VIP Could Be Very Important Play - Analyst Blog

Vimpel-Communications, or VimpelCom (VIP) is the 2nd-largest cellular carrier in Russia with approximately 25% market share an continued expansion in regions of the Commonwealth of Independent States (CIS), operating GSM-based wireless services.

We are encouraged with VimpelCom's successful sales growth trend and the company's ability to retain subscribers on a recurring basis, even as overall economic factors remain weak. The company added over 4 million mobile subscribers and improved operating margins from 46.8% last quarter to 48.8% in the recent reporting period.

We reiterate our Buy rating while reducing the valuation target as we account for global economic factors, ongoing geopolitical events in Russia (surrounding countries), and weaker local exchange rates against the U.S. dollar.

Canon Target Upped a Click - Analyst Blog

Canon Inc. (CAJ) is one of the world's leading makers of office equipment, cameras, and optical products. The company's first nine-month results were hurt by the economic slowdown in the developed countries triggered by a financial crisis, a strong yen appreciation, and weak consumer spending. Moreover, the company reduced its guidance for the full year 2008.

We lower our estimates for fiscal 2009 due to the macro economic environment. However, in the light of new product launches scheduled for the remainder of 2008 as well as its cost reduction efforts, we maintain a Hold rating on CAJ shares and slightly raise our six-month price target to $30.

Shares of Canon are currently trading at a P/E multiple of 12.3x our estimate for the next four quarter earnings per share, which is at a discount to the peer group mean. The stock is also trading at 12.3x our reduced 2009 EPADR of $2.36, a discount to the industry mean and S&P 500. Although we believe that some premium is warranted given its strong position in the digital camera business, we don't see room for meaningful appreciation from current levels.

Brazil's Cosan Upgraded to Hold - Analyst Blog

We are upgrading our recommendation on Cosan Limited (CZZ) from Sell to Hold based on the fact that India, the world's 2nd-largest producer of sugar, is cutting down its supply to increase the prices of sugar in the market and the recent devaluation of the Brazilian real against the U.S. dollar.

Cosan is also benefiting from the increasing demand of ethanol worldwide; however, this environment will be negatively impacted by the economic crisis in the U.S.