Zacks Equity Research highlights Dr. Reddy’s Laboratories (NYSE: RDY) as the Bull of the Day and Sony Corporation (NYSE: SNE) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on BT Group, Plc (NYSE: BT) and COPEL (NYSE: ELP). 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 Dr. Reddy’s Laboratories (NYSE: RDY). Dr. Reddy's Laboratories, Ltd. is a global pharmaceutical company located in Hyderabad, India. RDY produces active pharmaceutical ingredients (API), finished dosage forms, and branded and generic pharmaceutical products for the global market. The company has a healthy pipeline and is an active participant in terms of international product filings. During fiscal 2007, RDY experienced both top-line and bottom-line growth thanks to many products going off-patent over the past several months. RDY currently has 69 ANDAs [abbreviated new drug applications] filed with the U.S. FDA [Food & Drug Administration], which should present future growth opportunities for the company. We maintain our Buy recommendation with a target of $19.
Bear of the Day:
Our Bear of the Day recommendation is for Sony Corporation (NYSE: SNE). We believe Sony will continue to struggle as it faces competition from innovative digital products and struggles to ramp production of its PlayStation 3. In addition, Sony is facing increasing competition from low-cost manufacturers in Asia as the consumer market slows. We therefore maintain a Sell recommendation on SNE shares with a price target of $38.00.
BT Group, Plc (NYSE: BT) reported an in-line fourth quarter on May 17th, 2007, with revenues beating our estimates and earnings slightly below our expectations. While the company has initiated several new cost-cutting measures, we would still like to see some EBITDA [earnings before interest, taxes, depreciation and amortization] margin improvements going forward. We have raised our earnings estimates for 2008 and 2009 as the company continues to improve its profitability and margins, and its recent share-buyback initiative should help boost the EPS [earnings per share] and share price. We have also upped our target price to $64.50 over the next six months, although we continue to rate shares of BT a Hold.
We are keeping our Buy recommendation on Companhia Paranaense de Energia, or COPEL (NYSE: ELP). The company's first quarter results were positive, as we expected, and the short-term outlook remains positive as well. Additionally, the outlook for energy consumption in Brazil in the medium-to-long term is very encouraging. We also believe the business environment for COPEL remains solid thanks to good hydrology and the recently released economic plan that will benefit electric utilities companies. Finally, the company's valuation remains attractive.
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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