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CHICAGO--(BUSINESS
WIRE)--Zacks.com announces the list of stocks featured in the Analyst Blog.
Every day the Zacks Equity Research analysts discuss the latest news and events
impacting stocks and the financial markets. Stocks recently featured in the blog
include: FedEx Corporation (NYSE: FDX), Research In Motion Ltd.
(Nasdaq: RIMM), Gushan Environmental Energy Ltd. (NYSE: GU), Accuray,
Inc. (Nasdaq: ARAY) and Net Servicos (Nasdaq: NETC).
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from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Wednesday’s Analyst
Blog:
Target Down for Hold-Rated FedEx
We are maintaining our Hold on FedEx Corporation (NYSE: FDX), but
reducing our target price to $77. FDX will report 2009 fiscal first quarter
results on September 18. We are continuing our fiscal 2009 diluted EPS estimate
at $4.90, near the mid-point of FDX diluted guidance of $4.75-5.25.
Fuel surcharges will lag record high fuel costs and the weak economy will
hurt LTL freight, US express, and copy services. Remedial actions include
cost-control measures and cuts in capital spending. FDX reported 2008 fourth
quarter EPS of $1.45 before a $2.22 per share Kinko’s
impairment charge, down 24% year over year. FDX recently increased its annual
dividend rate by 10% to $0.44 per share, which provides a 0.6% yield.
Research in Motion Moving Ahead
We maintain our Buy recommendation and the same valuation target for
Research In Motion Ltd. (Nasdaq: RIMM), following last week’s financial release for first quarter fiscal 2009 (ended May
31). We expect the smart-phone device market to gain momentum as opportunities
remain firm on a global market basis.
RIMM’s channel sales expansion initiatives are also
considered an impetus for meaningful top-line growth as the company introduced a
series of next-generation BlackBerry smart-phones, specifically targeting CDMA
EV-DO, EDGE, and Wi-Fi networks. In the current fiscal year, RIMM is likely to
introduce further 3G enabled high-end BlackBerry devices.
Hold Gushan, Chinese Biodiesel
China's biggest bio-diesel player Gushan Environmental Energy Ltd.
(NYSE: GU) is ramping up its production capacity in a big way to cater to the
strong energy demand fueled by China's fast growing economy. The company's
proprietary technology allows it to use cheaper sources of raw material and have
a lower cost structure than its peers.
Looking ahead, escalating oil prices on account of lower fuel subsidies by
the government, higher production and entry into the high margin chemical market
should collectively generate significant earnings growth. However, strong
governmental control over diesel prices and rising Chinese inflation continue to
weigh on the stock. Accordingly, we initiate coverage of GU with a Hold
recommendation and a six-month target price of $12.00.
CyberKnife Sales Key for Accuray
Accuray, Inc. (Nasdaq: ARAY) has developed the first and only
commercially available intelligent robotic radiosurgery system, the CyberKnife
System, designed to treat solid tumors anywhere in the body as an alternative to
traditional surgery. However, although the company believes that the System has
advantages over competing products and technologies, it does not have sufficient
clinical data demonstrating the advantages for all tumor indications.
Accuray’s technology and system have the necessary
competitive advantages over traditional treatment methods and it has been
driving significantly higher revenue from the successful execution of its growth
strategy. The company’s ability to achieve and maintain
long-term profitability is largely dependent on its ability to successfully
market and sell the CyberKnife System, control costs and effectively manage
growth.
NETC a Quality Brazilian Play
We are reiterating our Buy recommendation on Net Servicos (Nasdaq:
NETC). Although higher worldwide inflation and interest rates, particularly in
Brazil, are source of great concern, we are highly encouraged by the
company’s solid operating results during the first
quarter. We expect this trend to continue in the short term due to the still
positive economic environment in Brazil.
Brazil was recently upgraded to investment grade by Standard & Poor’s and by Fitch. The outlook for Brazilian real in the short
term remains positive, and that will help reduce the interest expenses in the
following quarters. The incorporation of Vivax and BIGTV consolidates the
company’s presence in the key State of Sao Paulo.
Additionally, the performance of its voice service and broadband products
remains highly encouraging.
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