software were today's noteworthy initiations:
Jefferies believes British Sky Broadcasting's (NYSE:BSY) exposure to discretionary household expenditure seems more dangerous than it is. Shares were initiated with a Buy rating.
Oppenheimer assumed ReneSola (NYSE: SOL) with a Perform rating and said it is waiting for margins to re-accelerate before becoming more constructive on shares.
Chordiant Software (NASDAQ: CHRD) was initiated at B. Riley with a Buy rating and $7 target and believes the recent sell-off is overdone.
OTHER INITIATIONS:
JMP Securities initiated American Capital (NASDAQ:AGNC) with an Outperform rating and $23 target.
Friedman Billings believes Aeropostale (NYSE:ARO) has an impressive back-to-school floorset and that momentum should carry into the fall. Additionally, the firm, which initiated shares with an Outperform rating and $38 target, expects the company to buyback shares.
Thomas Weisel believes ImClone (NASDAQ:IMCL) is attractively valued as Erbitux is positioned to capitalize on a number of label-expanding opportunities and that concerns of KRAS-related revenue loss in colorectal cancer and the clinical utility of FLEX lung cancer data are overstated. Shares were assumed with an Overweight rating and $50 target.
MOST NOTEWORTHY: Vale, Allos Therapeutics and Torchmark were today's noteworthy initiations:
Lehman believes Vale (NYSE:RIO) is well-positioned to benefit from rising steel demand in emerging economies. The firm started shares with an Overweight rating and $45 target.
Citigroup initiated Allos Therapeutics (NASDAQ:ALTH) with a Buy rating and $11 target and believes the company's lead drug PDX is likely to be the first FDA approved agent for peripheral T cell lymphoma.
Friedman Billings expects Torchmark's (NYSE:TMK) sales to get back on track given increased recruiting, ongoing management initiatives, and the potential demise of Medicare Advantage. Shares were assumed with an Outperform rating and $72 target.
OTHER INITIATIONS:
Baird initiated Navigant Consulting (NYSE:NCI) with an Outperform rating and $24 target.
KeyBanc assumed Ingersoll-Rand (NYSE:IR) with a Buy rating and $49 target.
Mindray Medical (NYSE:MR) and China Medical (NASDAQ:CMED) were initiated with Overweight ratings and targets of $50 and $54, respectively, at Morgan Stanley.
MOST NOTEWORTHY: iRobot, Felcor Lodging and Office Max were today's noteworthy initiations:
Stanford initiated iRobot (NASDAQ: IRBT) with a Buy rating and $18 target and believes better-than-expected military robot sales will allow the company to beat 2008 consensus estimates.
Felcor Lodging (NYSE: FCH) was initiated at Keefe Bruyette with a Market Perform rating and $12.50 target. The firm believes material upside is unlikely given the company's above average suburban and airport exposure.
Soleil assumed Office Max (NYSE: OMX) with a Hold rating and $17 target, as they believe macroeconomic challenges and heightened competition will limit near-term upside in the stock.
MOST NOTEWORTHY: Monogram Biosciences, Interpublic Group and Blue Coat Systems were today's noteworthy initiations:
JMP Securities said Monogram Biosciences (NASDAQ: MGRM) has a broad platform enabling it to develop multiple personalized medicine product offerings and has significant growth prospects from its HIV diagnostic business and its diagnostic test in oncology. Shares were initiated with an Outperform rating and $3.50 target.
Jefferies assumed Interpublic Group (NYSE: IPG) with a Buy rating and $11 target. The firm believes the current valuation does not reflect the company's turnaround, which they believe is gaining traction.
Friedman Billings initiated Blue Coat Systems (NASDAQ: BCSI) with a Market Perform rating and $18 target. The firm prefers to wait on the sidelines given the near-term headwinds from a difficult spending environment in North America and integration risks from the Packeteer acquisition.
OTHER INITIATIONS:
American Capital (NASDAQ: AGNC) was initiated at Merrill with a Buy rating and at RBC Capital with an Outperform rating and $32 target.
UBS assumed Quality Systems (NASDAQ: QSII) with a Buy rating and $39 target.
HSBC initiated Daimler AG (NYSE: DAI) with an Overweight rating.
MOST NOTEWORTHY: Assured Guaranty, Limelight Networks and Monotype Imaging were today's noteworthy initiations:
UBS expects Assured Guaranty (NYSE: AGO) to increase shares in the public finance guaranty market and take advantage of reinsurance opportunities. Shares were initiated with a Buy rating and $31 target.
Merriman assumed Limelight Networks (NASDAQ: LLNW) with a Neutral rating. The firm believes investors should remain cautious until a ruling in the company's patent infringement trial is handed down.
Monotype Imaging (NASDAQ: TYPE) was initiated at Banc of America with a Buy rating and $16 target. The firm highlighted the company's strong revenue visibility and attractive valuation. Shares were also initiated at JP Morgan with an Overweight rating, citing TYPE's discounted valuation and solid IP licensing franchise.
