For Immediate Release
Chicago, IL – June 10, 2010 – Zacks Equity Research highlights Advance Auto Parts (AAP) as the Bull of the Day and Macerich Co. (MAC) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Eclipsys Corporation (ECLP), Allscripts (MDRX) and Navistar International Corporation (NAV).
Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.
Here is a synopsis of all five stocks:
Advance Auto Parts (AAP) is a specialty retailer of automotive parts, accessories and maintenance items. The company aims to improve its supply chain and vendor terms to combat the difficult industry metrics.
AAP enjoys an excellent liquidity position that enables the company to follow an aggressive share repurchase program. In the most recent quarter, the company outperformed the Zacks Consensus Estimate by $0.19 per share.
These factors have led us to upgrade the recommendation on shares from Neutral to Outperform with a target price of $58.
Our long-term recommendation for Macerich Co. (MAC) is Underperform as we anticipate it to perform well below the broader market. The prolonged recession has led to increased tenant bankruptcies, reduction in disposable income and lower consumer discretionary spending.
In addition, Macerich has an active development pipeline, which increases operational risks in the current credit-constrained market. Macerich has also resorted to equity financing to increase liquidity. Although the move has provided the company with much-needed cash, it has resulted in earnings dilution in the short-term.
Our long-term Underperform recommendation on the stock indicates that it would perform well below the broader market. Our target price of $38.00, 14.2X 2010 FFO/Share, factors in this view.
Latest Posts on the Zacks Analyst Blog:
Allscripts Acquires Eclipsys
Eclipsys Corporation (ECLP), a leading healthcare information technology (IT) provider, announced that it will be bought by rival Allscripts (MDRX) for $1.3 billion. The all-stock transaction, expected to close in approximately four to six months, allows the shareholders of Eclipsys to receive 1.2 shares of Allscripts per share of Eclipsys. The acquisition represents a 19% premium on the June 8, 2010, closing stock price of Eclipsys.
The transaction, which is expected to boost Allscripts’ adjusted earnings beginning in calendar 2011, is likely to create an undisputed leader in healthcare information technology. Furthermore, the merger is expected to result in $100 million cost savings for the acquirer over the first 3 fiscal years following the completion of the deal.
The client base of the enlarged company should boast more than 180,000 U.S. physicians and 1,500 hospitals, in addition to approximately 10,000 nursing homes, hospices and post-acute organizations. Furthermore, the customers of the merged company will be able to access more effectively the $30 billion federal funds for the adoption of electronic healthcare records (EHR) provided under the American Recovery and Reinvestment Act (ARRA). The incentives are aimed at shifting the healthcare system to more efficient portable electronic records from paper records. They commence in 2011.
In relation to the merger, UK-based software company Misys has decided to reduce its stake in its U.S. subsidiary, Allscripts, from 55% to approximately 10% before the closure of the deal. The stake reduction will help Misys remain compliant with listing requirements of the UK listing authorities. Misys will raise money by selling a minimum of approximately 36 million of its Allscripts shares via a secondary offering. Furthermore, Allscripts will buy back from Misys approximately 24.4 million of its Allscripts stock.
Navistar Profit More than Doubles
Navistar International Corporation (NAV) revealed a profit of $30 million or 42 cents per share for the second quarter of fiscal 2010, ended April 30. The profit more than doubled from last year's $12 million or 16 cents per share. It also reflected a marked improvement from the Zacks Consensus Estimate of a loss of 5 cents per share.
Navistar has attributed the improvement to a strong performance in its core business, as well as an improved cost structure that focused on reductions in material costs and rationalization of its North American plants to create cost efficiencies in its Class 8 heavy truck and school bus production lines. Revenues in the quarter declined marginally by 2% to $2.7 billion. Total segment profit was $165 million, compared with $105 million in the year-ago quarter.
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
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
