CHICAGO - (Business Wire)
Zacks Equity Research highlights
Research in Motion (Nasdaq: RIMM) as the Bull of the Day and
Sanmina-SCI (Nasdaq: SANM) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on
Interactive Data Corp. (NYSE: IDC),
Duke Realty Corporation (NYSE: DRE) and
VeriFone Holdings (NYSE: PAY). Full analysis of all these stocks is available at
http://at.zacks.com/?id=2676.
Here is a synopsis of all five stocks:
Bull of the Day: Research in Motion (Nasdaq: RIMM)
We expect the smart-phone device market to gain momentum as opportunities remain firm on a global market basis. RIMM’s channel sales expansion initiatives are also considered an impetus for meaningful top-line growth as the company introduced a series of next-generation BlackBerry smart-phones, specifically targeting CDMA EV-DO, EDGE, and Wi-Fi networks. In the current fiscal year, RIMM is likely to introduce further 3G enabled high-end BlackBerry devices.
Bear of the Day: Sanmina-SCI (Nasdaq: SANM)
Although Sanmina has shown some growth in its core EMS segment and should have a reduced cost structure, the company is currently struggling with industry-wide weakness. SANM has found buyers for the assets of its struggling PC business, however all but one business posted a decline in revenue again during the second quarter. After exiting the PC business, the company will focus on its core business and margin improvement. We maintain a Sell recommendation on SANM shares until we see improvement in other areas. Our six month price target remains $1.00.
Latest Posts on the Zacks Analyst Blog:
Interactive Data Corp. (NYSE: IDC)
Interactive Data Corporation has shown growth in its core Pricing and Reference Data and eSignal businesses, as it successfully adds to its offerings and integrates acquisitions. A healthy cash flow has allowed it to return cash to shareholders and repurchase stock. We believe the company’s strong financial position will help it maintain and grow its dividends going forward.
While IDC has shown impressive growth in several of its business units, most of it is from acquisitions, Fixed Income Analytics reported growth of only 0.2% for 2006, and was down 0.1% in 2007. With the credit market struggling and stocks approaching bear market territory, spending on investment tools is likely to be restrained. We therefore maintain our Hold rating on IDC stock.
Duke Realty Corporation (NYSE: DRE)
Duke Realty reported 1Q08 FFO [funds from operations] of $0.58 per share, a $0.04 per share decline from the year ago period and $0.06 below our estimates. Operationally, the company’s portfolio is performing relatively well with stable occupancy and modest same property net operating income (NOI) growth.
Although, with the economy slumping and the credit markets still reeling, Duke will struggle to meet our lowered 2008 FFO estimates. Duke is ramping up development at a time when office and industrial leasing will become more difficult. We rate the shares a Hold due to the yield, now over 8%.
VeriFone Holdings (NYSE: PAY)
The recent restatement of VeriFone’s results for the first three quarters of 2007 involves both lower inventory levels and increase in cost of goods. We estimate the restatement to reduce profitability for the nine-month period by 20 percent. It also opens up the possibility of restructuring within the company.
Although VeriFone remains a pure play on the rapid international emergence of electronic payments, the restatements negate the near-term probability of any bullish sentiment for its stock price performance. As a result, we are maintaining a Hold rating on the shares.
It appears that VeriFone should be able to put its historical accounting errors and financial restatements behind it, and that the company will move forward as the world’s leading point-of-sale technology company. Our view of a positive accounting outcome is based on the confidence in the company’s senior management and anecdotal evidence that the process is moving forward.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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