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Here are highlights from Monday's Analyst Blog:

Visteon Looks to Asian Growth

On July 30, Visteon Corp. (NYSE: VC) reported a loss per share of $0.32 in the second quarter from continuing operations, compared to the loss per share of $0.46 in the same quarter of the previous year.

The company is focusing on strengthening its non-Ford businesses and reducing costs in order to attain long-term profitability. The closure of underperforming facilities and the reduction of headcount under the three-year improvement plan are benefiting the company. Both restructuring facilities and overhead reductions would result in cumulative savings of $635 million by the end of 2010.

Sanofi Warrants Current Valuation

We expect Sanofi-Aventis (NYSE: SNY) to earn pro-forma adjusted EPS of $4.25 in 2008. This is growth of approximately 4% over 2007 at constant exchange rates. We believe the company's top-line will contract by just over 1% relative to 2007 as a result of intense generic competition. Continued significant sales growth from blood-thinning drug Plavix, insulin drug Lantus and the vaccine business will be offset by lost market share and softer pricing due to generic products.

Bottom-line growth will come from a reduction in selling, general and administrative expenses, continued strong contribution from Plavix U.S. sales and share repurchases. Based on a current price of approximately $34.96 per share, Sanofi-Aventis currently trades at a P/E ratio of 8.2x 2008 EPS. We calculate the peer group average is approximately 13.6x 2008 EPS with roughly 8% estimated four-year growth, compared to Sanofi's expected EPS growth rate of 6%.

Big 5 Limited Near-Term Upside

The investment case for Big 5 Sporting Goods (Nasdaq: BGFV) comes from its business model, store expansion plans and promotional strategy to counter the low demand of seasonal products. The company strives to offer value to consumers by offering a distinctive merchandise mix that includes a combination of well-known brand names, merchandise exclusive to BGFV under a manufacturer's brand name, and private-label merchandise.

Nevertheless, these positive factors are offset by the difficult macroeconomic environment, geographical concentration of BGFV's stores, and seasonal earnings stream. The company lowered its guidance from $0.60-$0.85 to $0.60-$0.80 for 2008.