Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Sony Corporation (NYSE: SNE), China Eastern Airlines Corporation Limited (NYSE: CEA), Aegon N.V. (NYSE: AEG), Pfizer (NYSE: PFE) and Wyeth (NYSE: WYE).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Friday’s Analyst Blog:
Sony Warns of a Loss
Sony Corporation (NYSE: SNE) has announced that it will report a loss for its 2009 fiscal year. This would be the first loss in 14 years.
The company has three major problems: 1.) The value of the Yen (with half of its manufacturing plants and one third of its employees based in Japan) has increased production costs and reduced operating margins. 2.) The world-wide economic downturn and increased competition in Flat Panel TVs (FPTV) from the likes of Vizio and Westinghouse has forced Sony to cut prices to maintain market share. 3.) Its LCD FPTV sets are sold at premium prices and consumers are not willing to pay those prices in the current economic environment.
China Eastern Airlines a Sell
We are lowering our rating on China Eastern Airlines Corporation Limited (NYSE: CEA, or China Eastern) to Sell from Hold as we now expect even larger losses following the company's recent disclosure of a RMB6.2 oil hedging loss and a likely loss for full-year 2008.
Moreover, foreign exchange translation gains are also subsiding. As a result, we are significantly increasing our full-year loss estimates for both 2008 and 2009. To prop up its balance sheet, CEA has sold about 2.9 billion A and H shares, raising close to RMB7 billion and received a RMB5.5 billion working capital loan from its parent company.
Aegon a Buy on Valuation
Aegon N.V. (NYSE: AEG) provides a multitude of insurance and pension-based saving and investment solutions. It is one of the world's ten largest life insurance companies ranked by assets, profits and market capitalization. Insurance services include personal and commercial life, health and accident insurance.
We are maintaining our Buy recommendation on Aegon after its third quarter results. While the current environment will be challenging for investment portfolios, we think that, at its current multiple, the stock is at a significant discount to its peers. Our six-month target price is $7.00.
Pfizer Eyes Wyeth. We Ask "Why?"
This morning the rumors are circulating that Pfizer (NYSE: PFE) is in talks to acquire fellow drug maker Wyeth (NYSE: WYE). In fact, sources close to the two firms say talks have been ongoing for months, but that a potential deal is still far off.
Nevertheless, should Pfizer absorb Wyeth, it would be the largest drug merger combination in years.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contacts:
Mark Vickery
Web Content Editor
312-265-9380
Visit:
www.zacks.com
