Zacks Analyst Blog Highlights: Unilever, Cytori Therapeutics Inc., Pfizer Inc., UST, Inc. And Altria Group.
Friday, September 26, 2008 7:05 AM
Symbols: CYTX, MO, PFE, UN, UST
(Source: Business Wire)trackingZacks.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: Unilever (NYSE: UN), Cytori Therapeutics Inc. (Nasdaq: CYTX), Pfizer Inc. (NYSE: PFE), UST, Inc. (NYSE: UST) and Altria Group (NYSE: MO).

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Here are highlights from Thursday's Analyst Blog:

Unilever Buy Rating Maintained

Unilever (NYSE: UN) has benefited from the 'Path to Growth' strategy in terms of expanding margins, building momentum of key brands, rationalizing costs, and streamlining the asset base. Impressively, the underlying operating margin is rising despite rising input costs in the first half of 2008. In addition, the developing and emerging markets are expected to continue driving incremental topline growth.

Unilever has simplified the management hierarchy whereby the dual chairman structure has been replaced by a structure comprising a single chief executive officer and a non-executive Chairman. The organizational changes will expedite decision-making, improve execution, and enhance customer focus. The one-to-one equivalence between PLC and NV shares should also improve financial transparency.

Cytori Thera Warrants Excitement

Cytori Therapeutics (Nasdaq: CYTX) is development stage biotechnology company that seeks to commercialize stem cell and regenerative cell therapies for cardiovascular disease, reconstructive surgery, and other serious, chronic, and life threatening conditions and disorders. The company has developed the Celution System, an automated process that harvests stem and regenerative cells residing in a patient's adipose (fat) tissue.

We have been encouraged by the small clinical data seen so far using Cytori's technology. We think the company is store to report a solid third quarter and the Street has yet to take notice of the upside that exists over the next few years. Today's price represents a very attractive entry point in our view. We are maintaining our Buy rating and $16 target.

Pfizer Lacking a Catalyst

We believe Pfizer (NYSE: PFE) continues to face an uphill battle in growing its top-line given the company's sheer size and lack of a significant pipeline. While near-term earnings growth will come in the form of cost-cutting and share repurchases, the company lacks a catalyst to increase revenues once Lipitor loses patent exclusivity.


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