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Thu, July 1, 2010
Wed, June 30, 2010
CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights Magna (NYSE: [ MGA ]) as the Bull of the Day and Pepco (NYSE: [ POM ]) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Shutterfly Inc. (Nasdaq: [ SFLY ]), Sony Corporation (NYSE: [ SNE ]) and Eastman Kodak Co. (NYSE: [ EK ]).
Full analysis of all these stocks is available at [ http://at.zacks.com/?id=2678 ].
Here is a synopsis of all five stocks:
[ Bull of the Day ]:
Magna (NYSE: [ MGA ]) enjoys a strong competitive position in the automotive industry by virtue of its complete range of interior and exterior auto systems. The company is strengthening its positions in the emerging markets of Asia, Eastern Europe and Russia.
Magna is also poised for growth through its major business wins from original equipment manufacturers (OEMs). In the most recent quarter, the company posted a profit that was significantly higher than the Zacks Consensus Estimate.
Our long-term Outperform recommendation on the stock indicates that MGA should perform better than the overall market. Our $81 target price, 15.2X our 2010 EPS estimate, reflects this view.
[ Bear of the Day ]:
Pepco's (NYSE: [ POM ]) $1.2 billion Mid-Atlantic Power Pathway (MAPP) transmission project could be delayed due to slower-than-expected load growth. The PJM Interconnection is expected to update the Regional Transmission Expansion Plan (RTEP) in June 2010 and a 1-2 year delay in the project is likely.
Pepco Holdings current trailing 12-month earnings multiple is 17.5, compared to the 21.0 average for the peer group and 18.7 for the S&P 500. Over the last five years, the companya™s shares have traded in a range of 7.4x to 22.6x trailing 12-month earnings. The trailing 12-month EV/EBITDA multiple is slightly above the industry average.
We continue with an Underperform recommendation as we expect the stock to face stiffer competition from its fully regulated peers with similar dividend yields, going forward. Our $14 target price values the stock at 11.3x 2011 EPS.
Latest Posts on the Zacks [ Analyst Blog ]:
Shutterfly Teams Up with Sony
Shutterfly Inc. (Nasdaq: [ SFLY ]), the leading provider of Internet-based social expression and personal publishing service, recently announced that it has teamed up with Sony Corporation (NYSE: [ SNE ]) to provide its photo book experience to Sony VAIO PC customers. The financial terms of the deal were not disclosed.
The agreement will enable Sony VAIO customers to create a Shutterfly photo book directly from their desktop via a pre-installed icon, without having to first upload a photograph on Shutterfly.
Users can choose and order the photo book from one of its 21 styles. Customers can edit the book by changing the book size and cover type, rearrange photos, and add captions.
Shutterflya™s flagship product is its photo book line. Its photo books, available in five sizes, can accommodate between 20 and 400 photos.
Shutterfly is focused on growing its business through strategic partnerships and advertising programs. Last month, the company had announced its integration with the social networking site Facebook, which allows users to create a photo book by accessing their photos as well as their friendsa™ simultaneously. In addition, the company continues to explore and invest in the growing mobile marketplace.
We believe these initiatives will enhance Shutterflya™s brand awareness and make it more cognizant to customer insights, which will help leverage its existing assets and long-term growth. With increased investment in technology and development, the company is also strengthening its footprint in E-commerce and online digital photography, which will likely provide it a competitive advantage over its mainstream peers such as Snapfish and Eastman Kodak Co. (NYSE: [ EK ]).
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 analyst 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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