Science & Technology
Science and Technology
Science and Technology
Fri, July 9, 2010
Thu, July 8, 2010
Lexmark International, Monsanto, Baker Hughes, Superior Energy Services and Shire
CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights Lexmark International (NYSE: [ LXK ]) as the Bull of the Day and Monsanto Company (NYSE: [ MON ]) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baker Hughes Inc. (NYSE: [ BHI ]), Superior Energy Services Inc. (NYSE: [ SPN ]) and Shire (Nasdaq: [ SHPGY ]).
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 ]:
Lexmark International (NYSE: [ LXK ]) is well positioned in the printer market. The company's first quarter 2010 results have exceeded our expectation and it has also provided a positive outlook for the second quarter.
The company has a reasonably strong share in the printing and imaging market and enhancing the quality and quantity of its product portfolio. This apart, the company is continuously reaping the benefits of a revival in IT spend, and witnessing strong customer demand.
A new branch of the printing business, managed printing services (MPS), is attracting major industry players. It is defined by Gartner as the ability for the service provider to take primary responsibility for meeting the customer's office printing needs, including the printing equipment, the supplies, the service and the overall management of the printer fleet. Lexmark has entered into this business in a big way. We upgrade our rating to Outperform.
[ Bear of the Day ]:
Monsanto Company (NYSE: [ MON ]) is a leading global provider of agricultural products to farmers. But an intense competitive environment and the company's huge dependence on a few large customers present a risk to its top line.
Monsanto also faces foreign currency risk since a significant portion of its income comes from outside the U.S. We reiterate our Underperform recommendation on the stock based on weak results for three consecutive quarters. We believe this will continue based on the 2010 guidance provided by management, which is 43% lower than fiscal 2009.
Our long-term Underperform recommendation on the stock indicates that we feel it will perform below the broader market. Our $41.00 target price, 16.4X 2011 EPS, reflects this view.
Latest Posts on the Zacks [ Analyst Blog ]:
Baker Hughes Unloads GoM Assets
Baker Hughes Inc. (NYSE: [ BHI ]) is moving forward to integrate its U.S. operations with the acquired BJ Services Companya™s U.S. operations by selling a package of Gulf of Mexico (GoM) based simulation assets to Superior Energy Services Inc. (NYSE: [ SPN ]) for $55 million.
As the merger (BHI-BJ Services) requires the divestiture of some assets, the two companies had previously reached a general understanding with the Antitrust Division of the U.S. Department of Justice.
The assets include two stimulation vessels (the HR Hughes and Blue Ray) and the BJ Services sand control completion tools product line, including a tool and screen manufacturing facility and technology center in Houston, Texas. The transaction is expected to close later this month, subject to regulatory approval.
Following the sale, Baker Hughes said it will have fulfilled its court-ordered obligation and will be free to complete the merger. Following this, the company will gain access to more efficient oilfield services by integrating BJ Servicesa™ pressure pumping with the companya™s wide range of products and services.
FDA Nod for Shire Drug
Recently, the US Food and Drug Administration (FDA) approved Daytrana (methylphenidate transdermal system), Shirea™s (Nasdaq: [ SHPGY ]) product for treating patients aged between 13 to 17 years suffering from Attention Deficit Hyperactivity Disorder (ADHD). Daytrana is the sole ADHD treatment available as a transdermal patch. The drug is designed to be used in combination with psychological, educational and other measures for ADHD treatment.
The drug, licensed to Shire by Noven Pharmaceuticals, Inc. worldwide, is already available in the US for patients aged between 6 and 12 years. The US FDA approved Daytrana for that patient population in 2006. