For Immediate Release
Chicago, IL – June 18, 2010 – Zacks Equity Research highlights Acergy (ACGY) as the Bull of the Day and Telesp (TSP) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Genzyme Corporation (GENZ), Biogen Idec (BIIB) and Teva (TEVA).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.
Here is a synopsis of all five stocks:
Acergy (ACGY) posted better-than-expected first-quarter 2010 results on the back of solid margins, strong operational performance, and good project execution skills.
With a healthy backlog, significant cash balances, and no near-term refinancing requirements, Acergy should weather the challenging business environment better than many of its peers.
Our continued Outperform recommendation on Acergy ADRs also reflects the company’s strong leverage to the still very favorable outlook for deepwater oilfield activities and the quality of its client base, which mostly includes well-capitalized oil majors or national oil companies.
We are downgrading our recommendation for Telesp (TSP) to Underperform based on the company’s lackluster operating results in the most recent quarter, increasingly competitive environment and lack of visibility for operational improvements in the near-term. Earnings for the most recent quarter missed the Zacks Consensus Estimate due to lower local voice revenues.
The company remains challenged by sustained erosion in its core wireline voice telephony business due to stiff competition, which continues to weigh on top-line and margins. We expect operating performance in the near term to be restricted by the prevailing competitive and regulatory factors.
Moreover, the carrier’s exposure to an increasingly competitive environment is expected to limit operating results, at least in the near term. Our price target of $19 is based on 8.7x our 2010 EPADS estimate.
Latest Posts on the Zacks Analyst Blog:
Fast-Track Status for Genzyme Drug
The US Food and Drug Administration (FDA) recently granted fast-track status to Genzyme Corporation’s (GENZ) alemtuzumab, which is being developed for the treatment of multiple sclerosis. Fast-track status was granted for the treatment of patients with relapsing-remitting forms of multiple sclerosis.
The FDA assigns fast-track status to products that are being developed for the treatment of serious or life-threatening diseases. Under this designation, a company can file the New Drug Application (NDA) for the candidate on a rolling basis and can also seek priority review status. This helps speed up the review process.
Alemtuzumab is currently in two pivotal phase III studies that should report results in 2011. While one study (CARE-MS I) is comparing alemtuzumab to Merck KGaA’s Rebif in patients with treatment-naive early, active relapsing-remitting multiple sclerosis (RRMS), the second study (CARE-MS II) is comparing alemtuzumab to Rebif in RRMS patients who relapsed during treatment.
Earlier this year, Genzyme had presented encouraging follow-up phase II results on alemtuzumab. The study, which compared alemtuzumab with Rebif, was conducted in treatment naïve patients suffering from early, active RRMS.
Results showed that about 71% of patients treated with alemtuzumab remained free of the disease even three years after treatment compared to 35% in the Rebif arm. Moreover, about 91% of patients in the alemtuzumab arm (versus 68% in the Rebif arm) were free of sustained accumulation of disability. Genzyme reported that 77% of the patients treated with alemtuzumab remained relapse-free compared to 49% in the Rebif arm.
Positive results from the ongoing phase III studies would be a major boost for Genzyme and would allow Genzyme to provide multiple sclerosis patients with a new treatment option. The multiple sclerosis market is dominated by players like Biogen Idec’s (BIIB) Tysabri and Avonex, Teva’s (TEVA) Copaxone, and Rebif.
Alemtuzumab is currently available for the treatment of B-cell chronic lymphocytic leukemia (B-CLL) under the trade name Campath.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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.
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 analyst 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 by visiting http://at.zacks.com/?id=7159.
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=5509.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
