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Caterpillar, Inc. (CAT)
By Zacks Equity Research
Nov 23, 2009
Caterpillar (CAT) is a market leader in construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. With its strong brand name, pricing power and global dealer network, we believe Caterpillar is well positioned to take advantage of the growing need for infrastructure development globally.

Though the company expects 2009 sales to decline more than 35% year-over-year, it anticipates an improvement in its top-line in 2010. The company forecasts a 10% to 25% increase in sales for 2010, compared to the midpoint of the 2009 outlook range.

Asserting its optimistic outlook, the company recently announced plans to increase its machinery prices by 2% effective January 2010. We are upgrading the stock to Outperform.

Principal Financial Group (PFG)
By Zacks Equity Research
Nov 20, 2009
We are upgrading our recommendation on the shares of Principal Financial (PFG) to Outperform. The company's third quarter operating earnings were much ahead of the Zacks Consensus Estimate, driven primarily by the sequential improvement in domestic as well as global equity markets.

We believe that Principal's strong franchise within the pension sector, which is aided by its diversification both in terms of products and geography, positions it well to benefit from the gradual recovery of the credit market. However, rising unemployment is reducing the number of participants in existing employee benefit plans.

Though we are concerned about higher delinquencies in its commercial mortgage portfolio, we expect the company to benefit from its decent capital level and cost containment measures.

CPFL Energia (CPL)
By Claudio Freitas
Nov 19, 2009
We are maintaining our Outperform rating on CPFL Energia (CPL). The company posted in-line results for the third quarter of 2009, despite non-recurring items.

The company's outlook for the medium-term remains positive, mainly considering the more relaxed monetary policy in Brazil and the growing demand for electricity, even though there is the still-difficult business environment around the world.

Finally, CPL has a solid dividend payout and its valuation appears to be highly attractive, mainly considering the noncyclical nature of the company.

NeurogesX (NGSX)
By Jason Napodano
Nov 18, 2009
NeurogesX (NGSX) received some very good news this week when the U.S. FDA approved Qutenza for the management of postherpetic neuralgia (PHN). Management will now move forward with preparing for the commercial launch during the first half of 2010.

Securing reimbursement and hiring the sales force remain the next biggest hurdles for the company. However, with approval now complete and the financial position solid ($57 million in cash on hand), we remain very position on the NeurogesX story.

We recommend accumulating the stock at today's level up to $12 per share. Our rating is Outperform.

Sealed Air Corp. (SEE)
By Zacks Equity Research
Nov 17, 2009
Sealed Air Corporation (SEE) reported third quarter 2009 EPS of 38 cents, above the Zacks Consensus Estimate of 33 cents and the prior-year EPS of 28 cents. The company raised its full-year 2009 EPS guidance to a range between $1.37-$1.45.

The company expects to continue to realize benefits from its cost reduction and productivity programs in the fourth quarter. Also, the company is witnessing improved market conditions in developing nations. Sealed Air posted double-digit sales increases in some of these markets.

Based on the improved outlook, as well as the company's efforts to revitalize its bottom-line, we are upgrading the rating on the stock to Outperform.

Infosys Technologies (INFY)
By Zacks Equity Research
Nov 16, 2009
We are upgrading Infosys (INFY) to an Outperform rating with a target price of $57. Through the ongoing economic downturn, the company has invested in Research & Development as well as intellectual property-based solutions. It continues to focus on large deals targeted at organizational transformation where there is a dearth of vendor talent.

The company continues to win new customers and manages to keep its order book healthy. It is increasing its presence in the emerging markets of Mexico, Brazil, China and India from where an increasing proportion of revenue can be sourced in the coming years.

Finally, its solid balance sheet and cash flow generation provides support to our estimates.

Expedia, Inc. (EXPE)
By Zacks Equity Research
Nov 13, 2009
Expedia Inc. (EXPE) is one of the leading online travel companies in the world. The company reported strong results in the last quarter, beating the Zacks Consensus Estimate. Promotional activity continues to have a positive impact on the conversion rate, and spending is expected to strengthen in the next few quarters.

We are also positive about international initiatives, which we think will be the key to future growth. Cost management, a favorable online advertising environment and solid financials are other encouraging factors.

By comparison, the possibility of increased occupancy taxes and low growth in Egencia (the smallest segment) seem less significant. However, the declining average daily rates could be something to watch. We are reiterating our Outperform rating on EXPE shares.

Cisco Systems (CSCO)
By Zacks Equity Research
Nov 12, 2009
Cisco Systems (CSCO) is a leading provider of IP-based networking and other products. The company's first quarter results were a significant improvement over prior quarters, with both revenue and earnings exceeding our expectations.

Of particular note is the growth in orders, which indicates continued business momentum. Improving operating performance, solid financials, a sound restructuring policy and new growth initiatives are the drivers behind our Outperform rating.

However, we caution investors about the increasing competition, market share losses, complicated decision-making process and integration risks.

Amdocs, Ltd. (DOX)
By Zacks Equity Research
Nov 11, 2009
We maintain our Outperform recommendation for Amdocs Ltd. (DOX), following its strong results for the fiscal fourth quarter of 2009. The company has industry-leading technology integration products for managed services and large transformational projects.

We believe long-term fundamentals for Amdocs remain firm due to the transition of telecom service providers to converged and consolidated solutions. Amdocs maintains a very strong financial position with healthy order backlog.

Recently, the company has won a series of large managed services contracts in various parts of the world. Except Europe, operations in other regions have started gaining momentum.

NVIDIA Corp. (NVDA)
By Ian T. Gilson
Nov 10, 2009
NVIDIA Corp. (NVDA) posted revenue and earnings well above expectations. NVIDIA is poised for growth through improved cost management, rising demand for GPU and graphics chips, increased orders mainly from China and product launches.

The company is introducing new products at regular intervals and getting good feedback. We believe NVIDIA is well positioned in the longer term given its leadership in the Tegra line-up, the ramp-up of its 40nm process technology and share gains in notebooks and desktops.

We are looking for meaningful revenue growth and sustainable margin expansion. We have changed our rating to Outperform with a six-month price target of $17.00.

Inspire Pharmaceuticals, Inc. (ISPH)
By Grant Zeng
Nov 09, 2009
Inspire Pharmaceuticals, Inc. (ISPH) is a specialty pharmaceutical company focused on the development and commercialization of treatments for respiratory and ophthalmologic disorders.

Currently, the company has three products on the market and a robust pipeline. We see strong top line growth from 2009 and beyond. Inspire just reported positive phase III data of Denufosol for CF. The company has a strong collaborative alliance with Allergan Pharmaceuticals for key products that treat dry eyes and allergic conjunctivitis.

Current price is attractive. We maintain our Outperform rating on shares of Inspire with a price target of $7.00.

Acorda Therapeutics (ACOR)
By Jason Napodano
Nov 06, 2009
Acorda Therapeutics (ACOR) is one of the more interesting biotechnology companies under our coverage. The company's key pipeline drug, Fampridine-SR, is currently under U.S. FDA review, with a decision expected in late January 2010.

Outside the U.S., Acorda has partnered with Biogen Idec under very favorable terms. Fampridine-SR has blockbuster potential worldwide in our view. Plus, the company is extremely well-capitalized with over $290 million in cash, and management has commercial experience with current approved product Zanaflex.

These are among the best fundamentals in all of biotech. We reiterate our Outperform rating on the stock.

Novatel Wireless (NVTL)
By Zacks Equity Research
Nov 05, 2009
We upgrade our recommendation for Novatel Wireless (NVTL) to Outperform following the blockbuster financial results of its third quarter 2009.

We expect the top-line of Novatel to maintain its current growth rate supported by strong demand for MiFi mobile intelligent hotspot and USB modems.

The company has generated a record-high level of free cash flow and significantly improved its gross margin. In addition, the company has a very strong balance sheet, capable to support its long-run business endeavors. Management has made the decision to extend the MiFi platform with new features and functionality, as well as building a MiFi ecosystem through organic development and strategic partners.

McDonald's Corp. (MCD)
By Zacks Equity Research
Nov 04, 2009
McDonald's (MCD) global same-store sales continue to grow (up 3.8% in the third quarter of 2009) while maintaining healthy margins and out-performing competitors. Earnings surpassed the Zacks Consensus Estimate, and were up 10% year over year.

However, a strong U.S. dollar continues to moderate results, adversely impacting the top and bottom lines. We expect continued headwind from a stronger dollar, but this is a translation impact, and will not affect the fundamentals of overseas operations, which operate entirely in local currency.

With a strong balance sheet, consistent earnings, healthy cash flow and a generous dividend, we think the stock provides relative safety and moderate growth in a turbulent environment and exposure to faster-growing international markets. As such, we maintain an Outperform recommendation.

Apple, Inc. (AAPL)
By Zacks Equity Research
Nov 03, 2009
Apple, Inc. (AAPL) has experienced tremendous growth, driven by the success of its iPhone and increased Mac shipments. The company reported strong fiscal 2009 results with higher revenue (12.5% year over year) and earnings (17.4% year over year) growth despite the recession. The results beat the Zacks Consensus Estimate and the company's own guidance.

The company is currently benefiting from a positive mix shift to the higher-margin iPhone/iPod business from its traditional MP3 players. The Macintosh product continues to gain market share, with significant gains in portables, music players and smart phones.

Year-to-date, Apple share prices have more than doubled. Apple's valuation premium is justified, given the company's positive attributes and leaves room for further upside from the current levels. We have increased estimates for full-year 2010 and upgrade the stock to Outperform. We set a six-month price target of $225.

Dow Chemical (DOW)
By Zacks Equity Research
Nov 02, 2009
We have upgraded Dow Chemical Company (DOW) from Neutral to Outperform. Earnings of 24 cents in the third quarter of 2009 (significantly better than the Zacks Consensus Estimate of 9 cents, and the 5 cents reported in the previous quarter) were driven by cost reduction and asset sales.

The company achieved cost synergies of over $1 billion in the first nine months of 2009. The Rohm and Haas acquisition is a positive for Dow, which is expected to consolidate higher margin and higher growth specialty businesses and reduce volatility in earnings and cash flow going forward.

CarMax, Inc. (KMX)
By Zacks Equity Research
Oct 30, 2009
CarMax (KMX) focuses on penetrating new markets through store openings. The company has kept its inventories closely aligned with sales trends, which has allowed it to optimize gross profit per unit besides offering great value to customers. These have helped the company to maintain a favorable position among its peer group.

CarMax has reported profit in the second quarter, reflecting a significant improvement from the Zacks Consensus Estimate. It has experienced a significant rebound in CarMax Auto Finance income to $72 million in the quarter versus a loss of $7 million in the prior year quarter.

These lead us to upgrade the stock to an Outperform recommendation with a target price of $25.

Intersil Corp. (ISIL)
By Ken Nagy
Oct 29, 2009
Intersil Corporation (ISIL) is an OEM of analog and mixed signal semiconductor ICs. September quarter results beat consensus estimates on both the top and bottom lines. Forward guidance is for 3% revenue growth in the fourth quarter.

We expect an unfavorable mix of business through 2009, although management initiatives are likely to mitigate the impact. Management expressed confidence that the bottom is behind it, and judging from the increasing order rates and growing backlog, we are inclined to agree.

Since shares are still going rather cheap, we encourage investors to accumulate them. We are raising our rating from Neutral to Outperform.

Cooper Tire & Rubber (CTB)
By Zacks Equity Research
Oct 28, 2009
Cooper Tire & Rubber Co. (CTB) is well positioned to enjoy improved operating costs, greater geographic flexibility and the ability to penetrate international markets through its investments and facilities in low-cost countries.

The company continues to realize the benefits of reducing costs in its manufacturing operations. It has also been able to absorb the costs associated with the need to curtail production to align with demand.

In the second quarter, Cooper Tire returned to profitability after a year. Earnings increased tenfold compared to the Zacks Consensus Estimate of $0.04. As such, we have upgraded the stock to an Outperform recommendation with a six-month target price of $20 per share.

NTT DoCoMo (DCM)
By David Weissman
Oct 27, 2009
We maintain an outperform rating for NTT DoCoMo (DCM), the largest mobile service provider in Japan. The company currently maintains a leading 50% share of the Japanese wireless market.

DCM upgraded 98% of its total coverage area with 3G-HSDPA, while emerging 4G LTE networks are planned for deployment through 2010. DCM's decisions to focus on mobile content, along with a renewed geographic expansion drive outside Japan are positive indicators.

Furthermore, the company is launching an innovative online money transfer service. We consider DCM as an attractive long-term investment opportunity.

American Physicians Service (AMPH)
By Zacks Equity Research
Oct 26, 2009
We are upgrading our recommendation on American Physicians Service Group (AMPH) from Neutral to Outperform. American Physicians second quarter operating earnings of 82 cents per share were significantly ahead of the Zacks Consensus Estimate of 66 cents.

Results were driven by better-than-expected results in the Financial Service segment, strong policyholder retention and favorable developments from prior years. The company is also experiencing the benefits of the implementation of its cost containment measures.

Though declining rate continued to partially offset growth, policyholder retention, conservative reserve position and capital position augur well for a solid growth path with the market recovery.

ev3, Inc. (EVVV)
By Zacks Equity Research
Oct 23, 2009
ev3, Inc. (EVVV) benefits from the growing demand for minimally invasive treatment of vascular diseases and disorders. Vascular disease and its precursors affect over 90 million people in the United States and more than 1 billion people worldwide. Vascular disease is the leading cause of death in the world.

The company's broad product portfolio makes it well positioned for long-term growth. In addition, ev3's products are primarily life-sustaining, a hedge against the current economic turmoil. We rate the company's stock an Outperform with a target price of $13.

Gentiva Health Services (GTIV)
By Zacks Equity Research
Oct 22, 2009
Gentiva Health Services, Inc. (GTIV) has scheduled its third quarter earnings call for October 29th, one week from today. Gentiva reported a second-quarter net income of 59 cents per share which was much higher than the Zacks Consensus Estimate of 45 cents.

The company boasts of a diversified product portfolio. Its product offerings include home health, hospice, respiratory therapies and home medical equipment. Gentiva serves nearly 500,000 patients annually in more than 380 locations across 39 states. Gentiva has successfully grown primarily through acquisitions. During the past few years, the company has completed multiple acquisitions which have expanded its reach further.

Gentiva continues to look for profitable acquisitions. We have an Outperform rating on the stock.

Vodafone Group, Plc (VOD)
By Zacks Equity Research
Oct 21, 2009
We maintain our Outperform recommendation for Vodafone (VOD), the largest revenue generating international wireless carrier. Revenue growth in the last quarter was fuelled by foreign exchange gains and acquisitions.

Additionally, increase in subscriber base was driven by continued healthy net additions in its Indian operation. Vodafone's globally diversified operation provides hedging elements which offset price competition and translation risk that may arise in specific markets. The company continues to accelerate 3G wireless service deployments and expanding network availability across Asia, Eastern Europe and Africa.

Moreover, Vodafone is focused on improving shareholder returns through attractive dividend payouts. Management's outlook for fiscal 2010 remains favorable as operating results are expected to improve with continued growth across incipient markets coupled with ongoing cost saving initiatives and currency exchange translation gains.

Pozen, Inc. (POZN)
By Jason Napodano
Oct 20, 2009
Pozen, Inc. (POZN) is one of our top-picks for small-cap biotech. We see the fundamentals as strong and the valuation as low.

We are pleased to see the NDA for Vimovo (PN-400) filed and now accepted by the U.S. FDA. FDA acceptance earned Pozen a $10 million milestone from AstraZeneca in August. We expect sales of Treximet to ramp in the coming quarters now that the groundwork has been laid. And finally, phase III trials on the very exciting PA program should start in the fall.

The company is financially well positioned and fundamentally strong with respect to the pipeline. We recommend being buyers at this level.

Cytori Therapeutics (CYTX)
By Jason Napodano
Oct 19, 2009
We continue to be very positive on Cytori Therapeutics (CYTX) and believe the company's Celution System, a better mousetrap for quickly and efficiently harvesting adult stem cells, will see sales ramp significantly over the next few years.

Sales of the system have been tracking with our expectations. Ultimately, the clinical data will determine the pace at which the ramp continues. So far, the clinical data has been exciting, and with several investigator-sponsored programs ongoing. Additional data expected over the next few years will have an immediate impact on the financial results.

Today's price represents a very attractive entry point in our view. We are maintaining our Outperform rating and $8 target.

Semtech Corp. (SMTC)
By Ken Nagy
Oct 16, 2009
Semtech Corp. (SMTC) is a fabless supplier of analog and mixed-signal semiconductor devices. Management has been diversifying the product portfolio, introducing new high-margin products and broadening the customer base.

July quarter results exceeded the consensus on both the top and bottom lines. Forward guidance is for 6-10% revenue increase in the October quarter.

Both revenue growth and margin expansion are expected to return in the second half of fiscal 2010 when the new product platforms gain traction. We are reiterating our BUY rating on SMTC shares.

Sangamo Biosciences (SGMO)
By Grant Zeng
Oct 15, 2009
Sangamo Biosciences, Inc. (SGMO) uses a proprietary ZFP gene regulation technology to discover and develop a new class of therapeutic candidates for diabetic neuropathy, cardiovascular disease, cancer and immune diseases.

We are optimistic about this novel technology. SB-509 has shown some positive results for the treatment of moderate to severe DN. We are also optimistic about other clinical programs. Further, we are impressed by the company's strategy to monetize this ZFP technology.

We maintain our Outperform rating on shares of Sangamo based on the platform technology and the progress the company has made for both its clinical and preclinical programs. Our target price is $10.00.

VimpelCom (VIP)
By Zacks Equity Research
Oct 14, 2009
We reaffirm our Outperform recommendation for VimpelCom (VIP), Russia's second largest cellular carrier with over 25% market share. Reported earnings in the last quarter outpaced the Zacks Consensus Estimate, driven by foreign exchange gains.

We continue to be intrigued by VimpelCom's successful sales growth trend and its ability to retain subscribers on a recurring basis, even as overall economic factors remain weak. The company is also progressing well in expanding its 3G wireless and residential broadband network deployments, as reflected by healthy subscriber accretion in the last quarter.

Additionally, the ongoing expansion initiatives into emerging Asian markets (including Cambodia and Vietnam) are expected to boost opportunity in wireless, given the lower mobile penetration levels in these regions.

Amphenol Corp. (APH)
By Abdul Saleh
Oct 13, 2009
Amphenol Corporation (APH) is scheduled to release its fiscal Q3 results on October 15. The company stated that though the economic environment remains uncertain, there was a stabilization of demand in most markets.

We remain optimistic about Amphenol's long-term growth prospects in the mobile devices business. Demand for mobile phones remains strong. Beyond mobile phones, the company continues to expand the use of its products into fast growing submarkets such as PDAs, laptops and desktop computers.

Based on constant currency exchange rates and some seasonal moderation, APH expects revenues between $670 million and $685 million in Q3:09. EPS is projected within 41 - 43 cents. We maintain our Outperform rating with a target price of $40.

Pozen, Inc. (POZN)
By Jason Napodano
Oct 12, 2009
Pozen, Inc. (POZN) is one of our top-picks for small-cap biotech. We see the fundamentals as strong and the valuation as low. We are pleased to see the NDA for Vimovo (PN-400) filed and now accepted by the U.S. FDA. FDA acceptance earned Pozen a $10 million milestone from AstraZeneca in August.

We expect sales of Treximet to ramp in the coming quarters now that the groundwork has been laid. And finally, phase III trials on the very exciting PA program should start in the fall.

The company is financially well positioned and fundamentally strong with respect to the pipeline. We recommend being buyers at this level.

Valspar Corp. (VAL)
By Zacks Equity Research
Oct 09, 2009
We are upgrading Valspar Corporation (VAL) shares to Outperform with a target price of $32.00. The company's solid results and robust margin gains over the past few quarters reflect the dramatic raw material cost reduction, increasing product prices and productivity gains.

We expect the company's earnings momentum to remain in place over the next few quarters driven by volume increases in the Paint category. Robust growth in China industrial and consumer activity as well as structural and feedstock cost relief are expected to fuel margin expansion for Coating.

Not only were Valspar's recent quarterly earnings ahead of the Zacks Consensus Estimate, but the company has also raised guidance for the rest of the year.

Guess? Inc. (GES)
By Zacks Equity Research
Oct 08, 2009
Guess? (GES) reported better-than-expected results for the first half of 2010, thanks to strong North American sales, operating cost controls and smart inventory management. In addition, the company's strong cost-control efforts helped it maintain a lower operating cost structure, which in turn helped it navigate through the difficult economic conditions.

Management also issued optimistic guidance for the third quarter, although it declined to provide guidance for fiscal year 2010. For the third quarter, Guess expects revenue of $465-$485 million and EPS of 46-49 cents.

Given the company's positive outlook and strong control mechanisms, we upgrade the shares of Guess Inc. from Neutral to Outperform.

Tiffany & Co. (TIF)
By Zacks Equity Research
Oct 07, 2009
Tiffany (TIF) is well positioned to deliver robust sales and earnings growth through leveraging capital investments made over past several years in distribution, manufacturing and diamond sourcing processes. The company, which holds a significant position in the world jewelry market, is poised to benefit from its increased geographic diversification once the economy rebounds.

However, to weather the downturn, Tiffany is concentrating more on smaller size store formats that offer selected collections of lower priced higher-margin products, which in turn enhance store productivity.

Further, to protect its shrunken revenue base, the company has been paring its cost structure by reducing its headcount and trimming capital expenditure with fewer store openings. Consequently, our Outperform rating on the stock persists.

Depomed, Inc. (DEPO)
By Jason Napodano
Oct 06, 2009
We are reiterating our positive rating on Depomed (DEPO). We are very excited about the recent positive phase III data for DM-1796 in PHN and believe the market has yet to factor in the potential that this drug has in terms of delivering milestones and royalties to the company from partner Abbott Labs.

Up next for Depomed is the phase III Breeze data testing Serada in menopausal hot flashes. This data is expected before the end of the month and should help drive the shares upward towards our new $12 target.

Finally, the company is in a solid cash position and should end the year with over $70 million in the bank. Our $12 target is based on 20x our 2013 EPS estimate of $2.12, discounted back to present day at an aggressive rate of 25%.

Gol Linhas Aereas (GOL)
By Zacks Equity Research
Oct 05, 2009
Gol Linhas Aereas (GOL) remains better positioned to capitalize on the growth of discount air travel in Brazil and the rest of Latin America given its strong market share position and efficient operations. Favorable trends in fuel prices and exchange rates are also benefiting the company's outlook.

While competitive pressures and the impact of the global financial crisis is a source of concern, Gol's position is strong. We expect the company to experience growth in the short-to-medium term given its continued investment in fleet renovation and international agreements.

Thus we are upgrading our recommendation on Gol ADRs from Neutral to Outperform. Our six-month target price is $12 per ADR.

TRW Automotive (TRW)
By Zacks Equity Research
Oct 02, 2009
TRW Automotive Holdings (TRW) is well positioned to take advantage of an industry rebound, given its advanced technology portfolio, leading diversification and improved cost structure.

The company's innovative product portfolio is capable of generating top- and bottom-line growth. It has been successful in its restructuring and cost containment actions to mitigate the impact of the industry-wide downturn as reflected in the better than expected second-quarter results.

As such, we are maintaining our long-term Outperform recommendation for the stock.

Alvarion Ltd. (ALVR)
By David Weissman
Oct 01, 2009
We maintain our rating of Outperform for Alvarion Ltd (ALVR), a pure-play wireless solutions provider. This follows a series of impressive contract awards to deploy several large-scale wireless systems.

Alvarion has more than 250 WiMAX deployments in diversified geographic regions. According to our assessment, higher bandwidth requirements and an increasing percentage of Alvarion's overall business directed to WiMAX offerings are expected to drive revenue higher in future reporting periods.

Furthermore, the company maintains a strong balance sheet and a respectable book-to-bill ratio. The stock is currently trading at a significant level below its 52-week high level even as business deals are announced.

Acorda Therapeutics (ACOR)
By Jason Napodano
Sep 30, 2009
Acorda (ACOR) is one of the more interesting biotechnology companies under our coverage. The company s key pipeline drug, Fampridine-SR, is currently under U.S. FDA review with a decision expected in late October 2009.

Outside the U.S., Acorda has partnered with Biogen Idec under very favorable terms. Fampridine-SR has blockbuster potential worldwide in our view. Plus, the company is extremely well-capitalized with over $325 million in cash and management has commercial experience with currently approved product Zanaflex.

These are among the best fundamentals in all of biotech. We reiterate our positive rating on the stock.

Commtouch Software (CTCH)
By Ken Nagy
Sep 29, 2009
Commtouch Software (CTCH) a provider of email defense and URL filtering solutions to enterprise customers and OEM distribution partners. The firm is in the cloud technology and has the ability to analyzes 2.5 billion messages a day, which is far superior to the competition's static solutions which have little chance of catching new outbreaks.

During late 2008, the company released its URL filtering services. The web has more than double the revenue potential of the messaging market. The firm's OEM business model gives Commtouch the advantage of recurring revenue, higher margins and less exposure to the end markets.

We see value in the shares of Commtouch and rate it an Outperform. Our six-month target price is $4.00 per share.

SABESP (SBS)
By Zacks Equity Research
Sep 28, 2009
We are keeping our Outperform recommendation on SABESP ADRs (SBS) unchanged at this stage. The short-term outlook for the company is solid, due to the September 2009 tariff adjustment and the recent appreciation of the Brazilian real.

The more relaxed monetary policy in Brazil is also very encouraging. Moreover, the company's non-cyclical and relatively low risk business model are also positive.

The overall regulatory regime for water and sewage utilities in Brazil has improved considerably in recent times, reducing the regulatory risk of the industry in general and SABESP in particular.

Alvarion, Ltd. (ALVR)
By David Weissman
Sep 25, 2009
We maintain our rating of Outperform for Alvarion Ltd (ALVR), a pure-play wireless solutions provider. This follows a series of impressive contract awards to deploy several large-scale wireless systems. Alvarion has more than 250 WiMAX deployments in diversified geographic regions.

According to our assessment, higher bandwidth requirements and an increasing percentage of Alvarion's overall business directed to WiMAX offerings are expected to drive revenue higher in future reporting periods. Furthermore, the company maintains a strong balance sheet and a respectable book-to-bill ratio.

The stock is currently trading at a significant level below its 52-week high, even as business deals continue to be announced.

China Fire & Security (CFSG)
By Zacks Equity Research
Sep 24, 2009
China Fire & Security Group (CFSG) is a leading provider of industrial fire protection systems in China. The company's strong position in the industry has enabled it to win a high percentage of its bids, which is around 60-70% of bids in the iron and steel industry.

Though the company has been primarily serving the iron and steel industry, it is now looking at expanding into other industrial sectors such as transportation, marines, nuclear energy and petrochemical. China's industrial fire protection market is expected to grow 11% annually until 2011.

As a leading player in the market, we believe CFSG is well-positioned to capitalize on the growth potential. We are upgrading our rating on the stock from Neutral to Outperform.

Skyworks Solutions (SWKS)
By Zacks Equity Research
Sep 23, 2009
Skyworks Solutions (SWKS) is well positioned to benefit from recent trends in the handset market, which are favorable for increasing dollar content for RF (radio frequency) components. There is a significant growth opportunity in the handsets markets propelled by the launch of 3G networks in China.

The company has tie-ups with major OEMs (original equipment manufacturers) that underscore its success in gaining market share. The company is also making good progress in the linear business with WLAN wins at Intel and Broadcom.

Results for the June quarter were better than expected, with earnings per share beating the Zacks Consensus Estimate. Management provided a strong forecast for the coming quarter. Our long-term recommendation for Skyworks is Outperform.

Goldman Sachs (GS)
By Zacks Equity Research
Sep 22, 2009
We are initiating coverage on Goldman Sachs (GS) with an Outperform recommendation. The company reported strong second-quarter results, significantly ahead of the Zacks Consensus Estimate, led by strong topline growth in all its key businesses.

Goldman's well-diversified business model, coupled with a more favorable operating environment resulting from improved equity markets, led to strong growth in fixed income and a turnaround in investment banking activity.

Though losses from the commercial real estate portfolio will likely weigh on the results in the near term, we think Goldman's sturdy capital and liquidity will lead to increased profitability from newer opportunities once the economy recovers.

China Mobile (CHL)
By David Weissman
Sep 21, 2009
China Mobile (CHL), the largest wireless carrier in the world, continues to deliver healthy operating results as evidenced by strong subscriber accretion in 2008. As we approach the 3rd and 4th quarters of 2009, our opinion remains firm that the new competitive entities will face unanticipated challenges deploying and advancing services to levels and coverage delivered by China Mobile.

Accordingly, we assess that successful expansion into low-penetration rural regions of China coupled with aggressive 3G TDSCDMA service deployments in 2009, and customized mobile value-added services establish China Mobile as the dominant mobile provider, far ahead of its nearest competitors. Additionally, a strong balance sheet, strong free cash flow and sustainable dividends facilitate the company's efforts to weather economic volatility.

We maintain our Outperform rating even as we factor-in potential impacts of a more competitive landscape and a comparatively weaker Chinese economy though the end of 2009.

ON Semiconductor (ONNN)
By Zacks Equity Research
Sep 18, 2009
ON Semiconductor (ONNN) is an OEM of primarily analog semiconductors used within a diverse set of end markets. June quarter results beat consensus expectations, with management guiding for stronger results in the September quarter.

Recent acquisitions, a broad product portfolio, a well diversified business across end markets and geographies, restructuring actions and debt reduction initiatives are other positive factors.

While competition is strong as ever and restrictive covenants and some residual integration risk remain, we believe the positives far outweigh these negative factors. Consequently, we are reiterating our OUTPERFORM rating on the stock.

Del Monte Foods (DLM)
By Zacks Equity Research
Sep 17, 2009
Del Monte's (DLM) long-term objectives are to achieve earnings growth in the range of 7% to 9% and topline growth in the range of 3% to 5%. However, the guidance for both earnings and revenues growth for fiscal 2010, exceed the long-term range, and are now expected to increase by approximately 15% and 4% to 6%, respectively.

Price increases implemented across the product portfolio helped Del Monte post strong profits during the first quarter of fiscal 2010 compared to a net loss in the comparable prior-year period. Del Monte has been able to boost sales through continued emphasis on product and packaging innovation.

We therefore upgrade the shares of Del Monte to Outperform.

Joy Global (JOYG)
By Zacks Equity Research
Sep 16, 2009
We are confident about the long-term fundamentals of the mining industry, which is further supported by a sustainable secular shift in commodity demand in the emerging economies. This will provide Joy Global (JOYG) substantial growth potential once the global economy emerges from the ongoing turmoil.

Joy Global aims at maximizing operating efficiency and useful life of mining equipment through value-added aftermarket services, which gives the company significant edge over its competitors. Additionally, the stable revenue stream from the high-margin aftermarket operations help Joy Global offset its cyclical original equipment business.

Of late, Joy Global management has implemented several strategies to optimize cost-structure and realign production capacity to cope with the slowing customer orders and stay competitive amid the ongoing global slowdown. The company is pushing its overall inventory and working capital efficiency. Moreover, Joy Global is looking at increasingly relocating production capacity to low-cost regions like China, Poland, and South Africa. These actions will improve operational efficiency, boost profitability and also solidify long term viability of the company.

Joy Global has a strong balance sheet and a solid cash flow generating profile. The capex requirements should be reduced markedly when the company completes its ongoing projects. As of July 31, 2009, Joy Global had $266.6 million in cash and $243.3 million in available credit line; debt-to-capital was 38%. It has a favorable debt maturity schedule with the bulk of its long-term debt obligations falling due after 2015.

We see Joy Global shares performing above the broader market going forward and as such recommend it as Outperform.

Fomento SAB (FMX)
By Zacks Equity Research
Sep 15, 2009
We are reiterating our recommendation on Fomento (FMX) shares given its relative immunity from the global economic downturn. Being a producer of a low-cost, daily use product, and focused on domestic markets, FMX is less exposed to the global economic downturn.

We are also optimistic about the joint venture between Jugos del Valle and the Coca-Cola company. The company has been successful in boosting its Brazilian business and the Oxxo stores continue to grow fast.

Our baseline outlook reflects continued economic growth in Latin America. We consider Latin America to be one of the most attractive areas for the beverage industry, due to positive demographics.

Tyco International (TYC)
By Zacks Equity Research
Sep 14, 2009
We are initiating coverage on Tyco International (TYC) shares with an Outperform rating and $36 target price.

The company's third-quarter results benefited from the improvement in key metrics like account growth, average revenue per user and the disconnect rate, which helped sustain recurring revenues.

Tyco is increasing capital expenditure on Research & Development at its two new centers in Shanghai and Bangalore, which are focused on developing products tailored to respective local markets. The company is aggressively pursuing its restructuring program and expects to realize tangible benefits in 2010.

Eastman Chemical (EMN)
By Zacks Equity Research
Sep 11, 2009
We have upgraded our long-term recommendation for Eastman Chemical Company (EMN), a manufacturer of chemicals, plastics and fiber, to Outperform with a target price of $60.00.

Eastman stands to benefit from its business restructuring and cost-cutting measures, which are expected to result in cost savings of more than $200 million for the full year 2009.

The company's recent quarterly earnings were ahead of the Zacks Consensus and earlier guidance. For the full-year 2009, the company is now guiding towards earnings to be at the higher end of a $2.00 $3.00 range.

Garmin, Ltd. (GRMN)
By Zacks Equity Research
Sep 09, 2009
Garmin (GRMN) is an OEM of GPS-based equipment. June quarter results were much better than consensus expectations, signaling an end to the downturn.

The strong revenue and margin performance in the recently concluded quarter, the company s market share, brand equity, financial position, compelling new products and management history of execution are encouraging factors.

