(Source: BUSINESS WIRE)

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Mark Vickery
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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: Potash Corp. (NYSE: POT), California Pizza Kitchen, Inc. (Nasdaq: CPKI), Kraft Foods Inc. (NYSE: KFT), DTS Inc. (Nasdaq: DTSI) and Snap-on, Inc. (NYSE: SNA).
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Here are highlights from Tuesday's Analyst Blog:
Potash Still Considered Buyable
Potash Corp. (NYSE: POT) has leverage in higher fertilizer application rates, higher crop plantings, increasing demand for biofuels and rising crop prices. The company is located in low cost areas and its financials are solid. Hence, we rate the stock a Buy with a target price of $250. This is 18.9x our 2008 estimate.
Potash Corporation enjoys significant cost advantage with regard to raw materials. All potash produced by the company in Saskatchewan is in the area, where extensive potash deposits are found. Moreover, the company has lower cost nitrogen operations in Trinidad due to the long-term, lower-cost gas contracts with Natural Gas Company of Trinidad and Tobago Limited as well as a proximity to the U.S. market.
Calif Pizza Kitchen Still a Hold
We expect California Pizza Kitchen, Inc. (Nasdaq: CPKI) to continue suffering declining traffic, deleveraging of its rent expense, and shrinking return on equity throughout 2008. Traffic should stabilize in 2009, but we don't expect a rebound unless the economy improves substantially and there is little visibility to an improvement in gas prices and real estate values.
Nevertheless, coming off a weak 2008, we think the company can likely reinvigorate earnings primarily through unit growth. We expect it to grow earnings at a mid-teens average rate over the next five years by adding full service restaurants in existing and new markets, increasing comps and restaurant margins through its new prototype restaurant design, further penetrating the fast casual market with the new ASAP concept, repurchasing shares, and building its lucrative Kraft (NYSE: KFT) frozen pizza licensing business.
DTS Premium Up Too High
Increasing demand for DTS, Inc.'s (Nasdaq: DTSI) technologies in emerging applications such as cars and PCs augur well for the company's earnings growth.