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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: MEMC Electronic Materials, Inc. (NYSE: WFR), Kookmin Bank
(NYSE: KB), Shanghai Petrochemical Co. (NYSE: SHI), Joy Global,
Inc. (Nasdaq: JOYG) and Alexza Pharmaceuticals, Inc. (Nasdaq: ALXA).
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from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Thursday’s Analyst
Blog:
WFR Starting to Heat Up
We are reiterating our Buy rating on the shares of MEMC Electronic
Materials, Inc. (NYSE: WFR). The company produces the raw material wafers
used by semiconductor manufacturers in the production of integrated circuits
(ICs).
WFR presently trades at a multiple of 8.9x our estimate of 2009 earnings
(P/E). We expect the firm to outgrow the general semiconductor industry based on
its 300 millimeter product line and its solar business. The firm's balance sheet
has improved dramatically and cash now stands north of $1 billion. This should
pave the way for future share buybacks and potential mergers in the solar
industry.
Kookmin Bank Upped to Hold
We are raising our rating on Kookmin Bank (NYSE: KB) to Hold from Sell
as the stock has exceeded our target price, which remains $50. KB is expected to
report third quarter results in late October. We are retaining our EPADS
estimates at $7.55 for 2008 and at $8 for 2009.
We expect pressure on the net interest margin to offset loan growth, with
only lackluster earnings growth over the near term. KB reported second quarter
net earnings of KRW644 billion, down 10% from the KRW718 billion earned in the
prior-year quarter, primarily reflecting higher loss provisions. Plans to
convert into a holding company structure appear on track. KB cut its annual
dividend by one-third in-line with its strategy to reduce the payout ratio to
30% from 50%.
Shanghai Petrochem Nears Ceiling
Shanghai Petrochemical’s (NYSE: SHI) exposure
to the fast-expanding Chinese economy and strong petrochemical product demand
make us confident of strong volume growth. However, revocation of government
price controls in the future, higher crude oil prices and increased competition
are some of the major concerns for the company.
As expected, the company’s first half 2008 net profit
declined by more than 50% from the year-ago period. The company expects profits
to fall further in the second half of the year. Thus, we rate the stock a Hold
with a six-month target price of $33.
Joy Global's Reason to Smile
We maintain our Buy recommendation on Joy Global, Inc. (Nasdaq: JOYG)
as the strength in the global coal markets show no signs of weakness. Although
margins will be impacted slightly in the near term due to the start up of the
P&H factory in China and from lower operating margins from its Continental
acquisition, we see the company continuing to benefit as a global leader in
mining equipment and services.
The company continues to see strong demand for its equipment across all
geographic regions it serves as producers look to expand and ramp up production
to capitalize on the persistent global growth in demand for electricity and
steel.
Alexza Pharma Down the Road
We are enthusiastic on Alexza Pharmaceuticals, Inc.’s (Nasdaq: ALXA) proprietary novel Staccato system that
reformulates oral or injectable small molecule compounds into an inhalable
aerosol. The development pipeline is moving forward nicely in our view. The
recent positive phase III data on AZ-004 is a significant milestone for the
company.
Alexza has six product candidates in clinical stage trials; including leading
candidates AZ-001 for migraine headache pain relief and AZ-004 for acute
agitation in patients with schizophrenia. Recent data on both drugs lead us to
believe the Staccato system is both safe and highly effective. By 2011 both
AZ-001 and AZ-004 could be on the market, or at least under regulatory review.
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