Although the near-term outlook is cloudy and competition remains fierce, we continue to believe that the company will perform better than peers. Consequently, we are reiterating our Outperform recommendation on Garmin shares.

Chipotle Mexican Grill (CMG)
By Zacks Equity Research
Sep 08, 2009
Chipotle Mexican Grill (CMG) has remained largely unruffled by the current slowdown, highlighting the company's robust business model. The company is well-positioned to expand rapidly while generating improved earnings, margins, and returns on invested capital.

With a strong balance sheet, consistent earnings, and healthy cash flow, we think the stock provides relative safety and moderate growth in a turbulent environment. The company's results have been stable relative to many of its peers.

Moreover, the company's new program provides a significant competitive advantage in the fast-casual segment. As such, we maintain an Outperform rating on the stock.

C.R. Bard (BCR)
By Christopher Titus
Sep 04, 2009
C.R. Bard (BCR) operates in vascular, urology, oncology and surgical specialty markets. These end-markets should remain insulated from the current economic turmoil.

Many of the company's products are used in interventional medicine -- life-saving surgical procedures. Future quarters will be met with a headwind from foreign exchange.

However, with less than a third of sales outside of the United States, the impact will be less than that for BCR's competitors. We retain our Outperform rating on the shares.

ITT Corp. (ITT)
By Zacks Equity Research
Sep 03, 2009
We are initiating coverage on ITT Corporation (ITT) with an Outperform rating and $57 target price. The company exceeded its second quarter earnings guidance due to strong results overall.

Total defense organic orders improved 29% year over year on strong product activities. OEM pressures in the aerospace market including the Boeing-787 delay have resulted in downward forecast for motion and flow control business.

Finally, ITT was able to place $1 billion in senior debt at a very attractive blended rate of 5.5% per annum which reflects on the confidence reposed on the company by participants in the financial markets.

Amdocs, Ltd. (DOX)
By Zacks Equity Research
Sep 02, 2009
We maintain our Outperform recommendation for Amdocs (DOX) following its strong results for the fiscal third quarter of fiscal 2009. The company has industry-leading technology integration products for large transformational projects and managed services.

Long-term fundamentals for Amdocs remain firm due to the transition of telecom service providers to converged and consolidated solutions. Amdocs maintains a very strong financial position with healthy order backlog.

Recently, the company has won a series of large managed services contracts in various parts of the world. Except North America, operations in other regions have started gaining momentum.

CNOOC, Ltd. (CEO)
By Zacks Equity Research
Sep 01, 2009
With favorable prospects for the resumption of China's economic growth and commodity prices off of their lows, CNOOC, Ltd. (CEO) ADSs are expected to maintain their recent impressive performance momentum.

This, coupled with the company's positive production-growth profile, exclusivity in the offshore China region and lucrative LNG investments, account for continued favorable view.

The company's low cost operating model is also a competitive advantage. With approximately ten new projects going on-stream this year, full-year volumes are expected to increase by roughly 15%, with oil and natural gas production in the first half having gone up by 15.2%.

Energy Conversion Devices (ENER)
By Sean P. Smith
Aug 31, 2009
We remain optimistic about Energy Conversion Devices' (ENER) long-term potential success in the high growth alternative energy industry, given increased activity in solar power projects, federal incentives, and extension of the federal ITC.

The company does face ongoing challenges, however, and the company's Q4 2009 earnings results fell short of Zacks' expectations.

Our existing price target of $20.00 reflects a multiple of approximately 28.5x our 2010 earnings estimate. The shares are currently trading at approximately 17.9 our 2010 earnings estimate.

Acergy, Inc. (ACGY)
By Zacks Equity Research
Aug 28, 2009
Acergy (ACGY) posted better-than-expected second quarter 2009 results, though revenue and backlog slipped, reflecting the tentative operating environment stemming from commodity price and credit market overhang.

With a still healthy backlog, significant cash balances and no near-term refinancing requirements, Acergy remains comfortable to weather the challenging business environment.

Our continued Outperform recommendation on Acergy ADRs also reflects the company's strong leverage to the still very favorable outlook for deepwater oilfield activities and the quality of its client base, which mostly include well-capitalized oil majors or national oil companies.

Medtronic, Inc. (MDT)
By Zacks Equity Research
Aug 27, 2009
Medtronic's (MDT) long-term story is intact - product approvals and launches will drive healthy top-line growth. This was witnessed in the first quarter when the company reported sales growth in all its operating segments.

Higher demand for pacemakers and ICDs has rejuvenated growth in the CRDM segment. This will bolster the company's strong position in the cardiac market against its closest rivals, Boston Scientific Corporation and St. Jude Medical.

First quarter earnings of 79 cents per share were higher than the Zacks Consensus Estimate of 78 cents and 72 cents, a year ago. We rate this stock Outperform with a target price of $43.

Intuitive Surgical (ISRG)
By Zacks Equity Research
Aug 26, 2009
Intuitive Surgical's (ISRG) story is improving. A new product was developed as an upgrade to the existing daVinci Surgical System. Furthermore, the company enjoys a virtual monopoly in robotic surgery without direct competition.

The company's razor/razor blade business model ensures recurring revenues even during difficult times. In the second quarter, earnings of $1.62 per share were higher than the Zacks Consensus Estimate of $1.27.

Growth in revenues was witnessed across all the segments. We believe the company will continue leveraging its monopoly position in the industry. We rate this stock Outperform with a target price of $260 per share.

Transcept Pharma (TSPT)
By Jason Napodano
Aug 25, 2009
We recently initiated coverage of Transcept Pharmaceuticals (TSPT) with an Outperform rating and $12 price target. We think Intermezzo is a product that can fill a much needed void for insomnia patients with chronic nocturnal awakenings.

An FDA decision on the pending new drug application is expected in late October 2009. We think approval is a high likelihood event at that time.

With the commercialization partner signed and the financial position solid (estimated $95 million on hand), the stock is significantly under-valued, in our view.

Yum! Brands (YUM)
By Zacks Equity Research
Aug 24, 2009
The operator of Taco Bell, Pizza Hut, and KFC fast food chains, Yum! Brands (YUM), reported second quarter results, with double-digit growth in the bottom-line. Earnings per share grew 11% to 50 cents, surpassing the Zacks Consensus Estimate of 43 cents.

Driving growth is the company's overseas divisions (China and Yum Restaurants International), which constitute the only stable segment of the entire restaurant industry. Both the divisions are on track to grow operating earnings by an average CAGR of 20% and 10%, respectively.

The U.S. operations are also showing signs of revival with an expected operating earnings growth of 5%. We think the stock provides relative safety and moderate growth in a turbulent environment and exposure to faster-growing international markets.

As a result, the company remains confident of its business model and its ability to deliver at least 10% EPS growth in 2009 and beyond consistently. As such, we maintain an Outperform recommendation on the stock.

Expedia, Inc. (EXPE)
By Zacks Equity Research
Aug 21, 2009
Expedia Inc. (EXPE) is one of the leading online travel companies in the world. The company reported strong results in the last quarter, beating the consensus estimate. Although bookings continue to be impacted by the recession, management has taken promotional measures to improve the conversion rate.

We are also positive about international initiatives, which we think will be the key to future growth. Cost management, a favorable online advertising environment and solid financials are other encouraging factors. In comparison, the possibility of increased occupancy taxes and low growth in Egencia (the smallest segment) seem less significant.

However, the declining average daily rates could be something to watch. We are initiating coverage of EXPE shares with an OUTPERFORM rating.

Chevron Corp. (CVX)
By Zacks Equity Research
Aug 20, 2009
Chevron Corp. (CVX) reported better-than-expected second-quarter 2009 EPS of $1.10, surpassing the Zacks Consensus Estimate of 95 cents per share. Contribution from increased production of crude oil and natural gas due to the start-up of new projects has more than offset the sharp decline in commodity prices.

While a weak oil price environment may weigh on the stock over the coming weeks, given its strong pipeline of development projects and impressive recent exploration successes, the company's long-term outlook has significantly improved.

As such, we recommend an Outperform rating for Chevron shares.

Medtronic, Inc. (MDT)
By Zacks Equity Research
Aug 19, 2009
Medtronic's (MDT) story is improving -- product approvals, launches and a renewed focus on operating margins should drive healthy near-term earnings growth. While sales growth has been hampered by weak U.S. end-markets, the company produced solid free cash flow of over $3 billion that can be used for acquisitions.

The company is well on track for achieving goals set by its ONE Medtronic approach. Earnings of 82 cents per share in the last quarter of the fiscal year were in line with the Zacks Consensus Estimate.

Manufacturing efficiencies and low product costs drove margins higher. We rate this stock Outperform with a target price of $42.

IBM Corporation (IBM)
By Zacks Equity Research
Aug 18, 2009
IBM's (IBM) second quarter results were above the Zacks Consensus Estimates, driven by higher gross margins and operating cost controls. The company also raised its 2009 EPS by 50 cents to $9.70.

As a result of its large non-US revenue base, IBM has been better insulated from the recent weakness in the U.S. economy than many of its peers. We believe that with the strong liquidity position, operational efficiency and improving profitability, IBM is a defensive play in the current environment and is well positioned to benefit from the market recovery.

We maintain our Outperform rating on the stock based on strong fundamentals, substantial free cash flow, solid Services businesses and earnings momentum. However we remain cautious on currency fluctuations, which are taking a toll on revenue and may be critical to earnings growth over the next two years.

Bristol-Myers Squibb (BMY)
By Zacks Equity Research
Aug 17, 2009
Bristol-Myers Squibb (BMY) reported second quarter earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 47 cents. Mega-blockbuster Plavix should continue driving growth at Bristol-Myers.

However, patent expirations loom large on Bristol starting 2011 when the Plavix patent expires. In order to compensate for the loss in revenues when Plavix loses exclusivity, Bristol-Myers is working on bringing new products to market.

Additionally, management is working hard to reduce costs and shed less profitable and non-core businesses. We believe the company could be an attractive takeover candidate for a larger pharma name such as Sanofi-Aventis or AstraZeneca.

We have an Outperform rating on the stock with a price target of $25.

Gafisa S.A. (GFA)
By Claudio Freitas
Aug 14, 2009
We are reiterating our Outperform recommendation on Gafisa S.A. (GFA). We have been encouraged by the stimulus package and the new value-added tax relief recently announced by the Brazilian government.

Second quarter 2009 results were positive, mainly considering the international crisis, which has affected Brazil's construction sector.

The new Government Housing Program and the R$600 million debenture from Caixa Economica will help Tenda to expand its business plan for the development of projects in the lower income sector.

Cisco Systems (CSCO)
By Zacks Equity Research
Aug 13, 2009
Cisco Systems' (CSCO) fourth quarter results were a significant improvement over prior quarters, with both revenue and earnings growing sequentially.

Of particular note is the growth in orders, which indicates a bottom for CSCO. Improving operating performance, solid financials, a sound restructuring policy and new growth initiatives are the drivers behind our Outperform rating.

However, we caution investors about the increasing competition, market share losses, complicated decision making process and integration risks.

AutoNation (AN)
By Zacks Equity Research
Aug 12, 2009
AutoNation (AN) remains focused on improving its product mix and cost cutting initiatives. The company beat the Zacks Consensus Estimate by posting higher profits in the second quarter despite difficult industry conditions.

The company addressed its cost reduction initiatives, lower interest expense, disciplined operating model and inventory management for maintaining the profits.

As such, we have upgraded the stock to an Outperform recommendation with a target price of $22.00.

tw telecom (TWTC)
By David Weissman
Aug 11, 2009
We maintain our Buy rating and the same valuation target for tw telecom (TWTC), a leading provider of managed voice & data networking solutions. TWTC continues to generate sustaining revenue from large business enterprises primarily through sales of Ethernet and IP-VPN services.

This has reduced the company's dependence on telecom carrier customers. Although the balance sheet remains considerably leveraged, we do not expect any immediate liquidity crisis since no significant debt will mature before 2013. Growth prospects for TWTC remain firm as a result of growing demand for bandwidth to implement converged IP-based networks.

The stock is currently trading near 50% discount to its 52-week high range. We believe that this weakness in share pricing may be due to overall equity market conditions which may now create a favorable investment opportunity.

3M Company (MMM)
By Zacks Equity Research
Aug 10, 2009
We are initiating coverage on 3M Company (MMM) with an Outperform rating and $80 target price. The company's second-quarter results benefited from the recovery in short development cycle businesses such as consumer electronics.

The company is aggressively managing its cost structure with a gradual improvement in gross margin. Meaningful uptake has yet to be seen from most major demand industries like automotive, manufacturing, general industrial and housing.

Baxter International (BAX)
By Zacks Equity Research
Aug 07, 2009
We believe that Baxter International's (BAX) focus on life-sustaining products insulates its results from the current economic downturn and provide investors with good quality returns on a risk-adjusted basis.

The company has a strong product pipeline, with a number of promising products in the final stages of clinical trials. Baxter's strong market position is demonstrated in its recent quarterly performance that came ahead of guidance, while earnings exceeded the Zacks Consensus Estimate.

We believe that investors will benefit by adding this stock to their portfolio.

DIRECTV (DTV)
By Ann Northrop
Aug 06, 2009
DIRECTV (DTV) is set to continue generating healthy free cash flow and earnings growth, with reduced cap ex requirements, healthy ARPU and vigorous growth in its U.S. and Latin American operations. The company's HD lead should defend its market share, bolster ARPU and help stem decelerating subscriber growth.

We think the HD roll-out with the RBOCs as partners will defend DTV's market share against cable's ability to offer video, voice and data ("triple play"), which together with recently tightened credit standards have been impeding subscriber growth. Longer term, we view the IP-TV roll-outs by AT&T and Verizon as serious threats, but those that won't be fully realized for several years.

Near-term, we expect satellite and cable TV will be relatively defensive recession investments, suffering less subscriber attrition in the recession than other forms of entertainment, and DIRECTV in particular should benefit from its recent efforts to weed out its lower-end customers most likely to churn.

Durect Corporation - DRRX
By Zacks Equity Research
Aug 05, 2009
We are staying positive on Durect Corp. (DRRX) despite some recent setback and future challenges. Our investment thesis is based on the fact that we believe Remoxy will eventually receive approval in the U.S., and that management will secure another, potentially more lucrative, partnership on TRANSDUR-Sufentanil.

We are also optimistic on Posidur and believe that management will look to secure a partnership in the U.S. and Japan in 2009 or 2010. Finally, we are comfortable with the cash position given the current $42 million balance and all partnering opportunities available to management.

We continue to recommend investors Buy the stock. Our target remains $5 per share.

Inspire Pharmaceuticals (ISPH)
By Grant Zeng
Aug 04, 2009
Inspire Pharmaceuticals, Inc. (ISPH) is a specialty pharmaceutical company focused on the development and commercialization of treatments for respiratory and ophthalmologic disorders. Currently, the company has three products on the market and a robust pipeline.

We see strong top-line growth from 2009 and beyond. Inspire just reported positive phase III data of Denufosol for CF. The company has a strong collaborative alliance with Allergan Pharmaceuticals for key products that treat dry eyes and allergic conjunctivitis.

The current price is attractive. We maintain our Buy rating on shares of Inspire with a price target of $6.00.

Avon Products - AVP
By Steven Ralston
Aug 03, 2009
CEO Andrea Jung has transformed Avon Products (AVP) over the last nine years. The company has grown aggressively in the Beauty products category, especially overseas in developing markets. Management instilled financial discipline in the company through the multi-year supply chain cost reduction program along with the Product Line Simplification (PLS) and Strategic Sourcing Initiatives (SSI). Avon is an above-average growth company among its peers, but there are inherent risks associated with the direct sales business model and the dependence on developing markets for growth. The annualized cost savings associated with Product Line Simplification (PLS) initiative and Strategic Sourcing Initiative (SSI) are above expectations. The target price of $36.25 is based on a 22 P/E on trailing 12-month earnings. The Buy rating is maintained.

Hanesbrands, Inc. (HBI)
By Steven Ralston
Jul 31, 2009
Hanesbrands, Inc. (HBI) management's business model requires only modest sales growth to create substantial EPS growth. Earnings are being driven by brand-building and cost-reduction initiatives.

Since the spin-off in September 2006, the company has reduced debt by $511 million, lowering interest expense from the post spin-off financial structure. However, management is reporting non-GAAP EPS, which excludes unusual actions, which may be distorting perceived earnings.

The Buy rating is maintained due to valuation. Currently, our six-month target price is $20.50 per share.

AmBev (ABV)
By Claudio Freitas
Jul 30, 2009
We are maintaining our Buy recommendation on Companhia de Bebidas das Americas, or AmBev (ABV). The company posted good results for the first quarter of 2009 with excellent results in the key Brazilian market.

InBev's acquisition of Anheuser-Busch was positive for the company as it creates huge synergies. Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low cost, daily use products, is not tied directly to the international economic cycle.

Also, a more relaxed monetary policy in Brazil is very positive for the company. Our target price is $79.50 per share.

NTT DoCoMo (DCM)
By David Weissman
Jul 29, 2009
We maintain our Buy recommendation and the same valuation target for NTT DoCoMo (DCM), the largest mobile service provider in Japan, ahead of first quarter of fiscal 2010 financial results. The company currently maintains a leading 50% share of the Japanese wireless market.

DCM upgraded 98% of its total coverage area with 3G HSDPA technologies and emerging 4G LTE networks are planned for deployment through 2010. DCM's decisions to focus on mobile content along with a renewed geographic expansion drive outside Japan are positive indicators.

Furthermore, the company is launching an innovative on-line money transfer service. We consider DCM as an attractive long-term investment opportunity.

Raytheon Co. (RTN)
By Jonathan Kolb
Jul 28, 2009
Raytheon Company (RTN) offers investors strong order bookings and order backlog, an improving balance sheet, growing cash flow, operational improvements and an above-industry average ROE.

Going forward, growth will be driven by focus on ISR unmanned systems, training, cyber security, Standard Missile-3, Patriot, Zumwalt and THAAD. Accordingly, we note a bias towards outperformance and maintain our BUY recommendation on RTN common stock with a six-month target price of $49.25.

Price appreciation to our near-term valuation target, coupled with the recently increased $0.31 per share quarterly cash dividend -- which we deem to be sustainable and secure -- represents annualized total return potential of 20.7%.

Onyx Pharma - ONXX
By Grant Zeng
Jul 27, 2009
We maintain our Buy rating on Onyx (ONXX) shares with price target of $45.

Onyx delivered strong financial performance in 1Q09 and we expect the company will continue to deliver very good financials for 2009. Nexavar sales continued to grow in 1Q08, which was mainly attributed to the market penetration in liver cancer while market share has stabilized in kidney cancer market in spite of heavy competition. Total Nexavar sales came in at $178.1 million, up 17% year over year. This increase was mainly driven by international sales which reached $130 million, up 29% year over year.

EU and the US approved Nexavar for 1st line treatment of liver cancer in 4Q07. In Asia, South Korea and China have approved Nexavar for liver cancer. Other international filing is underway. We believe Nexavar sales will be further boosted in 2009 and beyond due to this new indication.

Label expansion for Nexavar into other cancer indications such as breast cancer is under way. We believe Nexavar has a potential to become a blockbuster. We model sales of Nexavar will reach $1.1 billion in 2010.

The current price is attractive and we recommend investor to buy its shares at current level.

Bristol-Myers Squibb - BMY
By Jason Napodano
Jul 24, 2009
Growth of mega-blockbuster Plavix is helping Bristol-Myers Squibb Company (BMY) drive EPS growth up near 16% in 2008. However, patent expirations loom large in Bristol's future starting in 2011 when the Plavix patent expires.

That being said, the company does have an attractive mid-to-late-stage pipeline, and management has been dramatically working to reduce costs and shed less profitable and non-core businesses. We believe the company is an attractive take-over candiate at this level for a larger pharma name such as Sanofi or AstraZeneca. EPS growth through 2011 is near the top ofbig-pharma.

We expect the shares to trade up near $27.

VimpelCom (VIP)
By Zacks Equity Research
Jul 22, 2009
VimpelCom (VIP) is the second largest cellular carrier in Russia with over 25% market share and continued expansion in regions of the Commonwealth of Independent States (CIS), operating GSMbased wireless services.

We are encouraged with VimpelCom's successful sales growth trend and the company's ability to retain subscribers on a recurring basis, even as overall economic factors remain weak.

Additionally, the ongoing expansion initiatives into emerging Asian markets are expected to boost opportunity in wireless. We reiterate our Buy rating while we account for global economic factors, ongoing geopolitical events in Russia (surrounding countries) and weaker local exchange rates against the U.S. dollar which may affect near-term earnings.

HCP, Inc. - HCP
By Greg Sukenik
Jul 22, 2009
HCP, Inc. (HCP) continues to raise cash through asset sales and equity issuance.

The company has done a successful job of delevering and strengthening the balance sheet. With nearly $1.4 billion available on its credit facility, the company has adequate capital to address 2009 and 2010 debt maturities.

We continue our Buy rating. We think healthcare will continue to outperform other REIT sectors in 2009.

The yield is still over 8% and is being covered with operating cash. The current payout is safe, and think HCP is one of the best positioned names.

ExxonMobil (XOM)
By Sheraz Mian
Jul 21, 2009
We are maintaining our Buy recommendation for ExxonMobil (XOM) shares ahead of the quarterly results, reflecting its strong operational and financial position on the back of solid business portfolio and prudent investment approach.

The company's capital spending plans remain unaffected by the current commodity-price and credit market turmoil, with annual capital outlays in the $25 billion to $30 billion range over the next five years.

We are, however, keeping our estimates and target price unchanged.

IBM Corp. (IBM)
By Ian T. Gilson
Jul 20, 2009
As a result of its large non-US revenue base, IBM Corporation (IBM) has been better insulated from the recent weakness in the U.S. economy than many of its peers. IBM reported strong 2Q09 results ahead of our and Wall Street expectations.

Profitability in the quarter was fueled by higher gross profit margins as IBM shifted to high-margin software and services business. The company also raised its EPS outlook for fiscal 2009 from $9.20 to $9.70. However, currency fluctuations are taking a toll on its revenue, which may be critical to earnings growth over the next two years.

Moreover, the company has focused on driving its bottom line through cost-cutting efforts. IBM is well positioned to benefit from the market recovery. We maintain our Buy rating on IBM shares and maintain our six-month price target of $120.00.

Biogen Idec (BIIB)
By Jason Napodano
Jul 17, 2009
Biogen Idec (BIIB) posted solid results in the second quarter of 2009, despite the slowdown in Tysabri sales due to fears of PML. We think the Biogen core business will remain strong over the next several quarters.

Tysabri prescriptions are showing improvement and we believe will resume their previous pace shortly. In the meantime, the name is significantly under-valued and would be a very attractive takeout candidate for a large-cap pharmaceutical company looking for a great phase III pipeline. We expect 2009 to be an eventful year on the pipeline front.

As investors become more comfortable with both Tysabri trends and emerging pipeline, we believe shares will recover back into the low $60's. At today's price, the name is too attractive to ignore.

CDC Corporation (CHINA)
By Ian T. Gilson
Jul 16, 2009
With a strong track record in consolidation and organic growth of its software business, we believe CDC Corporation (CHINA) is poised for growth. The 1Q 2009 revenue was below expectations, due to the global economic recession as well as a negative impact from currency fluctuations.

With a continual focus on vertical industries, cost reduction initiatives in its software segment, new launches and upgrades in its product line as well as integration efforts, CDC should develop a significant competitive advantage in 2009 and beyond. Also, increase in license bookings and strong pipeline of sales opportunities at CDC Software should drive growth.

As such, we maintain our Buy rating on the shares of CDC with a six-month target price of $2.50.

Johnson & Johnson (JNJ)
By Jason Napodano
Jul 15, 2009
Johnson & Johnson (JNJ) has an enormously diverse revenue stream consisting of market leading products in all three of its business segments. However, due to a number of products expected to experience declining sales as well as the affects of foreign exchange, revenue will fall in 2009. We expect EPS to experience a more moderate decline, benefiting from improving margins and share buybacks.

However, J&J's consistency, product diversity, financial stability and long-term growth potential make it a very attractive holding in this turbulent market. We rate the stock a Buy based on the stock's attractive valuation and strong company fundamentals. Our price target is $70.

Energizer Holdings (ENR)
By Steven Ralston
Jul 14, 2009
Energizer Holdings, Inc. (ENR) has generated top-line growth both through organic growth in the razor blade and battery businesses and through the acquisition of Playtex and Hawaiian Tropic.

In addition, integration savings, originally estimated to be $57 million, increased to $70 million. Management is incentivized with annual and two-year bonus plans and a stock incentive option plan.

Historically, management has been successful in qualifying for performance-based awards. The stock is rated a Buy.

H.J. Heinz Co. (HNZ)
By Steven Ralston
Jul 13, 2009
Growth in Heinz's (HNZ) domestic businesses, strengthening international operations, and the reallocation of resources in favor of key brands are major positive trends for the company.

Despite cost pressure from higher commodity costs, strong pricing of 3.5% to 4.5% has allowed the company to report positive earnings surprises in the last twelve quarters. Management expects net sales to increase by 4% to 6% in fiscal 2010 driven by new product introductions and positive pricing.

In addition, the stock's valuation is attractive. The Buy rating is maintained.

Smith Micro (SMSI)
By Ian T. Gilson
Jul 10, 2009
Smith Micro (SMSI) is a developer of wireless communications software and utility software for multiple OS platforms and phone manufacturers. Although the year 2009 is expected to remain challenging, SMSI will benefit from new PC OEM deal and new carrier wins besides increased adoption of 4G WiMAX connectivity management.

We expect the company to post good results in the second half of 2009 on the basis of new customer wins, strong brand recognition and a robust product pipeline. We believe the company is poised for strong growth driven by the continued strength in Connectivity, albeit the declining consumer spending is likely to be challenging for its consumer business.

We maintain our BUY rating on the stock with our six-month target price of $10.00.

MIPS Technologies (MIPS)
By Ken Nagy
Jul 09, 2009
MIPS Technologies (MIPS) develops embedded processors and intellectual property for use in performance-oriented markets such as digital entertainment, wired and wireless communications (including broadband access), office automation, security and automotive markets.

The firm continues to drive bottom-line margins higher in a very difficult environment. The valuation on MIPS has become very compelling as the stock has shed significant value from its 52-week high and the new acquisition has the potential to drive margin expansion.

Further, MIPS recently sold its analog business, which is highly accretive. We would be buyers of the stock at these levels.

Altera Corp. (ALTR)
By Abdul Saleh
Jul 08, 2009
Altera Corp. (ALTR) is expected to report Q2 results on July 14, 2009. The company earlier reported revenues of $264.6 million in Q2:09, down 21% y/y and down 16% q/q.

Revenues from all segments were down except for telecom and wireless, which was driven by 3G spending in China. Excluding extra-ordinary items, EPS came in at $0.17.

Going forward, management expects revenues to grow 2%-7% sequentially in Q2 as most of the markets have stabilized and wireless revenues continue to grow. We maintain our Buy rating on the stock with a target price of $18.00.

Sohu.com (SOHU)
By Ian T. Gilson
Jul 07, 2009
Sohu.com, Inc. (SOHU) is the second-largest Internet portal and one of the most well-known online brands in China. Sohu's pipeline for its new online games remains strong and is expected to drive meaningful growth in late 2009 and 2010.

The company spun-off part of its gaming division Changyou.com via an ADS offering, which is expected to increase user base and help gain shares in the MMORPG market. We are also encouraged by the company's growing cash balance as well as its debt free balance sheet.

We believe that the current stock price does not fully reflect the company's intrinsic value. Concerns are related to online ad spending, as consumers remain cautious in their spending. We maintain our Buy rating on the shares of SOHU with a six-month target price of $75.00.

Alvarion Ltd. (ALVR)
By David Weissman
Jul 06, 2009
We upgrade our rating to Buy for Alvarion Ltd (ALVR), a pure-play wireless solutions provider. This follows a series of impressive contract awards to deploy several large-scale wireless systems. The value of one of these contracts was the largest ever attained by the company.

Alvarion has more than 250 WiMAX deployments in diversified geographic regions. According to our assessment, higher bandwidth requirements and an increasing percentage of Alvarion's overall business directed to WiMAX offerings are expected to drive revenue higher in future reporting periods.

Furthermore, the company maintains a strong balance sheet and a respectable book-to-bill ratio. The stock is currently trading at 40% below its 52-week high level, even as business deals are announced.

AMAG Pharmaceuticals (AMAG)
By Grant Zeng
Jul 02, 2009
AMAG Pharmaceuticals Inc. (AMAG) develops superparamagnetic iron oxide nanoparticles for use in pharmaceutical products. The company's focus is on developing IV iron replacement therapy for anemia in chronic kidney disease and imaging agent to aid in diagnosis.

The company filed the NDA for its lead drug Feraheme in December 2007, and the drug was approved by the FDA on June 30, 2009. Clinical data in over 1,700 patients indicate an excellent safety profile for the drug with lower incidents of heart problems.

Clinical results and eventual approval for additional indications should ensure strong growth in the coming years. We maintain our Buy rating on the shares of AMAG with a target price of $62.

Research in Motion - RIMM
By David Weissman
Jun 30, 2009
Research In Motion (RIMM), the manufacturer of BlackBerry'smart-phone devices, continues with robust financial performance in spite of facing a global economic recession and an extremely competitive industry.

The company's first quarter (ended May 30) financial results were above our expectations. Highend Blackberry handsets experienced significant market traction as the company maintains the momentum of net new subscriber additions. Sequential improvement of gross margin is another positive factor.

We expect the smart-phone device market to gain further momentum should economic conditions improve and as demand for portable mobile access remains firm on a global basis.

RIMM has a solid pipeline of innovative feature-rich products to be launched by mid fiscal 2010. Management also provided an encouraging financial outlook.

We maintain our Buy recommendation with a higher valuation target.

Strayer Education (STRA)
By Steven Ralston
Jun 29, 2009
Financial results for the past thirteen quarters at Strayer Education (STRA) have been above expectations, and management's guidance for 2009 portends continued double-digit EPS growth.

The company benefits from positive pricing through annual 5% tuition increases with the 2009 tuition increase having been announced concurrent with the third quarter earnings report.

Despite the stock's valuation being in the upper-half of the historical range, the stock is rated a Buy.

Cirrus Logic (CRUS)
By Ian T. Gilson
Jun 26, 2009
Cirrus Logic, Inc. (CRUS) is a fabless OEM of analog, mixed-signal and digital processing integrated circuits (ICs). The company's 4Q results were in line with our expectation.

On the positive side, CRUS reflects a strong balance sheet with no debt. The company has also provided decent 1Q 2010 guidance. Cirrus' new product offerings are expected to benefit end customers.

The seismic product line remains a strong growth area and should help increase revenue going forward. This group should maintain its growth even after factoring in the changes in oil price. Our recommendation remains a BUY with a price target of $5.50.

Kroger (KR)
By Rob Plaza
Jun 25, 2009
Kroger (KR) reported better-than-expected first quarter earnings per share, beating our estimate by $0.04 per share. We are increasing our EPS estimates for this year and next to reflect the first quarter upside.

For fiscal year 2009, Kroger expects identical-store sales of 3% to 4% and earnings per share of $2.00 to $2.05. That said, we still believe that the company may be able to beat its fiscal year 2009 EPS guidance, due to a higher mix of private-label brand sales and continued market share gains.

We reiterate our Buy rating on Kroger shares. Our six-month target price is $28, up from $27.

El Paso Corp. (EP)
By Sheraz Mian
Jun 24, 2009
We are maintaining our Buy recommendation on El Paso Corp. (EP) but are lowering our target price from $13.00 to $12.00 per share. The stock is up roughly 60% since March as worries of liquidity and execution risk on its backlog of pipeline projects has been alleviated due to the normalization of capital markets and indications of a stabilizing U.S. economy.

We continue to believe that the company's experienced management and various financing options will allow the company to weather the remainder of the tough operating environment.

Recently, management locked in a substantial portion of its natural gas production at levels above $6.00 per Mcf for 10/ 11. This gives the company more operating clarity and surety of cash flows in the event that commodity prices remain volatile for an extended period.

Acorda Therapeutics (ACOR)
By Jason Napodano
Jun 23, 2009
Acorda (ACOR) received some very good news on May 6, 2009 when the U.S. FDA informed the company that the new drug application (NDA) for Fampridine-SR was accepted. The news comes only two weeks after the re-filing of the NDA on April 23, 2009.

However, the biggest surprise with the acceptance off the NDA was that the FDA also granted Acorda a priority review for the application. We note this was an independent decision by the FDA, as Acorda did not specifically ask for a priority review.

Clearly this is another very good sign and proves that the FDA views MS walking disability as a significant unmet medical need, with Fampridine-SR as potentially a breakthrough product for its treatment. The PDUFA action date has been set for October 22, 2009.

NCR Corporation (NCR)
By Ian T. Gilson
Jun 22, 2009
Given its robust business model, aggressive cost-cutting measures and new business initiatives, we expect NCR Corporation (NCR) to resume growth across segments later this year. This should be sustainable for the foreseeable future as its customers seek to cut costs through increased automation.

However, NCR experienced a significant drop off in business activity in the retail segment in the second half of 2008 as well as in the first quarter of 2009. The new offer worth $13.0 million from Georgia state, coupled with a new facility addition in Brazil will help the company going forward.

Meanwhile, the company has a sound balance sheet and generated moderate cash flows in Q1. We maintain our Buy rating on NCR shares but increase our six-month price target to $14.00, after factoring in the economic environment.

Allion Healthcare (ALLI)
By Chris Kallos
Jun 19, 2009
Allion Healthcare Inc. (ALLI) is a national provider of specialty pharmacy and disease management services focused on HIV/AIDS patients. The company recently reported better-than-expected 1Q09 net income of $3.5M, or EPS of $0.13, compared with net income of $1.1M and EPS of $0.06 in 1Q08.

