CHICAGO, IL, (NAMC) - Zacks Equity Research highlights CV Therapeutics (Nasdaq:
CVTX) as the Bull of the Day and Altria Group, Inc. (NYSE:
MO) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on British Airways (NYSE
:BAB) and Honda Motor Company (NYSE
:HMC). 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 CV Therapeutics (Nasdaq:CVTX). Headquartered in Palo Alto, CA, CVTX is a biopharmaceutical company focused on applying molecular cardiology to the discovery, development and commercialization of novel, small molecule drugs for the treatment of cardiovascular diseases. Ranexa has been approved and CVT kicked-off the ramp at ACC in March 2006. Longer term, the MERLIN study will determine the ultimate success of the drug. Aceon is finally contributing and phase III regadenoson looks promising. We see the stock fairly valued at $30, and thus rate the shares a Buy.
Bear of the Day:
Our Bear of the Day is for Altria Group, Inc. (NYSE:MO), the leading domestic tobacco company. The company generates significant cash flow and has a high dividend yield. However, the company is engaged in numerous tobacco liability suits. Of immediate concern is the trend of excessive punitive damage awards being upheld by appellate courts, especially the $50 million judgment paid out in the Boeken case after the U.S. Supreme Court refused to hear it. This decision will entice lawyers to file more cases against the tobacco companies. Also, potential negative litigation is expected in Canada. Finally, weak volumes in Germany and a price war in Spain remain concerns. The stock is rated a Sell.
Analyst Blog:
We are maintaining our Hold recommendation on British Airways (NYSE:BAB) prior to its fourth quarter and year-end results, which are due on May 19. We think that oil prices will come down in the future, and this should translate to higher profits for BAB, given that jet fuel costs are one of the most important profit drivers for an airline. However, at its current valuation, the stock is fairly valued in our view.
Honda Motor Company (NYSE:HMC) is expanding its business in Asia, growing its global network to increase efficiency and introducing new products to satisfy local markets. Further, capacity expansion plans in Asia, a new sales strategy in Japan, and a proposed launch of Accura in Japan make us optimistic about Honda's future prospects. Therefore, we rate it a Buy with a six-month target price of $37.00.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
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