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: WuXi Pharma, Apple and Genentech were today's noteworthy initiations:
Global Hunter expects WuXi Pharma (NYSE:WX) to remain under pressure in the near-term due to gross margin constraints and dilution risk from the AppTec acquisition. The firm finds the stock fairly valued at current levels and initiated shares with a Neutral rating.
ThinkPanmure assumed Apple (NASDAQ:AAPL) with a Buy rating and $225 target and recommends investors take advantage of recent weakness to build core positions.
Genentech (NYSE:DNA) was started at Deutsche Bank with a Buy rating and $83 target. The firm sees limited downside and the potential for significant upside if Avastin works in adjuvant colon cancer.
OTHER INITIATIONS:
NetLogic (NASDAQ:NETL) was initiated with a Neutral rating and $36 target at Piper.
MOST NOTEWORTHY: Pioneer Southwest, Art Technology and Real Goods Solar were today's noteworthy initiations:
Friedman Billings initiated Pioneer Southwest (NYSE: PSE) with an Outperform rating and $25 target. The firm believes the current valuation does not reflect potential upside from the upstream drop-downs, which would result in higher distributions.
ThinkPanmure believes Art Technology (NASDAQ: ARTG) is well-positioned to benefit from a strong replatforming cycle. Shares were initiated with a Buy rating and $4.50 target.
Broadpoint said Real Goods Solar (NASDAQ: RSOL) has a disciplined operational model leading to profitable growth, and started shares with a Buy rating and $10 target. ThinkPanmure also initiated Real Goods Solar with a Buy rating and $10 target and said the company is well-positioned given strong underlying trends that include higher retail electricity costs, legislative renewable energy standards and incentives, declining solar photovoltaic systems costs, and "green momentum."
OTHER INITIATIONS:
Credit Suisse assumed Telmex International (NYSE: TII) with a Neutral rating and $18 target.
Athenahealth (NASDAQ: ATHN) was initiated with a Hold rating at BB&T Capital.
Western Gas Partners (NYSE: WES) was started at Citigroup with a Hold rating and $18.50 target.
MOST NOTEWORTHY: UCN Inc, Astronics and SunTrust Banks were today's noteworthy initiations:
Merriman expects UCN Inc (NASDAQ: UCNN) to further expand its contact center product set and believes it is likely to be sold to a larger provider expanding within the hosted contact solution market over the longer term. The firm started shares with a Buy rating.
Jesup & Lamont initiated Astronics (NASDAQ: ATRO) with a Neutral rating. The firm wants to see a change in the backlog visibility and more clarity on the ramp-up schedules of some new programs. For now, they view shares as fairly valued.
Friedman Billings resumed coverage of SunTrust Banks (NYSE: STI) with an Underperform rating and $37 target and cites credit deterioration and uncertainty regarding credit costs.
MOST NOTEWORTHY: HQ Sustainable Maritime, Wyndham and Cathay General Bancorp were today's noteworthy initiations:
Cowen views HQ Sustainable Maritime (NYSE: HQS) as undervalued and a future winner in the "green economics" game. The firm started shares with an Outperform rating.
JP Morgan initiated Wyndham (NYSE: WYN) with an Overweight rating. The firm finds the valuation attractive given the company's fee-based business model and attractive international growth opportunities.
B. Riley assumed Cathay General Bancorp (NASDAQ: CATY) with a Buy rating and $16 target and believes the company's valuation discount to peers is unwarranted.
OTHER INITIATIONS:
BGC Parnters (NASDAQ: BGCP) was initiated at Deutsche Bank with a Buy rating and $13 target.
Friedman Billings initiated Maiden Holdings (NASDAQ: MHLD) with an Outperform rating and $11.50 target.
Sandler assumed CRM Holdings (NASDAQ: CRMH) with a Buy rating and $6.50 target.
MOST NOTEWORTHY: Drugstore.com, Sycamore and Aflac were today's noteworthy initiations:
Kaufman Bros. believes Drugstore.com (NASDAQ: DSCM) is well-positioned for long-term growth and significant margin expansion, led by share gains in the OTC and prestige beauty verticals. The firm started shares with a Buy rating and $3.25 target.
Merriman initiated Sycamore (NASDAQ: SCMR) with a Neutral rating and prefers to be on the sidelines given the company's concentrated customer base and lack of clarity on strategic priorities and ongoing business operations.
SunTrust Robinson expects the Aflac's (NYSE: AFL) cancer insurance policies in Japan to benefit from concerns about the national health system. Shares were assumed with a Buy rating and $79 target.
OTHER INITIATIONS:
Caris initiated Mylan (NYSE: MYL) with a Buy rating and $18 target.
NetSuite (NYSE: N) was assumed with a Hold rating and $22 target at Deutsche Bank.
Stanford initiated Time Warner (NYSE: TWX) with a Buy rating and $20 target.
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MOST NOTEWORTHY: Data Domain, ESCO Technologies and NetApp were today's noteworthy initiations: 
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