Organic growth in 1Q09 of the company's core Specialty HIV was 9% y/y, with the aggregate number of Specialty HIV prescriptions filled in 4Q08 tallying 265,455, an increase of 3.7% y/y.

We believe current initiatives, such as the partnering with large AIDS service organizations in Seattle, for example, bodes well for increased volume growth over the short term. We maintain our BUY rating at current levels.

Walter Industries (WLT)
By Neil Malkin
Jun 18, 2009
We are reiterating our Buy recommendation on Walter Energy (WLT), and are raising our target price to $39.00 per share from $32.00 per share.

Although the weak steel market will adversely impact earnings in 2009, it will still realize favorable margins relative to other domestic coal producers, as it produces some of highest quality low-vol. met coal in the world.

We believe that the company's shift to a pure-play natural resource/energy increases shareholder value as we are bullish on the long-term coal supply and demand story.

ADC Telecom (ADCT)
By David Weissman
Jun 17, 2009
We upgrade our rating to Buy for ADC Telecommunications (ADCT), a leading telecom network infrastructure and connectivity solutions provider. In addition to reporting second quarter fiscal 2009 financial results (ending May 1) well above our expectations, ADCT is likely to improve operating performance as large telecom carriers in the U.S. increase spending for fiber-based networks.

Massive deployment in China for home-grown 3G networking technology and backhaul provides high-growth revenue-generating opportunities for ADCT. Furthermore, management initiated restructuring activities, including headcount reductions, improving the company s earnings power and adding liquidity to its balance sheet.

The current valuation level at a discount of approximately 50% from the 52-week high range is considered more favorable from a longer-term investment perspective.

Maxim Integrated Products (MXIM)
By Ken Nagy
Jun 16, 2009
Maxim Integrated Products (MXIM) is an OEM of semiconductor analog and mixed signal ICs. March quarter results were short of consensus estimates, although they were in-line with management's own expectations.

Forward guidance is for a revenue increase of 3-12% in the June quarter. Order rates started picking up in three of the four end markets, and the fourth market is expected to see increase in Q4.

We are reiterating our Buy rating on MXIM shares, given recent market share gains, healthy product pipeline, diversity in the company's markets, strong cash generating capabilities and cheap valuation.

Abbott Laboratories (ABT)
By Brian Marckx
Jun 15, 2009
Abbott Laboratories (ABT) discovers, develops, manufactures and sells a diversified line of healthcare products. We expect almost 10% EPS growth over the next five years driven by strong sales of Humira and the company's rapidly growing vascular business.

Several new drug applications have recently been filed with the FDA, which should accelerate sales in the pharmaceutical business. We believe ABT possesses a low risk profile and will continue to trade at an industry premium.

Accordingly, we reiterate our Buy recommendation with a price target of $65.

Baker-Hughes, Inc. (BHI)
By Sheraz Mian
Jun 12, 2009
Our continued favorable view of Baker Hughes (BHI) shares reflects the company's limited exposure to the weak North American natural gas market, its leading product-centric asset portfolio with a strong international presence, and excellent financial health.

While the operating environment remains challenging worldwide, the hardest-hit region is the onshore U.S. market due to its natural gas-centric orientation. Of the large-cap service players, Baker Hughes has the least exposure to this market.

Despite these positive attributes, the stock remains cheap on most conventional valuation metrics. Our current target price is $50 per share.

SINA Corp. (SINA)
By Ian T. Gilson
Jun 11, 2009
SINA Corp. (SINA) is a leading provider of online media and value-added information services to the global Chinese community. The company posted a year-over-year increase in revenue, but results were below our estimates. SINA provided encouraging Q2 guidance.

However, economic growth in the country has continued to slow during to the global downturn. The company is also facing severe competition in its mobile business, though China's Internet penetration has surpassed the world average, which is expected to have a positive impact on the company's business.

We believe the SINA's business will continue on the strength of solid fundamentals and it will emerge as a strong company when the recession ends. We maintain our Buy rating on the stock but increase our six-month price target to $38.00.

Equity Residential (EQR)
By Greg Sukenik
Jun 10, 2009
Despite a tough operating environment, Equity Residential (EQR) reported 1Q09 FFO [funds from operations] of $0.57 per share vs. $0.58 in 1Q08.

As expected in a recession, operations are steadily declining for all apartment REITs. The company reported year-over-year SS [same-store] occupancy and rental rate declines in 1Q09. Massive job losses will continue to negatively affect results.

Despite the slowdown, we still rate EQR a Buy. The company's balance sheet is in relatively good shape; EQR has enough cash and debt availability to take care of maturing debt over the next couple of years. We think multi-family will be one of the better performing REIT sectors in 2009, largely due to continued problems in the for-sale housing market.

Vodafone Group (VOD)
By David Weissman
Jun 09, 2009
We maintain our Buy recommendation for Vodafone (VOD), the largest revenue-generating international wireless carrier. Operating results for fiscal 2009 were highlighted by respectable increases in subscriber count bolstered by record net additions for its Indian operation.

Vodafone continues to accelerate 3G wireless service deployments and expanding network availability across Asia, Eastern Europe and Africa, primarily through acquisitions. Additionally, the company is focused on improving shareholder returns through increased dividend payouts, which supports our valuation forecasts.

Management's outlook for fiscal 2010 appears favorable as operating results are expected to improved with continued growth across incipient markets coupled with ongoing cost saving initiatives and currency exchange translation gains.

Chunghwa Telecom (CHT)
By David Weissman
Jun 08, 2009
Chunghwa Telecom (CHT), the largest integrated telecom operator in Taiwan, declared first quarter 2009 financial results below our estimates. This was mainly due to an increase in employee bonus payouts and lower revenue as a result of weak economic conditions.

However, Chunghwa commands a significant market share in Taiwan for traditional voice and dial-up services, VoIP, IPTV and broadband. Aggressive rollout of fiber-to-the home and 3G network technologies, in our opinion, places the company ahead of the competition.

XTO Energy (XTO)
By Sheraz Mian
Jun 05, 2009
XTO Energy (XTO) remains well positioned to provide another record performance in 2009 on the back of its impressive portfolio of producing assets and industry-leading cost metrics. The company is expected to post 16% volume growth this year and generate free cash flow in excess of $2 billion, of which at least $1.25 billion will go towards debt reduction.

Also, having already locked in nearly 80% of 2009 production at very attractive prices, the company has smoothed out the commodity-price risk. As such, we are maintaining our Buy recommendation on XTO shares.

Our new $60 price objective, raised from $45 before, reflects 2009 P/CF and EV/EBITDA multiples of 7.0x and 5.0x, respectively, well within historical trading ranges.

Medtronic, Inc. (MDT)
By Christopher Titus
Jun 04, 2009
Medtronic's (MDT) story is improving -- product approvals and launches, and a renewed focus on operating margins should drive healthy near-term EPS growth. While sales growth has been hampered by weak U.S. end-markets, the company produces solid free cash flow to be used for acquisitions.

Full-year results showed resilience despite a weak Q409. Good execution moves our estimates to the top of management's FY10 guidance.

Further, we see valuation rising inline with peers, rather than below it. Our recommendation moves up to BUY.

Biogen Idec (BIIB)
By Jason Napodano
Jun 03, 2009
Biogen Idec (BIIB) posted solid results in the first quarter of 2009, despite the slowdown in Tysabri sales due to fears of PML. We think the Biogen core business will remain strong over the next several quarters. Tysabri prescriptions are showing an improvement and we believe will resume their previous pace shortly.

In the meantime, the name is significantly under-valued and would be a very attractive takeout candidate for a large-cap pharmaceutical company looking for a great phase III pipeline. We expect 2009 to be an eventful year on the pipeline front.

As investors become more comfortable with both Tysabri trends and emerging pipeline, we believe shares will recover back into the low $60's. At today's price, the name is too attractive to ignore.

Hanesbrands, Inc. (HBI)
By Steven Ralston
Jun 02, 2009
Headquartered in Winston-Salem, NC, Hanesbrands Inc. (HBI) is a manufacturer and marketer of innerwear, outerwear, and hosiery apparel, which are sold under the brand names of Hanes, Champion, Playtex, Bali, Just My Size, Barely There, L eggs, Outer Banks, and Wonderbra.

Management's business model requires only modest sales growth to create substantial EPS growth. Earnings are being driven by brand building and cost-reduction initiatives. Since the spin-off in September 2006, the company has reduced debt by $511 million, lowering interest expense from the post spin-off financial structure.

However, management is reporting non-GAAP EPS, which excludes unusual actions, which may be distorting perceived earnings. The Buy rating is maintained due to valuation.

Denbury Resources, Inc. - DNR
By Sheraz Mian
Jun 01, 2009

Denbury (DNR) is a leading tertiary oil player, with a solid asset base and an impressive track record of production and reserve growth.

We expect this growth momentum to continue over the next 5 years. Our continued favorable view of Denbury shares reflects the company s low-risk profile and oil-centric niche business model.

We consider management's recent Barnett Shale sale as a prudent step, which will allow the company greater liquidity and flexibility to focus on its core tertiary oil operations.

Our Buy recommendation remains unchanged.

Hurray! Holding Co. (HRAY)
By David Weissman
Jun 01, 2009
We upgrade our recommendation to a Buy for Hurray! Holding Co. Ltd. (HRAY), a leading provider of wireless value-added services (WVAS) and digital download content in China, following large-scale 3G (TD-SCDMA) wireless network deployments and the company's transformation to an entertainment content developer.

Hurray! also has a respectable net cash position on its balance sheet and operating margins appear to be improving due to cost reduction measures.

We believe the company may be in the midst of a favorable turnaround, with share priced at an attractive level near the company's net cash position. Wireless demand for mobile entertainment services may also result in higher revenue levels over the next six- to twelve-months.

DeVry, Inc. (DV)
By Steven Ralston
May 29, 2009
DeVry, Inc. (DV) is a provider of post-secondary education in North America. The company is the holding company for DeVry University (including the Keller Graduate School of Management), Ross University, Chamberlain College of Nursing, Becker Professional Review and Advanced Academics.

Management continues to execute well with the company reporting positive enrollment trends since its turnaround in fiscal 2006. In addition, management is executing a five year strategic plan that focuses on four growth priorities in order to drive growth while maintaining the company's financial strength.

Finally, the ongoing real estate optimization strategy and incremental acquisitions are adding to the company's earnings potential. Therefore, the Buy rating is maintained.

Marvel Entertainment (MVL)
By Ann Northrop
May 28, 2009
Marvel Entertainment's (MVL) business model of leveraging its library of more than 5,000 trademarked and often ubiquitous characters across 3 businesses comic books, toys and films while putting little capital at risk has proven lucrative, generating operating margins and ROE averaging 56% and 37%, respectively, from 2003 to the present. We expect EPS to fall by nearly 50% in 2009, but recover in 2010 to eclipse 2008 levels, driven by the timing of the company's film slate.

The newly-launched film production unit has performed very well thus far, producing two high grossing films in 2008. One-to-two films a year are planned for 2010 and beyond, which we think can contribute to high-teens average EPS growth over the long-term.

In the meantime, MVL appears relatively resilient to the recession, with single digit revenue declines expected in 2009 in the licensing division impressive during a recession and in a year with no film openings -- while the film segment's earnings will hinge more on the popularity of its releases than on the economy, as movies are inexpensive entertainment.

First Solar, Inc. (FSLR)
By Jonathan Kolb
May 27, 2009
First Solar's (FSLR) growth story will continue with its order backlog surpassing $6 billion, higher capacity online in the Malaysia and Ohio facilities, higher volumes in the German market, declining cost per watt, a recent all-stock acquisition of OptiSolar, and the new utility scale PV system deployments in the United States.

However, a weak Euro in light of its focus on Europe, declining governmental subsidies for solar initiatives, tight credit markets and the modules oversupply situation in the market may partially hamper growth.

Accordingly, we maintain our speculative BUY recommendation on FSLR with a six-month target price of $225. Price appreciation to our near-term valuation target represents 17.4% upside potential.

Weatherford International (WFT)`
By Sheraz Mian
May 26, 2009
Weatherford (WFT) shares have outperformed both the peer group as well as the S&P 500 in the year-to-date period. This reflects the company's strong and growing international footprint, where its integrated project management expertise positions it to capture significant market share going forward.

We believe that Weatherford can navigate the current downturn, aided by a positive outlook for its integrated project management expertise, an improved cost structure in North America, and an expected double-digit growth in international business.

Our Buy recommendation remains unchanged, though we have lowered our estimates to reflect the North American softness.

ENSCO International (ESV)
By Sheraz Mian
May 22, 2009
The recent strength in crude oil prices has improved the outlook for a cyclical recovery. Historically, jackup drillers like ENSCO (ESV) have enjoyed strong early-cycle leverage, a trend that we believe will play out this time as well.

While the near-term situation is expected to remain weak, with rig oversupply and soft demand weighing on dayrates, the medium to long-term outlook remains favorable. ENSCO enjoys strong leverage to this outlook given its fleet of premium jackup rigs, an exceptionally strong balance sheet, and growing deepwater exposure.

Our new $45 price objective, raised from $40 before, results from 2009 P/E and EV/EBITDA multiples of 7.4x and 4.3x, respectively, both well within historical trading ranges.

IBM Corp. (IBM)
By Ian T. Gilson
May 21, 2009
As a result of its large non-US revenue base, IBM Corporation (IBM) has been better insulated from the recent weakness in the U.S. economy than many of its peers. IBM's Q109 results indicate its strong position in emerging markets, which should continue to help drive growth.

Moreover, the company has focused on driving its bottom line through cost cutting efforts. It re-affirmed EPS guidance for the full year of 2009 and 2010. Although, revenue is not expected to grow by much, we expect margin improvements in 2009.

The company's long-term prospects look brighter as it maintains a strong position in the software and services market. We maintain our Buy rating on IBM shares and maintain our price target of $120.00.

CEMIG S.A. (CIG)
By Claudio Freitas
May 20, 2009
We are keeping our Buy recommendation on Companhia Energetica de Minas Gerais, or CEMIG (CIG). Although the company posted lower-than-expected results for the first quarter of 2009, those results were impacted by a few non-recurring items.

However, the short-to-medium term outlook remains promising as demand for electricity in Brazil keeps growing. Despite the global credit crunch, we still have a reasonably positive outlook for the Brazilian economy in the short term.

Finally, CEMIG has a solid dividend payout, and we believe that the stock is quite undervalued compared to other international electric utilities.

EnCana Corp. (ECA)
By Sheraz Mian
May 19, 2009
EnCana Corp.'s (ECA) better-than-expected first-quarter 2009 results were driven by robust production growth and strong cost controls. Natural gas production was up 4% to 3.9 Bcf/d, strongly positioning the company to achieve full-year guidance.

EnCana also benefited from lower operating costs. We continue to like the company for its industry-leading inventory of long-lived unconventional oil and gas assets. Additionally, EnCana remains focused on capital discipline and free cash flows.

With about two-thirds of its volumes this year hedged at very attractive price points, the company is expected to generate around $1.6 billion in free cash flows. Keeping in view the company's year-end 2008 proved reserves and upside potential from unbooked resources, our per share net asset value estimate comes to $64.60. Our new $64 price objective, raised from $54 before, is at approximately 100% of our NAV [net asset value] estimate.

NovaMed, Inc. (NOVA)
By Chris Kallos
May 18, 2009
NovaMed, Inc. (NOVA) is an emerging healthcare services company engaged in the operation of ambulatory surgery centers (ASCs) and the provision of optical products and services to eye-care professionals.

The company reported 1Q09 net income of $1.729M, up 10% y/y, which was broadly inline with expectations. Consolidated net revenue in 1Q09 was $38M, up 13.3% y/y, largely due to the contribution of ASCs acquired or developed over the past 12 months which offset a same-facility surgical net revenue decline of 1.6% y/y.

Notwithstanding reimbursement risk and relatively high levels of debt on the balance sheet, cash flows from operations remain strong. We retain our Buy recommendation at current levels.

Petrobras (PBR)
By Claudio Freitas
May 15, 2009
We are changing our recommendation on Petrobras (PBR) ADRs from Hold to Buy. We like Petrobras for its positive production-growth profile, and the improving outlook for its downstream business.

Moreover, the discovery of the giant Tupi field opens up a new range of possibilities for the company in the long run. The continued growth in production is a trend that should prevail in the short-to medium-term.

First quarter 2009 results were positive due to increased production, improved operating margins and sound cash-flow generation. Finally, oil prices have been recovering in the last several weeks.

Transocean, Ltd. (RIG)
By Sheraz Mian
May 14, 2009
Transocean Ltd. (RIG) reported strong first-quarter 2009 results driven by solid contribution from the high-specification floaters and significant cost control measures. Transocean continues to generate significant cash flows supported by a $36 billion backlog, which is of a very high credit quality.

The company is deploying its ample cash flows to strengthen its balance sheet and invest in its newbuild program.

Our Buy recommendation remains unchanged, though we have lowered our estimates to reflect a relatively softer outlook for the mid-water and jack-up fleet. Our new 2009 and 2010 EPS estimates are $13.10 and $12.85, down from $14.26 and $14.95, respectively.

SunPower Corp. (SPWRA)
By Jonathan Kolb
May 13, 2009
SunPower Corp.'s (SPWRA) geographically diversified fortunes appear greener given the very high growth potential in the alternative energy industry -- specifically solar power energy, higher captive generation of panels, rising average conversion efficiency, declining silicon cost and assured silicon supply.

In addition, U.S. RPS requirements, the stimulus plan and an ITC grant will keep the growth story intact. In the short run, however, performance will be affected by tepid demand resulting in lower ASPs leading to higher inventory levels.

Accordingly, with a hybrid outlook and growth, we maintain our BUY recommendation on SPWRA common stock with a six-month target price of $33.50. Price appreciation to our near-term target price represents 21.0% upside potential.

DIRECTV (DTV)
By Ann Northrop
May 12, 2009
DIRECTV (DTV) is set to continue generating healthy free cash flow and earnings growth, with reduced cap ex requirements, healthy ARPU, and vigorous growth in its U.S. and Latin American operations. The company's HD lead should defend its market share, bolster ARPU, and help stem decelerating subscriber growth.

We think the HD roll-out with the RBOCs as partners will defend DTV's market share against cable's ability to offer video, voice and data ("triple play"), which together with recently tightened credit standards, have been impeding subscriber growth. Longer term, we view other companies' IP-TV roll-outs a serious threat, but one that won?t be fully realized for several years.

Near-term, we expect satellite and cable TV will be relatively defensive recession investments, suffering less subscriber attrition in the recession than other forms of entertainment, and DIRECTV in particular should benefit from its recent efforts to weed out its lower-end customers most likely to churn.

Xilinx, Inc. (XLNX)
By Abdul Saleh
May 11, 2009
Xilinx (XLNX) reported revenues of $395.0 million in Q4:09, down 17% y/y and down 14% q/q. Sales from all geographies and end markets declined as expected. GAAP EPS came in at $0.26 while the non-GAAP EPS came in at $0.20.

For full fiscal 2009, sales of $1.83 billion were down 1% from 2008. Sales from Asia- Pacific increased 15% year over year driven by strong sales to communications customers. Sales from all other geographies were flat or down in fiscal 2009. GAAP EPS came in at $1.36.

Going forward, visibility remains poor and hence management is providing a wide revenue range. Revenues are expected to be up 4% or down 4% sequentially. Sales from Asia Pacific and Japan are expected to be up while sales from Europe and America are expected to decline. Tax rate is projected to be approximately 21%, while the share count on a fully diluted basis should be 275 million. We continue to rate Xilinx a Buy with a target price of $22.

Boston Scientific (BSX)
By Christopher Titus
May 08, 2009
Boston Scientific Corp. (BSX) competes in the cardiovascular, endosurgery and neuromodulation markets. All three segments are experiencing strong sales growth and should remain relatively insulated from the current economic crisis.

BSX has historically grown through acquisition, which has led to earnings-quality concerns. Recent positive news on stents will bode well. Trial results for Abbott's XIENCE stent, which BSX markets under a private label, were positive. BSX launched its TAXUS Liberte.

Steps taken to reduce financial risks have led to improved credit ratings. The company is maintaining strong global market share, boosted by Taxus Liberte results in Japan. We reiterate our Buy.

Acorda Therapeutics (ACOR)
By Jason Napodano
May 07, 2009
Acorda Therapeutics, Inc. (ACOR) received some very good news on May 6, 2009 when the U.S. FDA informed the company that the new drug application (NDA) for Fampridine-SR was accepted. The news comes only two weeks after the re-filing of the NDA on April 23, 2009.

However, the biggest surprise with the acceptance off the NDA was that the FDA also granted Acorda a priority review for the application. We note this was an independent decision by the FDA, as Acorda did not specifically ask for a priority review.

Clearly this is another very good sign and proves that the FDA views MS walking disability as a significant unmet medical need, with Fampridine-SR as potentially a breakthrough product for its treatment. The PDUFA action date has been set for October 22, 2009.

Sohu.com (SOHU)
By Ian T. Gilson
May 06, 2009
Sohu.com, Inc. (SOHU) is the second-largest Internet portal and one of the most well-known online brands in China. Sohu's pipeline for its new online games remains strong and is expected to drive meaningful growth in late 2009 and 2010.

The company spun-off part of its gaming division Changyou.com via an ADS offering, which is expected to increase its user base and help gain shares in the MMORPG (massively multi-player online role-playing game) market. We are also encouraged by the company's growing cash balance as well as its debt-free balance sheet.

We believe that the current stock price does not fully reflect the company's intrinsic value. Concerns related to online ad spending, as consumers remain cautious in their spending. We maintain our Buy rating on the shares of SOHU and raise our six-month target price to $75.00.

Sierra Wireless (SWIR)
By David Weissman
May 05, 2009
We reiterate our Buy rating for Sierra Wireless (SWIR), a leading developer of OEM wireless modem cards and access solutions, following the company's recent financial results, achieving strong free cash flow generation and effective cost reduction initiatives.

Sierra's first quarter 2009 financial results were well above our estimates even as the company contends with intensifying competition in the PC OEM market, coupled with unfavorable economic conditions. Management also provided an encouraging outlook for financial performance over the next quarter.

According to our assessment, Sierra's acquisition of Wavecom may act as a major revenue catalyst in future reporting periods. This acquisition is expected to diversify the company's business opportunities into new vertical markets -- in particular, the high-margin machine-to-machine segment.

drugstore.com (DSCM)
By Rob Plaza
May 04, 2009
drugstore.com (DSCM) reported better-than-expected top-line results for the first quarter, while EPS were in line. For the second quarter, DSCM expects revenue of $93-$97 million and a slight loss to break even earnings.

We continue to believe that investors should focus on the company strategy to achieve profitable sales growth over the long term. Its strategy includes increasing share in the over-the-counter market, growing its international business, entering new partnership arrangements, and expanding into higher margin product lines.

We think these initiatives could produce strong long-term earnings growth. We rate drugstore.com a Buy with a $3.00 target price.

Cree, Inc. (CREE)
By Ken Nagy
May 01, 2009
Cree Inc. (CREE) is one of the leading producers of SiC and GaN-based LEDs. March quarter revenue was in-line with the consensus, while the EPS exceeded. Forward guidance is for a 5-9% revenue increase in the June quarter.

The global movement to energy-efficient lighting is prompting lighting companies and consumers to look at other options. Therefore, lighting will be the strongest end-market for Cree, likely followed by video displays and notebooks. Yield improvements, higher capacity utilization, larger wafers and offshore production will increasingly offset new product ramp up costs.

The LED market is hot in our opinion, and the LLF acquisition opens up new opportunity. We are reiterating our BUY rating on CREE shares.

QUALCOMM, Inc. (QCOM)
By David Weissman
Apr 30, 2009
Qualcomm (QCOM), the largest developer of digital mobile chipsets based on CDMA wireless technology, reported financial results for the second quarter (ended March 29) of fiscal 2009, significantly above our estimates. Despite a challenging economic environment, global demand for 3G enabled mobile products and services facilitated quarterly performance better than the company's own guidance.

We believe the recent legal settlement with Broadcom removes an impediment to higher future licensing sales. Robust growth of high-end smart-phones in developed wireless markets along with 3G network deployments in emerging markets serve as long-run growth catalysts for Qualcomm. We continue to maintain our buy rating with a higher valuation target.

Our longer-term assessment remains in tact as the company maintains a solid net cash position of nearly $14 billion with no debt. Free cash flow generation also remains impressive and increases in dividend payout provide incremental return to shareholders.

Burger King (BKC)
By Ann Northrop
Apr 29, 2009
In the midst of a turnaround, Burger King's (BKC) customer traffic is beginning to decline, as diners move to food prepared at home and to competitors value meals, some of which are more extensive than Burger King's. Though these increasing economic headwinds heighten the risk in the company's turnaround, we think the plan is still viable and the shares valuation is compelling, albeit with substantial risk.

Now back in positive unit growth mode after four years of negative or no growth, BKC is poised, in our opinion, to grow earnings at a mid to high-teens CAGR over the next five years by accelerating unit growth, improving average unit volumes through restaurant remodels and new product launches and by expanding restaurant margins closer to those of McDonald's, the category leader.

Moreover, we think BKC shares offer investors an opportunity to participate in the fast-growing economies of Asia and South America, which are central to BKC's expansion plans but where it has a very small presence relative to MCD and Yum! Brands.

HCP, Inc. (HCP)
By Greg Sukenik
Apr 28, 2009
HCP, Inc. (HCP) continues to raise cash through asset sales and equity issuance. The company has done a successful job of de-levering and strengthening the balance sheet. With nearly $1.4 billion available on its credit facility, the company has adequate capital to address 2009 and 2010 debt maturities.

We continue our Buy rating. HCP has a diversified asset base and is moving toward more private pay sources, which we view as a positive. HCP has increased its quarterly dividend from $0.455 per share to $0.46, and the current yield is over 8%.

We think healthcare will continue to outperform other REIT sectors in 2009. Healthcare REITs should hold up better in a recession. Consumers will continue to spend on healthcare while cutting out other non-essential services. HCP will report 1Q results on April 28th.

Teva Pharmaceuticals (TEVA)
By Jason Napodano
Apr 27, 2009
We are initiating coverage on Teva Pharmaceuticals (TEVA) with a Buy rating and a price target of $52. We are impressed with the company's strong performance in 2008 despite the global slowdown and are optimistic on growth prospects.

We expect Teva to continue posting strong revenues and earnings going forward thanks to new product launches, both generic and branded. We are also pleased to see Teva's progress with its branded and biogenerics pipeline. Biogenerics should help drive growth in the long-term.

Meanwhile, the recent acquisition of Barr Pharma should help Teva strengthen its position in the U.S. and expand its presence in Europe. We believe that the current share price represents an attractive entry point for long-term investors and recommend purchase up to the $52 level.

McDonald's (MCD)
By Ann Northrop
Apr 24, 2009
McDonald's (MCD) continues to report strong same-store sales, driven by the consumer trade down from casual dining, and menu variety. Global comps rose 4.3% in 1Q09 (U.S. +4.7%, Europe +3.2%, APMEA +5.5%).

Although comps are getting tougher and the U.S. dollar has strengthened, we think further growth is possible through menu innovations, margin improvement in APMEA, where company-operated restaurant margins lag the US by 260 basis points, G&A leverage, and share repurchases. We expect continued headwinds from a stronger dollar, but those impact translation only, not the fundamentals of overseas operations, which operate entirely in local currency.

With a strong balance sheet, consistent earnings, healthy cash flow, high ROE (30%) and a generous dividend, we think this stock provides relative safety and moderate growth in a turbulent environment and exposure to faster-growing international markets.

Gafisa S.A. (GFA)
By Claudio Freitas
Apr 23, 2009
We are reiterating our Buy recommendation on Gafisa S.A. (GFA). We have been encouraged by the stimulus package and the new value-added tax relief recently announced by the Brazilian government.

Fourth quarter 2008 results were lower than expected, which is a clear indication that the international crisis has reached Brazil's construction sector. The recent acquisition of Tenda will enhance the company's presence in the low-income segment, which will be the focus of the Brazilian government. Thus, we expect Gafisa to benefit from the announced program in the following quarters.

Currently, Gafisa is trading at 7.7x 2009 revised EPS estimate. We reiterate our Buy recommendation on Gafisa, with a target price of US$16.25, representing a valuation between 9x and 10x our 2009 P/E, closer to the Bovespa benchmark for Brazilian stocks.

IBM Corporation (IBM)
By Ian T. Gilson
Apr 22, 2009
As a result of its large non-US revenue base, IBM Corporation (IBM) has been better insulated from recent weakness in the U.S. economy than many of its peers. IBM's Q109 results indicate its strong position in emerging markets, which should continue to help drive growth.

Moreover, the company has focused on driving its bottom line through cost cutting efforts. It re-affirmed EPS guidance for the full year of 2009. Although, revenue is not expected to grow much, we expect margin improvements in 2009.

The company's long-term prospects look brighter as it maintains a strong position in the software and services market. We maintain our Buy rating on IBM shares and maintain our price target of $120.00.

H.J. Heinz & Co. (HNZ)
By Steven Ralston
Apr 21, 2009
Growth in Heinz's (HNZ) domestic businesses, strengthening international operations, and the reallocation of resources in favor of key brands are major positive trends for the H. J. Heinz Company.

Despite cost pressure from higher commodity costs, strong pricing of 3.5% to 4.5% has allowed the company to report positive earnings surprises in the last eleven quarters. Management expects net sales to increase by 6% in fiscal 2009 driven by new product introductions and positive pricing.

In addition, the stock's valuation is attractive. A Buy rating was initiated in January.

Biogen Idec (BIIB)
By Jason Napodano
Apr 20, 2009
Biogen Idec (BIIB) posted solid results in the first quarter of 2009, despite the slowdown in Tysabri sales due to fears of PML. We think the Biogen core business will remain strong over the next several quarters. Tysabri prescriptions are showing an improvement and we believe will resume their previous pace shortly.

In the meantime, the name is significant under-valued and would be a very attractive takeout candidate for a large-cap pharmaceutical company looking for a great phase III pipeline. We expect 2009 to be an eventful year on the pipeline front.

As investors become more comfortable with both Tysabri trends and emerging pipeline, we believe shares will recover back into the low $60 s. At today's price, the name is too attractive to ignore.

Abbott Laboratories (ABT)
By Brian Marckx
Apr 17, 2009
Abbott Laboratories (ABT) discovers, develops, manufactures and sells a diversified line of healthcare products. We expect high-single digit EPS growth over the next five years driven by strong sales of Humira and the company's rapidly growing vascular business.

Several new drug applications have recently been filed with the FDA which should accelerate sales in the pharmaceutical business.

We believe ABT possesses a low risk profile and will continue to trade at an industry premium. Accordingly, we reiterate our Buy recommendation with a price target of $65.

AmBev (ABV)
By Claudio Freitas
Apr 16, 2009
We are maintaining our Buy recommendation on Companhia de Bebidas das Americas, or AmBev (ABV). The company posted good results for the fourth quarter of 2008 with excellent results in Argentina and solid sales of in soft drinks and non-alcoholic, non-carbonated (NANC) beverages in Brazil.

InBev's acquisition of Anheuser-Busch was positive for the company as it creates huge synergies. Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low cost, daily use products, is not tied directly to the international economic cycle.

Also, a more relaxed monetary policy in Brazil is very positive for the company.

Dendreon Corp. (DNDN)
By Grant Zeng
Apr 15, 2009
Through the use of antigen engineering and proprietary cell separation technologies, Dendreon Corp. (DNDN) develops therapeutic vaccines, monoclonal antibodies, and small molecules to treat a variety of cancers.

The company's key product candidate, Provenge, received a positive opinion from the FDA expert panel on March 29, 2007. However, the FDA granted an approvable letter on May 9, 2007. IMPACT phase III trial met its endpoints with statistical significance.

We estimate the FDA will approve Provenge in 1H10. Therefore, we upgrade DNDN shares to Buy from Hold with a price target of $25.00.

Estee Lauder (EL)
By Steven Ralston
Apr 14, 2009
Estee Lauder Companies (EL) is the pre-eminent global leader in prestige beauty. The company has strong brands, market presence, and growth potential demonstrated by over 60 years of uninterrupted sales growth.

Even though the slowdown in consumer spending in the U.S. is expected to drive a sales decline in fiscal 2009, management has embarked on a four-year strategic plan that will build on the company's core strengths, sharpen execution capabilities and lower the cost base though fiscal 2013.

With the stock trading at the low-end of the historical valuation range, we maintain the Buy rating. Estee Lauder's stock has traded in a P/E range of 15.2 to 33.0 over the last five years, with the market decline in the fourth quarter driving the stock s P/E valuation down to 10.1. The company has excellent long-term growth prospects, in our view. The target price of $40.50 is based on a 30 P/E on our fiscal 2009 (depressed) earnings estimate.

Myriad Genetics (MYGN)
By Grant Zeng
Apr 13, 2009
Myriad Genetics, Inc. (MYGN) is a biopharmaceutical company that focuses on the development of diagnostic and therapeutic products. The company employs a variety of proprietary proteomic technologies to identify genes, proteins and their pathways.

Research in these areas has helped the company develop diagnostic tests that assess the risk of an individual suffering from a particular disease. The company's molecular diagnostics business continued to grow impressively in fiscal second quarter of 2009, and outlook is bright even at the current economic environment.

We maintain a Buy rating for the company. Our price target is $50.

Research In Motion (RIMM)
By David Weissman
Apr 09, 2009
Research In Motion (RIMM), the manufacturer of BlackBerry smart-phone devices, continues with robust financial performance in spite of facing a global economic recession and an extremely competitive industry. The company's fourth quarter (ended February 28) fiscal 2009 financial results were well above our expectations.

Newly launched high-end Blackberry handsets experienced significant market traction as net new subscriber additions reached record breaking levels in the reported quarter. We expect the smart-phone device market to gain further momentum should economic conditions improve and as demand for portable mobile access remains firm on a global basis.

