For Immediate Release
Chicago, IL – March 19, 2010 – Zacks Equity Research highlights Intuitive Surgical (ISRG) as the Bull of the Day and NuStar (NS) the Bear of the Day. In addition, Zacks Equity Research provides analysis on 3Com Corporation (COMS), Hewlett-Packard (HPQ) and Cisco Systems Inc. (CSCO).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506
Here is a synopsis of all five stocks:
Intuitive Surgical’s (ISRG) story is improving. A new product was developed as an upgrade to its da Vinci Surgical System. Furthermore, the company enjoys a virtual monopoly in robotic surgery without direct competition.
The company’s razor/razor blade business model ensures recurring revenues even during difficult times. In the fourth quarter, earnings of $1.95 per share were higher than the Zacks Consensus Estimate of $1.71. Revenue growth was witnessed across all segments.
The company also reported an expansion in its top and bottom lines in fiscal 2009. Based on the company’s strong performance, we upgrade the stock to Outperform with a target price of $400.
We are downgrading NuStar (NS) units to Underperform from Neutral, reflecting the challenging business environment for pipeline operators. While the partnership’s liquidity position is sound, we continue to believe that the near- to medium-term outlook for petroleum products expenditure remains weak.
Another concern for NuStar is the weak demand for refined products that translates into lower pipeline throughputs. Furthermore, the addition of the asphalt business has increased the partnership s exposure to volatility in commodity prices.
Given these headwinds, we expect NuStar units to be under pressure in the near future. Our $56 price objective reflects a target yield of 7.85%, with a distribution run rate of $4.43 per unit (a 4% increase from the current level).
Latest Posts on the Zacks Analyst Blog:
3Com Grabs Multi-Million Dollar Deal
Things are going well for the global enterprise networking major 3Com Corporation (COMS). The company recently disclosed that it has grabbed a three-year, multi-million dollar deal with the Department of Education and Training (DET) in Northern Australia.
As per the terms of the agreement, 3Com will create a broad range of high-value H3C enterprise networking solutions to fulfill DET NT’s wireless and networking needs for unified communications and multimedia learning. The company’s track record of successful project execution in the education sector and competitive pricing has helped it to secure this contract.
This is not the only big government deal that the company has won in recent times. A few months back, 3Com won a deal to supply enterprise switching hardware, software and supporting services to the Queensland’s Public Safety Network (PSN) initiative. 3Com will conduct the whole process in association with Communications Design & Management Pty Limited (CDM). This multimillion dollar deal is expected to generate substantial recurring revenue for the company in the years to come. The company claims that this is one of its largest wins in Australia and New Zealand.
Deal wins apart, positive news flows have been coming from other ends as well. The biggest news in recent times was Hewlett-Packard (HPQ) getting the final approval from the European Union regarding its acquisition of 3Com. The $2.7 billion acquisition creates a win-win situation for both the entities, as it enables H-P to challenge networking leader Cisco Systems Inc. (CSCO) and grab an additional share of the networking business. 3Com will also benefit from H-P’s superior brand value and find a broader market for its new products.
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.
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