For Immediate Release
Chicago, IL – November 19, 2009 – Zacks Equity Research highlights CPFL Energia (CPL) as the Bull of the Day and The Medicines Company (MDCO) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Eastman Chemical Co.(EMN), Dow Chemical Company (DOW) and Dupont (DD).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
We are maintaining our Outperform rating on CPFL Energia (CPL). The company posted in-line results for the third quarter of 2009, despite non-recurring items.
The company’s outlook for the medium-term remains positive, mainly considering the more relaxed monetary policy in Brazil and the growing demand for electricity, even though there is the still-difficult business environment around the world.
Finally, CPL has a solid dividend payout and its valuation appears to be highly attractive, mainly considering the noncyclical nature of the company.
The Medicines Company’s (MDCO) third-quarter loss per share of 6 cents missed the Zacks Consensus Estimate of a loss of 5 cents. Although Angiomax continues to contribute significantly to revenues, we are concerned about the product losing exclusivity in the U.S. in September 2010.
The entry of generics would be devastating for the company. Therefore, the onus is on management to acquire and develop the next generation of products to drive the top-line. One of those products was expected to be Cangrelor. However, the failure of the phase III CHAMPION program was a significant setback.
Meanwhile, the Cleviprex sales ramp has also been slow. We recommend avoiding the name until we gain more visibility on the Angiomax patent situation, the Cleviprex ramp and the future of Cangrelor and Oritavancin.
Latest Posts on the Zacks Analyst Blog:
Eastman Boosts Guidance
Eastman Chemical Co. (EMN) has raised its full year 2009 earnings guidance to $3.50 per share from the initial guidance of $2 to $3 per share, driven by an expected strong growth in its core business. The company is hoping to deliver about 20% or over $6 per share growth in annual earnings by 2012, as the economy recovers completely.
The Zacks Consensus Estimate is pegged at $3.22 for 2009 and at 93 cents for the fourth quarter. Recently, Eastman’s close peers, Dow Chemical Company (DOW) and Dupont (DD) have also predicted strong growth in earnings.
Eastman stands to benefit from its business restructuring and cost-cutting measures, which are expected to result in cost savings of more than $200 million for the full year 2009. Eastman’s earnings of $1.38 per share in the third quarter of 2009 had bettered the Zacks Consensus Estimate of $1.13 per share helped by lower costs.
The company managed margins by reducing its operating costs. However, lower selling prices and volumes across all major segments resulted in a 21% year-over-year fall in Eastman’s top line of $1.3 billion for the quarter. Eastman’s core businesses, including Coatings, Adhesives, Specialty Polymers and Inks, Fibers, Performance Chemicals and Intermediates as well as Specialty Plastics suffered on weak demand from the automotive, building and construction, and packaging markets.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.
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