Zacks Equity Research highlights Myriad Genetics (Nasdaq: MYGN) as the Bull of the Day and Tech Data Corp. (Nasdaq: TECD) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Stone Energy (NYSE: SGY) and Kyocera Corporation (NYSE: KYO). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.
Here is a synopsis of all four stocks:
Bull of the Day:
Our Bull of the Day recommendation is for Myriad Genetics (Nasdaq: MYGN), a biopharmaceutical company that focuses on the development of diagnostic and therapeutic products. The company employs a variety of proprietary proteomic technologies to identify genes, their relative proteins, and their pathways. Research in these areas has helped the company in developing drugs that prevent various diseases. From a research and development standpoint, we are optimistic about the future potential of Myriad. The growth of predictive medicine, several candidates in Alzheimer’s disease and cancer lead us to be bullish on the stock. We maintain our Buy rating on Myriad and maintain our target price of $45.
Bear of the Day:
Our Bear of the Day recommendation is for Tech Data Corp. (Nasdaq: TECD). We are adjusting our estimates for the next two years. We are increasing our sales estimates for the next two years. We are lowering our 2008 EPS but increasing our 2009 EPS estimate. We continue to expect Tech Data shares to underperform the market for the next six months. Our opinion is based on Tech Data trading at a premium to industry peer Ingram Micro. This premium valuation is not justified, in our view.
Analyst Blog:
The long-anticipated sale of Stone Energy's (NYSE: SGY) Rockies assets finally took place last month. In the transaction, expected to close early next month, Stone will receive approximately $575 million by selling its entire assets in the region. In total, the company is selling approximately 31% of its year-end 2006 proved reserves and roughly 17% of its current volumes. While the intended use of the proceeds for debt repayment is positive, Stone's exit from the faster growing and longer reserve-life Rockies further clouds its long-term growth prospects by increasing its reliance on the mature and shorter reserve-life GoM [Gulf of Mexico] Shelf properties. Our recommendation remains a Hold at this time.
Kyocera Corporation (NYSE: KYO) is a diversified company with several strong businesses. The company has excelled in some industrial product areas, such as fine ceramics and components, while high volume consumer products have been weak as the company has been struggling to compete on a cost basis. Overall, an improved demand outlook for components for digital consumer equipment is likely to support the stock. As such, we continue to maintain a Hold rating on the shares of Kyocera, and raise our target price to $109.00.
Get the full analysis of all four stocks by going to http://at.zacks.com/?id=2649.
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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