Message #21 From:
NewsBot Date: March 8, 2007 03:00:00 AM
ACAD News Zacks Analyst Blog Highlights: ACADIA, BJ's Wholesale and Standard Motor Products
CHICAGO--(BUSINESS WIRE)--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: ACADIA Pharmaceuticals, Inc. (Nasdaq: ACAD), BJ’s Wholesale Club (NYSE: BJ) and Standard Motor Products (NYSE: SMP).
Here are highlights from Wednesday’s Analyst Blog:
ACADIA Should Be Catalyst-Rich
ACADIA Pharmaceuticals, Inc. (Nasdaq: ACAD) is a biopharmaceutical company utilizing innovative technology to fuel drug discovery and clinical development of novel treatments for central nervous system disorders. The company currently has five drug programs in clinical and preclinical development directed at large unmet medical needs and major commercial markets.
We are maintaining our Buy rating based on our optimistic stance on mid-stage products ACP-103 and ACP-104. We expect the next few months to be a catalyst-rich period for ACADIA. We believe the shares offer an attractive investment opportunity up to the $16 level.
Further Weakness at BJ’s Expected
BJ’s Wholesale Club (NYSE: BJ) fourth quarter earnings were $0.22 shy of our recently lowered estimate. We think this disappointment is a precursor of further weakness throughout 2007 for BJ’s Wholesale Club. Management believes that it will be able to turn around its business this year, but we believe that is wishful thinking, as competitive pressures from larger industry players continue to take their toll on the company.
As a result, we think BJ is a stock to avoid. BJ trades at 19.9 times our fiscal 2007 EPS estimate, which indicates that investors still believe a private equity deal could happen. We wouldn’t use the hope of a buyout to justify buying BJ shares. We reiterate our Sell rating and $23 target price.
Good Outlook for Standard Motor
Standard Motor Products (NYSE: SMP) has reduced costs by $55 million due to the successful integration of the Dana Engine Management business. The company also has strong brand recognition and a less cyclical end-market within the auto and auto parts industry. We believe the stock has further upside potential. Thus we rate shares of SMP a Buy, with a six-month target price of $16.50.
The company is a leader in its two primary segments, Engine Management and Temperature Control. Ignition and emission parts, on-board computers, ignition wires, battery cables and fuel system parts form the broad portfolio of the Engine Management division, while air conditioning and heater parts constitute the Temperature Control division. The company sells its products primarily to warehouse distributors and large retail chains in the U.S., Canada, and Latin America. Major competitive advantages of the company include a trained sales force, extensive product range, sophisticated parts cataloging systems, and effective inventory management.
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 by visiting http://at.zacks.com/?id=2674.
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.
