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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: NTT DoCoMo, Inc. (NYSE:DCM), DRS Technologies, Inc.
(NYSE:DRS), Evergreen Solar Inc. (Nasdaq:ESLR), Reinsurance Group
of America (NYSE:RGA) and Aon Corp. (NYSE:AOC).
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Here are highlights from Tuesday’s Analyst
Blog:
DCM Heading in the Right Direction
We maintain our Buy rating and the same valuation target for NTT DoCoMo,
Inc. (NYSE: DCM), the largest wireless service provider in Japan. The
company commands approximately 50% of the Japanese cellular market. The
introduction of discount-priced service plans progressed as DCM’s customer churn rate improved significantly.
In order to maintain its leadership position, the company launched a sales
promotion to popularize its FOMA 905i series handsets, which enable users to
access two phone numbers and two e-mail addresses with a single device. DCM
upgraded 96% of its total coverage area with 3G HSDPA technology and is
consolidating eight regional sales divisions to streamline operating costs,
while seeking expansion opportunities outside Japan.
Merger Boost for DRS Tech
With a solid product portfolio, strong order bookings, and a large backlog
position complementing revenue and earnings growth potential, DRS
Technologies, Inc. (NYSE: DRS) is a leading supplier of defense electronic
systems with exposure to the high-growth C4ISR area of the defense budget.
Various multi-year contracts, within the defense sector further strengthened the
company’s position as a key supplier in the tactical
secure communications marketplace.
Looking ahead, the $81 per share acquisition of DRS by Finmeccanica S.p.A. is
expected to be completed by year-end 2008. However this limits the upside
potential of DRS. Thus, we change our recommendation to Hold on DRS common
stock. Price appreciation to our near-term valuation target, coupled with the 3
cents per share quarterly dividend, represents annualized total return potential
of 8.6%.
Evergreen is Full of Energy
The growth potential of the solar industry as a whole - and Evergreen
Solar Inc. (Nasdaq: ESLR) in particular with a $3 billion contractual
backlog - remains a compelling story. Capacity expansion and progress toward
near-term break-even earnings make it one of the fastest growing alternative
energy stocks.
The positive factors include the newly operational Devens facility,
significant new multi-year sales contracts, planned capacity expansions over the
next few years, improving operating efficiencies, technological upgrades, and
new silicon supply contracts.
RGA on Hold
Reinsurance Group of America (NYSE: RGA) second quarter operating
results came in at $1.71 per share, versus $1.31 per share in the year-ago
period, as all operating segments contributed to solid earnings, with mortality
experience rebounding from the 1Q08 level. We remain cautious with respect to
the slight increase in sub-prime mortgage exposure on a linked quarter basis.
Based on 2Q08 results and prior to the 2Q08 conference call, we are
preliminarily adjusting our 2008 and 2009 earnings expectations to $6.00 per
share and $6.50 per share, respectively, from $5.65 per share and $6.45
previously. The shares of RGA currently trade at 0.99x its adjusted book value
of $45.04 per share per share (before the impact of FAS 115a), and 0.91x its
reported book value of $49.13 per share.
Aon Limited by Soft P/C Market
Aon Corporation (NYSE: AOC) will release its 2Q08 earnings results
after the market closes on July 31, 2008. A conference call is scheduled for the
next morning. First-quarter adjusted operating earnings from continuing
operations came in at 71 cents per share, a nickel ahead of our estimate,
supported by organic revenue growth as well as margin expansion.
We were pleased with the 1Q08 results, as the company was able to grow its
top-line as well as the margins, despite unfavorable market conditions. Further,
AOC continues to invest heavily in its core businesses, while exiting the
non-core segments. The company recently sold Combined and Sterling as part of
its strategy to exit its capital intensive insurance underwriting business.
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