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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: Regeneron Pharmaceuticals, Inc. (Nasdaq: REGN), Whole Foods Market, Inc. (Nasdaq: WFMI), Telecom Italia S.p.A. (NYSE: TI), Mattel, Inc. (NYSE: MAT) and Photronics, Inc. (Nasdaq: PLAB).
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Here are highlights from Tuesday's Analyst Blog:
Strong Outlook for Regeneron
We are optimistic about Regeneron Pharmaceuticals, Inc.'s (Nasdaq: REGN) Trap Technology. Its lead candidates are VEGF-Trap for the treatment of cancers and eye diseases, and IL-1 Trap for CAPS and gout. The Food and Drug Administration recently approved the company's Arcalyst for CIAS1-Associated Periodic Syndrome, a rare genetic disorder.
Regeneron also has a number of pre-clinical drug candidates for other disorders. It made impressive progress in recent months in terms of clinical developments and business developments. We maintain our Buy rating on its shares.
Whole Foods a Long-Term Buy
We are upgrading Whole Foods Market, Inc. (Nasdaq: WFMI) to Buy from Hold. The shares have sold-off nearly 50 percent this year, due in part to near-term issues including integration costs from the Wild Oats acquisition, which continue to be a drag on the company's earnings. What's more, there are growing fears that the difficult macro environment may force consumers to choose cheaper alternatives to Whole Foods higher priced organic products.
Even so, we think Whole Foods' strong natural foods brand and strong comp-store sales should enable the company to re-accelerate earnings growth in 2009. The company is the leader in the natural foods marketplace. Its products appeal to consumers interested in healthy living as well as those who enjoy paying a premium for a superior shopping experience.
Telecom Italia a Hold Pre-Earnings
Telecom Italia S.p.A. (NYSE: TI), the leading communications provider in Italy, continues its quest for growth across key foreign markets, while delivering only tepid results in its domestic operations. While the company remains challenged with significant debt as a result of acquiring the remaining publicly traded shares of Telecom Italia Mobile (TIM) and other leveraged acquisitions, the firm's consistent cash flow facilitates reduction in net debt levels over longer reporting periods.
The company's acquisitions and spin-offs, coupled with aggressive cost-cutting initiatives, are expected to provide improved financial conditions.