Zacks Analyst Blog Highlights: Nissan Motor Co., General Motors Corp., Waddell & Reed Financial, Inc., First Solar, Inc. And AK Steel Holding Corp.
Tuesday, September 23, 2008 3:16 PM
Symbols: AKS, ESI, FSLR, GM, NSANY, WDR
(Source: BUSINESS WIRE)trackingZacks.com

Mark Vickery

Web Content Editor

312-265-9380

Visit: www.zacks.com

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: Nissan Motor Co. (Nasdaq: NSANY), General Motors Corp. (NYSE: GM), Waddell & Reed Financial, Inc. (NYSE: WDR), First Solar, Inc. (Nasdaq: FSLR) and AK Steel Holding Corp. (NYSE: AKS).

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 Monday's Analyst Blog:

Nissan Motors Stays a Sell

Nissan Motor Company (Nasdaq: NSANY) manufactures and sells about 3.5 million cars and commercial vehicles annually in more than 190 countries. The company's major production sites are located in Japan, with additional facilities located in the U.S. and elsewhere. Some of its key brands include Altima, Sentra, Maxima, Quest, Pathfinder, Xterra, Frontier, Titan, and its luxury brand, Infiniti.

The company anticipates a 29.5% drop in earnings for fiscal 2008. Thus, we rate the stock a Sell with a target price of $11.50.

GM in Trouble Without a Bailout

Weak North American sales, falling production volumes and rising raw material costs are increasing our concerns for the General Motors (NYSE: GM) stock. Significant incentives to stimulate sales and keep inventories lean are eating into margins.

Furthermore, GM sales are hampered by poor resale values. The company is at a disadvantage compared to its competition owing to huge pension and health care costs. These issues compel us to rate the shares a Sell with a six-month target price of $7.

Waddell & Reed May Be Pricey

Waddell & Reed's (NYSE: WDR) 2Q08 net income came in at $0.42 per diluted share, two pennies ahead of our estimate as well as that of consensus.

The positive surprise resulted from the improvement in the operating margin, supported primarily by higher management fees. Assets under management grew 29.9% year-over-year with 134.2% growth in overall sales (net of commissions). After reviewing the results and considering the ongoing concerns with the financial sector as a whole, we are slightly moderating our FY08 and FY09 earnings estimates.

First Solar Shines a Way Forward

First Solar, Inc. (Nasdaq: FSLR) designs, manufactures, and sells solar electric power modules using a proprietary thin-film semiconductor technology. It sells its products to project developers, system integrators, and operators of renewable energy projects primarily in Europe.


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