Zacks.com announces the list of stocks featured in the Analyst Blog.
Every day the Zacks Equity Research analysts discuss the latest news and
events impacting stocks and the financial markets. Stocks recently
featured in the blog include: Apartment Investment & Management
(NYSE: AIV),
RightNow Technologies (Nasdaq: RNOW),
King Pharmaceuticals, Inc. (NYSE: KG),
Deutsche Bank AG (NYSE: DB)
and 51job (Nasdaq: JOBS).
Get the most recent insight from Zacks Equity Research with the free
Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Thursday’s Analyst
Blog:
AIMCO Getting Scorched in Florida
Multifamily fundamentals are holding up in most markets across the U.S.
Landlords are slightly raising rents while maintaining high occupancy
levels. On a portfolio-wide basis, Apartment Investment & Management
(NYSE: AIV),
or AIMCO registered decent same-store revenue and NOI [net
operating income] increases in most regions.
The company struggles with heavy maintenance cap-ex, tight dividend
coverage and exposure to weakening markets in Florida cause us to
continue our Hold rating. In addition, there are signs that apartment
fundamentals are declining due to the state of the economy. Rent growth
is slowing in many areas of the country. There are too many unsold
condos and single family homes that are being put into the rental
market, which will continue to have a negative effect on operations.
Based on 2008 FFO estimates, the company is trading at an approximate
26% discount to the sector weighted averages and a 25% discount to our
calculate NAV. We do expect slight improvement in operations throughout
the next six months as the company continues to realize above-average
growth in its core markets. Although, we think the company will continue
to have a difficult time in Florida and other sun-belt markets which
have too much supply, which will continue to negatively affect overall
earnings.
Hold-Rated RightNow Ests Upped
RightNow Technologies (Nasdaq: RNOW)
reported better than expected results for Q1:FY08 with revenue and GAAP
earnings exceeding our estimates. License revenues were slightly below
our estimates with recurring revenues growing 27% year over year.
Service revenues grew by 42% year-over-year.
Management's guidance for the second quarter of 2008 and FY08 has led us
to slightly increase our revenue expectations while reducing our loss
expectations on a GAAP basis. We do not expect the company to reach GAAP
break-even before 2009.
We continue to rate shares of RNOW a Hold as the recent spurt in stock
price appears to have already factored in the Q1 results and FY08
guidance. We have set a target price of $13.50 at 2.3x EV/2008 sales
estimate.
King Pharma Still in Decline
King Pharmaceuticals, Inc. (NYSE: KG)
is a vertically integrated pharmaceutical company that focuses on
developing and marketing branded prescription pharmaceutical products.
Most of the company's key products are either facing increased
competition or generic threat.
Additionally, we are concerned about declining prescription trends for
most of the company's products. While King has several candidates in its
pipeline, we do not think that these products will be sufficient to
compensate for the loss of revenue that will take place with the
genericization of key products over the next few years. We believe that
generic threat and mounting competition will continue to hinder both
top- and bottom-line growth going forward.
Target Upped on Hold-Rated DB
We are continuing our Hold on Deutsche Bank AG (NYSE: DB),
but raising our target price to $118. DB posted a first quarter net loss
before nonrecurring items of 985 million, compared to net earnings of
1,924 million in the year-ago quarter. This was in line with the April 1
pre-announcement that called for 2.7 billion in writedowns related to
leveraged loans, commercial real estate, and residential mortgage-backed
securities.
We are cutting our 2008 EPADS estimate to $8.00 from $14.15 and
initiating our 2009 estimate at $14.15. Though DB's results should be
bolstered by improved efficiencies and acquisitions, headwinds include
problems stemming from more dislocations in the US subprime mortgage and
other credit markets. DB recently increased its annual dividend by 13%.
Chinese JOBS Still Impressive
On May 13, 51job (Nasdaq: JOBS)
announced first quarter results. Its net profit margin declined due to
higher sales & marketing expenses and a higher tax rate. Its EPS missed
the market consensus, while revenue exceeded expectations.
51job continues to have the highest brand recognition both in the online
and offline recruiting market in China. Moreover, China's prosperous
economy will continue to boost the recruiting market. Overall, we
believe 51job is well positioned to leverage this market opportunity in
China. Therefore, we are maintaining the Buy rating for the stock.
Want more from Zacks Equity Research? Subscribe to the free Profit from
the Pros newsletter: http://at.zacks.com/?id=2649.
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 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: http://at.zacks.com/?id=2677
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=4580.
Visit http://www.zacks.com/performance
for information about the performance numbers displayed in this press
release.
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.
