Benzinga's Initiation Summary for June 28, 2012

Listed below are today's Top Initiations covered by Benzinga:

Morgan Stanley notes, "We initiate on Veeco, a leading equipment maker of LEDs and data storage, with an Equal-weight rating. We think Veeco can maintain recent share gains in the LED equipment manufacturing space, but the medium-term outlook for the overall market is uncertain."

Wedbush notes, "We are initiating coverage on large-cap accessories manufacturer, Coach Inc., with a NEUTRAL rating given our near-term concerns regarding: 1) potential downward consensus earnings estimate revisions for FY13 EPS due to the elimination and subsequent reinstatement of couponing at the Factory division (in our view, the largest revenue-generating segment); 2) overly optimistic Legacy Collection expectations; 3) recent breakdown of technical trading levels, with a lack of support due to continued macroeconomic concerns; and 4) ongoing market and investor concerns regarding potential market share losses to faster-growing competitors."

Stifel Nicolaus comments, "Ford is a capital intensive, cyclical business that has tended to trade at substantial discounts the S&P 500 for long periods. But we think inflections occur when Ford recognizes its complacency and responds decisively by introducing products that consumers want to buy and competitors want to copy. We think two examples of prior inflections include (1) the Ford Taurus (response to rising gas prices, Japanese sedans) and (2) the Ford Explorer (response to falling gas, increasing demand for non-minivan people movers). We think another inflection may be forming (technology and move back to cars) but believe we have time to further study (1) consumers' reaction to new Ford designs, propulsion and connectivity offerings vs. peers, (2) early benefits from platform consolidation, (3) rates of demand/supply change in Europe and Asia, and (4) initial pension buyout results."

Deutsche Bank notes, "Given the recent pullback in shares, a growing base of recurring revenue, the rollout of the MD3 shuffler, a solid balance sheet and strong free cash flow, EGM momentum, and a stable and growing PTG segment, we believe the risk/reward in SHFL shares is favorably skewed, at present. …We expect SHFL to benefit from 1) a stable and growing base of recurring revenue, 2) the MD3 shuffler rollout that appears to be accelerating, 3) a solid balance sheet and strong free cash flow that allows for potential shareholder friendly actions, 4) continued momentum in the EGM segment, 5) slow and steady growth in the PTG segment, and 6) SHFL's continued entrance into the online gaming space."