Zacks Bull and Bear of the Day Highlights: Capital One Financial, Telefonica, SurModics, Royal Bank of Scotland and Angiotech Pharmaceuticals

For Immediate Release

Chicago, IL – July 12, 2010 – Zacks Equity Research highlights Capital One Financial (COF - Analyst Report) as the Bull of the Day and Telefonica (TEF - Analyst Report) the Bear of the Day. In addition, Zacks Equity Research provides analysis on SurModics Inc. (SRDX - Analyst Report), Royal Bank of Scotland (RBS - Snapshot Report)and Angiotech Pharmaceuticals Inc. (ANPI).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506.

Here is a synopsis of all five stocks:

Bull of the Day:

Capital One Financial's (COF - Analyst Report) first quarter earnings were substantially ahead of the Zacks Consensus Estimate, driven primarily by higher-than-expected revenues and a lower provision for loan losses.

Even though a mixed credit quality was not very impressive during the most recent reported quarter, we anticipate continued synergies from the company's geographic diversification and expense management initiatives. Additionally, the resilience of almost all of its businesses will continue to support the company's financials.

Our six-month target price of $51.00 equates to 13.9x our earnings estimate for 2010. Combined with the quarterly dividend of $0.05 per share, this target price implies an expected total return of about 19.4% over that period. This is consistent with our Outperform recommendation on the shares.

Bear of the Day:

We are downgrading our recommendation to Underperform for Telefonica (TEF - Analyst Report) due to its conflict with Portugal Telecom for the full control of their Brazilian wireless joint venture.

Despite solid results, Telefonica remains challenged by a weak Spanish economy which is contributing to sustained erosion in the domestic wireline voice business. Additionally, reduced tariff rates imposed by Spanish and European regulations are tightening wireless revenue per user.

We also remain cautious with regard to the carrier's aggressive acquisition strategy, increasing competitive exposure and a highly leveraged balance sheet. Accordingly, we lower our price target to $53 per share, based on 8.4x our 2010 EPADS estimate.

Latest Posts on the Zacks Analyst Blog:

SurModics Inks Deal

Recently, SurModics Inc. (SRDX - Analyst Report) inked a licensing deal with Australian company Clinuvel Pharmaceuticals Limited. The deal allows SurModics’ pharmaceuticals unit, which provides proprietary polymer-based drug delivery technologies to companies developing advanced pharmaceutical products, to license some of its biodegradable polymer implant technology to the Melbourne-based company. The technology is used for treating sun-induced skin disorders. The clauses of the deal were undisclosed.

The two companies have been working together to develop Clinuvel's proprietary sustained release SCENESSE (afamelanotide) implant formulation for many years. The formulation is being developed as a preventive treatment for ultraviolet (UV) and light-related dermatological deficiencies. The implant is being studied for treating a range of dermatological disorders not only in Australia but also in Europe.

SurModics’ biodegradable polymer drug delivery technology permits afamelanotide to be released in a sustained and controlled manner. This encourages melanin to be produced in the skin of the patient, thereby providing protection from UV and light exposure. Melanins refer to insoluble pigments that account for the color of the skin, among other things.

The market opportunity for Clinuvel's afamelanotide for the UV-related disorders being evaluated by the company is estimated by the Royal Bank of Scotland (RBS - Snapshot Report) to exceed seven million patients across the globe.

We believe the deal provides further opportunities to Clinuvel to develop additional compounds for the treatment of skin related disorders caused by light exposure. This will broaden the treatment opportunities for patients suffering from such disorders.

SurModics, which provides surface modification and drug delivery technologies to medical device and pharmaceutical companies, competes mainly with Angiotech Pharmaceuticals Inc. (ANPI).

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

Read the full analyst report on COF

Read the full analyst report on TEF

Read the full analyst report on SRDX

Read the full analyst report on RBS

Read the full analyst report on ANPI