09:37 am Dupont Fabros Tech: KeyBanc would be buyers at current levels following meeting with mgmt: . KeyBanc notes they met with DFT mgmt, while the message was largely consistent with recent comments at NAREIT and the 1Q09 call, it reinforced their positive outlook on the data center industry and the co's outlook as the fundamentals are the strongest among the various property types as demand continues to grow and new supply remains limited by the credit crunch. Mgmt's 24-month lease-up schedule may prove optimistic, in their view. While the co's primary focus is on leasing in the near term, long term, DFT is mapping out the strategy to continue its growth trajectory by not only deciding which of its potential projects offers the best return on the incremental dollar, but also sourcing the necessary capital. Despite a premium growth profile, the stock remains attractive in their view; they reiterate; they would remain buyers at current levels.

09:37 am Cyberonics: Lazard Capital Mkts views last night's CMS data positively: . Lazard Capital Mkts notes last night CMS published its proposed 2010 OPPS rates (rates for procedures done in hospital outpatient centers) and its proposed 2010 MPFS rates (in CYBX's case a facility rate for physician use at the hospital outpatient center). For leads, the proposed OPPS rate increased 44.9%. The MPFS physician rate increased 8.2%. For generators, the proposed OPPS rate increased 10.3%. The MPFS physician rate increased 7.3%. Just as firm believed the decreased lead rate last yr would have little if any effect on CYBX's performance, they expect these increases to also have relatively light effect. That said, they did not expect a 45% lead jump and this could influence some additional surgeons and centers to perform VNS procedures. At the very least, these proposals should appease the Street, as many were concerned about the reimbursement reduction last yr.

09:35 am Corning target raised to $17 at RBC as demand for LCD TVs so far has proved resilient: . RBC raises their GLW tgt to $17 from $16 as the supply chain may have over-corrected in recent months and the co cited that June volumes will increase by 100% in LCD glass vs prior expectations of 75%. Over-reaction earlier this year on the negative side means GLW is now readjusting it production on the positive side, although GLW's newfound optimism remains guarded. More swings are expected as panel makers adjust their utilization rates and retail demand becomes more predictable, in their view. And with most investors having already factored in healthy sequential volume growth, the stock may now enter a trading range until visibility toward year-end improves; they maintain their Sector Perform rating.

09:34 am General Mills tgt raised to $64 at RBC Capital Mkts following earnings yesterday morning: . RBC raises their GIS tgt to $64 from $60 after the co beat expectations last night despite raising the bar in early June. They note their FY09 EPS of $3.98 beat prior guidance by $0.09 (mgmt preannounced "several cents" of upside) with overall high quality. Mgmt also guided FY10 about $0.05 better than what they think the Street was expecting. The assumptions underlying guidance seem conservative, suggesting potential for upward guidance revisions as the year progresses. They believe this news has positive near-term implications for the sector. They reiterate their Outperform rating on GIS, as they continue to see valuation as attractive.

09:34 am Discovery Labs downgraded to Sell at Wedbush Morgan: . Wedbush Morgan downgrades DSCO to Sell from Hold. The firm notes that as they anticipated, issues in the Complete Response Letter were not able to be fully addressed at the end-of-review meeting with the FDA on June 2. The FDA suggested that additional studies be run to support the comparability of Surfaxin clinical to commercial drug product. However, the co has decided to focus its development efforts on its earlier stage program, namely Surfaxin LS and Aerosurf. In addition, the firm believes that the co has significant capital risks as well as significant development risks inherent in their remaining early stage pipeline.

09:32 am Endologix initiated with a Buy at Lazard Capital Mkts; tgt $6: . Lazard Capital Mkts initiates ELGX with a Buy and price target of $6. The firm believes that ELGX will continue to take share in the growing endovascular aneurysm repair market based on competitive advantages which include better safety, increased ease of use, and more versatility than its larger competitors. The firm also expects the EVAR market to keep growing as fewer aortic repairs are completed with open surgery due to the decreased morbidity, decreased mortality, shorter hospital stays, and shorter recovery time associated with EVAR. There are few positions better to be in than to be a company taking share in a market that is continuously growing and the firm believes the advantages ELGX offers to surgeons, patients, and payors will cement the co's growth well above market rates for the foreseeable future.

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