RIMM has a solid pipeline of innovative feature-rich products to be launched by mid-fiscal 2010. Management also provided an encouraging financial outlook. We maintain our Buy rating and the same valuation target.

Yum! Brands (YUM)
By Ann Northrop
Apr 08, 2009
Yum! Brands, Inc. (YUM) shares are a great way to gain exposure to China as well as other fast-growing international markets, which constitute the only stable segment of the restaurant industry.

Both the overseas divisions of Yum! Brands are expanding rapidly. China (28% of 2008 revenue) and Yum! Restaurants International [YRI] (27% of 2008 revenue) segments are on track to grow operating earnings by an average CAGR of 20% and 10%, respectively, over the next five years. The U.S. operations (50% of revenue) also show signs of revival.

Reinvigorating sales are Taco Bell's recent product launches, including fruit smoothies and a value menu. KFC U.S. remains Yum!'s one weak spot, with an outdated menu. A key to improvement will be its 1H09 launch of a new grilled chicken line, the first step in Yum!'s strategy to add healthier and more portable menu items.

UDR, Inc. (UDR)
By Greg Sukenik
Apr 07, 2009
UDR, Inc. (UDR) is an apartment real estate investment trust (REIT) that owns, operates, acquires, develops and renovates middle-market apartment communities. Although it has assets across the country, UDR's exposure is mostly in the Western and Mid-Atlantic U.S.

2009 will be a more difficult year for multi-family REITs; the lack of job growth will force landlords to cut rents and offer more concessions. In a recessionary environment, we would stick to well-capitalized REITs. UDR has plenty of liquidity to take care of 2009 debt maturities and fund its in process pipeline.

The current yield is attractive, and the company does not anticipate paying any portion of the 2009 common dividend in stock, as several REITs are now doing. We like the multi-family sector going forward, as residential landlords will continue to benefit from the national housing meltdown.

Salesforce.com (CRM)
By Ian T. Gilson
Apr 06, 2009
Salesforce.com, Inc. (CRM) is the market leader in the ondemand Customer Relationship Management (CRM) space and continues to see substantial subscriber and customer growth.

With strong results in fiscal 2009, the company has exceeded our estimates for both top-line and bottom-line growth. We believe the acquisition of InStranet also makes strategic sense, and over the long-term EPS growth will accelerate.

We reiterate our Buy rating on Salesforce.com's shares with our six-month price target of $45.00.

Haemonetics Corp. (HAE)
By Christopher Titus
Apr 03, 2009
Low worldwide penetration combined with demand outstripping supply makes a positive long-term thesis for investing in the blood processing and supply chain management industry. Haemonetics Corp. (HAE) has benefited from recent acquisitions that have added novel technologies.

Additionally, recent supply agreements and double-digit growth demonstrate HAE's strong market position in a growing industry.

Acorda Therapeutics (ACOR)
By Jason Napodano
Apr 02, 2009
Acorda Therapeutics' (ACOR) stock took a hit in late March on news that the U.S. FDA rejected the filing for Fampridine-SR based on formatting issues and the request for additional data analysis. We believe the issues are minor, and the overall resulting delay in approval will end up being roughly six months.

Notwithstanding the format issue or the analysis from the fed/fasting study, we believe the application looks solid, and that Fampridine-SR will be on the market around the middle of 2010. In the meantime, upside could come in 2009 through the signing of a European partnership.

We have been waiting for an opportunity to upgrade the name to based on the strong fundamentals and the clear path to profitability once Fampridine-SR is approved. We think Acorda represents an attractive acquisition by a larger player in the MS space such as Biogen, Pfizer, or Sanofi. Our target is $28.

China Life Insurance (LFC)
By Neena Mishra
Apr 01, 2009
Headquartered in Beijing, China, China Life Insurance Company Ltd. (LFC) is China's leading life insurance company. As of December 31, 2008, China Life had about 716,000 exclusive agents, over 12,600 direct sales representatives, and nearly 94,000 non-dedicated agencies throughout China.

LFC's FY08 results were disappointing, stemming from a combination of external negative factors -- snow, earthquake, and the global financial crisis. However, despite growing competition as well as volatile capital market, the company seems to be in a better position than its peers due to its prudent investment strategy and beneficial geographical positioning.

Further, it has not yet successfully completed its conversion to higher-margin products, nor does its current valuation fully reflect its growth prospects, which we think have further improved in view of China's stimulus package, as also the regulator's decision to allow the insurers to invest directly in the infrastructure projects. Therefore, we maintain our Buy recommendation on the shares.

Abbott Labs (ABT)
By Brian Marckx
Mar 31, 2009
Abbott Laboratories (ABT) discovers, develops, manufactures and sells a diversified line of healthcare products. We expect high-single digit EPS growth over the next five years driven by strong sales of Humira and the company's rapidly growing vascular business.

Several new drug applications have recently been filed with the FDA, which should accelerate sales in the pharmaceutical business.

We believe ABT possesses a low risk profile and will continue to trade at an industry premium. Accordingly, we reiterate our Buy recommendation with a price target of $65.

GameStop (GME)
By Rob Plaza
Mar 30, 2009
GameStop (GME) reported strong results for the fourth quarter. Sales increased 22% year-over-year, and EPS grew 18% to $1.34, which was at the top end of the company's guidance.

In addition, GameStop's outlook for 2009 was equally bullish. The company expects total sales growth of 10%-12.0%, comp-store sales growth of 4.0%-6.0%, and EPS of $2.82-$2.92. We think the company's results demonstrate that video game sales will continue to hold up better than other areas of retail during this challenging environment.

Despite the continued strength of its results, GME shares trade at about 9x fiscal 2009 consensus EPS estimates. We maintain our Buy rating and $34 target price.

Johnson & Johnson (JNJ)
By Jason Napodano
Mar 27, 2009
Johnson & Johnson (JNJ) has an enormously diverse revenue stream consisting of market leading products in all three of its business segments. However, due to a number of products expected to experience declining sales, revenue will likely fall in 2009.

We expect EPS to remain flat from 2008, benefiting form improving margins and share buybacks. Then again, J&J s consistency, product diversity, financial stability and long-term growth potential make it a very attractive holding in this turbulent market.

We rate the stock a Buy based on the stock's attractive valuation and strong company fundamentals. Our price target is $70.

DIRECTV Group (DTV)
By Ann Northrop
Mar 26, 2009
DIRECTV (DTV) is set to continue generating healthy free cash flow and earnings growth, with reduced cap ex requirements, healthy ARPU, and vigorous growth in its Latin American operations.

The company's HD lead should defend its market share, bolster ARPU, and help stem decelerating subscriber growth. We think the HD rollout with the RBOCs as partners will defend DTV's market share against cable s ability to offer video, voice and data ("triple play"), which together with recently tightened credit standards, have been impeding subscriber growth.

Longer-term, we view the IP-TV roll-outs by AT&T and Verizon a serious threat, but one that won't be fully realized for several years.

Near-term, we expect satellite and cable TV will be relatively defensive recession investments, suffering less subscriber attrition in the recession than other forms of entertainment, and DIRECTV in particular should benefit from its recent efforts to weed out its lower-end customers most likely to churn.

Harmony Gold (HMY)
By Paul Raman
Mar 25, 2009
Formed in 1950, South Africa's Harmony Gold Mining Company Limited (HMY) conducts underground and surface gold mining. It is also engaged in related activities such as exploration, processing, smelting and refining. Presently, Harmony is the 3rd largest producer of gold in South Africa, producing about 20% of the country's annual gold output and the 5th largest gold producer in the world.

Harmony Gold is benefiting from higher gold prices in terms of the South African rand. Going forward however, Harmony is focused on lowering its cost structure, primarily by closure of loss-making shafts and reducing its debt level aggressively.

As a result, we rate the shares a Buy with a target of $16.00. The company is also focused on reducing its operating costs through restructuring efforts. As a result, we rate the shares a Buy with a target of $16.00. This is 39.0x our 2009 earnings estimate.

AutoZone, Inc. (AZO)
By Paul Raman
Mar 24, 2009
AutoZone, Inc. (AZO) is a leading retailer of automotive parts and accessories. The company has significant cash flow and plans to expand its square footage growth.

AutoZone has maintained a mid-single-digit square footage growth rate by opening new stores every year. Falling gas prices are helping the company to improve same-store sales.

We rate the shares a Buy, with a six-month target price of $185.00. This target price amounts to 15.9x our 2009 EPS estimate.

CF Industries (CF)
By Paul Raman
Mar 23, 2009
CF Industries Holdings Inc. (CF) has leading market shares in many key fertilizers. Strong domestic and international grain markets have produced an exceptionally high global demand for fertilizer, translating into substantially higher selling prices for all the products. The company is optimistic about its phosphate business where the market is expected to remain tight near term due to healthy offshore demand growth in India and Brazil as well as higher application rates in the U.S.

In addition, the company is likely to benefit from the proposed nitrogen facility in Peru, which will address the nitrogen demand on the west coast of Central and South America as well as Mexico, which does not have any nitrogen facility.

The company is in the midst of either being acquired by Agrium Industries or bought out by Terra Industries. As a result, we maintain our Buy rating of the stock and set a target of $75.00.

Kinder Morgan Partners (KMP)
By Sheraz Mian
Mar 20, 2009
While Kinder Morgan Partners' (KMP) fourth-quarter earnings were below the prior-year level, the partnership announced a 14% increase in distribution to the annualized run rate of $4.20 per unit.

Our continued favorable view of the partnership reflects its impressive track record of distribution growth, the focus on stable, fee-based, well-diversified assets, and its strong balance sheet, which allows flexibility when raising capital for acquisitions/expansions.

We are confident that the partnership can not only sustain distributions, but also increase it, albeit at a lower rate.

TransDigm Group (TDG)
By John Nelson Simon
Mar 19, 2009
TransDigm Group (TDG) reported some remarkable results for its fiscal 2009 first quarter, when compared to the same period last fiscal year. Net sales of $181.3 million, were up 11.1% (organic sales growth - which excludes recent acquisitions - was 2.7%).

Airlines continue to ground aircraft, which certainly is having a negative effect on MRO [maintenance, repair and operations] revenues. Further, the current worldwide economic malaise is causing orders for new aircraft to evaporate -- or at least be stretched out -- ala 9-11.

In addition, the future of Aerospace/Defense stocks is clouded by the in-process alterations the current administration is making to defense expenditures. Even with this unsettling environment, the Zacks opinion on TDG currently is Buy.

Boston Scientific (BSX)
By Christopher Titus
Mar 18, 2009
Boston Scientific Corp. (BSX) competes in the cardiovascular, endosurgery and neuromodulation markets. All 3 segments are experiencing strong sales growth and should remain relatively insulated from the current economic crisis.

BSX has historically grown through acquisition, which has led to earnings-quality concerns. Recent positive news on stents will bode well. Trial results for Abbott Labs' XIENCE stent, which BSX markets under a private label, were positive. And, BSX received U.S. approval to market its TAXUS Liberte and Express2 stents.

BSX reported Q408 and FY08 results in-line with management guidance. Several new products are expected to be launched in 2009, and we expect a rebound in the stock this year. Thus, we reiterate our Buy rating.

AmSurg Corporation (AMSG)
By Chris Kallos
Mar 17, 2009
AmSurg Corporation (AMSG) is a leading operator of single-specialty practice-based ambulatory surgery centers (ASCs) in the U.S. The company recently reported net earnings from continuing operations of $12.862M (up 13% y/y) with EPS of $0.40 in-line with consensus estimates.

The quarter was characterized by a solid increase in procedure volume (up 9.5% y/y) despite essentially flat y/y same-store revenues, which reflected the impact of Medicare reimbursement cuts and the weaker economy. Nonetheless, the stock has been under further pressure given uncertainties related to healthcare reform and potential changes to Medicare.

We believe the stock has been oversold and move to a Buy recommendation at current levels. We have valued shares of AmSurg on a forward price/earnings (P/E) basis, as well as in comparison to similar firms in the healthcare facilities sector. Our $20 target price represents a multiple of 12x our FY09 EPS estimate of $1.66.

Sara Lee Corp. (SLE)
By Steven Ralston
Mar 16, 2009
The five-year Transformation Plan should benefit Sara Lee Corp. (SLE) in the long term. During the first four years of the Transformation Plan, the project provided little earnings visibility.

However, the company is now in the fifth and final year of the plan. Despite global economic weakness, the company is on track to complete its restructuring. In addition, management announced a new three-year initiative, Project Accelerate.

Management is focused on more attractive product lines and cost cutting. The Buy recommendation is maintained.

IBM Corporation (IBM)
By Ian T. Gilson
Mar 13, 2009
As a result of its large non-US revenue base, IBM Corporation (IBM) has been better insulated from recent weakness in the U.S. economy than many of its peers.

IBM's Q408 results indicate its strong position in emerging markets, which should continue to help drive growth. Moreover, the company has focused on driving its bottom line through cost-cutting efforts.

The company's long term prospects look brighter as it maintains a strong position in the software and services market. We maintain our Buy rating on IBM shares and raise our target price to $120.00.

HealthSouth Corp. (HLS)
By Chris Kallos
Mar 12, 2009
HealthSouth Corporation (HLS) is the nation's largest provider of inpatient rehabilitation services, with inpatient facilities located in 26 states.

Management this week disclosed that 1Q09 volumes to date were tracking in line with expectations, and that it had further reduced its total debt outstanding by approximately $67M.

The company recently reported yet another better-than-expected quarterly result underpinned by solid discharge volumes and a lower G&A expense ratio. Despite the uncertainties related to the current budget proposals, we regard last week's rate recommendations by MedPac as positive for HLS.

We are encouraged by management's focus on debt reduction and move to a Buy rating at current levels.

Kroger Co (KR)
By Rob Plaza
Mar 11, 2009
Kroger (KR) reported fourth quarter EPS of $0.53, which was $0.01 ahead of our estimate and the consensus.

Revenue was $17.3 billion, well below our forecast of $18.4 billion. The revenue shortfall was due to the drop in gasoline prices. Excluding fuel sales at the company's supermarket fuel centers and convenience stores, total sales increased 4.4% over the prior-year quarter.

For fiscal year 2009 ending Jan 2010, Kroger expects identical-store sales of 3% to 4% and earnings per share of $2.00 to $2.05. We think the company is being conservative, which is prudent in this difficult economic environment.

We believe the company will be able to beat its fiscal year 2009 EPS guidance, due to a higher mix of private-label brand sales and continued market share gains. We reiterate our Buy rating on Kroger shares and six-month target price is $25, or 12x our fiscal year 2009 EPS estimate.

Cytori Therapeutics (CYTX)
By Jason Napodano
Mar 10, 2009
We continue to be very positive on Cytori Therapeutics Inc. (CYTX) and believe the company's Celution System, a better mousetrap for quickly and efficiently harvesting adult stem cells, will see sales ramp significantly over the next few years. Initial sales in 2008 were encouraging.

Ultimately, the clinical data will determine the pace at which the ramp continues. So far, the clinical data has been exciting, and with several investigator-sponsored programs ongoing, additional data expected over the next few years will have an immediate impact on the financial results.

Even after this morning's 19% gains following President Obama's announced a reversal of policy regarding the stem cell industry, we feel Cytori's share price represents a very attractive entry point. We are maintaining our Buy rating and $8 target.

Tim Participacoes (TSU)
By Claudio Freitas
Mar 09, 2009
We are upgrading TIM Participacoes S.A. (TSU) from Hold to Buy based on the excellent results in the 4th quarter of 2008 and the continued positive trends in the Brazilian wireless industry, despite the current economic crisis.

The company has also improved its competitive position with a better mix of products. While the competitive environment for the Brazilian wireless sector remains a problem, a more relaxed monetary policy in Brazil is encouraging for the following months.

Nevertheless, the difficult international economic environment is still a matter of concern. Our target price is US$19.00, which is based on an EV/2008 estimated EBITDA multiple of between 3x and 3.5x, representing a small premium over the industry mean, thanks to the still positive growth in the sector in Brazil.

Churchill Downs (CHDN)
By Sean P. Smith
Mar 06, 2009
We reiterate our Buy rating on shares of Churchill Downs (CHDN) following the release of Q4 results.

The company faced a number of irregular issues in 2008, and managed them well, in our opinion. We remain encouraged by the increasing impact of the company's online advance-deposit wagering business, as well as the growth in Churchill's alternative gaming segment.

Additional growth in these areas could provide a catalyst going forward. Our 12-month price target of $36 per share equates to approximately 8x our 2008 EBITDA estimate.

DeVry, Inc. (DV)
By Steven Ralston
Mar 05, 2009
Headquartered in Oakbrook Terrace, IL, DeVry, Inc. (DV) is a provider of post-secondary education in North America. The company is the holding company for DeVry University (including the Keller Graduate School of Management), Ross University, Chamberlain College of Nursing, Becker Professional Review and Advanced Academics.

Management continues to execute well with the company reporting positive enrollment trends since its turnaround in fiscal 2006. In addition, management is executing a 5-year strategic plan that focuses on 4 growth priorities in order to drive growth while maintaining the company's financial strength.

Finally, the ongoing real estate optimization strategy and incremental acquisitions are adding to the company's earnings potential. Therefore, the Buy rating is maintained.

Kroger Co. (KR)
By Rob Plaza
Mar 04, 2009
We reiterate our Buy rating on Kroger Co. (KR) ahead of its fourth quarter earnings report, which is scheduled for March 10. Management expects to report full-year earnings per share of $1.88-$1.91. Our estimate is $1.91.

We think Kroger shares are attractively priced at these levels and view this entry point as buying opportunity. Kroger's low prices and private-label brands continue to help the company take market share from competitors, and its cost controls are helping offset gross margin declines.

Our six-month target price is $25, or 12x our fiscal year 2009 EPS estimate.

Sempra Energy (SRE)
By Jonathan Kolb
Mar 03, 2009
Looking ahead, a base of stable earnings, steady progress at Sempra Energy's (SRE) LNG terminals, regulatory approval of utility rate cases and the Sunrise Powerlink transmission line, operational REX-West, and completion of its first solar power project, collectively support the bullish outlook for SRE.

Furthermore, given a discount in P/E multiples, we maintain our BUY recommendation on SRE with a six-month target price of $45.50.

Price appreciation to our near-term valuation target coupled with a sustainable and secure, recently increased quarterly dividend of $0.39 per share based on low projected earnings payouts represents annualized total return potential of 23.9%.

Safeway, Inc. (SWY)
By Rob Plaza
Mar 02, 2009
Safeway Inc.'s (SWY) fourth quarter results were slightly below expectations, but management issued 2009 EPS guidance of $2.34-$2.44, which is above the Zacks consensus estimate of $2.35. Even so, the stock sold off 13% on the news.

We think the sell-off is overdone, and we reiterate our Buy rating. Investors remain skittish about Safeway's future growth because consumers continue to trade down to cheaper alternatives, and that is pressuring the company's results.

In our view, SWY shares have declined to a level that discounts a weak macro environment that persists into 2010. Our six-month target price is $23 (down from $28), or about 10x our 2009 EPS estimate.

Salesforce.com (CRM)
By Ian T. Gilson
Feb 27, 2009
Salesforce.com, Inc. (CRM) is the market leader in the on-demand Customer Relationship Management (CRM) space and continues to see substantial subscriber and customer growth.

With strong results in fiscal 2009, the company has exceeded our estimates once again in both top-line and bottom-line growth. Meanwhile, we believe the acquisition of InStranet also makes strategic sense, and over the long-term EPS growth will further accelerate.

We therefore reiterate our Buy rating on Salesforce.com's shares with our six-month price target of $45.00.

Pozen Inc. (POZN)
By Jason Napodano
Feb 26, 2009
Pozen Inc. (POZN) is one of our top-picks for small-cap biotech. We see the fundamentals as strong and the valuation as absurdly low.

Treximet trends are improving and sales should start to dramatically improve in the coming months. Plus, with the FDA recently confirming the primary endpoint in the phase III PN clinical trials, Pozen and partner AstraZeneca should be in position to file for approval of PN by the middle of the year.

Phase III plans for PA are also moving forward and should begin by the third quarter. We see both products as $500 million opportunities. By 2013, we think Pozen can deliver revenues close to $200 million, with net income well above $100 million.

Onyx Pharmaceuticals (ONXX)
By Grant Zeng
Feb 25, 2009
Nexavar sales in the fourth quarter of 2008 remained strong for Onyx Pharmaceuticals, Inc. (ONXX). This is mainly attributed to the market penetration in the liver cancer market, while Nexavar market share in kidney cancer market has stabilized due to heavy competition from Pfizer and Wyeth.

We expect continued Nexavar sales growth in 2009 and over the next several years since the label has expanded to liver cancer. In addition to the US and EU, Nexavar has been approved in South Korea and China for liver cancer.

Nexavar will achieve blockbuster status in 2010. We maintain our Buy rating on Onyx shares with a price target of $45 per share.

Marathon Oil (MRO)
By Sheraz Mian
Feb 24, 2009
Marathon Oil Corp. (MRO) reported better-than-expected fourth-quarter 2008 results, announced a lower capex budget 2009, and abandoned plans to split the company along upstream/downstream lines.

The earnings outperformance reflected strong growth in upstream volumes and improved year-over-year downstream margins. Though we have lowered our 2009 EPS estimate ($2.95 vs. $4.78) to reflect the challenging commodity-price environment, our Buy rating remains unchanged.

We continue to like Marathon's attractive inventory of development projects, strong financial health, and the successful execution of the non-core asset sales.

Williams Companies (WMB)
By Sheraz Mian
Feb 23, 2009
Williams Companies Inc.'s (WMB) fourth-quarter 2008 earnings were down significantly from the year-earlier level due to sharp decline in energy commodity prices, leading to weak results for the E&P and Midstream businesses.

Management also lowered guidance and capex budget for 2009, largely in response to the commodity-price weakness. However, we reiterate our Buy rating on the company given its strong business mix, attractive growth opportunities in its low-risk E&P model, and relatively stable fee-based midstream services.

Williams also made significant additions to its reserves base while keeping costs competitive. Our 12-month target price is $20 per share.

Telemig Celular (TMB)
By Claudio Freitas
Feb 20, 2009
We are keeping our Buy recommendation on Telemig Celular Participacoes S.A. (TMB). Despite the weak economic conditions throughout the world, Telemig posted great results for the fourth quarter 2008.

We believe that the stock remains attractively priced, given the company's positive short-term growth trends. Additionally, a more relaxed monetary policy in Brazil and the company's proposed dividend are very encouraging.

Finally, we believe Telemig's valuation will converge with that of Vivo in the upcoming quarters. In the medium term, Telemig will be incorporated into Vivo, creating considerable synergies.

SunPower Corp. (SPWRA)
By Jonathan Kolb
Feb 19, 2009
SunPower Corporation's (SPWRA) geographically diversified fortunes appear greener given the very high growth potential in the alternative energy industry, and specifically solar power energy, higher captive generation of panels, declining silicon cost and assured silicon supply.

In addition, extension of the ITC in the U.S., resolution of tariffs in Spain, higher average conversion efficiency, improved silicon usage, and gradually improving ASPs, adds visibility to the story.

Accordingly, we maintain our BUY recommendation on SPWRA common stock with a six-month target price of $40.00. Price appreciation to our near-term target price represents 24.6% upside potential.

Avon Products (AVP)
By Steven Ralston
Feb 18, 2009
Avon Products (AVP) is benefiting from both the expansion into the developing and emerging markets and its emphasis on the Beauty products portfolio. Management aims to achieve high single-digit local currency revenue growth supported by margin expansion over the long term.

Over $200 million in costs savings have been achieved since 2002 by implementing the multi-year supply chain cost reduction program. Management expects to achieve cost savings of an additional $300 million in savings as the company implements ERP in Europe and North America.

Developing and emerging markets contribute over 50% of total sales. Management expects the contribution to expand to 68% over the coming 10 years as high-growth opportunities are pursued in developing markets. India, Central and Eastern Europe, China, Russia, and Latin America are highlighted as high growth areas.

Baxter International (BAX)
By Christopher Titus
Feb 17, 2009
Baxter International, Inc. (BAX) is a global medical products and services company with expertise in medical devices, pharmaceuticals, and biotechnology. The company is comprised of three operating segments: BioScience, Medication Delivery and Renal.

We believe these markets will remain relatively insulated from the current economic turmoil and provide investors with good quality returns on a risk-adjusted basis. Baxter's strong market position is demonstrated in its recent quarterly and annual performance that exceeded their prior estimates.

We remain bullish on this stock and believe it provides a less risky vehicle during the current economic turbulence. We believe BAX should trade at a 15% premium to the group P/E/G average of 1.2. The resulting P/E is 18.6x 2009, producing a target price of $64.65 per share.

Hot Topic (HOTT)
By Rob Plaza
Feb 13, 2009
We are initiating coverage of Hot Topic (HOTT) with a Buy rating. Hot Topic is one of the few specialty retailers with positive comp-store sales and the ability to expand its profit margins.

The popularity of the movie Twilight, which is about a teenage girl falling in love with a vampire, has been driving Hot Topic's recent results. Going forward, we think the retailer's strategy to increase its in-store music events, where bands have autograph sessions or play their music for Hot Topic shoppers, will pick up the slack when Twilight sales begin to taper off.

We are forecasting Hot Topic's long-term earnings growth rate will be 15%. In the short-term, we are forecasting earnings growth of 20%. As such, we believe the stock has upside potential to $11.00, or about 20x our fiscal 2009 EPS estimate of $0.53. Hot Topic is scheduled to report 4th quarter results on March 19.

American Tower (AMT)
By David Weissman
Feb 12, 2009
We maintain our Buy recommendation and the same valuation target for American Tower Corp. (AMT), a leading operator of wireless communications towers in the US and other emerging markets, ahead of its fourth quarter 2008 financial results.

Overall performance has been driven by substantial demand for additional tower space to facilitate high-speed wireless data services and mobile video, along with emerging 3G technologies. Rental & management revenue, adjusted EBITDA, and free cash flow financial metrics remain favorable.

The company's new venture in the Indian markets will act as a significant long-run catalyst. Our long-term view regarding the wireless tower industry remains positive.

Omnicom Group (OMC)
By Steven Ralston
Feb 11, 2009
Omnicom Group (OMC) continues to generate new business wins, despite the current challenging economic environment. In addition, management has acquired complementary companies that either serve or have the ability to serve the existing client base through the extension of the company's platform of services.

In reaction to the current economic challenges, management has taken the appropriate actions of aligning the company's cost structure for 2009 revenue expectations by right-sizing headcount and reducing compensation pools.

The rating for the shares of Omnicom Group has been raised to a Buy due to attractive valuation.

Sohu.com (SOHU)
By Ian T. Gilson
Feb 10, 2009
Sohu.com, Inc. (SOHU) is the 2nd-largest Internet portal and one of the most well-known online brands in China. Sohu's pipeline for its new online games remains strong and is expected to drive meaningful growth in late 2009 and 2010.

We are encouraged by the company's growing cash balance as well as its debt-free balance sheet. Additionally, Sohu generated record total revenues and net income for the 6th consecutive quarter during Q408 with impressive margins.

We believe that the current stock price does not fully reflect the company's intrinsic value. Concerns related to online ad spending and China's macro economy in 2009 remain. As such, we maintain our Buy rating on the shares of SOHU with a lower 6-month target price of $64.00.

Biogen Idec (BIIB)
By Jason Napodano
Feb 09, 2009
Biogen Idec (BIIB) posted solid results in the fourth quarter of 2008, despite the slowdown in Tysabri sales due to fears of PML. We think the Biogen core business will remain strong over the next several quarters, and that Tysabri prescriptions will resume their previous pace shortly.

In the meantime, the name is significant under-valued and would be a very attractive takeout candidate for a large-cap pharmaceutical company looking for a great phase III pipeline. We expect 2009 to be an eventful year on the pipeline front.

As investors become more comfortable with both Tysabri trends and emerging pipeline, we believe shares will recover back into the low $60's. At today's price, the name is too attractive to ignore.

National-Oilwell Varco (NOV)
By Sheraz Mian
Feb 06, 2009
National-Oilwell Varco's (NOV) fourth-quarter results came in better-than-expected, reflecting increased sales of its oil and gas drilling components, buoyed by the April merger with Grant Prideco.

Revenue for the quarter was up 5.5% sequentially and 43.3% year-over-year to $3.81 billion. The company ended 2008 with a backlog of $11.1 billion, and aims to enter 2010 with a solid $9 billion backlog, highlighting a very high level of earnings visibility going forward.

Despite the challenging economic conditions, the company remains well-positioned for a strong performance in 2009 based on its healthy backlog, solid balance sheet, and strength in its international operations in the Middle East and Brazil. As such, our Buy recommendation remains unchanged.

Myriad Genetics (MYGN)
By Grant Zeng
Feb 05, 2009
Myriad Genetics (MYGN) relies on its predictive medicine for its revenue generation and is currently seeing solid growth in this business. On February 3, 2009, Myriad reported fiscal 2Q09 financial results ended December 31, 2008.

For the 3-month period ended December 31, 2008, total revenues increased to $84.4 million from $56.7 million in the same 3 months in 2007, an increase of 48.7%. This growth resulted primarily from an increase in molecular diagnostic revenues, which were $84 million this quarter, compared to $53.1 million in the same quarter of the prior year.

This 58% product revenue growth resulted primarily from an increase in the Company's sales and marketing efforts, including expansion of the Company's women's health sales force to 100 sales representatives, and continuation of the direct-to-consumer marketing campaign, which the Company believes has resulted in improved physician acceptance and adoption of its molecular diagnostic products. Sequentially, growth was 20% from the first fiscal quarter of 2008. Sales from molecular diagnostics were way above our estimate of $74.5 million.

CPFL Energia ADR (CPL)
By Claudio Freitas
Feb 04, 2009
We are maintaining our Buy rating on CPFL Energia (CPL). The outlook for the following quarters remains positive, mainly considering the growing demand for electricity and a more relaxed monetary policy in Brazil in spite of the difficult business environment around the world.

We also believe that the tariff correction in 2009 and its solid dividend payout will be positive for the stock. Finally, after the recent sell-off, its valuation is highly attractive again.

At current levels, CPL's ADRs are trading at 7.7x our 2009 revised earnings estimates, well below the industry average. We believe that Brazil's risk and regulatory uncertainties, which are normal in Brazil, are the reason for this large discount. However, the current valuation of CPL is very attractive and its dividend yield is sound and reliable.

InterDigital (IDCC)
By David Weissman
Feb 03, 2009
We upgrade our rating to Buy with a higher valuation target for InterDigital Inc. (IDCC), a leading wireless technology and licensing company. This follows the settlement of a patent licensing dispute with Samsung Electronics which further strengthens InterDigital's cash position in addition to reducing royalty related litigation expenses in future reporting periods.

Furthermore, management raised its fourth quarter revenue guidance as a result of an increase in non-recurring revenue. InterDigital continues to undertake effective cost control measures.

We believe the company has a sound business model, a firm financial position, and maintains a strong technological base as it contends with challenging economic conditions.

Exxon Mobil (XOM)
By Sheraz Mian
Feb 02, 2009
Exxon Mobil (XOM) remains better positioned, operationally as well as financially, than any other integrated oil company to navigate the current choppy waters. Its capital discipline, cost controls, and operating efficiencies are legendary, to say the least. Exxon stuck to its conservative project selection criteria through the boom years, using very low oil prices to determine hurdle rates.

Exxon generated almost $60 billion in operating cash flows in 2008 (it raised an additional $6 billion through asset sales) and distributed a little over $40 billion to shareholders ($32 billion in buybacks and $8 billion in dividends) and spent over $26 billion in capital expenditures. It has paid a growing dividend in each of the last 26 years.

We continue to rate Exxon shares a Buy. We believe that Exxon shares not only provide investors with a strong defensive shield in the current turbulent environment, but also enable them to get full exposure to the all-important energy sector.

AmBev (ABV)
By Claudio Freitas
Jan 30, 2009
We are maintaining our Buy recommendation on Companhia de Bebidas das Americas, otherwise known as AmBev (ABV). The company posted positive results for the third quarter of 2008 with excellent results in Brazil and in Argentina.

InBev's desire to acquire Anheuser-Busch appears to be positive for the company (at the beginning of 2004, AmBev announced a billion dollar merger with the Belgian beer maker, Interbrew, creating InBev). Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low-cost, daily-use products, is not tied directly to the international economic cycle.

Moreover, a more relaxed monetary policy in Brazil is very positive for the company. we consider that the current discount over the industry mean is excessive, mainly considering that Brazil, which is the company's key market, has a huge room for interest rate cuts and will be less affected by the crisis.

VistaPrint, Ltd. (VPRT)
By Sean P. Smith
Jan 29, 2009
VistaPrint Limited (VPRT) is a leading online supplier of high-quality graphic design services and customized printed products to small businesses and consumers. The company reported very impressive second-quarter results, boosted by strong holiday sales, lower material costs, and improved efficiency. GAAP earnings of $0.42 per share were up 75% year-over-year, and were $0.13 above our expectation.

VistaPrint has generated significant organic growth over the last several years, and we expect the trend to continue. The company has several competitive advantages that we expect will enable it to outperform its peers and take market share during this economic downturn.

The fact that VPRT posted such an impressive quarter in the midst of extremely challenging economic conditions bodes well for the company's potential ability to weather the recession, in our opinion. We reiterate our Buy rating and $25 price target.

McDonald's Corp. (MCD)
By Ann Northrop
Jan 28, 2009
McDonald's Corporation (MCD) continues to report strong same-store sales, driven by the consumer trade down from casual dining, and menu variety. Global comps rose 7.2% in 4Q08 (U.S. +5.0%, Europe +7.6%, APMEA +10.0%).

