Sciele Pharma (SCRX) At a Good Price

Principal Financial Group (PFG)
By Zacks Equity Research
Nov 20, 2009
We are upgrading our recommendation on the shares of Principal Financial (PFG) to Outperform. The company's third quarter operating earnings were much ahead of the Zacks Consensus Estimate, driven primarily by the sequential improvement in domestic as well as global equity markets.

We believe that Principal's strong franchise within the pension sector, which is aided by its diversification both in terms of products and geography, positions it well to benefit from the gradual recovery of the credit market. However, rising unemployment is reducing the number of participants in existing employee benefit plans.

Though we are concerned about higher delinquencies in its commercial mortgage portfolio, we expect the company to benefit from its decent capital level and cost containment measures.

CPFL Energia (CPL)
By Claudio Freitas
Nov 19, 2009
We are maintaining our Outperform rating on CPFL Energia (CPL). The company posted in-line results for the third quarter of 2009, despite non-recurring items.

The company's outlook for the medium-term remains positive, mainly considering the more relaxed monetary policy in Brazil and the growing demand for electricity, even though there is the still-difficult business environment around the world.

Finally, CPL has a solid dividend payout and its valuation appears to be highly attractive, mainly considering the noncyclical nature of the company.

NeurogesX (NGSX)
By Jason Napodano
Nov 18, 2009
NeurogesX (NGSX) received some very good news this week when the U.S. FDA approved Qutenza for the management of postherpetic neuralgia (PHN). Management will now move forward with preparing for the commercial launch during the first half of 2010.

Securing reimbursement and hiring the sales force remain the next biggest hurdles for the company. However, with approval now complete and the financial position solid ($57 million in cash on hand), we remain very position on the NeurogesX story.

We recommend accumulating the stock at today's level up to $12 per share. Our rating is Outperform.

Sealed Air Corp. (SEE)
By Zacks Equity Research
Nov 17, 2009
Sealed Air Corporation (SEE) reported third quarter 2009 EPS of 38 cents, above the Zacks Consensus Estimate of 33 cents and the prior-year EPS of 28 cents. The company raised its full-year 2009 EPS guidance to a range between $1.37-$1.45.

The company expects to continue to realize benefits from its cost reduction and productivity programs in the fourth quarter. Also, the company is witnessing improved market conditions in developing nations. Sealed Air posted double-digit sales increases in some of these markets.

Based on the improved outlook, as well as the company's efforts to revitalize its bottom-line, we are upgrading the rating on the stock to Outperform.

Infosys Technologies (INFY)
By Zacks Equity Research
Nov 16, 2009
We are upgrading Infosys (INFY) to an Outperform rating with a target price of $57. Through the ongoing economic downturn, the company has invested in Research & Development as well as intellectual property-based solutions. It continues to focus on large deals targeted at organizational transformation where there is a dearth of vendor talent.

The company continues to win new customers and manages to keep its order book healthy. It is increasing its presence in the emerging markets of Mexico, Brazil, China and India from where an increasing proportion of revenue can be sourced in the coming years.

Finally, its solid balance sheet and cash flow generation provides support to our estimates.

Expedia, Inc. (EXPE)
By Zacks Equity Research
Nov 13, 2009
Expedia Inc. (EXPE) is one of the leading online travel companies in the world. The company reported strong results in the last quarter, beating the Zacks Consensus Estimate. Promotional activity continues to have a positive impact on the conversion rate, and spending is expected to strengthen in the next few quarters.

We are also positive about international initiatives, which we think will be the key to future growth. Cost management, a favorable online advertising environment and solid financials are other encouraging factors.

By comparison, the possibility of increased occupancy taxes and low growth in Egencia (the smallest segment) seem less significant. However, the declining average daily rates could be something to watch. We are reiterating our Outperform rating on EXPE shares.

Cisco Systems (CSCO)
By Zacks Equity Research
Nov 12, 2009
Cisco Systems (CSCO) is a leading provider of IP-based networking and other products. The company's first quarter results were a significant improvement over prior quarters, with both revenue and earnings exceeding our expectations.

Of particular note is the growth in orders, which indicates continued business momentum. Improving operating performance, solid financials, a sound restructuring policy and new growth initiatives are the drivers behind our Outperform rating.

However, we caution investors about the increasing competition, market share losses, complicated decision-making process and integration risks.

Amdocs, Ltd. (DOX)
By Zacks Equity Research
Nov 11, 2009
We maintain our Outperform recommendation for Amdocs Ltd. (DOX), following its strong results for the fiscal fourth quarter of 2009. The company has industry-leading technology integration products for managed services and large transformational projects.

We believe long-term fundamentals for Amdocs remain firm due to the transition of telecom service providers to converged and consolidated solutions. Amdocs maintains a very strong financial position with healthy order backlog.

Recently, the company has won a series of large managed services contracts in various parts of the world. Except Europe, operations in other regions have started gaining momentum.

NVIDIA Corp. (NVDA)
By Ian T. Gilson
Nov 10, 2009
NVIDIA Corp. (NVDA) posted revenue and earnings well above expectations. NVIDIA is poised for growth through improved cost management, rising demand for GPU and graphics chips, increased orders mainly from China and product launches.

The company is introducing new products at regular intervals and getting good feedback. We believe NVIDIA is well positioned in the longer term given its leadership in the Tegra line-up, the ramp-up of its 40nm process technology and share gains in notebooks and desktops.

We are looking for meaningful revenue growth and sustainable margin expansion. We have changed our rating to Outperform with a six-month price target of $17.00.

Inspire Pharmaceuticals, Inc. (ISPH)
By Grant Zeng
Nov 09, 2009
Inspire Pharmaceuticals, Inc. (ISPH) is a specialty pharmaceutical company focused on the development and commercialization of treatments for respiratory and ophthalmologic disorders.

Currently, the company has three products on the market and a robust pipeline. We see strong top line growth from 2009 and beyond. Inspire just reported positive phase III data of Denufosol for CF. The company has a strong collaborative alliance with Allergan Pharmaceuticals for key products that treat dry eyes and allergic conjunctivitis.

Current price is attractive. We maintain our Outperform rating on shares of Inspire with a price target of $7.00.