(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: Biogen Idec (NASDAQ: BIIB), Ford Motor Company (NYSE: F), Tata Motors (NYSE: TTM), United Parcel Service, Inc. (NYSE: UPS) and Carmike Cinemas, Inc. (NASDAQ: CKEC).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Monday's Analyst Blog:
Biogen Too Attractive to Ignore
At 13x our 2009 EPS of $4.05 per share, we believe that Biogen Idec's (NASDAQ: BIIB) stock is too attractive to ignore. Valuation is below the biotech peer-group average, where several names are trading at a significant premium.
The company should post non-GAAP EPS up roughly 11% in 2009, even with all the Tysabri PML issues. However, valuation alone is not enough of a reason to buy the stock. We are comfortable with owning the name here based on two other reasons.
Volvo - Made In...China?
Ford Motor Company (NYSE: F) is very close to selling Volvo in an effort to generate enough cash to stay away from the bailout trough in Washington. The potential buyer would be Geely Automobile Holdings, which is a Chinese company. Ford would take a loss and get less than the $6.4 billion that it paid for it in 1999.
Geely, a maker of $6,000 compacts in Asia, is seeking to grow in the US and Europe. They wanted to buy the company a year ago, and were rebuffed by Ford. As Ford became more desperate last December, talks were rekindled. Geely has received all Chinese government approvals already. The Export-Import bank of China will finance the acquisition.
Sales for Volvo have been down over 60%, and Volvo lost $736 million pre-tax in last year's fourth quarter alone. This is a continuation of a retreat from the luxury market. Ford had previously sold Land Rover and Jaguar to India's Tata Motors (NYSE: TTM) last June.
UPS Downgraded to Hold
We are lowering our rating on United Parcel Service, Inc. (NYSE: UPS) to Hold from Buy, as well as our target price to $47. UPS reported 4th quarter diluted EPS of $0.83, down 22% year over year and below the $0.85 consensus and our $0.88 estimate, largely due to lower-than-expected revenues. Total revenues fell 5% year over year to $12.7 billion as all business segments suffered declines.
Positively, UPS offset some of the revenue shortfall by slashing expenses, which fell 36%.