Although comps are getting tougher and the U.S. dollar has strengthened, we think further growth is possible through menu innovations, margin improvement in APMEA, where company-operated restaurant margins lag the US by 120 basis points, G&A leverage, and share repurchases. In 1H09, we expect headwinds from a stronger dollar, but those impact translation only, not the fundamentals of overseas operations, which operate entirely in local currency.

With a strong balance sheet, consistent earnings, healthy cash flow, high ROE (30%) and a generous dividend, we think this stock provides relative safety and moderate growth in a turbulent environment and exposure to faster-growing international markets.

Onyx Pharmaceuticals (ONXX)
By Grant Zeng
Jan 27, 2009
Onyx Pharmaceuticals, Inc. (ONXX) is engaged in the development of novel cancer therapies that target the molecular basis of cancer. With its collaborator Bayer Healthcare, the company develops the small molecule drug Nexavar (sorafenib).

Nexavar sales in the third qurater of 2008 remained strong. This is mainly attributed to the market penetration in the liver cancer market, while Nexavar market share in kidney cancer market has stabilized due to heavy competition from Pfizer and Wyeth.

We expect continued Nexavar sales growth in 4Q08 and over the next several years since the label has expanded to liver cancer. In addition to the U.S. and E.U., Nexavar has been approved in South Korea and China for liver cancer. Nexavar has the potential to become a blockbuster. We maintain our Buy rating on Onyx shares with a price target of $45 per shares.

WellPoint, Inc. (WLP)
By Chris Kallos
Jan 26, 2009
WellPoint Inc. (WLP) is the largest publicly traded commercial health benefits company, and the largest of the Blue Cross Blue Shield (BCBS) plan providers, in terms of membership in the US.

On January 28, 2009 WLP will report 4Q08 financial results. Our current revenue and EPS estimates are $15.56B and $1.14 respectively versus consensus estimates of $15.56B and $1.36.

Our Buy recommendation remains intact at current levels pending the 4Q08 earnings release. We have valued WLP on a forward price/earnings (P/E) basis, as well as a comparison to similar firms in the managed care sector. Our $55 price target is derived using a P/E multiple of 9.7x our FY09 EPS of $5.70.

Abbott Laboratories (ABT)
By Brian Marckx
Jan 23, 2009
Abbott Laboratories (ABT) discovers, develops, manufactures and sells a diversified line of healthcare products. We expect high-single digit EPS growth over the next five years driven by strong sales of Humira and the company's rapidly growing vascular business.

Several new drug applications have recently been filed with the FDA which should accelerate sales in the pharmaceutical business. We believe ABT possesses a low risk profile and will continue to trade at an industry premium.

Accordingly, we reiterate our Buy recommendation with a price target of $65.

IBM Corporation (IBM)
By Ian T. Gilson
Jan 22, 2009
On January 20, 2008, IBM Corp. (IBM) announced its fiscal 2008 4th quarter results that were mixed, with revenue coming in below expectations but pro forma EPS beating our expectation. Net income from continuing operations were $4.4 billion versus $4.0 billion in the same quarter last year. With aggressive cost-cutting, diluted earnings from continuing operations for the quarter reached $3.28, up 17.1% from $2.80 in the prior-year quarter.

Total revenue of $27.0 billion was down 6.4% (down 1.0% when adjusted for currency) from $28.9 billion in the year-ago quarter. Earnings were boosted by a reduction in the tax rate in the 4th quarter.

We were ahead of the Street in our expectations for the 4th quarter and for full-year 2009.

Given strong performance in the 4th quarter, IBM provided its EPS outlook for fiscal 2009. It expects full-year EPS of at least $9.20, which is a growth rate of 3.0% over 2008 reported EPS. IBM also expects its full-year 2009 tax rate to be sustained at approximately 26.5%.

AMAG Pharmaceuticals (AMAG)
By Grant Zeng
Jan 21, 2009
AMAG Pharmaceuticals Inc. (AMAG) develops superparamagnetic iron oxide nanoparticles for use in pharmaceutical products. The company's focus is on developing IV iron replacement therapy for anemia in chronic kidney disease and imaging agent to aid in diagnosis.

The company filed the NDA [New Drug Application] for its lead drug, Ferumoxytol, in December 2007, and we expect FDA approval to come in 1H09. Clinical data in over 1,700 patients indicate an excellent safety profile for the drug with lower incidents of heart problems.

Clinical results, and eventual approval for additional indications, should ensure strong growth in the coming years. We maintain our Buy rating on the shares of AMAG with a target price of $55.

Del Monte Food Company (DLM)
By Steven Ralston
Jan 20, 2009
Del Monte Food Company's (DLM) management states that it is focused on improving shareholder value through a brand-driven strategic plan. Management believes that the Transformation Plan will enhance execution and overall competitiveness.

However, escalating commodity costs are constraining earnings progress. EPS have been and are expected to remain range-bound between $0.55 and $0.90 (the range in which the company has reported earnings during the last few years).

Then again, the stock appears to be attractively valued and the rating is a Buy. Our 6-month target price is $10.00 per share.

Genentech, Inc. (DNA)
By Jason Napodano
Jan 19, 2009

Genentech (DNA) posted solid results for the fourth quarter and full year 2008. Sales of Avastin and Rituxan grew double digits in 2008 and the company saw non-GAAP earnings rise by 16%.

Growth in 2009 will not come as easily however. Rituxan is slowing and much of Avastin s future upside potential is based on expanding the label into new areas of growth including glioblastoma, renal cell carcinoma, and adjuvant colon cancer.

Under normal circumstances, we might call 2009 a transition year. But Roche s $89/share bid is still on the table, and speculation is increasing that an even higher bid is coming. Genentech s standalone value is between $90 and $95 per share based on our financial forecasts. However, a new bid from Roche could push the shares closer to $100. Therefore, we recommend continuing to own the name. Downside seems limited as long as Roche is around and upside could come in the form of a higher bid or positive data on Avastin.

Schlumberger, Ltd. (SLB)
By Sheraz Mian
Jan 16, 2009
Houston-based Schlumberger Limited (SLB) is a leading oilfield services company, providing technology, project management, and information services to the global oil and gas industry.

We are maintaining our Buy recommendation on Schlumberger shares ahead of the company's quarterly results. However, we have lowered our fourth-quarter 2008 ($1.10 vs. $1.34) and 2009 ($3.90 vs. $5.50) EPS estimates to reflect a softening oilfield service environment.

We have also introduced our 2010 estimate at $4.09. While near-term commodity-price weakness may weigh on the stock price, the company's long-term prospects remain positive, given its strong international footprint, particularly in the Eastern Hemisphere.

Schlumberger remains better positioned in the current environment of tentative outlook for the North American market, given its low exposure to this region.

Amerisafe, Inc. (AMSF)
By Neena Mishra
Jan 15, 2009
Amerisafe, Inc. (AMSF) is expected to release its 4Q08 financial results between February 23 and March 5, 2009. The company reported impressive 3Q08 results with a 12.5% increase in diluted earnings per share allocable to common shareholders.

During 3Q08, net loss ratio, combined ratio, and book value per share showed decent improvement over the prior as well as the prior-year quarters. Though the soft insurance market environment is expected to keep gross written premiums under pressure due to lower premium rates, we anticipate the results to benefit from AMSF's sound capital position, solid investment portfolio, and strong financial strength rating by A.M. Best.

Ahead of 4Q08 earnings release, we are maintaining our Buy rating on the shares with a six-month target price of $22.00 per share.

Yum! Brands, Inc. (YUM)
By Ann Northrop
Jan 14, 2009
Yum! Brands' (YUM) shares are a great way to gain exposure to China as well as other fast-growing international markets, which constitute the only stable segment of the restaurant industry. Both the overseas divisions of Yum! Brands are expanding rapidly. China (20% of 2007 revenue) and YRI [Yum! Restaurants International, ex-U.S. and China] (30% of 2007 revenue) segments are on track to grow operating earnings by an average CAGR [compound annual growth rate] of 20% and 10%, respectively, over the next five years.

The U.S. operations (50% of revenue) also show signs of revival as same-store sales turned positive in 1Q08 after suffering for several quarters from Taco Bell's 2006 E. coli incident and KFC's NYC rat infestation in February 2007. Reinvigorating sales were Taco Bell's recent product launches, including fruit smoothies and a value menu.

KFC U.S. remains Yum!'s one weak spot, with an outdated menu. A key to improvement will be its 1H09 launch of a new grilled chicken line, the first step in Yum!'s strategy to add healthier and more portable menu items.

Baxter International (BAX)
By Christopher Titus
Jan 13, 2009
Baxter International, Inc. (BAX) is a global medical products and services company with expertise in medical devices, pharmaceuticals and biotechnology. BAX operates three main lines of business: BioScience, Medication Delivery, and Renal.

We believe these markets will remain relatively insulated from the current economic turmoil, providing investors good quality returns on a risk-adjusted basis. Baxter's strong market position is demonstrated in its recent quarterly performance that exceeded estimates and led management to increase fiscal 2008 EPS guidance for the second quarter in a row.

Our 2008 EPS estimate remains within management's guidance of $3.35-$3.37. We believe BAX should trade at a 20% premium to the group P/E/G average of 1.2. The resulting P/E is 19.7x 2008, producing a target price of $66.25.

GameStop Corp. (GME)
By Rob Plaza
Jan 12, 2009
On January 8, GameStop Corp. (GME) reported robust sales for the holiday season. For the period of Nov 2 to Jan 3, GameStop's sales increased 22.3% with comp-store sales of 10.3%.

Given the macro headwinds negatively affecting the retail sector, GameStop's results are even more impressive. More importantly, GameStop upped its earnings guidance for the fourth quarter and expects to earn $1.31-$1.34 per share.

We think the company's results demonstrate that video game sales will continue to hold up better than other areas of retail during this challenging environment. With GME shares trading at less than 8x our 2008 EPS estimate, we maintain our Buy rating and $34 target price.

Agrium, Inc. (AGU)
By Paul Raman
Jan 09, 2009
Agrium Inc. (AGU), based in Alberta, Canada, is a major retailer of agricultural products and services in North and South America, a leading global wholesale producer and marketer of all three major agricultural macronutrients such as nitrogen, potash, and phosphate, and a premier supplier of micronutrients and specialty fertilizers.

Agrium is growing through acquisition and organic expansion. The acquisition of United Agri-Products is driving revenues and profits supported by an expanded product line in the major business segment. However, the company is witnessing weak demand and prices for its fertilizers.

Nonetheless, Agrium expects the fall in demand and prices to be temporary. The company has reaffirmed its earnings guidance for the second half of fiscal 2008. The company also has a significant free cash flow. Therefore, we rate the shares a Buy with a target of $43.00.

China Life Insurance (LFC)
By Neena Mishra
Jan 08, 2009
China Life Insurance (LFC) is scheduled to release its FY08 financial results on March 26, 2009. 1H08 results were disappointing due to the stock market decline.

Despite growing competition as well as volatile capital market, China Life seems to be in a better position than its peers due to the current regulatory environment and its geographical positioning. Further, it has not yet successfully completed its conversion to higher margin products and its current valuation (more so after the recent sell-off) does not fully reflect its growth prospects, which we think have further improved in view of the China's stimulus package, as also the regulator's decision to allow the insurers to invest directly in the infrastructure projects.

We maintain our Buy recommendation on the shares. Based on our FY08 earnings estimate per ADS, the company is trading at 29.1x, which is much higher than the industry median. Our target price of $54.00 per ADS is based on the company selling in line with or above the insurance industry as a whole, and we have set a target P/E of approximately 31.8x our FY08 earnings estimate.

St. Jude Medical (STJ)
By Christopher Titus
Jan 07, 2009
We look for global demographic trends for St. Jude Medical (STJ) -- aging populations in developed nations and the rapid urbanization of developing countries -- to fuel long-term growth in this stock. These trends both give rise to growing demand for cardiovascular health care.

STJ should remain somewhat insulated from the recent economic fallout. Management has demonstrated consistent long-term execution. STJ operates in end-markets totaling $16 billion in sales, which are growing 7-8% per annum.

We maintain our rating at a Buy. The stock trades at a slight premium with comparables' P/E/G. We believe the stock remains very attractive and should trade at a P/E/G of 1.2, bringing the valuation around 17.8x 2008 EPS, or $41.20.

China Mobile (CHL)
By David Weissman
Jan 06, 2009
China Mobile's (CHL) market valuation has declined in recent months which we believe is mostly related to general global equity market weakness and risks associated with the impending overhaul of the telecom sector by China's government. However, it remains our view that the emerging and restructured competitive entities will have unanticipated challenges deploying and advancing services to levels and coverage delivered by China Mobile, the incumbent.

Accordingly, we assess that successful expansion into low-penetration rural regions of China, along with effective network optimization strategies and customized mobile value-added services, establishes China Mobile as the dominant mobile provider, far ahead of its nearest competitors. China Mobile currently commands 70% share of the Chinese wireless market.

Regardless of additional competition, significant opportunities remain due to a substantial untapped user market, not to mention new valued-added offerings and the 3G deployments to follow. We maintain our Buy rating even as we factor in potential impacts of a competitive landscape and a comparatively weaker economy.

Isis Pharmaceuticals (ISIS)
By Jason Napodano
Jan 05, 2009
Isis Pharmaceuticals, Inc. (ISIS) is a drug discovery and development company focused on the therapeutic target RNA and developing products from RNA-based technologies, such as "antisense." We believe that antisense technology represents an exciting and potentially revolutionary platform for developing therapeutic candidates to treat a wide margin of diseases.

The company's leading candidates are mipomersen for high cholesterol and ISIS-113715 for diabetes, along with several other proprietary and partnered programs for oncology, inflammatory disease, asthma, and viral infections. Our financial model forecasts sustained profitability in 2011.

We are reiterating or rating on Isis Pharmaceuticals of a Buy and maintaining our price target of $22.

Celgene Corporation (CELG)
By Grant Zeng
Jan 01, 2009
Celgene Corp. (CELG) is a fully integrated biotechnology company focused on discovery, development and commercialization of drugs in the area of cancer and immune/inflammatory diseases.

The acquisition of Pharmion brings three medically meaningful products -- Thalomid, Revlimid and Vidaza -- into market, which will drive growth in 2009 and beyond. The myelodysplastic syndrome (MDS) market will be dominated by Celgene with complementary Vidaza and Revlimid, although Revlimid and Thalomid face tough competition in the multiple myeloma (MM) market.

Also, its strong balance sheet and deep pipeline will provide long-term growth for the company. Our price target is $70.

ConocoPhillips (COP)
By Sheraz Mian
Dec 31, 2008
Despite the sharp deterioration in the macro backdrop in the last few months, ConocoPhillips (COP) remains well positioned to navigate the current downturn. We estimate that the company will remain free cash flow positive even in a low oil price environment in 2009, without needing to change significantly its investment plans.

ConocoPhillips has significantly strengthened its upstream portfolio over the last few years through its Burlington and LUKOIL transactions, and remains a premier domestic refining player. Recent alliances with the Abu Dhabi National Oil Company (ADNOC), Saudi Aramco, and Australia's Origin Energy are catalysts for the company's future growth.

On valuation grounds, the stock is compellingly cheap, particularly following the recent sell-off. Our recommendation is Buy and our target price is $80 per share.

National Semiconductor (NSM)
By Ken Nagy
Dec 30, 2008
National Semiconductor Corp. (NSM) is an OEM [original equipment manufacturer] of analog and mixed-signal integrated circuits. November quarter revenue fell short of consensus expectations on both the top and bottom lines.

Forward guidance is for a revenue decline of -30% in the next quarter. New higher-margin products continue to grow in the mix, and management has refocused R&D [research and development] into areas that should sustain margins.

Although National has been negatively impacted by the recession, the business continues to exhibit the necessary ingredients for a strong comeback. We are reiterating our Buy rating on valuation considerations.

Research in Motion (RIMM)
By David Weissman
Dec 29, 2008
Research in Motion's (RIMM) management provided an encouraging fourth quarter financial outlook as new high-end handsets are experiencing significant market traction. We expect the smart-phone device market to gain momentum should economic conditions improve and as demand for portable mobile access remains firm on a global market basis. In addition, the company has a healthy financial position with net cash of nearly $2.5 billion.

As a cautionary note, declining gross margins due to new product availability, a highly challenging economic environment, and increasing competition are issues to consider.

Based on our review, we maintain our Buy recommendation for RIMM for its strong market position witha reduced valuation target.

Indevus Pharmaceuticals (IDEV)
By Jason Napodano
Dec 26, 2008
We are initiating coverage of Indevus Pharmaceuticals (IDEV) with a Buy and a $6 price target.

Paramount to our investment thesis on Indevus is the eventual approval of Nebido in late calendar 2009. Therefore, we are encouraged by the fact that management has come to an agreement with the FDA on the re-filing of the Nebido NDA. Approval will be a transformational event for Indevus, potentially leading to profitability in fiscal 2011.

We are also encouraged by the rest of the pipeline and believe that management has several potential non-dilutive avenues to raise cash in 2009.

Lion's Gate (LGF)
By Ann Northrop
Dec 24, 2008
We are initiating coverage of Lion's Gate (LGF) with a Buy rating.

With a strong track record of producing critically acclaimed small and mid-budget specialty films, we think Lion s Gate is well positioned to increase market share as the big studios continue to shrink production of specialty films. Further Lion's Gate's large film library should, in our view, spur renewed growth in home entertainment revenue in 2H FY10 as consumer adoption of the Blu Ray format accelerates.

Although in the coming months we expect the economy and film slate timing to weigh on revenues and EBITDA in all segments, we think the current stock price undervalues LGF s film library, which ultimately generates 80% of the company's free cash flow.

Johnson & Johnson (JNJ)
By Jason Napodano
Dec 23, 2008
Johnson & Johnson (JNJ) is one of the world's largest providers of healthcare products in the consumer, pharmaceutical and medical devices market. It has over 200 operating companies around the world and sells its products in more than 175 countries.

J&J has an enormously diverse revenue stream consisting of market leading products in all three of its business segments. Due to a number of products expected to experience declining sales, revenue growth in the next few years will likely slow relative to 2007. Incremental earnings growth will come in the form of improving margins and share buybacks.

The company's consistency, product diversity and financial stability make it a very attractive holding in this turbulent market. We rate the stock a Buy based on its attractive valuation and strong company fundamentals. Our price target is $72.

Cypress Biosciences (CYPB)
By Jason Napodano
Dec 22, 2008
Cypress Biosciences (CYPB) - With a data from a third positive phase III trial in fibromyalgia released in early December 2008, we are feeling confident that the FDA will approval Cypress Bioscience's and partner Forest Labs' milnacipran product during the first quarter of 2009.

Approval of milnacipran will be a transformational event for Cypress. The company should become almost immediately profitable based on royalties from Forest Labs. By 2013 we see total revenues exceeding $110 million, with net margins above 50%.

We see fair value at $12 per share, or 25x our 2012 EPS estimate of $1.12 per share, discounted back to present day.

EnCana Corporation (ECA)
By Sheraz Mian
Dec 19, 2008
EnCana Corporation (ECA) - EnCana Corp., based in Calgary, Alberta, is a major oil and gas exploration and production (E&P) company. EnCana is the largest independent natural gas producer of North America, with volumes of 3.57 billion cubic feet per day (Bcf/d) in 2007.

EnCana remains better positioned to navigate the current market turbulence than many of its peers. The company remains focused on capital discipline and free cash flows. With about two-thirds of its volumes next year hedged at very attractive price points, the company is expected to generate around $1.5 billion in free cash flows.

The company's strong portfolio of resource plays provides for cost-effective and sustainable volume growth and reserve additions. EnCana's plan to split itself into two separate entities, while delayed at present, is expected to unlock shareholder value.

Garmin Ltd. (GRMN)
By Ken Nagy
Dec 18, 2008
Garmin Ltd. (GRMN) - Garmin is an OEM [original equipment manufacturer] of GPS-based equipment. September quarter results were in-line with the consensus on both the top and bottom lines. All segments were up double-digits in 2007, and are expected to be up again in 2008.

We note that pricing pressures continue to intensify, negating some of the growth in units. Management is optimistic about material prices offsetting ASP pressures in 2008. We see declining profitability for the company.

However, the shares appear cheap, given the current valuation. Consequently, we are reiterating our Buy rating on GRMN shares.

The Medicines Company (MDCO)
By Jason Napodano
Dec 17, 2008
The Medicines Company (MDCO) specializes in acute care hospital cardiology products. It acquires and develops products that are either in the later stages of clinical development or are already on the market.

Its lead product is Angiomax, an anticoagulant approved in the U.S. and other countries for use in patients undergoing coronary angioplasty procedures. Recent positive data from two trials, ACUITY and HORIZON, has helped boost Angiomax sales in the past few quarters. We think this trend will continue. We are also looking forward to the Cleviprex ramp and an interim analysis on phase III candidate, Cangrelor in the fourth quarter.

We are optimistic on the future of the company and see $26 as a near-term target.

Burger King Holdings Inc. (BKC)
By Ann Northrop
Dec 16, 2008
Burger King Holdings (BKC) has resumed unit growth after four years of negative or no growth, during which time it repurchased and/or closed more than 1,000 under-performing franchises while reinvigorating its brand.

In our opinion, BKC is poised to grow earnings at a high-teens CAGR [compound annual growth rate] over the next five years by accelerating unit growth, improving average unit volumes through restaurant remodels and new product launches, and by expanding restaurant margins closer to those of McDonald's (MCD), the category leader.

Though margins were squeezed in the latest quarter by high food cost inflation, commodity prices appear to be moderating. Moreover, we think BKC shares offer investors an opportunity to participate in the fast-growing economies of Asia and South America, which are central to BKC's expansion plans but where it has a very small presence relative to MCD and Yum! Brands.

Genentech, Inc. (DNA)
By Jason Napodano
Dec 15, 2008
Genentech, Inc. (DNA) - Genentech is one of the world's largest biotechnology companies. We are reiterating our rating on Genentech at a Buy, and moving our target price to $95 per share.

We remind investors that we upgraded the name in February based on the "Accelerated Approval of Avastin" for 1st-line metastatic breast cancer. Since that time, Avastin sales have outpaced expectations.

However, the real mover of the stock has been Roche's unsolicited $89/share bid to acquire the 44.2% of Genentech it does not already own. Genentech rejected the bid as inadequate in August and there has been little update since. The tightening credit markets and significant stock price declines may have scared Roche into waiting a few more months. However, ultimately we believe a deal will get done at above $95 per share.

AvalonBay Communities (AVB)
By Greg Sukenik
Dec 12, 2008
AvalonBay Communities, Inc. (AVB) - Headquartered in Alexandria, Virginia, AvalonBay Communities is a real estate investment trust (REIT) which primarily focuses on developing high-quality, multi-family apartment communities for higher-income clients in high barrier-to-entry regions of the U.S. As of September 30, 2008, the company owned or held ownership interests in 177 apartment communities, with 50,034 apartment homes in 10 states.

Operationally, we expect AVB to outperform peers in 2009, although multifamily fundamentals will slow in the coming quarters due to stagnant job growth and growing unemployment trends. Shares of AVB are off over 35% since October due to a general sector sell-off. We are changing our recommendation to Buy due to valuation.

While the next few months could be volatile, we think now is an attractive entry point for the best positioned multifamily operator. The company has plenty of liquidity and is in no danger of near-term debt defaults. In addition, the current yield is now over 5% and the payout is safe.

Procter & Gamble (PG)
By Steven Ralston
Dec 11, 2008
The Procter & Gamble Company (PG) - Procter & Gamble's management is committed to a growth strategy based on (1) driving volume through product innovation and increasing penetration into developing markets and (2) expanding profitability by focusing on higher margin categories.

The plan is meeting with success in terms of top-line expansion, volume growth, and higher earnings. Though the Gillette acquisition was accretive to earnings in fiscal 2008, the gross margin was negatively impacted by increased commodity and energy costs.

Taking advantage of recent market weakness that drove P&G's stock to an attractive valuation level, the stock was upgraded to a Buy. The target price of $72.50 is based on a 20 P/E on trailing 12-month earnings.

McDonald's Corp. (MCD)
By Ann Northrop
Dec 10, 2008
McDonald's Corporation (MCD) continues to report strong same-store sales, driven by the consumer trade down from casual dining, and menu variety. Global comps rose 7.7% in November (U.S. +4.7%, Europe +8.2%, APMEA +7.8%). EPS growth in recent years has been driven by margin improvement in the U.S. and Europe, strong comps on menu innovation, and currency gains as the U.S. dollar weakened.

Although comps are getting tougher and the U.S. dollar has strengthened, we think further growth is possible through margin improvement in APMEA [Asia-Pacific, Middle East and Africa], where company-operated restaurant margins lag the US by 120 basis points, G&A leverage and share repurchases. In 1H09, we expect headwinds from a stronger dollar, but think the dollar may weaken again if the U.S. government's financial rescue programs stoke inflation.

With a strong balance sheet, we think this stock provides relative safety and moderate growth in a turbulent environment and exposure to faster-growing international markets.

DeVry, Inc. (DV)
By Steven Ralston
Dec 09, 2008
DeVry, Inc. (DV) - DeVry is a provider of post-secondary education in North America. The company is the holding company for DeVry University, which provides academic preparation for careers in technology, business, and management.

Management continues to execute well with the company reporting positive enrollment trends since its turnaround in fiscal 2006. In addition, management is executing a five-year strategic plan that focuses on four growth priorities in order to drive growth while maintaining the company's financial strength.

Finally, the ongoing real estate optimization strategy and incremental acquisitions are adding to the company's earnings potential. Therefore, the Buy rating is maintained.

IBM Corporation (IBM)
By Ian T. Gilson
Dec 08, 2008
IBM Corporation (IBM) - As a result of large non-US revenue base, IBM has been better insulated from recent weakness in the U.S. economy than many of its peers. IBM's Q308 results indicate its strong position in emerging markets, which should continue to help drive growth.

Moreover, the company has focused on driving its bottom line through cost-cutting efforts. The company's long-term prospects look brighter as it maintains a strong position in the software and services market.

We therefore maintain our Buy rating on IBM shares, but lower our target price to $100.00, given the weak economic environment.

CEMIG (CIG)
By Claudio Freitas
Dec 05, 2008
CEMIG (CIG) - We are keeping our Buy recommendation on Companhia Energetica de Minas Gerais, or CEMIG. The company posted positive results for the third quarter of 2008, and the short-to-medium term outlook still remains promising as demand for electricity in Brazil keeps growing.

Despite a global credit crunch, we still have a reasonably positive outlook for the Brazilian economy in the short term. Our positive view stems from the growing demand for electricity in Brazil. Moreover, we believe that the tariff correction in 2009 will be quite encouraging.

Finally, CEMIG has a solid dividend payout, and we believe that the stock is quite undervalued when compared to its high net tangible book value.

MEMC Electronic Materials (WFR)
By Ken Nagy
Dec 04, 2008
MEMC Electronic Materials (WFR) - produces the raw material wafers used by semiconductor manufacturers in the production of integrated circuits (ICs).

The decision to supply wafers to the solar industry is paying huge rewards as demand for polysilicon has raced ahead of supply. The Solar business and the 300mm business are both high-margin products. The price of polysilicon has been cut in half over the past quarter, yet the firm can still earn $3.50 per share in 2009.

The stock is significantly undervalued. We are reiterating our Buy rating on the shares of WFR.

ViroPharma, Inc. (VPHM)
By Jason Napodano
Dec 03, 2008
ViroPharma Incorporated (VPHM) - ViroPharma posted very strong financial results for the third quarter. Vancocin sales blew away expectations, coming in at $65.9 million, up 29%. Vancocin continues to benefit from impending treatment guideline changes and ViroPharma's new specialty salesforce.

The acquisition and approval of Cinryze greatly strengthens the company's future prospects. We expect management to be in position to launch the product in the next few weeks. Besides strong Vancocin sales and the Cinryze approval, both phase III trials on maribavir are progressing on plan.

ViroPharma Inc.'s business fundamentals are strong. Sales and earnings are outpacing expectations and the company should exit the year with over $300 million in cash on hand. We are maintaining our Buy rating with a price target of $16.

Einstein Noah Restaurant Group (BAGL)
By Ann Northrop
Dec 02, 2008
Einstein Noah Restaurant Group (BAGL) is suffering the effects of constrained consumer spending, reporting its first quarter of negative comps in four years. We expect comps to remain negative and weigh on earnings into 2H09 or longer, depending on the economy. Longer-term, however, we think BAGL is positioned to increase EPS at a low-teens CAGR over the next several years, while boosting ROIC from mid-single digits, through 2.5% to 3.5% +comps and 10% unit growth, heavily weighted towards franchises.

The company has culled under-performing units from its system roughly 45% of the system and a more profitable unit base remains. The stock price has fallen more than the overall market (down 65% in 3 months), in part due to concerns about BAGL's leverage (2.2x versus covenant maximum of 2.75x) and its ability to meet a preferred stock maturity in 2009.

However, we think these concerns are overblown, as the company is building cash reserves and generating increasing free cash flow on declining cap ex requirements, despite declining comps.

Phase Forward, Inc. (PFWD)
By Abdul Saleh
Dec 01, 2008
Phase Forward (PFWD) provides the software and services to assist clients in improving the efficiency of their clinical trials. The company offers a suite of applications: InForm, Clintrial and Clintrace.

PFWD earlier reported Q3 revenue of $43.2 million, up 23% from a year ago and up 5.1% quarter over quarter. Gross margin came in at 58.9%, up from 57.9% in the previous quarter. Operating margin came in at 17.2%, up from 15.7% in the prior quarter.

Going forward, for full year 2008, management expects to report revenues of $168-$169 million, up 25%-26% from 2007. Management has also narrowed its guidance for EPS. On a GAAP basis, EPS is now expected between $0.30 and $0.31, down from the earlier estimate of EPS around $0.34-$0.35 (non-GAAP EPS is expected at around $0.48-$0.49).

The Clarix acquisition appears synergistic for the company and it seems that the company is on track to meet its goals. We upgrade our rating to a Buy with a target price of $18.00.

SABESP (SBS)
By Claudio Freitas
Nov 28, 2008
We are keeping our Buy recommendation on Companhia de Saneamento Basico do Estado de Sao Paulo, or SABESP. The company posted reasonably positive results for the third quarter of 2008, even though its operating margins decreased.

The short-term outlook remains positive, due to the September 2008 tariff adjustment. Despite the recent depreciation in Brazilian real due to the global financial crisis, we believe that soon the Brazilian real will strengthen and that the company will benefit in the short term. Moreover, the regulatory framework for water and sewage in Brazil in 2006 helped the company in making all possible investments.

We consider the current discount in SABESP's valuation compared to the industry average to be absurd, and we also believe that the company's price/sales ratio is too low. Our target price for SBS is US$50.00, representing a P/E between 8x and 9x our 2008 earnings estimate, closer to the average of the Brazilian Bovespa benchmark. We reiterate our Buy recommendation on SBS.

Colgate-Palmolive Company (CL)
By Steven Ralston
Nov 26, 2008
Colgate-Palmolive Company (CL) - New York City-based Colgate-Palmolive Co. is a global consumer products company with a distribution network reaching more than 200 countries. The company has a stellar long-term growth record. Positive earning surprises along with savings from the company's restructuring and business-building plan should support future growth.

The company remains the clear market leader in the oral care segment. With an array of new products launched in 2008, Colgate-Palmolive is delivering strong results despite aggressive advertising expenditures and higher input costs. Its tight financial controls and efforts to enhance shareholder value through share repurchases and dividend increases support a positive long-term view on the stock.

The stock is rated a Buy with a target price of $79.50, based on a 21 P/E on 12 month trailing earnings.

CEMIG (CIG)
By Claudio Freitas
Nov 25, 2008
CEMIG (CIG) -- We are keeping our Buy recommendation on Companhia Energetica de Minas Gerais, or CEMIG. The company posted positive results for the third quarter of 2008, and the short-to-medium term outlook still remains promising as demand for electricity in Brazil keeps growing.

We still have a reasonably positive outlook for the Brazilian economic environment in the short term, despite a global credit crunch, mainly considering the growing demand for electricity in Brazil. Moreover, we believe that the tariff correction in 2009 will be quite encouraging.

Finally, CEMIG has a solid dividend payout (6%) and a very attractive valuation. We used an earnings multiple of around 9x our 2008 EPS, closer to the company's historical standards and to the S&P average, to arrive at the target price of US$23.50.

Vornado Realty Trust (VNO)
By Greg Sukenik
Nov 24, 2008
Vornado Realty Trust (VNO) - Vornado is a New York-based real estate investment trust (REIT) that acquires, owns, and leases office properties, retail space and temperature-controlled logistics and refrigerated warehouses. The company owns and manages approximately 100 million square feet of real estate (including pro-rata share of partially-owned properties and joint-ventures). Despite softening market conditions, VNO reported relatively strong 3Q08 results.

Overall portfolio occupancy is still high and the company reported strong rental rate increases on new leases at its office and retail properties. Due to strong infill locations in urban areas, VNO is in a better position than most peers to withstand the economic decline in 2009.

It is clear that office and retail fundamentals are getting worse and operations will deteriorate in 2009. We think VNO, at a heavily discounted price, represents good long-term value. The yield, now above 8% appears safe.

Avon Products, Inc. (AVP)
By Steven Ralston
Nov 21, 2008
Avon Products, Inc. (AVP) - Avon is benefiting from both the expansion into the developing and emerging markets and its emphasis on the Beauty products portfolio. Management aims to achieve high single-digit local currency revenue growth supported by margin expansion over the long term.

Management has instilled financial discipline throughout the company. Over $200 million in costs savings have been achieved since 2002 by implementing the multi-year supply chain cost reduction program. Management expects to achieve cost savings of an additional $300 million in savings as the company implements ERP in Europe and North America.

The company is also benefiting from a multi-year restructuring plan begun in November 2005. Due to attractive valuation, the stock is upgraded to a Buy.

