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Zacks Analyst Blog Highlights: Toyota Motor Corp., Jamba, Inc., AtheroGenics, Inc., Vodafone Group Plc. And Xilinx, Inc.
Wednesday, October 01, 2008 4:18 PM


(Source: BUSINESS WIRE)trackingZacks.com

Mark Vickery

Web Content Editor

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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: Toyota Motor Corp. (NYSE: TM), Jamba, Inc. (Nasdaq: JMBA), AtheroGenics, Inc. (Nasdaq: AGIX), Vodafone Group Plc. (NYSE: VOD) and Xilinx, Inc. (Nasdaq: XLNX).

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Here are highlights from Tuesday's Analyst Blog:

Toyota Feeling U.S. Slowdown

Toyota Motor (NYSE: TM) continues to expand its production capacity in a manner that increases efficiency and meets local demand, powering it to emerge as the world's financially strongest automaker. A strong presence in North America has been further consolidated by gaining market share from the leading U.S. automakers.

A sluggish U.S. economy, rising costs, pricing pressures, and huge capital expenditures prompt us to rate the stock a Hold with a six-month target price of $78.

Jamba Expected to Underperform

We maintain our Underperform rating on shares of Jamba (Nasdaq: JMBA). As with many fast-growing restaurant chains, the Emeryville, California-based company is suffering from the effects of uncontrolled growth that has led to the opening of under-performing locations and a loss of attention to both innovation and current consumer trends.

The management has formulated a turnaround plan that will curtail unit expansion until store level performance improves, retrench non- store level personnel, close 30 under-performing stores, innovate menu offerings, and build relevance and awareness through effective marketing. However, its efforts face strong headwinds from a cash- squeezed consumer and rising food costs, while the company faces a severe cash flow shortage that poses a risk of bankruptcy, in our opinion.

AGIX: No Near-Term Upside

AtheroGenics (Nasdaq: AGIX) just reported that top-line ANDES data showed a dose dependent response and statistically significant reduction in A1c at the six month period. However, we would categorize the reduction as only modest at 0.6% for the highest (150mg) dose, and continued signs of elevate liver activity give us cause to remain skeptical of the eventual commercial potential of AGI-1067.

Until a large development partner validates the program we choose to remain skeptical of AGI-1067.



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