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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: Sappi Ltd. (NYSE: SPP), Amylin Pharmaceuticals Inc.
(Nasdaq: AMLN), Eli Lilly and Co. (NYSE: LLY), Sycamore Networks,
Inc. (Nasdaq: SCMR) and Tesoro Corp. (NYSE: TSO).
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 Wednesday’s Analyst
Blog:
Sappi Papering Over Cost Issues
Sappi Ltd. (NYSE: SPP) reported 3Q08 earnings of $0.10 per ADR,
compared to $0.15 per ADR in the prior year period amid high input costs. The
company is emphasizing on cost reductions and implementing price increases to
offset higher raw material costs.
The industrywide move to reduce North American and European fine-coated paper
capacity is taking off the excess supply from the market. As a global leader in
fine-coated paper, though, Sappi could shut-in additional capacity but has not
laid out aggressive shut-down plans yet. As a result, we expect a slower price
recovery.
Amylin Tanks on Byetta News
This morning, shares of biopharmaceutical company Amylin (Nasdaq:
AMLN) are tanking — down almost 20% as I am posting this
blog — on additional bad news about its diabetes drug
Byetta, which has reportedly been found to be responsible for four more deaths,
according to an AP report this morning.
And so far, the data would seem to support what Amylin and Eli Lilly
(NYSE: LLY) management is saying. Nevertheless, the FDA is looking into the
reported cases and the potential causality association with Byetta will be
enough to have a negative impact on prescriptions in the coming weeks. As such,
we think the stock still deserves a Sell rating, even after today's big slide.
Sycamore Better in Long View
We maintain our Hold recommendation and the same valuation target Sycamore
Networks, Inc. (Nasdaq: SCMR), a leader in intelligent bandwidth solutions
for fixed and mobile networks.
We believe future demand for agile bandwidth management solutions, across a
variety broadband network infrastructures, will improve as telecom carriers seek
to deliver flexible bandwidth services, simplify end-to-end provisioning, and
create a resilient and scalable optical foundation for value-added voice, video,
and data services.
Tesoro Outlook Remains Strong
We are maintaining our Buy recommendation on Tesoro Corp. (NYSE: TSO)
shares despite expectations of continued near-term margin weakness on the back
of high feedstock costs and increased operating expenses.
The company’s realized margin during the second
quarter was down 52% from the year-earlier level as record crude oil prices and
anemic product demand squeezed margins. However, our long-term view of the
business remains favorable, as margins appear to have bottomed and valuations
have become particularly compelling.
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