|
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: JA Solar Holdings Co., Ltd. (Nasdaq:JASO), Buffalo Wild Wings
Inc. (Nasdaq:BWLD), Wright Medical Group Inc. (Nasdaq:WMGI), BHP
Billiton Ltd. (NYSE:BHP) and Rio Tinto Plc (NYSE:RTP).
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Tuesday’s Analyst
Blog:
Bullish on JASO
JA Solar Holdings Co., Ltd. (Nasdaq: JASO) is enjoying strong global
demand for its PV cells. The growth potential for the solar industry as a whole
is very promising. Going forward, JASO’s growth story
will be boosted by increasing demand for solar energy, ongoing capacity
expansions and committed supply of key raw materials.
However, rising silicon wafer costs and the company’s
high R&D expenses may put pressure on margins over the near-term.
Accordingly, we maintain our Buy recommendation on JASO with a six-month target
price of $22.00. Price appreciation to our near-term valuation target represents
37.4% upside potential.
BWLD is Well Positioned in Tough Industry
Boasting a track record of strong annual growth and a viable strategy,
Buffalo Wild Wings Inc. (Nasdaq: BWLD) is well positioned in our
view to attain its annual 25% net income growth over the next three years. A key
growth driver will be the company’s ability to continue
its recent improvement in company-owned average weekly sales and bring it in
line with its franchisees.
Despite falling 49% from its 52-week high, the BWLD shares still trade at a
slight premium to the restaurant growth group. We think the company’s high exposure to the price of chicken wings and rising
minimum wage rates offset the premium it deserves owing to a unique concept that
has delivered consistent annual EPS growth. Moreover, we would recommend caution
in buying restaurant growth stocks while the industry faces significant macro
headwinds with murky visibility to recovery.
WMGI Faces Risks; Maintaining Estimates
We are maintaining our estimates on Wright Medical Group Inc. (Nasdaq:
WMGI), which reports earnings on July 28. The Securities and Exchange
Commission’s (SEC) informal investigation into the
industry’s foreign selling practices, along with the
ongoing Department of Justice (DOJ) investigation, might create some overhang in
the stock. We believe the company has a solid outlook based upon recent
extremity-related acquisition and large-joint product flow activity. Our target
moves to $31.00.
In the first quarter 2008, Wright Medical reported hip growth of 16%
worldwide. Physician acceptance for metal-on-metal appears to be continuing,
versus ceramic-on-ceramic, which suggests the August 2005 launch of the A-Class
Advanced Metal Low Wear Metal-on-Metal hip continues to make inroads. In
February 2008, the company introduced Supercap, a total hip arthroplasty
surgical technique that does not require the hip to be dislocated during the
procedure. Extremities rose 57% in the first quarter 2008. Management expects
growth in excess of 30% in extremities for 2008.
BHP Benefits from China and its Balance Sheet
BHP Billiton Ltd. (NYSE: BHP) is the world’s
largest diversified resource company with operations in 25 countries.
Notwithstanding the associated anti-trust issues, we believe a potential merger
between BHP and Rio Tinto Plc (NYSE: RTP) can deliver synergy benefits
and offset rising operating costs, which have been trending upwards.
In addition, the merged company would become the world's largest producer of
copper and aluminum, and the second-largest provider of iron ore. Nonetheless,
given that Rio Tinto rejected the terms of the original proposal, the deal seems
far from certain. Moreover, fear of a global economic slowdown leads us to
maintain a cautious outlook on the stock. We retain our Hold recommendation on
shares of BHP.
Want more from Zacks Equity Research? Subscribe to the free Profit from the
Pros newsletter: http://at.zacks.com/?id=2649.
|
(0 voto)
