N@N

Energizer Holdingsa?, CRA International, Moody's, Potash Corporation of Saskatchewan and BHP Billiton

^{Published on 2010-08-23 14:20:48 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights: Energizer Holdings'(NYSE: [ ENR ]), CRA International(Nasdaq: [ CRA ]), Moody's Corporation(NYSE: [ MCO ]), Potash Corporation of Saskatchewan(NYSE: [ POT ]) and BHP Billiton Limited (NYSE: [ BHP ]).

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 ]:

Energizer Holdings'(NYSE: [ ENR ]) third quarter 2010 earnings beat the Zacks Consensus Estimate by $0.39 per share or 41%, riding on higher sales, launch of new Schick Hydro, meaningful cost-saving initiatives, favorable foreign currency impact, higher battery sales and lower-than-expected A&P spending.

We expect Energizer s top line to grow modestly (+4%) in the fourth quarter of 2010 along with an improved operating leverage and organic growth going forward. The new Schick Hydro brand, higher margins, share repurchases and improving condition in its battery business along with a huge third quarter upside in earnings have led us to raise our earnings per share estimates by 7.4% for fiscal 2011.

However, investors should note that intense competition, inventory destocking and weak consumer environment are potential negatives. We believe that ENR is set for a stronger growth in 2011. With cheap valuation, we upgrade the stock to Outperform and raise our price target to $77.00.

[ Bear of the Day ]:

CRA International's(Nasdaq: CRA) second-quarter earnings were modestly ahead of the Zacks Consensus Estimate primarily owing to the uptick in utilization rate backed by successful restructuring actions.

Although litigation and management consulting related areas were reasonably active, clients cautious aggregate spending and a decline in organic revenue are expected to limit the company s growth. Overall, near-term visibility remains unclear, given the current volatile market trends.

Despite showing some improvement, litigation trend remains sluggish. Finally, despite the recent pick-up in activity, the Middle East business remains uncertain. Going forward, we remain skeptical about the sustainability of the growth momentum seen in the second quarter. Hence, we downgrade the stock from Neutral to Underperform.

Latest Posts on the Zacks [ Analyst Blog ]:

[ Moody's React to Fertilizer Buzz ]

Ratings agency Moody's Investors Service, an affiliate ofMoody's Corporation(NYSE: [ MCO ]) has recently confirmed its 'Baa1' senior secured ratings onPotash Corporation of Saskatchewan(NYSE: [ POT ]) and downgraded its outlook to "Developing" from "Stable", stated Reuters. Moody's 'Baa' rating is a medium grade rating that indicates moderate credit risk. The ratings change came in just after the fertilizer company rebuffed a hostile acquisition offer from Australian mining giantBHP Billiton Limited (NYSE: [ BHP ]). We believe the rating agency's major concern is the uncertain offer price.

On Aug 15, 2010, Potash Corp turned down BHP's $38.6 billion (all in cash) offer citing that the offer grossly undervalues the company and its future growth prospects. Potash Corp. stated that at $130 per share, BHP Billiton's acquisition proposal reflects a modest premium of 16% on the stock's closing price of $112.15 as on August 16, 2010. Furthermore, the premium offered is inferior to the average control premiums offered globally and in Canada.

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.

Zacks [ "Profit from the Pros" ] e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting [ http://at.zacks.com/?id=7158 ].

About Zacks

Zacks.com is a property of [ Zacks Investment Research ], Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the [ Zacks Rank ], which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4582 ].

Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.

Follow us on Twitter: [ http://twitter.com/zacksresearch ]

Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.