NTT DoCoMo (DCM)
By David Weissman
Nov 20, 2008
Supported by its new customer pricing plan, NTT DoCoMo, the largest wireless service provider in Japan, declared respectable financial results for its first half of fiscal 2009 (ended September 30, 2008). The company's operating income increased 41% year-over-year, which offset a minor reduction in revenue.

DCM currently holds 51.5% share of the Japanese cellular market. The introduction of NTT DoCoMo's discount-priced service plans progressed as customer churn rates improved significantly. Stronger foreign currency rates, with respect to Yen against Dollar, have also raised valuation levels of DCM ADR shares.

Operationally, the company has upgraded 98% of its total coverage area with 3G HSDPA technologies and its emerging 4G LTE network is likely to be installed by 2010. We reiterate our Buy recommendation with a higher valuation target, as our assessment indicates improved financial performance due to technological superiority.

Natural Resource Partners (NRP)
By Neil Malkin
Nov 19, 2008
We are maintaining our Buy recommendation on Natural Resource Partners. The partnership looks to improve distributable cash flow next year as its lessees have locked in ?09 coal production at prices above ?08 levels.

Its low CapEx requirements, strong cash flow profile and $250 MM of available liquidity should put the partnership in a strong position in 2009. The partnership will have the option to engage in several unitholder maximizing investments such as strategic acquisitions, further distribution increases and debt repayments.

Although the slowing global growth story will put some downward pressure on coal prices, continued supply issues should help offset decreases in demand for electricity and steel.

Inter Parfums Inc. (IPAR)
By Steven Ralston
Nov 18, 2008
Headquartered in New York City, Inter Parfums is a worldwide marketer of prestige and mass-market perfumes and cosmetics, specializing in prestige fragrances with a focus on licensed designer brands. Prestige fragrances represent 89% of total sales.

Inter Parfums' growth strategy of acquiring exclusive worldwide licenses and developing new prestige fragrances under the brand names acquired from the licenses has resulted in a 19.5% five-year sales growth rate. Management has aggressively pursued additional license agreements, and has also entered the skin-care category.

Due to attractive valuation, the stock is now rated a Buy. Inter Parfums, Inc. has exhibited an above-average sales growth rate, but earnings growth has lagged sales growth due to the inherent risks associated with new products development that is dependent on renewable licensing agreements. The target price of $15.75 is based on an 18 P/E on 12-month trailing earnings.

SINA Corporation (SINA)
By Ian T. Gilson
Nov 17, 2008
SINA is one of the most well-known online brands in China. The company is a leading provider of online media and value-added information services to global Chinese community.

SINA continues to do well in its online brand advertising and is increasing the gap between itself and its closest competitors in the online brand ad market. Chinese Internet penetration has reached 20.0%, and it has accelerated over the past six months.

With the recent turmoil in the global economic environment, we are lowering our price target to $35.00 while maintaining our Buy rating.

3SBio Inc.
By Grant Zeng
Nov 14, 2008
3SBio Inc. is a fully integrated, China-based leading biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products primarily in China. The company's flagship product EPIAO is the number 1 brand in the EPO market. Second lead product TPIAO has gained rapid physician acceptance for thrombocytopenia and is making a meaningful contribution to the company s top line growth. The recent deal with US-based AMAG Pharmaceuticals will boost SSRX expansion into IV Iron market and sustain long term growth. 3SBio's third-quarter resuts were solid and in line with our expectations on an adjusted basis. Net revenues amounted to RMB68.2 million (US$10.0 million) in the third quarter 2008, compared with RMB56.1 million in the third quarter 2007, representing an increase of 21.6%. We maintain our Buy rating on 3SBio.

General Dynamics (GD)
By Jonathan Kolb
Nov 13, 2008
General Dynamics continues to benefit from strong defense outlays. Revenue growth, margin expansion, growing backlog, an under-leveraged balance sheet, an ongoing share purchase program, and strong cash flow generation are the driving factors.

Also strong demand for its Gulfstream jets, especially G650, will boost the Gulfstream order-book. Increased Navy spending on Virginia class submarines and Zumwalt class destroyers boosted the Marine segment. Management believes that there is ample near-term upside potential for the Combat Systems segment due to Abrams tank modernization and Stryker production.

General Dynamics also expects a boost in earnings at the IS&T segment despite a steady ramp-down of the Bowman program due to expansion of customer base through acquisitions.

CPFL Energia (CPL)
By Claudio Freitas
Nov 12, 2008
We are changing our rating on CPFL Energia from Hold to Buy. The company posted slightly lower-than-expected results for the third quarter of 2008. However, the outlook for the following quarters remains positive, mainly considering the growing demand for electricity in Brazil in spite of the difficult business environment around the world.

We also believe that the tariff correction in 2009 and its solid dividend payout will be positive for the stock. Finally, after the recent sell-off, its valuation is highly attractive again.

We do not expect a recession in Brazil as a result of the international credit crisis. Also, tariff correction for 2009 is expected to be very high since the correction will be made on the basis of the IGP (Brazilian Producer Price Index-PPI), which is expected to reach at least 10% in 2008.

AmBev (ABV)
By Claudio Freitas
Nov 11, 2008
We are changing our recommendation on Companhia de Bebidas das Americas, or AmBev, from Hold to Buy. The company posted positive results for the third quarter of 2008, with excellent results in Brazil and in Argentina.

Parent company InBev's desire to acquire Anheuser-Busch appears to be positive for AmBev. Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low cost, daily use products, is not tied directly to the international economic cycle.

Moreover, we believe that the company being a producer of a low-cost, daily use product focusing on domestic markets will be less exposed to the recent international crisis. Indeed, we have an optimistic view on the medium to long term demand for soft drinks in Latin America.

tw telecom, Inc. (TWTC)
By David Weissman
Nov 10, 2008
tw telecom, a leading provider of managed voice & data networking solutions, declared third quarter 2008 financial results with net earnings significantly above our estimates. TWTC continues to generate sustaining revenue from large business enterprises primarily through sales of Ethernet and IP-VPN services. This has reduced the company's dependence on telecom carrier customers.

Although the balance sheet remains considerably leveraged, we do not expect any immediate liquidity crisis since no significant debt will mature before 2013. Growth prospects for TWTC remain firm as a result of growing demand for bandwidth to implement converged IP-based networks.

We believe that the recent weakness in the stock price may be due to overall equity market conditions and this may create favorable investment opportunities to purchase shares of the company. We maintain our Buy rating with a reduced valuation target taking into consideration the current economic slowdown.

Whole Foods Market Inc. (WFMI)
By Rob Plaza
Nov 07, 2008
Whole Foods Market's fiscal fourth quarter results were weak, as expected. Excluding store closure costs, the company earned $0.13 per share, matching our estimate. Including those costs, Whole Foods had EPS of $0.01.

More importantly, at least for the near term, Whole Foods Market secured an equity investment of $425 million, which should alleviate any credit-related concerns for the company. Looking ahead to 2009, the company expects sales of $8.3 billion and EPS $0.68-$0.75 including FTC [Federal Trade Commission]-related legal costs and preferred stock dividends.

Macro headwinds continue to pressure consumer spending, and those headwinds are also negatively affecting the company's results. But the company's focus on operational improvements should be a long-term positive, as the company will be better positioned to re-accelerate earnings growth when macro conditions finally improve. We maintain our Buy rating and our target price of $15.

Osiris Pharmaceuticals (OSIR)
By Jason Napodano
Nov 06, 2008
The company is making significant progress with stem cell therapies. The potential for Prochymal is enormous if several of the phase III trials in GvHD, Crohn's Disease, as well as early-stage programs in acute MI, COPD, ARS, and Type-1 diabetes, pan out.

Additionally, the transaction with Genzyme was transformational for Osiris. Not only does it eliminate the need for any near-term financing, but it provides management with a strong and focused partner for the development and commercialization of Prochymal.

We are highly encouraged by what data we've seen so far. Osiris could potentially be developing a blockbuster drug in Prochymal, and we may see positive EPS from here on out. We are reiterating our Buy rating and $28 price target.

AMAG Pharmaceuticals (AMAG)
By Grant Zeng
Nov 05, 2008
AMAG Pharmaceuticals develops superparamagnetic iron oxide nanoparticles for use in pharmaceutical products. The company's focus is on developing IV iron replacement therapy for anemia in chronic kidney disease and an imaging agent to aid in diagnosis.

The company filed the NDA [new drug application] for its lead drug, Ferumoxytol, in December 2007, and we expect the FDA approval to come in late 2008 or early 2009. Clinical data in over 1,700 patients indicate an excellent safety profile for the drug, with lower incidents of heart problems.

Clinical results, and eventual approval, for additional indications should ensure strong growth in the coming years. We maintain our Buy rating on the shares of Amag with a target price of $55.

Corrections Corp. of America (CXW)
By Sean P. Smith
Nov 04, 2008
Corrections Corp. of America is the largest private owner and operator of correctional and detention facilities in the United States. The company owns and operates medium and maximum level security facilities for the US Federal government, 20 state agencies and numerous local agencies.

We reiterate our Buy rating on shares of CXW prior to the release of third-quarter results. Corrections Corp. holds a significant market share advantage over its peers, with a substantial pipeline of additional capacity scheduled to be added to the portfolio over the next two years. The company is the clear leader in an industry with a strong outlook, supported by favorable economic and demographic trends.

We consider the current price to represent an attractive entry point. Our target price equates to multiples of 27x and 22x our '08 and '09 EPS estimates, respectively. CXW will report Q3 results on 11/6/08.

Vocus Inc. (VOCS)
By Ian T. Gilson
Nov 03, 2008
As a leading provider of software for public relations (PR) management, Vocus Inc. has achieved 37 consecutive quarters of revenue growth since the launch of its first on-demand version in 1999. With minimal competition and strategic acquisitions, Vocus has grown its customer base from 766 customers in fiscal 2003 to 3,144 in Q308.

Moreover, the company has a strong track record of beating expectations. We also believe that the "Software as a Service" model that VOCS uses is defensive in the currently uncertain environment.

In view of this, we maintain our Buy recommendation on Vocus but lower our price target to $34.00 given a weak IT spending market. Our target price represents a P/S [price-to-sales] multiple of approximately 6.7x our 2009 revenue estimate of $96.0 million, or $5.11 per share, which we believe Vocus can reach over the next six months.

Agrium Inc. (AGU)
By Paul Raman
Oct 31, 2008
Agrium is growing through acquisition and organic expansion. The acquisition of United Agri-Products (UAP) is driving revenues and profits supported by an expanded product line in the major business segment.

Rising global prices for nitrogen, potash, and phosphate leveraged by strong demand augur well for AGU. The company also has a significant free cash flow. Therefore, we rate the shares a Buy with a target of $45.00. High prices for most of the major grains and oilseeds are likely to benefit Agrium.

Currently, Agrium is trading at 3.6x our 2008 estimate of $9.61. As a result, we rate the shares a Buy with a target of $45.00. This is 4.7x our 2008 estimate.

ViroPharma (VPHM)
By Jason Napodano
Oct 30, 2008
ViroPharma posted very strong financial results for the third quarter. Vancocin sales blew away expectations, coming in at $65.9 million, up 29%. Vancocin continues to benefit from impending treatment guideline changes and ViroPharma's new specialty salesforce.

The acquisition and approval of Cinryze greatly strengthens the company's future prospects. We are excited to hear about the commercialization plans in early November. We expect management to be in position to launch the product before the end of the year. Besides strong Vancocin sales and the Cinryze approval, both phase III trials on maribavir are progressing on plan. ViroPharma's business fundamentals are strong. Sales and earnings are outpacing expectations and the company should exit the year with over $300 million in cash on hand.

At this level, ViroPharma stock is too attractive to ignore. Our 2008 revenue forecast of $243.5 million yields a price to sales ratio of 3.2x. This is significantly below the biotechnology peer-group average of around 6.5x. We forecast 2008 EPS at $0.96. The price to earnings ratio is only 11.5x. As such, we rate the stock a Buy and are maintaining our price target at $16 per share.

Qualcomm Inc. (QCOM)
By David Weissman
Oct 29, 2008
We maintain our Buy rating for Qualcomm, the largest developer of digital mobile chipsets based on CDMA technology, ahead of fourth quarter fiscal 2008 financial results (ending September 30). The company's fundamentals remain compelling as it has several industry-leading innovative products for a variety of wireless applications.

Qualcomm's legal settlement with Nokia for royalty related issues and a new 15-year licensing agreement significantly strengthens business planning. It is our view that demands for mobile broadband services and adoption of 3G cellular technologies will continue to grow throughout the world.

However, over the near-term, an extremely challenging global economy is likely to generate lumpy chipset sales and associated average selling prices. Based on current valuation levels and general economic concerns, we reduce our six-month valuation target for Qualcomm.

Edison International (EIX)
By Jonathan Kolb
Oct 28, 2008
Edison International reaffirmed 2008 GAAP and core earnings guidance within the range of $3.61 to $4.01 per share. Within this range, Southern California Edison (SCE) and Edison Mission Group (EMG) are expected to be between $2.18 to $2.28 and $1.57 to $1.87 per share, respectively, while the parent company EIX and Other segment is expected to register a loss of $0.14 per share in 2008.

Several issues that previously reduced visibility of the company's long-term prospects have been resolved. These factors include the favorable decision on SCE's general rate case in California and the positive outlook for Edison Mission Energy (EME) following the resolution of its liquidity issues, combined with an improving operating outlook. The resulting positive earnings momentum due to these factors, in our view, will help promote EIX's equity value.

Accordingly, we maintain our BUY recommendation on Edison International common stock with a six-month target price of $37.50. Price appreciation to our near-term valuation, coupled with the stock s $0.305 per share quarterly dividend, which we view as very sustainable and secure given low projected payouts, represents annualized total return potential of 38.4%.

Amphenol Corp. (APH)
By Abdul Saleh
Oct 27, 2008
Amphenol Corp. recently reported record revenues of $863.7 million in the company's 3rd quarter, exceeding the Street's consensus of $835 million, on the back of strong growth in the global communications, military and aerospace markets. Currency translations contributed $16 million. Gross margin of 32.6% was roughly flat year-over-year but slightly down from 32.7% in Q2, while operating margin improved to 19.8% from 19.5% a year ago and was flat quarter over quarter. EPS of $0.63 easily beat the consensus of $0.60.

Going forward, management has narrowed the guidance range and reiterated the high end of the fiscal year guidance. Revenues are now expected to come around $3.2-$3.3 billion. EPS is now anticipated to come around $2.36-$2.38. Guidance for the 4th quarter was raised, as well.

We upgrade the stock to a Buy with a target price of $35. Amphenol is experiencing broad-based growth across all its geographical regions with strong sales from the industrial, military/aerospace, mobile consumer products and infrastructure, and IT and data communications end-markets. Amphenol Corp. designs and manufactures connectors and interconnecting systems that are used primarily to conduct electrical and optical signals for a wide range of sophisticated electronic applications.

Bristol-Myers Squibb (BMY)
By Jason Napodano
Oct 24, 2008
Growth of mega-blockbuster Plavix is helping Bristol drive EPS growth up near 16% in 2008. Patent expirations loom very large in Bristol's future starting in 2011 when the Plavix patent expires.

That being said, the company does have an attractive mid-to-late-stage pipeline, and the company has been dramatically working to reduce costs and shed less profitable and non-core businesses.

We believe the company is an attractive take-over candiate at this level for a larger pharma name such as Sanofi or Pfizer. EPS growth at rates near the top of big pharma and a very attractive valuation prompted our recent upgrade from Hold to Buy. We expect the shares to trade up near $26.

The Medicines Company (MDCO)
By Jason Napodano
Oct 23, 2008
The Medicines Company specializes in acute care hospital cardiology products. It acquires and develops products that are either in the later stages of clinical development or are already on the market.

Its lead product is Angiomax, an anticoagulant approved in the U.S. and other countries for use in patients undergoing coronary angioplasty procedures. Recent positive data from two trials, ACUITY and HORIZON, has helped boost Angiomax sales in the past few quarters.

We think this trend will continue. We are also looking forward to the Cleviprex ramp and an interim analysis on phase III candidate, Cangrelor, in the fourth quarter. We are optimistic on the future of the company and see $30 as a near-term target.

PetMed Express (PETS)
By Rob Plaza
Oct 22, 2008
PetMed Express and subsidiaries, doing business as 1-800-PetMeds, is a leading nationwide pet pharmacy. The company markets its health products for dogs, cats, and horses direct to the consumer through national television, online, and direct mail advertising campaigns.

On October 20, PetMed Express delivered another strong quarter that was above expectations and our estimates. The company's sales trends remain strong, despite the difficult economic environment. What's more, the company s healthy repeat customer business has allowed management to cut operating expenses without hurting its overall sales growth. As a result, the company has posted impressive profit margin gains.

Going forward, we think the company can increase its operating profit margin to 15.3% in 2009 and 15.7% in 2010, up from 13.7% in fiscal 2007. All told, we are becoming more bullish on PetMed Express and upgrading the stock from Hold to Buy. Our target price is $20, or about 20x our fiscal 2009 EPS estimate.

Baxter International (BAX)
By Christopher Titus
Oct 21, 2008
Baxter International is a global medical products and services company with expertise in medical devices, pharmaceuticals and biotechnology. The company operates through three main lines of business: BioScience, Medication Delivery and Renal.

We believe these markets will remain relatively insulated from the current economic turmoil, providing investors good quality returns on a risk-adjusted basis. Baxter's strong market position is demonstrated in its recent quarterly performance that exceeded estimates and led the management to increase fiscal 2008 EPS guidance for the second quarter in a row.

The company's third quarter results exceeded management s guidance and beat our estimates on higher revenues and expanding margins. As a result, management increased its guidance, giving a boost to our estimates. Our estimate increases $0.07 to $3.36, reflecting tighter margin guidance and lower share count. Such a strong increase in guidance in the face of currency headwinds points to greater certainty that stronger fundamentals have prevailed in BAX's core products.

CSX Corporation (CSX)
By Ann Heffron
Oct 20, 2008
Based in Jacksonville, Florida, CSX Corporation provides rail freight and intermodal transportation through its subsidiaries. Improved pricing due to strong customer demand and tight transportation supply and fuel surcharges combined with cost escalation clauses in multi-year customer contracts are driving revenue gains across the board. Increasing freight rates are expected to sustain top-line growth of at least 5-6% over the next few years.

CSX Corp. posted third quarter EPS of $0.94, above the $0.93 consensus, but below our $0.97 estimate, due to storm-related losses in the Gulf Coast and the Midwest. We are cutting our EPS estimates to $3.66 from $3.70 for 2008, as CSX Corp. is now targeting the low end of EPS guidance of $3.65-3.75, and to $4.25 from $4.40 for 2009.

CSX's projected EPS growth rate of 18% is above the median for the industry, while its dividend yield is modestly below the median. Our $60 target price represents roughly a 14X P/E, based upon our 2009 EPS estimate of $4.25 per diluted share, providing a PEG ratio (P/E divided by estimated future growth rate) of 0.8X, approximately in line with the industry median.

C.R. Bard (BCR)
By Christopher Titus
Oct 17, 2008
C.R. Bard operates in vascular, urology, oncology, and surgical specialty markets. These end-markets should remain insulated from the current economic turmoil. Many of the company's products are used in interventional medicine - life-saving surgical procedures. The company's vascular products include percutaneous transluminal angioplasty catheters, guidewires, introducers and accessories, peripheral stents, stent grafts, vena cava filters, and biopsy devices.

We look for the company to finish in the upper end of their guidance. Future quarters will be met with a headwind from foreign exchange. However, with less than a third of sales outside of the United States, the impact will be less than for BCR's competitors.

The stock currently trades at roughly 17.3x our 2008 expected EPS of $4.40. We believe the company should trade in-line with the comparables and slightly above the industry mean. We remain at a P/E/G valuation of 1.7x 2008. With this valuation, our recommendation increases from Hold to Buy.

Yum! Brands (YUM)
By Ann Northrop
Oct 16, 2008
Yum! Brands, formerly Tricon Global Restaurants, Inc., was spun off from PepsiCo in October 1997. The company currently owns, operates, and franchises major fast food concepts, such as KFC, Pizza Hut and Taco Bell in more than 100 countries. Yum! Brands is the world's largest restaurant company with over 35,000 system restaurants.

Shares of Yum! Brands are a great way to gain exposure to China's booming economy as well as other fast-growing international markets, while investing in the only stable segment of the restaurant industry. Yum! Brands two overseas divisions (50% of 2007 revenue) are expanding rapidly. China and YRI are on track to grow operating earnings by an average CAGR [compound annual growth rate] of 20% and 10%, respectively, over the next five years.

Reinvigorating sales [after a well-publicized e. coli outbreak] was Taco Bell's recent product launches, including fruit smoothies and a value menu. KFC U.S. remains Yum's one weak spot, with an outdated menu. Key to improvement will be its 1H09 launch of a new grilled chicken line, the first step in Yum's strategy to add healthier and more portable menu items.

Kroger Co. (KR)
By Rob Plaza
Oct 15, 2008
Kroger is one of the largest grocery retailers in the U.S. and also the top-rated stock in the Zacks Supermarket Industry. The shares are down about 14% since October 1. We think this sell-off is overdone and view this entry point as buying opportunity. As such, we are upgrading the stock from Hold to Buy.

On September 16, Kroger reported better-than-expected results for the second quarter, beating on the top and bottom lines. Management also maintained its full-year EPS guidance of $1.85-$1.90. Kroger?s low prices and private-label brands continue to help the company take market share from competitors despite the weak economic environment. The company?s tight cost controls also help to offset the decline in its gross margin.

Kroger shares are trading at 12.4x our fiscal year 2008 EPS estimate and 11.2x our fiscal year 2009 EPS estimate. After the recent sell-off, Kroger shares look attractively priced at current levels. We think the stock should trade at a reasonable 15x our 2009 EPS estimate or $32.

Telus Corporation (TU)
By David Weissman
Oct 14, 2008
We are upgrading our rating to Buy for Telus Corp., the second largest telecommunications provider in Canada. Operating results demonstrate strong wireless and high-speed Internet subscriber growth, effectively offsetting declines in its legacy fixed-line business. Notably, recent net wireless subscriber additions outpaced retention efforts made by the company's closest peers, leading to a second-quarter record.

We are encouraged by Telus wireless business prospects given its strong brand value, expanding product/service portfolio and ongoing technology upgrade initiatives, as we account for the potential of a more competitive landscape in the Canadian wireless market.

Moreover, we are impressed by management's favorable outlook for 2008 and commitment to return enhanced value to shareholders through continued share buyback programs and attractive dividend payouts.

Further, we expect 3G wireless high-speed data services and increased penetration of smartphone devices to sustain and improve Average Revenue Per User (ARPU) moving forward.

Although recent news surrounding the potential new competitors in the Canadian wireless market (due to AWS spectrum auctions) may have weighed in on cautious investment sentiment, Telus continued commitment in maximizing shareholder return through attractive dividend payouts, and share repurchases provide reasonable support that may limit downside risk.

Johnson & Johnson (JNJ)
By Brian Marckx
Oct 13, 2008
Johnson & Johnson (JNJ) is one of the world's largest providers of healthcare products in the consumer, pharmaceutical and medical devices market. It has over 200 operating companies around the world and sells its products in more than 175 countries. J&J has an enormously diverse revenue stream consisting of market leading products in all three of its business segments.

Due to a number of products expected to experience declining sales, revenue growth in the next few years will likely slow relative to 2007. Incremental earnings growth will come in the form of improving margins and share buybacks. J&J's consistency, product diversity and financial stability make it a very attractive holding in this turbulent market.

We are upgrading our recommendation from Hold to Buy based on the stock's attractive valuation and strong company fundamentals. Our price target is $70.

St. Jude Medical (STJ)
By Christopher Titus
Oct 10, 2008
St. Jude Medical is a leading medical device manufacturer producing consistent double-digit revenue and earnings growth over the past decade. Revenue growth is fueled by numerous product introductions, advancing in technological sophistication, and capturing higher margins.

We look for global demographic trends -- aging populations in developed nations and the rapid urbanization of developing countries -- to fuel long-term growth in this stock. These trends both give rise to growing demand for cardiovascular health care. STJ should remain somewhat insulated from the recent economic fallout.

We move our rating to Buy. Our estimates are being trimmed slightly ahead of the quarter due to the current economic upheavals, but at current prices, we still find the stock to be very attractive. This is supported by the company's consistent financial performance and relatively inelastic demand for their products. Management tends to guide investors with caution, often exceeding their own guidance.

Safeway, Inc. (SWY)
By Rob Plaza
Oct 09, 2008
We are upgrading Safeway, a major food and drug retailer in North America, shares from Hold to Buy. The recent sell-off in its shares has created a buying opportunity, in our view.

Despite business going pretty much as expected, SWY shares are down 19% in the last two months and 30% in the last year. Safeway shares have sold off because of risks associated with the difficult macro-environment that has consumers trading down to cheaper alternatives, as well as the credit crisis that has impacted the entire stock market.

In our view, SWY shares have declined to a level that is attractive on a valuation basis, even if a weak macro-environment persists throughout 2009. As a result, our six-month target price is $28, or about 11.5x our 2009 EPS estimate.

Scientific Games (SGMS)
By Steven Ralston
Oct 08, 2008
Scientific Games has a leading position in several markets, including the instant ticket and online lottery markets. In addition, Scientific Games continues to win significant contracts in both the instant ticket and online lottery markets from both domestic and international lottery authorities.

Also, the company has made several acquisitions that have accelerated top-line growth. Ron Perelman, a world-renowned private investor, owns 28.1% of the company's stock. The Buy rating is maintained.

Scientific Games is currently selling at 20.6 times trailing 12-month earnings. Over the last few years, the stock has traded in a wide P/E range of 16 to 38. The stock traded with a significant P/E premium as a result of the company's leading market position. The six-month target price of $33.50 is based on a 30 P/E multiple on 12-month trailing earnings.

Canadian Solar, Inc. (CSIQ)
By Jonathan Kolb
Oct 07, 2008
Canadian Solar engages in the design, development, manufacture, and sale of solar module products (ranging from 5-watt to 300-watt and using both polycrystalline and monocrystalline solar cells) that convert sunlight into electricity for various uses. The company was incorporated by Dr. Shawn Qu in Canada in 2001. In the People's Republic of China, the company has three manufacturing facilities located at Suzhou, Changshu and Luoyang.

CSIQ's bullishness has been boosted by improving company fundamentals, higher revenue guidance, capital expansion funds generated through follow-on offerings, and volatility in the price of oil. Going forward, on the back of solar panel sales growth in various global markets, extension of product lines, material cost savings through the company's more vertically-integrated production structure, higher captive generation of solar cells, long-term supply agreements, and a silicon reclamation program should, collectively, generate significant earnings growth.

So, with a predominantly bullish outlook, we maintain our BUY recommendation on CSIQ with a six-month target price of $29.50. Price appreciation to our near-term valuation target represents 94.3% upside potential.

ConocoPhillips (COP)
By Sheraz Mian
Oct 06, 2008
ConocoPhillips has significantly strengthened its upstream portfolio over the last few years through its Burlington and LUKOIL transactions, and remains a premier domestic refining player. Recent alliances with the Abu Dhabi National Oil Company (ADNOC), Saudi Aramco and Australia's Origin Energy are catalysts for the company's future growth.

On valuation grounds, the stock is compellingly cheap, particularly following the recent sell-off. We are reiterating our Buy recommendation for the stock ahead of the company's third-quarter results. Our estimates and price objective remain unchanged.

ConocoPhillips is also the fourth largest refiner in the world and the second largest in the U.S. Despite its large size, ConocoPhillips is still not part of the group generally referred to as the "super-majors," which includes the global oil giants, such as Exxon Mobil, BP, Total, Royal Dutch/Shell, and Chevron. We believe that last year's Burlington acquisition makes ConocoPhillips a strong contender to join that group.

Bristol-Myers Squibb (BMY)
By Brian Marckx
Oct 03, 2008
Bristol-Myers Squibb Company is a major producer and distributor of pharmaceuticals and other healthcare-related products. The Pharmaceutical segment manufactures and sells branded pharmaceutical drugs such as Pravachol for cholesterol reduction, Plavix for hypertension and Erbitux for cancer. The Nutritional segment, through its subsidiary Mead Johnson, develops infant formulas like Enfamil, as well as other nutritional products.

We think the non-small cell lung cancer market offers significant opportunities for Erbitux. Add on the potential for IMC-118 to become a blockbuster product and we think it makes sense for Bristol raise its $62/share offer for ImClone. A sale to any other suitor may very possibly end up in a court battle over ownership rights to ImClone's pipeline.

So while we think it makes little sense for any other suitor other than Bristol to be interested in acquiring ImClone, we think a deal with Bristol fits well within the framework of the company's "String of Pearls" strategy.

Research In Motion (RIMM)
By David Weissman
Oct 02, 2008
Research In Motion, the manufacturer of BlackBerry smart-phone devices, reported second quarter fiscal 2009 financial results (ended August) that were slightly below our estimates. We expect the smart-phone device market to gain momentum should economic conditions improve, and as demand for portable wireless access remains 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 is on the verge of introducing a series of next-generation BlackBerry smart-phones.

In view of the company's financial condition, we remain comfortable that the company can execute on reaching additional market share, especially in untapped emerging markets. The recent decline in current stock valuation is now considered more favorable from an investment standpoint as we maintain our Buy recommendation with a reduced price target.

Crown Castle (CCI)
By David Weissman
Oct 01, 2008
We maintain our Buy rating, but reduce the valuation target for Crown Castle, a leading operator of wireless communications towers in the USA and Australia. We believe recent weakness in the stock price is related to general global equity market conditions and not necessarily impacted by any changes to company's financial fundamentals.

Overall performance is expected to be driven by substantial demand for more tower space to facilitate high-speed data services -- in particular, 3G mobile technologies, mobile video and new WiMAX deployments. The merger with Global Signal has provided better-than-expected cost synergies.

Although a substantial level of debt remains concerning, management guided that its recurring cash flow per share is forecasted to increase 25% through fiscal 2008. Our long-term view regarding the wireless tower industry remains positive, and we believe the company is well positioned to capitalize on emerging telecom network deployment opportunities.

Weatherford International (WFT)
By Sheraz Mian
Sep 30, 2008
Houston, Texas-based Weatherford International, Ltd. is a leading manufacturer and provider of equipment and services used in drilling, completion, and production of oil and natural gas wells.

We are upgrading Weatherford shares to Buy from Hold following the recent commodity-price induced weakness in the stock, which has made valuation very compelling for this quality oilfield name. The stock is down roughly 35% in the last 12 weeks, compared to the peer group's average of a 26% pullback and the roughly 4% decline in the broader S&P 500.

Concerns about the company's over-exposure to North American onshore drilling in a tentative natural gas price environment are overdone, in our view. The company has a growing international footprint, where the outlook for its integrated project management expertise remains very favorable. Our unchanged $37 price objective reflects 2009 P/E and EV/EBITDA multiples of 12.8x and 7.5x, respectively, well within historical trading ranges.

Acergy S.A. - ADR (ACGY)
By Sheraz Mian
Sep 29, 2008
London-based Acergy, previously known as Stolt Offshore S.A. (SOSA), is a leading oilfield contractor engaged in the designing, procurement, building, installation, and servicing of a range of offshore surface and sub-surface equipment for the oil and gas industry. We are upgrading Acergy S.A. ADRs to Buy from Hold following the stock's roughly 50% pullback since July.

We believe that the recent weakness has made valuation very compelling for this leading oilfield contractor. Acergy has been successfully pursing a strategic shift towards the deepwater markets, enjoying a leading market position with strong growth prospects across all of its regions. Acergy's growing backlog, which now stands at $3.6 billion, offers strong long-term earnings and cash flow visibility.

Last year's successful completion of the challenging and technically complex Greater Plutonio project (the company's single-largest project to date) offshore Angola demonstrated the company's capabilities in deepwater engineering and construction. Acergy remains well positioned to capitalize on the positive outlook for subsea engineering and construction services demand over the coming years.

Unilever (UN)
By Steven Ralston
Sep 26, 2008
Unilever has benefited from the 'Path to Growth' strategy in terms of expanding margins, building momentum of key brands, rationalizing costs, and streamlining the asset base. Impressively, the underlying operating margin is rising despite rising input costs in the first half of 2008. In addition, the developing and emerging markets are expected to continue driving incremental topline growth.

Unilever has simplified the management hierarchy whereby the dual chairman structure has been replaced by a structure comprising a single chief executive officer and a non-executive Chairman. The organizational changes will expedite decision-making, improve execution, and enhance customer focus. The one-to-one equivalence between PLC and NV shares should also improve financial transparency.

The company generates strong cash flow, which is being used to increase shareholder value through share repurchases and dividend increases. The Buy rating is maintained on Unilever. The shares have traded in a P/E multiple range of 11 to 24 over the last five years. We expect the stock's P/E to reach the high-end valuation levels over time. The target price of $39.75 is based on 20 times trailing 12-month earnings.

Diamond Offshore (DO)
By Sheraz Mian
Sep 25, 2008
Our continued favorable view of Diamond Offshore (DO) shares reflects the company's strong leverage to the favorable deepwater drilling outlook. With a backlog of more than $11 billion, Diamond offers a solid level of earnings and cash flow visibility going forward.

The company remains committed to returning excess cash shareholders, primarily through dividends. In addition to its regular dividend, the company has paid a special dividend of $1.25 per share in each of the last four quarters and $4 per share earlier in 2007. Given its cash flow outlook, we expect this payout pattern to remain in place in the near to medium term.

In terms of its deepwater drilling leverage, its closest peer is Transocean, relative to which it continues to trade at a discount. Our unchanged $145 price objective reflects 2009 P/E and EV/EBITDA multiples of 10.8x and 7.0x, respectively, both well within historical trading ranges and still at a discount to Transocean.

