CHICAGO--(Business Wire)--
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:
Vodafone Group PLC (NYSE: VOD), Sanmina-SCI Corporation (NASDAQ: SANM),
Koninklijke Philips Electronics NV (NYSE: PHG), Equity Residential (NYSE: EQR)
and CarMax Group (NYSE: KMX).
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Here are highlights from Wednesday`s Analyst Blog:
VOD Expanding Its Network
We maintain our Buy recommendation for Vodafone Group PLC (NYSE: VOD), the
largest revenue generating international wireless carrier.
The company`s recent operating results are highlighted by strong growth in
subscribers across consolidated segments (notably in the emerging markets
bolstered by operations in India). However, new market performance was offset by
contraction of service revenue in core European markets.
SANM Still Struggling
Sanmina-SCI Corporation (NASDAQ: SANM) is currently struggling with
industry-wide weakness and challenging end-market demand. After exiting its PC
business, Sanmina has focused on its core business and margin improvement.
Owing to continuous decline in its market capitalization, the company reported
goodwill impairment charge of $482.0 million in 4Q08 in its recently filed 10K.
Although Sanmina has reduced its cost structure, top-line growth is sluggish and
we believe the company will struggle to grow in 2009. Moreover, we would like to
see sustained growth before becoming more positive on the stock. We reiterate
our Sell rating on SANM shares with a lower six-month price target of $0.25.
Lower Revenue Target For PHG
We maintain our Hold recommendation on the shares of Koninklijke Philips
Electronics NV (NYSE: PHG), one of the world`s largest electronics companies and
the biggest in Europe.
Given the reduced visibility in the global economy, which progressively
deteriorated during the quarter, the company has decided to accelerate a number
of business and margin improvement projects in all three sectors which will lead
to additional charges in the fourth quarter. This has caused us to reduce
overall revenue growth rate to 1.63%, in Euro terms, for 2008 compared to 0%
recorded for 2007.
Equity Residential A Buy
We rate the shares of Equity Residential (NYSE: EQR) a Buy. EQR is a fully
integrated real estate investment trust (REIT).
We continue to favor large diversified multifamily operators in a very uncertain
economic environment. The housing market has not yet reached a bottom, as such;
there is a larger pool of renters. The company continues to raise rents in most
markets, although Florida continues to be a problem. With the national economic
slowdown and massive job losses, rental rate growth will slow over the next
couple of quarters.
CarMax Continues To Struggle
CarMax Group (NYSE: KMX) continues to face a difficult used-vehicle environment,
largely due to aggressive incentives being offered by new vehicle manufacturers.
Declining used-car value due to the ongoing weakness in the overall economy and
higher funding cost at the CarMax Auto Finance is eroding the margins of the
company. The current economic slowdown and reduced consumer spending had a
negative impact on the company`s retail business. It is aggressively cutting
prices on trucks and SUVs to reduce inventory. A drop in earnings and a higher
valuation make us apprehensive about the stock`s performance in the near term.
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