Zacks Equity Research highlights GameStop Corp. (NYSE: GME) as the Bull of the Day and Amylin Pharmaceuticals (Nasdaq: AMLN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Xilinx (Nasdaq: XLNX) and First Data Corporation (NYSE: FDC). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all four stocks:
Bull of the Day:
Our Bull of the Day recommendation is for GameStop Corp. (NYSE: GME). GameStop’s fourth quarter results demonstrate that the current video game cycle is going strong. Moreover, we believe that GameStop is well positioned to take advantage of this product cycle, which should last for the next few years. That’s because 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. All told, GameStop remains one of our favorite stocks in the retail sector. We reiterate our Buy rating and increase our target price of $33.50 to $40, which is 27x our fiscal year 2007 EPS estimate.
Bear of the Day:
Our Bear of the Day recommendation is for Amylin Pharmaceuticals (Nasdaq: AMLN). Amylin Pharmaceuticals, Inc. is engaged in the discovery, development and commercialization of potential drug candidates for the treatment of diabetes, obesity and cardiovascular diseases. The top-line is being driven by sales of two diabetes drugs, Byetta and Symlin. Sales of both drugs were lower than expected in the most recent quarter due to heavy sampling and increased competition. We think the competitive landscape is only getting worse for Amylin, and despite the fact that we are enthusiastic about the early-to-mid stage pipeline, we feel the name is overvalued.
Analyst Blog:
Xilinx (Nasdaq: XLNX) narrowed its sales guidance for the March quarter to be flat to down 4% sequentially. Prior guidance was for revenue to be flat to down 5% sequentially. Gross margins are expected to be approximately 61%, including $2 million of stock-based compensation. We think revenue growth will pick up during the course of 2007. We continue to rate Xilinx a Buy and maintain our price target of $29.
First Data Corporation (NYSE: FDC) is one of the leading providers of electronic commerce and transaction processing services. The company’s services make it easier, faster, and more secure for people and businesses all over the world to buy goods and services. Its technology facilitates the processing of payments made by credit cards, debit cards, stored-value cards, or checks at the point-of-sale.
Get the full analysis of all four stocks by going to http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
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