Burger King Holdings, Inc. (BKC)
By Ann Northrop
Sep 24, 2008
We are maintaining our Buy rating on shares of Burger King. The company has resumed unit growth after four years of negative or no growth, during which time it repurchased and/or closed more than 1,000 underperforming franchises while reinvigorating its brand.

In our opinion, BKC is poised to grow earnings at a high-teens CAGR [compound annual growth rate] over the next five years by accelerating unit growth, improving average unit volumes through restaurant remodels and new product launches, and by expanding restaurant margins closer to those of McDonald's, the category leader.

Moreover, we think BKC shares offer investors an excellent opportunity to participate in the fast-growing economies of Asia and South America, which are central to the company's expansion plans.

ReneSola, Ltd. - ADS (SOL)
By Jonathan Kolb
Sep 23, 2008
Through its short history, ReneSola has regularly adapted to changing market dynamics. The company is aggressively ramping up its polysilicon and solar wafer production capacities. Going forward, increased captive generation of polysilicon will improve its cost structure and enable wafer capacity expansions.

Globally, rising solar wafer sales, along with escalating crude and new long-term sales agreements, should collectively generate significant earnings growth. Buoyed by these positive factors and impressive results, SOL increased its 2008 production output and sales guidance.

Accordingly, with a predominantly bullish outlook and an attractive relative valuation, we maintain coverage of SOL with a BUY recommendation and a six-month target price of $20.00, representing 37.5% upside potential.

Baker Hughes, Inc. (BHI)
By Sheraz Mian
Sep 22, 2008
We are reiterating our Buy recommendation on Baker Hughes shares following the recent commodity price-induced weakness in the entire group. We believe that the company's outlook remains favorable, as we do not expect commodity prices to weaken enough to materially impact the outlook for oilfield activity levels, especially in the international markets.

The recent dividend hike and increased buyback authorization are other positives in the Baker Hughes story. The Houston-based company is one of the largest oilfield services companies in the world, providing a range of services to the global oil and gas industry.

On relative valuation grounds, Baker Hughes shares are attractive at current levels, compared to its large-cap peers. We believe that the new Baker Hughes deserves a relatively modest valuation discount to Schlumberger, if at all, compared to the current level. This is the primary reason for our continued positive outlook for the stock.

American Tower Corp. (AMT)
By David Weissman
Sep 19, 2008
We reaffirm our Buy rating and the same valuation target for American Tower, a leading operator of wireless communications towers in the USA, Mexico, and Brazil. Overall performance has been driven by substantial demand for more tower space to facilitate high-speed data services and mobile video, along with 3G and WiMAX technologies.

Recent initiatives in emerging markets of India will further solidify long-term growth capabilities. Improvements continue with respect to several of its financial metric benchmarks and the company has sequentially outperformed its peer group on an EBITDA margin basis. Significant operating cash flow reduces our concern regarding its leveraged balance sheet.

Our view towards the wireless tower industry remains positive and we believe American Tower is well positioned to capitalize on next-generation telecom network deployment opportunities.

CSX Corporation (CSX)
By Ann Heffron
Sep 18, 2008
We are raising our rating on CSX Corp. to Buy from Hold, due to its improved earnings outlook. CSX recently increased 2008 EPS guidance to $3.65-$3.75 from $3.40-3.60. At the same time, CSX upped long-term growth estimates (through 2010) in operating income to 15-20% from 13-15% and in EPS to 20-25% from 18-21%, partly reflecting improved efficiency, with the operating ratio estimated to drop to the high 60s from the prior target of the low 70s.

We are increasing our EPS estimates from $3.55 to $3.70 for 2008, the midpoint of CSX's revised $3.65-3.75 guidance and to $4.40 from $4.20 for 2009. Improved efficiency, strong yields and share buybacks should offset weakening volumes from a slowing economy and higher fuel costs. CSX reported second quarter EPS of $0.89, up 26% year-over-year. We believe the dividend is safe.

On September 16, 2008, CSX announced that, in light of the September 15, 2008 decision by the Second Circuit Court of Appeals in New York that turned down CSX's attempt to block some of the TCI/3G votes for the company's board of directors, CSX has invited TCI Group nominees, Christopher Hohn and Timothy O'Toole, to join the board of directors. In July 2008, CSX seated two other TCI/3G board members.

Abbott Laboratories (ABT)
By Jason Napodano
Sep 17, 2008
Abbott Laboratories discovers, develops, manufactures and sells a diversified line of healthcare products. We expect double-digit EPS growth over the next few years driven by strong sales of Humira and the company's rapidly growing vascular business.

Several new drug applications have recently been filed with the FDA, which should accelerate sales in the pharmaceutical business. Based on our model, the company is expected to deliver double-digit EPS growth through the end of 2012.

We believe ABT possesses a low-risk profile and will continue to trade at an industry premium. Accordingly, we reiterate our Buy recommendation with a price target of $65.

Animal Health International (AHII)
By Chris Kallos
Sep 16, 2008
Animal Health International reported lower-than-expected fourth-quarter net income of $2.7M, or EPS of $0.11. Nonetheless, EBITDA increased 27.2% year-over-year after adjusting for a one-time charge in the comparable quarter last year, and was driven primarily by an increase in sales volume.

We are encouraged by the expansion of gross profit margins and continue to believe the company is well positioned to take advantage of currently challenging economic conditions to grow its production animal business via acquisition. We retain our Buy recommendation at current levels.

With a significant number of products expected to lose patent protection over the next several years, we believe the company is well positioned to enhance margin expansion through the incremental addition of private label products to the product mix. We have valued AHII on a forward price/earnings basis, as well as a comparison to similar firms in the animal health products sector. Our $9 price target represents a 13.9 times fiscal 2009 EPS of $0.65.

VistaPrint, Inc. (VPRT)
By Sean P. Smith
Sep 15, 2008
We are initiating coverage on shares of VistaPrint with a Buy rating and a price target of $40 per share. VistaPrint is a leading online supplier of high-quality graphic design services and customized printed products to small businesses and consumers.

VPRT has generated significant organic growth over the last several years, and we project that this growth will continue. The company's primary targeted market of small businesses with fewer than 10 employees is substantial, providing VistaPrint with significant growth potential.

The company has several competitive advantages that we expect will enable it to outperform its peers. VistaPrint's operating fundamentals are strong, and the company is in very solid financial position. We consider the current valuation to be attractive.

Smith International (SII)
By Sheraz Mian
Sep 12, 2008
We are upgrading Smith International shares to Buy from Hold following the stock's recent weakness, which has made valuation very compelling, in our view. The recent completion of the W-H Energy acquisition provides Smith with entry into new product lines with favorable growth prospects, particularly internationally.

Looking ahead, we expect the company to generate strong revenue growth and margin expansion, aided by demand acceleration, price increases, and cost discipline. We have raised our EPS estimates (2008: $3.87 vs. $3.78; 2009: $4.90 vs. $4.69) and kept our price objective unchanged.

While near-term commodity-price weakness may weigh on the stock price, the company's long-term prospects remain positive, given its growing Eastern Hemisphere revenue mix, which have historically tended to be less volatile than those generated in the North American land-based market.

DeVry, Inc. (DV)
By Steven Ralston
Sep 11, 2008
DeVry, Inc.'s management continues to execute well with the company reporting positive enrollment trends since its turnaround in fiscal 2006. In addition, the management is executing a five year strategic plan that focuses on four growth priorities in order to drive growth while maintaining the company's financial strength.

DeVry University is benefiting from strong enrollment growth and increased enrollments of online students. Total student enrollment growth for the 2008 summer term increased 12.6%. Finally, the ongoing real estate optimization strategy and incremental acquisitions are adding to the company's earnings potential. Therefore, the stock is upgraded to a Buy.

DeVry is currently trading at 31.4 times trailing 12-month EPS, reflecting the company's revenue and potential earnings growth profile since the turnaround. Over the last five years, the stock has traded in a wide P/E range of 13 to 60. However, excluding the low P/Es from the time of negative enrollment comparisons and excluding the high P/E on depressed earnings when the stock initially rallied on the announcement of the first positive enrollment comparison, the stock has traded in the P/E range of 30 to 52. The target price is $64.00, which is a 36 P/E multiple on 12-month trailing earnings.

The Medicines Company (MDCO)
By Jason Napodano
Sep 10, 2008
The Medicines Co.'s lead product is Angiomax, an anticoagulant approved in the U.S. and other countries for use in patients undergoing coronary angioplasty procedures. We believe that recent positive data from two trials, ACUITY and HORIZON, will help boost Angiomax sales in the coming quarters.

We are encouraged both by the strong sales of Angiomax in the U.S. during the second quarter and the stabilization of the percutaneous coronary intervention market seen over the past few months. We are also feeling more confident in the eventually extension of the Angiomax patent beyond 2010.

Besides this, the company received approval for Cleviprex (calcium channel blocker) in August, and late-stage candidate Cangrelor (anticoagulant) is progressing in phase III trials. As Angiomax continues to ramp, and new products such as Cleviprex and Cangrelor come online, The Medicines Co. is expected to see 23% CAGR in revenues and 70% CAGR in earnings over the next five years.

Plexus Corp. (PLXS)
By Steve Biggs
Sep 09, 2008
Plexus has posted several quarters of strong results, with significantly higher-than-expected revenue and bookings. We believe that PLXS is among the best positioned in the industry and is poised to grow in the medical segment as well.

Plexus is also benefiting from its exposure to Juniper Networks, its largest customer at 23% of Q3 revenue. The company's outlook continues to be strong in spite of macroeconomic concerns, which have yet to affect its customers. We therefore maintain a six-month price target of $36.00.

We believe Plexus is better positioned for growth than its peers in the EMS [electronic manufacturing services] group. As an engineering-focused EMS player, Plexus is well positioned to benefit from the increasing trend of outsourcing from the medical, industrial, and defense/aerospace OEMs [original equipment manufacturers].

Semtech Corporation (SMTC)
By Ken Nagy
Sep 08, 2008
We maintain our Buy rating on the shares of Semtech Corporation (SMTC), a fabless supplier of analog and mixed signal semiconductor devices. July quarter revenue was in-line with consensus estimates, while the EPS exceeded.

Shares of Semtech are currently trading at a 15.6x multiple of price to our current 2009 earnings estimate (P/E). The healthy pipeline and robust design win activity are encouraging. The backlog increased again in the last quarter, with lead times stretching out a bit. The margin story surrounding the stock is regarding its power management product line. The new power management products will raise the segment gross margin to within the long-term targeted range.

Therefore, cash flow is likely to strengthen. While the Reynosa fire will result in weaker results for the power discrete product line, the net impact on overall results is not expected to be too great. Although the macro situation in the U.S. was expected to impact consumer spending, the consumer segment grew very strongly in the last quarter, and management expects continued growth in Q3. We expect the shares to trade higher within the next six months.

Allegheny Energy (AYE)
By Jonathan Kolb
Sep 05, 2008
We expect that the company's regulated delivery utility business will provide steady earnings growth, while the generation business will provide an additional boost to earnings. Accordingly, we maintain a BUY recommendation on AYE common stock with a six-month target price of $51.75. Price appreciation to our near-term valuation target, coupled with the reinstated regular quarterly cash dividend of $0.15 per share after a gap of five years, which we deem sustainable and secure, represents annualized total return potential of 26.5%.

Kraft Foods (KFT)
By Steven Ralston
Sep 04, 2008
In February 2007, management announced a new turnaround strategy to revitalize the company's growth. Concurrent with the announcement, the Board approved a significant $5 billion share repurchase program. The new strategy has generated a significant turnaround in organic revenue growth. In mid-February 2008, Berkshire Hathaway disclosed the ownership of a substantial stake in Kraft Foods.

Snap-on, Inc. (NYSE: SNA)
By Steven Ralston
Sep 03, 2008
Snap-on has reported upside earnings surprises for ten consecutive quarters, which has caught the attention of earnings momentum investors. The management has successfully delivered more predictable and consistent financial performance through the implementation of the Driven to Deliver and Rapid Continuous Improvement programs. With the stock's pull-back to the low-$50s, its valuation compels us to recommend a Buy rating.

Williams Companies (WMB)
By Sheraz Mian
Sep 02, 2008
The company remains well positioned to capitalize on attractive growth opportunities in its low-risk E&P business, besides enjoying strong leverage to continued strength in natural gas liquids margins in its Midstream business. We believe that Williams Rockies development drilling program focused on the Piceance Basin is the key to its upstream growth going forward. Additionally, the company raised its earnings outlook for the rest of 2008 and 2009, citing production growth.

McDonald's Corp. (NYSE: MCD)
By Ann Northrop
Aug 29, 2008
After doubling margins in its US operations, the company is turning its focus to Europe and APMEA, where company-operated restaurant margins lag the US (by 110-350 basis points in 2Q08). Re-franchising continues to be another engine of growth, bolstering ROA by an expected 100 basis points on a less capital-intensive business and a steady growth in royalties. We think this stock provides relative safety and moderate growth in a turbulent environment and exposure to faster-growing international markets.

Hain Celestial (HAIN)
By Steven Ralston
Aug 28, 2008
Healthy internal sales growth, driven by consumer demand for natural food products, and management's focus on improving profit margins bode well for Hain Celestial Group's outlook. In addition, management's acquisition strategy adds incremental growth to the company's organic sales growth. The company has been successful implementing price increases with the most recent having been realized in June.

IBM Corporation (IBM)
By Steve Biggs
Aug 27, 2008
With over half of its revenue (58%) coming from outside the United States, IBM Corporation has been insulated from recent weakness in the U.S. economy than many of its peers. Although this trend may be ending as the U.S. economy picks up strength relative to Europe, IBM should continue to benefit from its focus on faster-growing markets through a series of acquisitions and divestiture of mature businesses.

Celanese Corp. (CE)
By Paul Raman
Aug 26, 2008
Celanese has a strong growth strategy with development in Asia as a key factor. There are $400 million of free cash flow per year, primarily focused on share repurchase. Higher pricing on continued strong global demand for Acetyl Intermediates products, positive currency impacts, growth in Asia supported by the company's new acetic acid unit in Nanjing, China are driving the company's sales.

GameStop (GME)
By Rob Plaza
Aug 25, 2008
GameStop delivered stellar results again. Its second quarter sales were $104 million above the consensus forecast, and EPS beat the consensus estimate by $0.04. Looking ahead, management's guidance for the second half of the year was in-line with expectations. Unlike most other areas of retail, video game sales remain strong. We believe this momentum will continue through next year.

Mid-America Apts (MAA)
By Greg Sukenik
Aug 22, 2008
Steady operating results and lower interest expense were the main reasons for the increase. The company expects multi-family fundamentals to weaken in the coming quarters due to a stagnant US economy and lack of meaningful job growth. We still rate the company a buy due to valuation and yield.

Petroleum Development (PETD)
By Neil Malkin
Aug 21, 2008
The company's story remains strong as the low risk drilling in its three Colorado operating areas, along with accretive acquisitions, will provide the fuel for double digit production growth through 2010. Record commodity prices have allowed PETD to increase its developmental drilling activities by 50 net wells in 2008. Other near term value may be found from exploratory drilling on the company's Barnett and Marcellus shale acreage, two areas with a substantial amount of natural gas in place.

Stone Energy Corp. (SGY)
By Sheraz Mian
Aug 20, 2008
We recently upgraded Stone Energy shares to Buy from Hold following the stock's pullback (down more than 20% in the last month alone) on the back of commodity-price weakness. We like the acquisition of Bois d'Arc Energy. The strategic rationale of the transaction is compelling, given the complementary asset bases, strategies, and skill sets of the two companies. The new Stone Energy will be more diversified with a significant Gulf of Mexico exploration exposure.

Penn Virginia Resource (PVR)
By Neil Malkin
Aug 19, 2008
The partnership's recent acquisitions in the midstream space have positioned it to grow throughput volumes but also diversify its operations into several of the most active basins in the U.S. Backed by strong coal fundamentals, both of PVR's operating segments should see stellar results through '09 as throughput volumes look to ramp up significantly and coal doesn't seem to be slowing anytime soon.

American Tower Corp. (AMT)
By David Weissman
Aug 18, 2008
We reaffirm our Buy rating and the same valuation target for American Tower Corp., a leading operator of wireless communications towers in the USA, Mexico, and Brazil, following its second quarter 2008 financial results, which were better than our estimates. Overall performance has been driven by substantial demand for more tower space to facilitate high-speed data services and mobile video, along with 3G and WiMAX technologies.

GameStop (GME)
By Rob Plaza
Aug 15, 2008
We maintain our Buy rating on GameStop shares ahead of its second quarter earnings report, which is scheduled for August 21. Unlike most other areas of retail, video game sales remain strong. According to the NPD Group, total US video game sales were $1.69 billion, up 53% from June 2007. For the first six months of 2008, total video game sales were up 36% year-over-year and up 46% in the May/June period. As a result, we expect another strong quarter from GameStop, and we are increasing our estimates.

General Dynamics (GD)
By Jonathan Kolb
Aug 14, 2008
Revenue growth, margin expansion, growing backlog, an under-leveraged balance sheet and cash generation are the driving factors.

Genentech (DNA)
By Jason Napodano
Aug 13, 2008
With the current price at $98/share, fully expect that Roche will raise the offer to around $105-110 per share.

Vale do Rio Doce (RIO)
By Claudio Freitas
Aug 12, 2008
The stock's current valuation already discounts a worst-case economic scenario. We consider the recent sell-off as a great buying opportunity.

SINA Corporation (SINA)
By Paul Cheung
Aug 11, 2008
The Beijing Olympic Games can significantly stimulate the online advertising business in China in the next quarter.

Churchill Downs (CHDN)
By Sean P. Smith
Aug 08, 2008
We believe that a proper valuation of Churchill's shares should reflect not only the value of the current operations, but also the potential for increased revenue.

Onyx Pharmaceuticals (ONXX)
By Grant Zeng
Aug 07, 2008
We believe Nexavar sales will continue to grow over the next several years since the label has expanded to liver cancer.

Allianz Aktiengesell (NYSE: AZ)
By Duong Vuong
Aug 06, 2008
Despite the writedown of assets at Dresdner's, Allianz's property and casualty insurance business is doing well.

CONSOL Energy (CNX)
By Neil Malkin
Aug 05, 2008
We are raising our target price to $107.00 per share up from $86.00 given the strong domestic and export coal fundamentals as well as the recent 33% pullback.

ViroPharma (VPHM)
By Jason Napodano
Aug 04, 2008
ViroPharma's move to acquire Lev Pharmaceuticals works to greatly diversify the product portfolio and ease investor concerns about generic Vancocin.

Edison International (EIX)
By Jonathan Kolb
Aug 01, 2008
Higher price realizations, ongoing alternative energy projects, balance sheet strength and a relatively cheap earnings-based valuation collectively support our bullish outlook.

CF Industries (CF)
By Paul Raman
Jul 31, 2008
Strong domestic and international grain markets have produced an exceptionally high global demand.

ENSCO International (ESV)
By Sheraz Mian
Jul 30, 2008
We continue to like the stock for the company's growing deepwater exposure, strong performance of its premium jackup rigs, and an exceptionally strong balance sheet.

Peabody Energy (BTU)
By Neil Malkin
Jul 29, 2008
Peabody's exposure to seaborne markets should give the company margins and earnings growth above its peers.

Plexus Corp. (PLXS)
By Steve Biggs
Jul 28, 2008
We believe that PLXS is among the best positioned in the industry.

Tractor Supply (TSCO)
By Rob Plaza
Jul 25, 2008
Despite the difficult macro conditions, focus on sales growth and cost controls is enabling the company to deliver solid results.

AK Steel Holding (AKS)
By Paul Raman
Jul 24, 2008
We believe AKS will gain from new projects, higher selling prices, and increased shipment.

Northrop Grumman Corporation (NOC)
By Jonathan Kolb
Jul 23, 2008
Diversified revenue and earnings streams with strong growth and discounted relative valuation metrics, in addition to other favorable attributes, support our bullish outlook for NOC.

Arch Coal (ACI)
By Neil Malkin
Jul 22, 2008
We still feel that demand and supply fundamentals are strong and at current levels, this represents a buying opportunity.

Logitech Int'l (LOGI)
By John Nelson Simon
Jul 21, 2008
Gross margins remained at a high level for the company, reflecting ongoing product cost reductions and supply chain efficiencies.

Royal Caribbean (RCL)
By Sean P. Smith
Jul 18, 2008
With the shares currently trading at 7.1x our 2008 earnings estimate and at a 35% discount to its largest rival, we consider the current valuation to be attractive.

Canadian Solar (CSIQ)
By Jonathan Kolb
Jul 17, 2008
Higher captive generation of solar cells, long-term supply agreements and a silicon reclamation program should, collectively, generate significant earnings growth.

Genentech (DNA)
By Jason Napodano
Jul 16, 2008
The pipeline is solid, and with renewed Avastin and Rituxan growth, the valuation looks very attractive at this level.

Whole Foods Market (WFMI)
By Rob Plaza
Jul 15, 2008
We think the company's strong natural foods brand and strong comp-store sales should enable the company to re-accelerate earnings growth.

Eastman Chemical (EMN)
By Paul Raman
Jul 14, 2008
The company is likely to benefit from its recent focus on the industrial gasification business.

Diamond Offshore (DO)
By Sheraz Mian
Jul 11, 2008
Our continued favorable view of the company reflects its strong leverage to the favorable deepwater drilling outlook.

China Mobile (CHL)
By David Weissman
Jul 10, 2008
China Mobile is already established as the dominant mobile service provider, far ahead of competitors.

Baker Hughes, Inc. (BHI)
By Sheraz Mian
Jul 09, 2008
We expect strong revenue growth during the second half of 2008, powered by an improved North American outlook and continued international expansion.

El Paso Corp. (EP)
By Neil Malkin
Jul 08, 2008
Its E&P business has made large steps to solidify its position as a low risk, high growth operator of the onshore U.S. market.

Dean Foods (DF)
By Steven Ralston
Jul 07, 2008
Management has raised guidance for the second quarter of 2008 based on the strong performance of the DSD Dairy business.

Research in Motion (RIMM)
By David Weissman
Jul 03, 2008
RIMM's channel sales expansion initiatives are also considered an impetus for meaningful top-line growth.

Unilever, NV (UN)
By Steven Ralston
Jul 02, 2008
Impressively, positive pricing fully compensated for rising input costs in the first quarter of 2008.

Comstock Resources (CRK)
By Sheraz Mian
Jul 01, 2008
With first-quarter 2008 volumes up 25% year over year, we expect full-year growth to be approximately 20%.

AK Steel (AKS)
By Paul Raman
Jun 30, 2008
We believe the company will gain from new projects, higher selling prices, and increased shipments.

ReneSola, Ltd. (SOL)
By Jonathan Kolb
Jun 27, 2008
Globally, rising solar wafer sales, along with escalating crude and long-term supply agreements, should collectively generate significant earnings growth.

First Solar, Inc. (FSLR)
By Jonathan Kolb
Jun 26, 2008
The company was able to register consistent improvement in its bottom line in stark contrast to its silicon cell peers.

Cytori Therapeutics (CYTX)
By Jason Napodano
Jun 25, 2008
We think the company is in store to report a solid second quarter, and the Street has yet to take notice of the upside that exists.

Vivo Participacoes (VIV)
By Claudio Freitas
Jun 24, 2008
The company has a dominant position and a strong brand in the fast-growing Brazilian wireless business.

Grey Wolf (GW)
By Sheraz Mian
Jun 23, 2008
We agree with the board's assessment that the company's pending merger with Basic Energy offers better value for shareholders.

CEMIG (CIG)
By Claudio Freitas
Jun 20, 2008
The short-to-medium term outlook remains promising as demand for electricity in Brazil keeps growing.

Transocean (RIG)
By Sheraz Mian
Jun 19, 2008
The company's recently completed merger with GlobalSantaFe transforms it into an offshore drilling powerhouse.

EOG Resources (EOG)
By Sheraz Mian
Jun 18, 2008
We continue to see EOG shares as a core holding in the large-cap E&P space for the company's demonstrated ability to achieve consistent production growth.

Qualcomm (QCOM)
By David Weissman
Jun 17, 2008
Qualcomm raised its third quarter and full fiscal 2008 financial outlook, despite facing weak global economic conditions.

Quicksilver Resources
By Neil Malkin
Jun 16, 2008
Upgrading the stock to a "buy" and increasing our earnings forecast.

ConocoPhillips (COP)
By Sheraz Mian
Jun 13, 2008
Our continued positive outlook for ConocoPhillips' shares reflects the company's strong position in the politically stable OECD markets and its attractive valuation.

Sciele Pharmaceuticals (SCRX)
By Jason Napodano
Jun 12, 2008
The company's broad focus and deep product pipeline offer substantial growth opportunities over the next several years.

Plains Exploration & Production (PXP)
By Neil Malkin
Jun 11, 2008
At a time when commodity prices are at extremely favorable levels, the near-term production growth should give PXP expanded margins.

SunPower Corp. (SPWR)
By Jonathan Kolb
Jun 10, 2008
The fortunes of SPWR appear greener given the very high growth potential in the alternative energy industry, specifically solar power energy.

Inspire Pharmaceuticals (ISPH)
By Grant Zeng
Jun 09, 2008
Currently, the company has three products on the market and a robust pipeline. We see strong top line growth from 2008 and beyond.

Genentech (DNA)
By Jason Napodano
Jun 06, 2008
With renewed Avastin and Rituxan growth, the valuation looks very attractive at this level.

Coca-Cola FEMSA (KOF)
By Claudio Freitas
Jun 05, 2008
The results in the Mercosur division were particularly impressive, and its Mexican results also showed a considerable improvement.

McDonald's Corp. (MCD)
By Ann Northrop
Jun 04, 2008
We think this stock provides relative safety and moderate growth in a turbulent environment.

Triumph Group, Inc. (TGI)
By John Nelson Simon
Jun 03, 2008
The Aerospace/Defense Sector -- of which TGI is a player -- is entering the sweet spot of this cycle.

Humana (HUM) Positive Trajectory
By Chris Kallos
Jun 02, 2008
Medicare prescription-drug benefit plans are being addressed, as reflected by management's upward revision of FY08 EPS guidance.

Entergy (ETR) Favorable Strategy
By Jonathan Kolb
May 30, 2008
Entergy is shifting towards becoming a fundamentally strong electric energy utility with the separation of its nuclear business.

OSI Pharma (OSIP) Healthy Revenues
By Grant Zeng
May 29, 2008
Strong U.S. sales and robust growth in ex-U.S. sales have us modeling over $1 billion in Tarceva sales in 2008 and beyond.

Petrobras (PBR) New Opportunities
By Claudio Freitas
May 28, 2008
The recent discovery of the Tupi field opens up a new range of possibilities for the company in the long run.

Comstock Resources - Solid Outlook
By Sheraz Mian
May 26, 2008
We are reiterating our Buy rating on Comstock shares following the company's strong March-quarter and solid outlook.

Salesforce.com (CRM) Demand for On-Demand
By Steve Biggs
May 23, 2008
We believe over the long-term CRM will be the leader in a potentially huge market for on-demand software.

American Tower (NYSE: AMT) Well-Positioned
By David Weissman
May 22, 2008
Our long-term view regarding the wireless tower industry remains positive and we believe American Tower is well positioned.

Cleveland Cliffs (CLF) Strong as Iron
By Paul Raman
May 21, 2008
Strong industrial growth in China has triggered demand for steel, resulting in higher demand for iron ore.

Ctrip.com (CTRP) Playing Chinese Strength
By Paul Cheung
May 20, 2008
We think Ctrip's past results demonstrate that the company's long-term growth story remains intact under almost all circumstances.

SINA Corp. (SINA) Gaining in High Growth Market
By Paul Cheung
May 19, 2008
SINA continues to do well in its online brand advertising and increased the gap between it and its closest competitor in the online brand ad market.

China Fire & Safety Group (CFSG) Well-Leveraged
By Paul Cheung
May 16, 2008
Its revenue and earnings have exceeded the market consensus for four consecutive quarters since the market began covering this company.

Time Warner Telecom (TWTC) Impressive Performance
By David Weissman
May 15, 2008
The company has been successful in transforming its offerings as a diversified network services provider to large enterprises.

Dr. Pepper Snapple (DPS) Attractively Priced
By Steven Ralston
May 14, 2008
Management has a sound business strategy, and the stock is at the low-end of the expected valuation range.

HCP, Inc. (HCP) Attractive Valuation
By Greg Sukenik
May 13, 2008
Despite recent share price increases, partly due to the company's inclusion in the S&P in March, HCP is still valued below its peer group.

DIRECTV (DTV) Healthy Cash Flow
By Ann Northrop
May 12, 2008
We believe the company is poised to sustain its strong revenue and earnings growth.

NCR Corp. (NCR) Gaining Traction
By Steve Biggs
May 09, 2008
We are encouraged that the company is now posting earnings growth through its improved top-line, which we believe is sustainable for the foreseeable future.

Onyx Pharma (ONXX) Blockbuster in the Midst?
By Grant Zeng
May 08, 2008
We believe Nexavar sales will continue to grow over the next several years since the label has expanded to liver cancer.

Hain Celestial Group (HAIN) "Organic" Growth
By Steven Ralston
May 07, 2008
Healthy internal sales growth, driven by consumer demand for natural food products and management's focus on improving profit margins bode well.

Corrections Corp. (CXW) Good Entry Point
By Sean P. Smith
May 06, 2008
The company holds a significant market share advantage over its peers, with a substantial pipeline of additional capacity scheduled to be added.

Sierra Wireless (SWIR) Well Situated
By David Weissman
May 05, 2008
SWIR maintains a strong market position with long-established business channels as the company provides multiple products to a large number of major wireless carriers.

Sciele Pharma (SCRX) At a Good Price
By Jason Napodano
May 02, 2008
We believe the current share price represents an attractive entry point for long-term investors.

BioMarin Pharmaceutical (BMRN) - Raised Guidance
By Grant Zeng
May 01, 2008
The company's strong top-line growth and raised guidance leads us to expect further upside.

Coca-Cola FEMSA (KOF) Impressive Growth
By Claudio Freitas
Apr 30, 2008
The results in South America were particularly impressive and Mexican results showed a considerable improvement after some difficult quarters.

Hittite Microwave (HITT) Really Cooking
By Steve Biggs
Apr 29, 2008
The company reported a strong Q1, and we still expect double-digit revenue growth for the full year.

Deckers Outdoor (DECK) Booting Up Sales
By Rob Plaza
Apr 28, 2008
We continue to believe the company's fundamental story, strong growth, and high visibility will enable its stock to outperform.

Arch Coal, Inc. (ACI) Pricing Advantages
By Neil Malkin
Apr 25, 2008
We see very little downside to the company's story, with large near-term upside potential.

Celanese Corp. (CE) In-Demand Products
By Paul Raman
Apr 24, 2008
Continued strong global demand for Acetyl Intermediates products and positive currency impacts are driving sales.

China Mobile (CHL) Commanding Market Share
By David Weissman
Apr 23, 2008
Given the low level of mobile penetration in this region, significant opportunities remain for the company.

ConocoPhillips (COP) Beneficial Acquisitions
By Sheraz Mian
Apr 22, 2008
The company has significantly strengthened its upstream portfolio through its Burlington and LUKOIL transactions and remains a premier domestic refining player.

Exxon Mobil (XOM) Staying Strong & Steady
By Sheraz Mian
Apr 21, 2008
With a 10-year average replacement ratio of 112%, Exxon has continued to replace annual production with new and quality reserves.

IBM Corp. (IBM) Profiting Globally
By Steve Biggs
Apr 18, 2008
With over half its revenue (58%) coming from outside the U.S., IBM is more insulated from the slower U.S. economy than many of its peers.

Pozen, Inc. (POZN) FDA Approval
By Jason Napodano
Apr 17, 2008
The FDA's approval of Treximet should lead to profitability in the second quarter.

Qualcomm (QCOM) Impressive Fundamentals
By David Weissman
Apr 16, 2008
Qualcomm's fundamentals remain compelling as robust growth in the 3G wireless handset market are driving healthy product sales.

Genentech, Inc. (DNA) Core Biotech Holding
By Jason Napodano
Apr 15, 2008
Genentech is the world's premier biotechnology company.

Millennium Pharma (MLNM) Attractive Bid
By Grant Zeng
Apr 14, 2008
Realizing the potential of Velcade, Takeda decided to acquire Millennium at $25 per share.

Dynegy (DYN) Organized & Well Situated
By Sheraz Mian
Apr 11, 2008
Dynegy's rationalized and consolidated asset portfolio has helped improve the visibility of its underlying earnings power.

Research in Motion (RIMM) Upbeat Guidance
By David Weissman
Apr 10, 2008
We expect the smartphone device market to gain momentum as opportunities remain intriguing over the long-run.

Scientific Games (SGMS) Hitting the Jackpot?
By Steven Ralston
Apr 09, 2008
Scientific Games has a leading position in several markets, including the instant ticket and online lottery markets.

Cadbury Schweppes (CSG) Focused on Growth
By Steven Ralston
Apr 08, 2008
With the de-merger of Americas Beverages expected in May, management will be able to leverage scale and improve profitability.

Agrium, Inc. (AGU) Growing & Gaining
By Paul Raman
Apr 07, 2008
The proposed UAP acquisition is likely to drive revenues and profits for Agrium on the back of expanded product line in the major business segment.

SABESP (SBS) Attractively Priced
By Claudio Freitas
Apr 04, 2008
The stock still trades at an attractive valuation, and the business environment is Brazil remains quite encouraging.

Petroleum Development (PETD) Producing Well
By Neil Malkin
Apr 03, 2008
Production and proved reserves increased 65% and 112% last year, driven by a combination of a ramped up drilling program and acquisitions.

Health Net (HNT) Stable & Promising
By Chris Kallos
Apr 02, 2008
We believe HNT's significant market share in the key states of California and New York make it a potential acquisition target at current levels.

