(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: Analog Devices Inc. (NYSE: ADI), Gilead Sciences (NASDAQ: GILD), CV Therapeutics (NASDAQ: CVTX), Koninklijke Philips Electronics N.V. (NYSE: PHG), and Skyworks Solutions, Inc. (NASDAQ: SWKS).
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 Thursday's Analyst Blog:
ADI Strategy Tough for Near Term
Most of Analog Devices Inc.'s (NYSE: ADI) products are in the analog category. Analog and mixed-signal products tend to be more customized, with relatively longer life cycles than digital components.
Consequently, sales of older analog products can keep contributing to revenue for longer time periods and at higher margins than corresponding digital products. Although competition in the analog market has been increasing in recent years, the large upfront design costs embedded in the customized devices continue to act as deterrents to many smaller players.
Gilead Buying CVT: Brilliant Move
Gilead Sciences (NASDAQ: GILD) is perhaps world's premier play on HIV/AIDS therapy. We consider Truvada -- a reformulation of drugs Viread and Emtriva -- to be a potential breakthrough product for the treatment of HIV/AIDS. Additionally, the approval of Atripla offers the next big wave of top-line growth for the company.
Gilead has previously done an outstanding job in strategic acquisitions. The Triangle Pharmaceuticals deal in 2002 was the stepping stone for the basis of leading product, Truvada and Atripla.
The proposed acquisition of CV Therapeutics (NASDAQ: CVTX) is a brilliant move in our view. In one single transaction, Gilead gains knowledge in developing and commercializing cardiovascular drugs, which should enhance the darusentan program, puts into place significant infrastructure to diversify into the cardiovascular business -- all while picking up immediately revenues and future stronger profitability with Ranexa and Lexiscan. We say, "Very well done!"
Sell Philips Electronics
Headquartered in Amsterdam, The Netherlands, Koninklijke Philips Electronics N.V. (NYSE: PHG) is one of the world's largest electronics companies and the biggest in Europe, with sales of EUR27 billion in 2007 and EUR26.3 billion in the full-year 2008.
