Back to top

Press Releases

Zacks Bull and Bear of the Day Highlights: Eastman Chemical, Kirkland's, Biogen Idec, Abbott, Novartis

EMN KIRK BIIB ABT NVS

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

For Immediate Release

Chicago, IL – May 14, 2012 – Zacks Equity Research highlights Eastman Chemical ((EMN - Analyst Report)) as the Bull of the Day and Kirkland's (KIRK - Analyst Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Biogen Idec (BIIB - Analyst Report), Abbott ((ABT - Analyst Report)) and Novartis ((NVS - Snapshot Report))

Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.

Here is a synopsis of all five stocks:

Bull of the Day:

We are retaining our Outperform recommendation on Eastman Chemical Co. ((EMN - Analyst Report)). First quarter adjusted earnings of $1.22 per share beat the Zacks Consensus Estimate. Revenue growth was aided by higher selling prices.

Moving ahead, we believe that the company is well placed to benefit in the second-half of the year from the synergies of its impending acquisition of Solutia. Eastman Chemical's diversified chemical portfolio, along with its integrated and diverse downstream businesses, is driving its earnings.

The company also benefits from business restructuring, recent acquisitions, cost-cutting measures and increased capacity additions. Our long-term Outperform recommendation on the stock indicates that it will perform above the broader market. Our price target of $61 is based on 11.7x our fiscal 2012 earnings estimate.

Bear of the Day:

 

Kirkland's, Inc. (KIRK - Analyst Report) posted fourth-quarter 2011 earnings of $0.72 per share, which missed the Zacks Consensus Estimate of $0.74. But it was above the prior-year earnings of $0.66, fueled by strong sales during Harvest and Christmas. High-rising prices of commodities as well as slow recovery of global economy is negatively impacting the company's margins.

The company has also lowered its earnings guidance for the first quarter 2012 on the back of lower comparative sales during the period. Moreover, overdependence on Chinese vendors poses a threat. Hence we maintain an Underperform rating on the stock.

Based on 2012 earnings estimate of $1.05, the stock is trading at 13.0x compared to the industry average of 20.5x. Our target price of $12.00 is based on approximately 11.4x our 2012 earnings estimate.

Latest Posts on the Zacks Analyst Blog:

Standard Review for Biogen’s BG-12

 

Biogen Idec (BIIB - Analyst Report) recently announced the acceptance of its regulatory filings in the U.S. and E.U. for its oral multiple sclerosis candidate, BG-12. The U.S. Food and Drug Administration (FDA) has granted standard review to the candidate, which means a response should be out in late 2012/early 2013.

The regulatory filings were based on data from the phase III DEFINE and CONFIRM studies which showed that treatment with BG-12 led to a significant reduction in disease activity in multiple sclerosis patients. Moreover, the candidate had a favorable safety and tolerability profile.

Biogen is also seeking approval for BG-12 in Canada and Switzerland.

Biogen is the market leader in therapies for the treatment of multiple sclerosis (MS). We believe the company will continue to retain a leading position in the MS market. Biogen is working on consolidating its position in the MS market and has an impressive late-stage pipeline of drugs including BG-12.

Meanwhile, Biogen and partner Abbott ((ABT - Analyst Report)) moved their MS candidate, daclizumab, into a two-year phase III study (DECIDE) in July 2010. Daclizumab is being evaluated as a once-monthly or bi-weekly subcutaneous injection for relapsing-remitting MS. PEGylated interferon rounds up Biogen’s late-stage MS pipeline. PEGylated interferon is currently in a phase III study (ADVANCE).

Our Take

We believe BG-12 could become a leader in the oral MS market once launched. BG-12 should help drive long-term growth. Biogen has been facing additional competition in the multiple sclerosis market in the form of Novartis’ ((NVS - Snapshot Report)) Gilenya. Moreover, several companies besides Biogen are working on bringing an oral multiple sclerosis drug to market.

We currently have a Neutral recommendation on Biogen, which carries a Zacks #3 Rank (short-term Hold rating).

 

Get the full analysis of all these 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.

 

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=7158.

 

About Zacks

 

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT 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=4582.

 

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.

 

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%