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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: Newmont Mining Corp. (NYSE: NEM), Ball Corp. (NYSE: BLL),
Cyclacel Pharmaceuticals, Inc. (Nasdaq: CYCC), Commerce Bancshares,
Inc. (Nasdaq: CBSH) and Verisign, Inc. (Nasdaq: VRSN).
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:
Newmont Mining Sees Costs Rise
Newmont Mining Corp. (NYSE: NEM) is one of the world’s largest unhedged gold producers. Gold prices are
skyrocketing due to higher demand, U.S. trade/budget/currency issues, and global
instability. Declining grades are pushing up mining costs, prompting the company
to reduce expenditure. As a result, we rate the shares a Hold, with a target of
$47.50 due to high valuation and declining grade quality, despite the improving
fundamentals.
Newmont Mining plans to focus on completing the construction of Boddington in
Australia. Development of the Boddington project was approximately 77% complete
at the end of second quarter 2008, with mill start-up expected in late 2008 or
early 2009. The company completed the construction of Yanacocha gold mill in
Peru during the second quarter of 2008. The gold mill started in March 2008 and
commercial production began in the second quarter of 2008. Equity gold
production from the mill is currently expected to average 200,000-250,000 oz per
annum.
Ball Corp. Looks to Get Rolling
Ball Corp. (NYSE: BLL) reported 2Q08 EPS of $1.10, up 6.8%
year-over-year, due to earnings growth in Metal Food & Household Products
Packaging, Americas, segment and the Aerospace and Technologies segment, lower
interest and tax expense and share repurchases.
Going forward, Ball’s earnings should benefit from
strong packaging fundamentals amid growing beverage can demand as well as its
cost-containment efforts through closing non-core operations. Nevertheless, the
Metal Food and Household Products Packaging, Americas, unit is suffering from
continued lower food can volumes. Also, in the company’s
PET business, soft prices (due to market overcapacity) and low volumes are
limiting margin expansion. We reiterate a Hold recommendation on shares of BLL.
Cyclacel Pharma in Early Cycle
Cyclacel Pharmaceuticals, Inc.’s (Nasdaq:
CYCC) lead pipeline candidate, CYC202, is being developed for the treatment of
non-small-cell lung cancer. However, CYC202, as well as other pipeline
candidates, are still in early to mid-stage clinical development process and
several years away from commercialization. As such, we maintain a Hold rating on
the stock.
The company bolstered its oncology/hematology program with the acquisition of
Align in October 2007. The acquisition provides Cyclacel with three marketed
drugs and a revenue stream. Although we believe the development of CYC202
presents a significant commercial opportunity for the company, it is still
several years away from reaching the market.
Commerce Bancshares Pricey
Commerce Bancshares, Inc.'s (Nasdaq: CBSH) diluted operating earnings
(excluding the gain on sale of a branch in southeastern Kansas) of $0.71 per
share were in-line with our estimates, but two pennies ahead of consensus.
Earnings were driven by expansion in net interest margin and strong growth in
non-interest revenue, while expenses remained under control.
Non-performing assets were somewhat stable but charge-offs increased during
the quarter. After reviewing the results and based on credit concerns, we are
moderating our FY08 and FY09 estimates but maintaining our Hold recommendation
on the shares of CBSH with a six-month target price of $47.50 per share.
VRSN Warrants Some Skepticism
Verisign, Inc. (Nasdaq: VRSN) reported $303 million in revenues during
Q2, up 17.1% y/y but down 14.4% q/q. Revenues from core business (Domain Names,
SSL Certificates, and Identity and Authentication Services (IAS), came in at
$233 million. GAAP EPS came in at ($0.35) for the quarter. Pro-forma EPS of
$0.25 exceeded our estimate by $0.03.
Core business generated a non-GAAP operating margin of 34.2%, up from 30.3%
registered in Q1 2008. Growth in the naming business slowed down. The management
provided Q3 revenue guidance of $236-241 million. They remain confident of
exiting 2008 with an operating margin of 35%.
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