IBM Corp. (IBM) - Global Strategy Pays Off
By Steve Biggs
Apr 01, 2008
With over half its revenue (58%) coming from outside the United States, IBM is more insulated from the slower U.S. economy than many of its peers.

PartnerRe, Ltd. (PRE) Impressive Results
By Neena Mishra
Mar 31, 2008
We are increasing our FY08 estimate to $10.40 per share and installing our FY09 estimate at $10.22 per share.

Celanese (CE) Strong Growth Strategy
By Paul Raman
Mar 28, 2008
Growth in Asia, as well as sales of Industrial Specialties from the acquired Acetate Products, are driving the company sales.

Vimpel (VIP) - Robust Subscriber Growth
By David Weissman
Mar 27, 2008
Robust subscriber growth and recent acquisitions continue to drive revenue and earnings momentum.

Chalco (ACH) Play Chinese Aluminum Demand
By Paul Cheung
Mar 26, 2008
Aluminum Corp. of China should continue to benefit from strong alumina and aluminum demand in the country.

Guess?, Inc. (GES) Robust Outlook
By Rob Plaza
Mar 25, 2008
Management is typically cautious with its guidance, so we remain confident that Guess will beat estimates on the top and bottom lines.

Bristol-Myers Squibb (BMY) Upgrade on Valuation
By Jason Napodano
Mar 24, 2008
Its EPS growth is at rates near the top of Big Pharma and a very attractive valuation prompted our upgrade from Hold to Buy.

GameStop (GME) Bullish Guidance
By Rob Plaza
Mar 20, 2008
GameStop reported stellar results for the fourth quarter, and was bullish with its outlook for 2008 and 2009.

Companhia Siderurgica Nacional (SID) Forging Ahead
By Claudio Freitas
Mar 19, 2008
We believe Brazil will reach investment grade within the next twelve months, leading to a multiple expansion for Brazilian stocks.

Esterline Technologies (ESL) - Margins Could Improve
By John Nelson Simon
Mar 18, 2008
There are indications that ESL's margins can improve.

Sketchers (SKX) - Initiating With A Buy
By Rob Plaza
Mar 17, 2008
We are initiating coverage of Skechers with a Buy rating and a six-month target price of $26.

ISIS Pharmaceuticals (ISIS) - Strong Cash Position
By Jason Napodano
Mar 14, 2008
Isis is cash rich and packed with potential blockbusters in the pipeline.

ADC Telecom (ADCT) Improved Visibility
By David Weissman
Mar 13, 2008
Proliferating global fiber network connectivity has considerably improved the company's earnings outlook.

Quicksilver Resources (KWK) Newly Productive
By Neil Malkin
Mar 12, 2008
The company has had stellar growth from its late-development phase Barnett Shale gas play in North Texas.

Public Storage (PSA) Strong Fundamentals
By Greg Sukenik
Mar 11, 2008
The company has a strong balance sheet and plenty of cash to be active in the acquisitions and development markets.

McDonald's (MCD) International Growth
By Ann Northrop
Mar 10, 2008
After more than doubling its margins in the U.S., the company is turning its focus to Europe and AMPEA.

NCR Corp. (NCR) Posting Big Gains
By Steve Biggs
Mar 07, 2008
Improved top-line growth we believe is sustainable for the foreseeable future as its customers seek to cut costs through increased automation.

Pride International (PDE) Nice Price
By Sheraz Mian
Mar 06, 2008
Our continued positive view of Pride shares reflects the company's attractive valuation and underappreciated deepwater drilling leverage.

Garmin, Ltd. (GRMN) Firing on All Cylinders
By Ken Nagy
Mar 05, 2008
All segments were up double-digits in 2007, and are expected to be up double-digits again in 2008.

Joy Global (JOYG) Well-Positioned
By Mario Ricchio
Mar 04, 2008
The company's U.S. coal business is well positioned to benefit from the capital spending upturn supported by higher prices.

Rockwell Automation (ROK) Healthy Outlook
By Mario Ricchio
Mar 03, 2008
Management is confident that recent growth investments and international diversification will deliver FY2008 revenue up 10-12%.

Salesforce.com (CRM) Market Leader
By Steve Biggs
Feb 29, 2008
Salesforce.com, Inc. is the market leader in the on-demand CRM space and continues to see substantial subscriber and customer growth.

ViroPharma (VPHM) Excellent Value
By Jason Napodano
Feb 28, 2008
The stock remains incredibly cheap and we are optimistic that management will be able to add significant value in the coming years.

Chesapeake Energy (CHK) Strong Volume Growth
By Sheraz Mian
Feb 27, 2008
Management is guiding towards 2008 volume growth of around 20%.

Genentech (DNA) Blockbuster Approval
By Jason Napodano
Feb 26, 2008
We are raising our EPS forecasts for 2008 through 2012 based on expected higher sales of Avastin going forward.

Hewlett-Packard (HPQ) Good Global Exposure
By Steve Biggs
Feb 25, 2008
We believe that HP is attractive due to its large international business, which comprises approximately 69% of revenue.

Halliburton Co. (HAL) The Surge Continues
By Sheraz Mian
Feb 22, 2008
We believe that the company will continue to reap the rewards of several strategic moves during the past year.

HCP, Inc. (HCP) A Play on Healthcare Real Estate
By Greg Sukenik
Feb 21, 2008
HCP is valued below its peer group, and the company has a good yield, over 6%.

Xoma, Ltd. (XOMA) Royalties to Increase
By Jason Napodano
Feb 20, 2008
We are expected total royalty revenues for the fourth quarter 2007 of $4.9 million, up slightly from our previous forecast of $4.7 million.

DIRECTV (DTV) Gaining Share
By Ann Northrop
Feb 19, 2008
The nearly-completed rollout of 100 HD channels should boost ARPU, and help stem decelerating subscriber growth as DTV overtakes DISH's HD lead.

ZymoGenetics (ZGEN) Key FDA Approval
By Grant Zeng
Feb 15, 2008
Recent approval of rhThrombin by the FDA and the clinical progress made by the company will drive the value for the company.

CF Industries (CF) Robust Demand
By Paul Raman
Feb 14, 2008
Strong domestic and international grain markets have produced exceptionally high global demand for fertilizer.

Constellation Energy (CEG) Strong Fundamentals
By Jonathan Kolb
Feb 13, 2008
The fundamentals of CEG remain strong with impressive performance from the Merchant business, trading business, stronger cash flow, and an improving balance sheet.

Millennium Pharma (MLNM) Positive on Pipeline
By Grant Zeng
Feb 12, 2008
The company has a robust, interesting and early-stage pipeline which will contribute to revenue growth after 2009.

Omnivision (OVTI) Buying Opportunity
By Ken Nagy
Feb 11, 2008
We believe the outlook continues to improve, and expect continued strength in the emerging products category in 2008.

Crown Castle (CCI) Stoked by Demand
By David Weissman
Feb 08, 2008
Overall performance has been driven by substantial demand for more tower space to facilitate high-speed data services.

Arch Coal (ACI) Forward Momentum
By Neil Malkin
Feb 07, 2008
The company's market-driven strategy has paid off, as prices have remained near record levels and a significant portion of its production is unpriced.

Exxon Mobil (XOM) Still Biggest & Strongest
By Sheraz Mian
Feb 06, 2008
The company performed strongly across all segments, earning $11.66 billion during the quarter, reaping the benefits of high commodity prices.

Triumph Group - Upgrading On Valuation
By John Nelson Simon
Feb 05, 2008
We believe that TGI is undervalued at current levels and have therefore upgraded our opinion to BUY.

Cumulus Media (CMLS) Deal Should Get Done
By Ann Northrop
Feb 04, 2008
In our view, the deal will likely get done but at a lower price. A takeout price near $10 represents a 69% premium to the current price.

Vivo Participacoes (VIV) Market Leader
By Claudio Freitas
Feb 01, 2008
The company has a dominant position and a strong brand in the fast-growing Brazilian wireless business.

Transocean (RIG) Stronger with Merger
By Sheraz Mian
Jan 31, 2008
We continue to believe that the company's recently completed merger with GlobalSantaFe transforms it into an offshore drilling powerhouse.

Norfolk Southern (NSC) Good Entry Point
By Ann Heffron
Jan 30, 2008
NSC is the cheapest stock in the rail industry, and is an attractive value at this price.

Crocs, Inc. (CROX) Attractive Valuation
By Rob Plaza
Jan 29, 2008
While we do not expect CROX to move back to previous high near $75 in the next few months, we do expect the stock to easily outperform the broader market.

Abbott Labs (ABT) Earnings Growth Ahead
By Jason Napodano
Jan 28, 2008
We expect a sizable pick-up in earnings growth rate over the next few years driven by strong sales of its lead product Humira.

Gilead Sciences (GILD) Reasons for Optimism
By Jason Napodano
Jan 25, 2008
We remain optimistic about growth of HIV/AIDS franchise drugs Truvada and the recently approved Atripla.

Zoran Corp. (ZRAN) New Successes
By Ian T. Gilson
Jan 24, 2008
New customers will drive fourth quarter revenue and new products should have a significant impact in 2008.

Crown Castle (CCI) Market Leader
By David Weissman
Jan 23, 2008
The acquisition of Global Signal has positioned the company as the largest tower operator in the USA.

Vodafone (VOD) Increasing Share
By David Weissman
Jan 22, 2008
We expect the firm to continue delivering solid operating results, while increasing shareholder returns through higher dividend payments.

ZymoGenetics (ZGEN) FDA Approval
By Grant Zeng
Jan 21, 2008
Recent approval of rhThrombin by the FDA and the clinical progress made by the company make us upgrade the company from Hold to Buy.

China Mobile (CHL) Big Growth Prospects
By David Weissman
Jan 18, 2008
Given the low level of mobile penetration in this market, there still remains significant growth potential for the company.

Pozen, Inc. (POZN) - Good Notes from FDA.
By Jason Napodano
Jan 17, 2008
The FDA is could approve a treatment for migrane headaches by April.

Barrick Gold (ABX) Largest Gold Miner
By Paul Raman
Jan 16, 2008
Profitability is increasing due to rising gold prices, an unhedged book and synergies from the Placer Dome acquisition.

Philippine Long Distance Telephone (PHI) Big Gains
By Peter Chua
Jan 15, 2008
Vigorous subscriber gains in wireless phone and broadband internet should sustain steady growth in the coming years.

Regeneron (REGN) Making Progress
By Grant Zeng
Jan 14, 2008
The company made impressive progress in recent months in terms of clinical developments and business developments.

Sciele Pharma (SCRX) Promising Platform
By Jason Napodano
Jan 11, 2008
Sciele is set to launch the new Sular in late February when users will be switched to the new formulation.

Southern Copper (PCU) Favorable Demand
By Paul Raman
Jan 10, 2008
We think the company is in a very good position to expand production amidst higher-grade ores at its mines.

drugstore.com (DSCM) Path to Profitability
By Rob Plaza
Jan 09, 2008
The company's fourth quarter guidance was in line with our forecast. We still believe drugstore.com is on the path to profitability.

NVIDIA (NVDA) Products in Demand
By Steve Biggs
Jan 08, 2008
NVIDIA is well-positioned to benefit from increased graphics requirements in Windows Vista, and two new families of GPUs.

Sara Lee (SLE) Gaining Traction
By Steven Ralston
Jan 07, 2008
The company is focused on its more attractive product lines, and operating margin is beginning to expand.

VeriSign, Inc. (VRSN) Well Positioned
By Abdul Saleh
Jan 04, 2008
The main catalysts going forward are the expectation of margin improvements and the prospect of restructuring to divest non-synergistic businesses.

Plexus (PLXS) Poised to Expand
By Steve Biggs
Jan 03, 2008
We believe that PLXS is among the best positioned in the industry and is poised to grow in the medical segment as well.

ISIS Pharmaceuticals (ISIS) Strong Platform
By Jason Napodano
Jan 02, 2008
Antisense technology represents an exciting and potentially revolutionary platform for developing therapeutic candidates.

Dell, Inc. (DELL) Trends Stay Strong
By Steve Biggs
Dec 31, 2007
Dell has demonstrated progress from initiatives made over the past year.

VeraSun Energy (VSE) Merger Helpful
By Jonathan Kolb
Dec 28, 2007
VeraSun Energy is on the fast track of growth with its imminent merger with fellow biofuel company U.S. BioEnergy.

Salesforce.com (CRM) Demand in On-demand
By Steve Biggs
Dec 27, 2007
The company has had excellent traction into larger customers with thousands of subscribers, reflecting greater acceptance.

LifeCell (LIFC) Exciting Prospect
By Jason Napodano
Dec 26, 2007
We see the company posting strong top-and bottom-line growth over the next few years thanks to Strattice.

CF Industries (CF) Pricing Improves
By Paul Raman
Dec 24, 2007
Record corn plantings and fertilizer usage rates, coupled with high offshore demand and improved market discipline are leading to higher prices.

FactSet Research (FDS) Widely Utilized
By Steve Biggs
Dec 21, 2007
The company has an organic growth rate in the 20% range, strong free cash flow, and will likely grow its market share.

UBS (UBS) Turning the Corner
By Ann Heffron
Dec 20, 2007
The company continues to present an attractive investment opportunity despite recent market turmoil.

BioMarin (BMRN) Turning Profitable
By Grant Zeng
Dec 19, 2007
Strong sales of Kuvan, coupled with accelerating sales of both Aludrazyme and Naglazyme, will drive the company to profitability.

Cree, Inc. (CREE) Good Buyout Candidate
By Ken Nagy
Dec 18, 2007
We would not be surprised if the company is the subject of a lucrative takeover.

Core Labs (CLB) Premium Justified
By Sheraz Mian
Dec 17, 2007
While the stock is not cheap, the premium is justified by the company's market-leading position and positive growth prospects.

Pride International (PDE) Right Price
By Sheraz Mian
Dec 14, 2007
We are upgrading Pride shares to Buy from Hold following the recent weakness, which has made valuation very attractive.

Qualcomm, Inc. (QCOM) Market Strength
By David Weissman
Dec 13, 2007
Continued strength in the 3G wireless market supports Qualcomm's long-term growth prospects.

Abbott Labs (ABT) Pipeline to Pay Off
By Jason Napodano
Dec 12, 2007
Based on our model, the company is expected to deliver double-digit growth from 2007 through 2010.

Arkansas Best (ABFS) Good Entry Point
By Ann Heffron
Dec 11, 2007
We increasing our rating to Buy from Hold as the shares now represent a good value after falling 33% year to date.

National Semiconductor (NSM) Higher Margins
By Ken Nagy
Dec 10, 2007
Higher-margin products continue to grow in the mix, as the company generates very attractive gross margins.

NeurogesX (NGSX) Bullish on Lead Product
By Jason Napodano
Dec 07, 2007
We are optimistic that NGX-4010 will find meaningful use upon approval given its positive characteristics.

Anheuser-Busch (BUD) Keeping Ahead
By Steven Ralston
Dec 06, 2007
BUD is benefiting from industry consolidation of production and a growing international beer presence from management's astute acquisition strategy.

Kirkland's (KIRK) Speculative Buy
By Rob Plaza
Dec 05, 2007
In our opinion, the shares look cheap and represent a speculative buying opportunity.

Skyworks Solutions (SWKS) New Opportunities
By Abdul Saleh
Dec 04, 2007
Skyworks expect Research in Motion in the U.S. and Media Tek in China to become important customers for the company.

National Semiconductor (NSM) Expect Strength
By Ken Nagy
Dec 03, 2007
With the holiday season starting off in the current quarter, the company should meet and even exceed guidance.

JA Solar (JASO) High Growth Expected
By Jonathan Kolb
Nov 30, 2007
Strong earnings growth coupled with a well-diversified customer base makes JASO one of the fastest growing alternative energy stocks.

Energy Conversion Devices (ENER) Well Situated
By Jonathan Kolb
Nov 29, 2007
We remain optimistic about the company?s long-term potential success in the high-growth alternative energy industry.

Baker Hughes (BHI) Continued Strength
By Sheraz Mian
Nov 28, 2007
We expect continued margin expansion, powered by pricing gains in all major operating regions of the world.

SABESP (SBS) Nice Entry Point
By Claudio Freitas
Nov 27, 2007
The stock still trades at an attractive valuation and the business environment is Brazil remains quite encouraging.

NuStar Energy (NS) Poised for Strength
By Sheraz Mian
Nov 26, 2007
NuStar remains well positioned to generate distribution growth in the high single digits, at least over the next two years.

Norfolk Southern (NSC) Great Entry Price
By Ann Heffron
Nov 21, 2007
We expect results to benefit from a pick-up in growth in the second half, improved pricing on contract renewals and a reduced tax rate from synthetic fuel credits.

Garmin, Ltd. (GRMN) Buy on Weakness
By Ken Nagy
Nov 20, 2007
The shares have fallen as a result of Garmin?s counter-bidding for Tele Atlas, and we recommend investors to BUY on the weakness.

salesforce.com (CRM) ? Strong Market Leader
By Steve Biggs
Nov 19, 2007
The company has had excellent traction into larger customers with thousands of subscribers, reflecting greater acceptance.

Plexus Corp. (PLXS) ? Well Positioned
By Steve Biggs
Nov 16, 2007
We believe that PLXS is among the best positioned in the industry and is poised to grow in the medical segment as well.

GameStop (GME) ? Good Position & Market
By Rob Plaza
Nov 15, 2007
GameStop is well-positioned to take advantage of what is sure to be a robust holiday season for video games and systems.

NVIDIA Corp. (NVDA) ? Well-Placed for Growth
By Steve Biggs
Nov 14, 2007
NVIDIA is well-positioned to benefit from increased graphics requirements in Windows Vista, and two new families of GPUs, including Tesla and the G80.

Ctrip.com (CTRP) ? Improving Margins
By Paul Cheung
Nov 13, 2007
Its profit margin continued to improve due to strong revenue growth and increased commission per ticket sold.

DIRECTV (DTV) ? Leading in HD
By Ann Northrop
Nov 12, 2007
The nearly-completed rollout of nearly 100 HD channels begun in the fall of 2007 should boost ARPU.

Zumiez (ZUMZ) ? Oversold on Guidance
By Rob Plaza
Nov 09, 2007
We think long-term holders will be rewarded for making buys during the current sell-off.

Alkermes, Inc. (ALKS) ? Profitable Biotech
By Grant Zeng
Nov 08, 2007
Alkermes achieved profitability in fiscal 2007, and we expect to see strong top-line growth in the coming years.

EOG Resources (EOG) - A Core Holding
By Sheraz Mian
Nov 07, 2007
Given the company's leading organic growth profile, we see EOG shares as a core E&P holding.

Raytheon Co. (RTN) ? Solid Performance
By Jonathan Kolb
Nov 06, 2007
Raytheon offers investors strong bookings, a gain from the impending FO sale and an improving balance sheet.

TC PipeLines, L.P. (TCLP) ? Undervalued
By Sheraz Mian
Nov 05, 2007
The partnership?s much-improved distribution-growth prospects are not reflected in its discounted valuation relative to the peer group.

Jones Lang LaSalle (JLL) ? Excellent Performance
By Greg Sukenik
Nov 02, 2007
We believe the company?s investment management division will continue to see higher fund inflows.

L-3 Communications (LLL) ? Robust Growth
By Jonathan Kolb
Nov 01, 2007
L-3 Communications registered strong operational and financial results in the first three quarters of 2007.

LifeCell Corp. (LIFC) ? New Product Release
By Jason Napodano
Oct 31, 2007
We are excited about the prospects of Strattice, a xenograft product, which is scheduled to hit the market in the fourth quarter.

Baidu.com (BIDU) ? Market Leader
By Paul Cheung
Oct 30, 2007
With China's most popular search engine, Baidu has an advantage over rivals in China's fast-growing online advertising market.

National Oilwell Varco (NOV) ? Strong Oil Play
By Sheraz Mian
Oct 29, 2007
National-Oilwell Varco remains well positioned to capitalize on the current favorable macro backdrop.

Lockheed Martin (LMT) ? Big Defense Outlays
By Jonathan Kolb
Oct 26, 2007
Solid operating results continue to deliver strong earnings and cash flow growth.

United Parcel Service (UPS) ? Booming Overseas
By Ann Heffron
Oct 25, 2007
Excellent international results and an improved supply chain and freight offset challenging conditions in US small packages.

Matria Healthcare (MATR) ? Business Wins
By Chris Kallos
Oct 24, 2007
MATR recently announced it had been awarded two new health enhancement accounts.

Royal Caribbean (RCL) ? Outlook Improving
By Sean P. Smith
Oct 23, 2007
We consider RCL to be poised to strongly benefit given an increase in demand.

Morton?s Restaurants (MRT) ? Strong Sales
By Ann Northrop
Oct 22, 2007
Trading in line with its upscale steakhouse peers, we think the shares deserve a premium to reflect MRT?s less price-sensitive corporate clientele.

eBay (EBAY) ? Nothing Disappointing
By Rob Plaza
Oct 19, 2007
eBay delivered a solid third quarter earnings report thanks to continued strength in PayPal and improvement in its Marketplace business.

Host Hotels & Resorts (HST) ? Market Improving
By Greg Sukenik
Oct 18, 2007
We expect HST?s upscale portfolio to see continued growth in 2007, as the company continues to benefit from increased business and leisure spending.

Freeport McMoRan (FCX) ? Strong Cash Flow
By Paul Raman
Oct 17, 2007
The company is witnessing strong growth backed by improved productivity and a strong cash flow position.

Amdocs, Ltd. (DOX) ? Wide-Reaching Strength
By David Weissman
Oct 16, 2007
The company has a healthy financial position, strong order backlog, robust pipeline and major new contracts consummated on a global basis.

salesforce.com (CRM) ? Huge Potential
By Steve Biggs
Oct 15, 2007
Over the long-term, CRM is the leader in a potentially huge market for on-demand software.

Vimpelcom (VIP) ? Gaining Share
By David Weissman
Oct 12, 2007
Robust subscriber growth and recent acquisitions continue to drive revenue and earnings higher.

eBay, Inc. (EBAY) - Delivering the Goods
By Steve Biggs
Oct 11, 2007
We expect the company to deliver another solid report thanks to continued strength in its core auction business and PayPal.

Alkermes, Inc. (ALKS) ? Profitable Pipeline
By Grant Zeng
Oct 10, 2007
Alkermes achieved profitability in fiscal 2007, and we expect to see strong top-line growth in the coming years.

Cognos, Inc. (COGN) ? Firing on All Cylinders
By Abdul Saleh
Oct 09, 2007
Strength in North America, services margins and a share buyback drove upside to Q2 revenue [ended August] and EPS.

Regeneron Pharma (REGN) ? Intriguing Platforms
By Grant Zeng
Oct 08, 2007
The company has made impressive progress in recent months in terms of both clinical and business developments.

Inter Parfums (IPAR) ? Success in Licensing
By Steven Ralston
Oct 05, 2007
Its growth strategy of acquiring exclusive worldwide licenses and developing new prestige fragrances under the brand names acquired has resulted in a 23.4% sales growth rate.

TRW Automotive (TRW) ? Right Niche, Right Time
By Paul Raman
Oct 04, 2007
TRW Automotive has excellent long-term prospects, primarily because of the increasing emphasis being put on safety awareness by the government and consumers.

Aracruz Celulose (ARA) ? Strong Brazil Play
By Claudio Freitas
Oct 03, 2007
We expect a multiple expansion for the Brazilian equity market in the following months as the country approaches investment grade.

Dollar Financial (DLLR) ? Strong Growth
By Neena Mishra
Oct 02, 2007
As DLLR derives significant share of its earnings outside of US, we expect the company to benefit from stronger growth trends in those markets.

CRA International (CRAI) ? Strong Projections
By Sean P. Smith
Oct 01, 2007
We anticipate that the company will generate earnings growth in excess of 25% in fiscal year 2008.

Allied Irish Banks (AIB) ? Impressive Numbers
By Ann Heffron
Sep 28, 2007
The company?s adjusted net earnings was up 17% year over year and above our estimate, largely due to higher net interest income growth.

Hallmark Financial (HALL) ? Growth Catalysts
By Eric Rothmann
Sep 27, 2007
The improved operating performance, financial flexibility and the capital raising initiatives by the parent should result in growth.

Goodyear Tire (GT) ? Good Turnaround Strategy
By Paul Raman
Sep 26, 2007
The company is benefiting from a major restructuring program along with improved selling prices.

Green Mountain Coffee (GMCR) ? Market Penetration
By Steven Ralston
Sep 25, 2007
The company is expanding geographically and by adding new relationships, such as with McDonald?s and Lowes.

ProLogis (PLD) ? Positive Absorption
By Greg Sukenik
Sep 24, 2007
The entire industrial sector is being propelled by positive absorption and limited new supply deliveries in most North American and international markets.

URS Corp. (URS) ? Benefiting from Trends
By Mario Ricchio
Sep 21, 2007
The rise in state and local budgets drive sorely needed infrastructure spending, and also the rise in oil company profits are helping the company.

SiRF Technologies (SIRF) ? Favorable Markets
By Ken Nagy
Sep 20, 2007
Several end markets appear to be near-term catalysts that have the potential to significantly revise expectations upwards.

Semtech (SMTC) - Improving Outlook
By Ken Nagy
Sep 19, 2007
We are very optimistic about this stock as forward guidance calls for 14-16% increase in the October quarter.

AK Steel (AKS) ? Holding Up Strong
By Paul Raman
Sep 18, 2007
We expect the company?s cost reduction efforts and renegotiated higher-priced contracts will prevent excessive margin deterioration.

Snap-on, Inc. (SNA) ? Consistent Performance
By Steven Ralston
Sep 17, 2007
Management has successfully delivered more predictable and consistent financial performance through the implementation of the Driven to Deliver and Rapid Continuous Improvement programs.

Website Pros (WSPI) ? Healthy Developments
By Steve Biggs
Sep 14, 2007
Its planned acquisition of Web.com will provide it with cross-selling opportunities and provide a base of potential customers for its ?Do-It-For-Me? services.

General Growth Properties (GGP) ? Nicely Priced
By Greg Sukenik
Sep 13, 2007
Retail spending is holding up and there is no evidence that retailers are curtailing their demand for space.

Altera (ALTR) - EPS Above Expectations
By Abdul Saleh
Sep 12, 2007
Revenue and EPS upside was driven by strong demand from industrial end markets.

ENSCO International (ESV) ? Strong Demand
By Sheraz Mian
Sep 11, 2007
Strong global demand for the company's fleet of premium jackups will help sustain its earnings momentum going forward.

O2Micro (OIIM) ? Significant Opportunities
By Ken Nagy
Sep 10, 2007
The LCD TV markets represent an opportunity to grow its revenue base and boost margins to the low sixties.

Abbott Labs (ABT) ? High Growth Projections
By Jason Napodano
Sep 07, 2007
Based on our model, the company is expected to deliver double-digit growth from 2007 through 2010.

Sempra Energy (SRE) ? Customer & Sales Growth
By Jonathan Kolb
Sep 06, 2007
With impressive results at Sempra Generation and new solar power contracts, we see consistent earnings power driven by continued profitability.

Liberty Interactive (LINTA) ? Gaining Prestige
By Ann Northrop
Sep 05, 2007
We think as investors become familiar with LINTA?s growth story, the multiple will expand marginally.

Dell, Inc. (DELL) ? Brighter Times Ahead
By Steve Biggs
Sep 04, 2007
We believe that the worst is behind the company, with improving results driven by Dell?s pricing discipline and cost cutting initiatives.

SanDisk (SNDK) ? Play the Market Pick-Up
By Steve Biggs
Aug 31, 2007
SanDisk remains the best-positioned producer of flash given its investments in low-cost production capacity.

China Life Insurance (LFC) ? Market Leader
By Paul Cheung
Aug 30, 2007
It is clear that China Life is the market leader in China?s life insurance industry, where opportunities are significant.

Shanghai Petrochemical (SHI) ? Chinese Strength
By Paul Raman
Aug 29, 2007
Exposure to the fast-expanding Chinese economy and strong petrochemical product demand make us confident of strong volume growth.

DaimlerChrysler (DAI) ? Getting Refocused
By Paul Raman
Aug 28, 2007
The recent sale of Chrysler will allow the company to refocus its efforts on Mercedes Benz.

GameStop (GME) ? Strength in Video Cycle
By Rob Plaza
Aug 27, 2007
No matter which game console or software titles eventually win out, GameStop will succeed by selling the most popular consoles and titles in its stores.

Zumiez (ZUMZ) - Strength When It Counts
By Rob Plaza
Aug 24, 2007
The company continues to exceed lofty expectations, and we expect this business momentum to remain strong throughout the important back-to-school and holiday shopping seasons.

Saks, Inc. (SKS) ? Buying Opportunity
By Rob Plaza
Aug 23, 2007
We continue to believe that Saks will be able to deliver solid sales growth and profit margin improvements over the next several quarters.

ON Semiconductor (ONNN) ? Good Prospects
By Ken Nagy
Aug 22, 2007
The company has begun to get significant revenue from its recent major purchase of LSI?s Gresham, OR wafer facility, which has the potential to be a solid revenue driver.

Banco Santander Santiago (SAN) ? Nice Valuation
By Ann Heffron
Aug 21, 2007
The stock has been pummeled during the recent market downturn, and we believe the shares now represent a good value relative to strong growth prospects.

Transocean (RIG) ? Oil Drilling Powerhouse
By Sheraz Mian
Aug 20, 2007
With a combined backlog exceeding $30 billion, the new Transocean offers an unparalleled level of earnings and cash flow visibility.

Anesiva (ANSV) ? Very Promising Near Term
By Jason Napodano
Aug 17, 2007
The NDA filing for lead product Zingo was accepted recently, and the drug?s PDUFA date is September 24, 2007.

CEMIG (CIG) ? Brazilian Electricity Demand Grows
By Claudio Freitas
Aug 16, 2007
The demand for electricity in Brazil has been growing, and we still have a positive outlook for the Brazilian economic environment in the short-term.

SABESP (SBS) ? A Play on Brazilian Prosperity
By Claudio Freitas
Aug 15, 2007
the short-term outlook remains positive and the stock still trades at an attractive valuation.

DIRECTV Group (DTV) - Poised for Growth
By Ann Northrop
Aug 14, 2007
The rollout of nearly 100 HD channels should boost ARPU and help stem decelerating subscriber growth.

American Oriental Bioengineering (AOB) ? Chinese Herbal Play
By Grant Zeng
Aug 13, 2007
We believe the company will continue to enjoy relatively high growth in both Traditional Chinese Medicine market and nutraceutical market.

McDonald?s (MCD) ? Running a Tight Ship
By Ann Northrop
Aug 10, 2007
The company is focused on cost-control initiatives and using the cash generated from operations to retire debts, distribute dividends, and to pursue share repurchase programs.

Investment Technology Group (ITG) ? Growing Smartly
By Zacks Investment Research
Aug 09, 2007
With the acquisition of Red Sky, ITG continues to expand its product line and potential for revenue.

Starwood Hotels (HOT) ? Attractive Valuation
By Sean P. Smith
Aug 08, 2007
We believe that the pullback has been overdone, and that the current share price represents an attractive entry point.

Pepsi Bottling Group (PBG) - Executing Well
By Steven Ralston
Aug 07, 2007
The company has reported solid net revenue per case in the U.S. and European volume growth has been strong.

Guess? (GES) ? Hitting the Right Notes
By Rob Plaza
Aug 06, 2007
Impressive results in recent quarters and positive outlook for the rest of fiscal 2008 demonstrate that Guess' business momentum remains strong.

Embotelladora Andina (AKO.A) ? South American Growth
By Claudio Freitas
Aug 03, 2007
Second quarter 2007 results were positive, and the outlook for upcoming quarters remains encouraging.

Freeport-McMoRan (FCX) ? Size & Strength
By Paul Raman
Aug 02, 2007
The merger with Phelps Dodge Corporation has positioned the company as the second-largest copper producer and the largest publicly traded copper company globally.

Bayer AG (BAY) ? Positive Expectations
By Robert Perri
Aug 01, 2007
We expect Bayer to report a solid second quarter when it reports on August 7th, as the company works to improve its product portfolio.

Coca-Cola FEMSA (KOF) ? Strong Latin Growth
By Claudio Freitas
Jul 31, 2007
The company posted better-than-expected results for the second quarter of 2007. The results in South America were particularly impressive.

Crocs, Inc. (CROX) ? Stellar Growth Continues
By Rob Plaza
Jul 30, 2007
We believe the stock has further upside ahead because investor expectations are still too low for the company.

United Parcel Service (UPS) ? Currently Undervalued
By Ann Heffron
Jul 27, 2007
We are continuing our Buy rating, as well as our $80 target price, as we continue to believe the stock is undervalued.

France Telecom (FTE) ? Multiple Expansion Expected
By Santiago Burgaleta
Jul 26, 2007
We now expect some earnings growth for 2007, but the main investment thesis for FTE is P/E multiple expansion.

Southern Copper (PCU) ? Expansion Imminent
By Paul Raman
Jul 25, 2007
We think the company is well positioned to expand production amidst higher grade ores at its mines.

Host Hotels (HST) - Another Good Quarter
By Greg Sukenik
Jul 24, 2007
Improved demand resulted in increased average room rates in most of the company's markets.

Stryker Corp. (SYK) -Ready for Acquisitions
By Gregory Aurand
Jul 23, 2007
The company is building cash and marketable securities ($1.5 billion) and continues to look for additive deals.

eBay (EBAY) - Solid Earnings
By Rob Plaza
Jul 20, 2007
Q2 sales were $42 million above our forecast and GAAP earnings per share were $0.02 ahead of our estimate.

Semtech (SMTC) - Staging A Turnaround
By Ken Nagy
Jul 19, 2007
The company has been diversifying the product portfolio, introducing new high-margin products and broadening the customer base.

Zumiez - Upgrading to Buy
By Rob Plaza
Jul 18, 2007
the The company's recent results