CHICAGO, IL, (NAMC) - Zacks Equity Research highlights salesforce.com (NYSE:
CRM) as the Bull of the Day and King Pharmaceuticals (NYSE:
KG) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Guess (NYSE:
GES) and FormFactor (Nasdaq:
FORM). 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 salesforce.com, inc. (NYSE:CRM). CRM is the market leader in the on-demand CRM space, and continues to see substantial subscriber and customer growth. The company has recovered from challenges in the fourth quarter to post some of its best results ever. Although the stock could prove to be volatile, we believe over the long-term, CRM is the leader in a potentially huge market. We therefore reiterate our Buy recommendation on the shares of salesforce.com with a six-month target price of $60.00.
Bear of the Day:
Our Bear of the Day recommendation is for King Pharmaceuticals, Inc. (NYSE:KG). King is a vertically integrated pharmaceutical company that focuses on developing and marketing branded prescription pharmaceutical products. Most of the company's key products are either facing increased competition or generic threat. Additionally, we are concerned about declining prescription trends for most of these products. We believe that generic threat and mounting competition will continue to hinder both top-and bottom-line growth going forward. As such, we are maintaining our Sell rating on the stock, with a $14 target.
Analyst Blog:
Guess' (NYSE:GES) first quarter earnings were up 89% year-over-year and well above market expectations. We believe the company is positioned to continue delivering impressive results like this for the next several quarters. Based on the strength of its first quarter report and our optimistic view of the company's fundamentals, we are upping our 2006 and 2007 estimates. As such, our target price goes from $45 to $52, which is roughly 24 times our 2007 EPS estimate.
FormFactor (Nasdaq:FORM) is the market leader in advanced wafer probe cards used to test semiconductor wafers during the manufacturing process. The company has a very strong growth profile. March quarter revenue and EPS were above expectations. Bookings were up 17% sequentially to an all-time high. The company is no longer capacity constrained, and we expect margins to expand from here. The company's technology is leveraged towards leading edge 300mm and sub-110nm nodes, which are ramping quickly throughout the industry. We envision a strong second-half for FORM, and consequently, are maintaining our BUY rating FORM shares.
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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