Zacks Equity Research highlights Logitech (Nasdaq: LOGI) as the Bull of the Day and Atmel (Nasdaq: ATML) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Anglo American (Nasdaq: AAUK) and Comstock Resource (NYSE: CRK). 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 Logitech (Nasdaq: LOGI). We expect Logitech to report a solid first quarter of 2008, with revenues of $456 million and earnings per share of $0.14 on a US GAAP basis. The company’s recent collaboration with Carl Zeiss should help boost its webcam sales, while its new foray into laptop stands and bags should help growth in its other segment. Additionally, the strong growth of casual gaming should only help boost revenues in its gaming segment in the near term. We continue to rate shares of LOGI a Buy with a new $34 price target over the next six months, or 25x our 2008 earnings estimate.
Bear of the Day:
Our Bear of the Day recommendation is for Atmel (Nasdaq: ATML). In Q1, revenue came to $391.3 million, down 2% year over year. On a GAAP basis, net income totaled $28.9 million or $0.06 per share, compared to net income of $4.7 million or $0.01 per share in the year-ago period. On a pro forma basis, net income came to $12.4 million or $0.03 per share, compared with breakeven in the year-ago quarter. For Q2 of 2007, Atmel expects revenue to be up 1% to 4% sequentially. Still we are maintaining our Sell rating and target price of $4.75, which reflects our concern over pricing pressures in its memory and ASIC businesses.
Analyst Blog:
We are maintaining our Hold recommendation on Anglo American (Nasdaq: AAUK). The company is benefiting from strong demand for commodities around the globe and increased production. However, risks to global economic growth remain, and the strength of the South African rand could have a significant impact on future earnings. Headquartered in London, Anglo American, Plc is a global leader in mining and natural resource sectors. It has significant and focused interests in gold, platinum, diamonds, coal, base metals, ferrous metals, industrial minerals and forest products. The company has operations in Africa, Europe, South and North America, and Australia.
We are maintaining our Buy recommendation, price objective and 2007 EPS [earnings per share] estimate unchanged ahead of Comstock Resource's (NYSE: CRK) second-quarter results. We have, however, raised our 2008 EPS estimate ($2.25 vs. $1.92) on higher production and commodity-price assumptions. We continue to like the stock for the company's strong production-growth profile and attractive valuation. The company's onshore properties, which comprise 60% of its total proved reserves, are characterized by long lives (more than 14 years), providing it with a multi-year inventory of low-risk development drilling opportunities.
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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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.
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