(Source: Business Wire)
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: Unibanco Uniao de Bancos Brasileiros SA (NYSE: UBB), Banco Itau Holding Financeira S.A. (or Itau) (NYSE: ITU), ADC Telecommunications (NASDAQ: ADCT), SAP AG (NYSE: SAP) and Cephalon Inc. (NASDAQ: CEPH).
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Here are highlights from Tuesday's Analyst Blog:
Unibanco Downgraded on Merger
We are reducing our rating on Unibanco Uniao de Bancos Brasileiros SA (NYSE: UBB) to Hold from Buy following the merger agreement with Banco Itau Holding Financeira S.A. (or Itau) (NYSE: ITU).
On November 3, 2008, UBB and Itau announced a merger, creating the largest bank in Brazil, with R$575 billion in assets, 4,800 branches, and a 19% share of the Brazilian loan market. The transaction, expected to be completed in first half 2009, should be immediately accretive to earnings. Pro forma for the merger with Itau and based upon our current estimates, we expect net income in 2009 to increase 5% to R$11,351 million. However, we show a decline in US$ after taking into account the negative impact of foreign exchange adjustments.
ADC Telecom Keeps Its Buy Rec
We reiterate our Buy recommendation with a reduced valuation target for ADC Telecommunications (NASDAQ: ADCT), a leading telecom network infrastructure solutions provider, ahead of fourth quarter fiscal 2008 financial results.
Over the past several months, the company's business and valuation level have been impacted by general macroeconomic weakness that resulted in restricted capital spending on the part of telecom service providers and original equipment manufacturers. This is evident by a recently announced financial outlook by management for the remainder of fiscal 2008.
SAP Still Feeling BOBJ Effects
SAP AG (NYSE: SAP) reported lower than expected revenues and earnings in third quarter of 2008 due to the economic downturn and costs of its Business Objects (BOBJ) acquisition.
The company posted modest growth in Asia, Americas and Europe. The financial crisis, which accelerated at the end of the third quarter, impacted SAP's business in all regions with an unprecedented sharp downturn in business activity.
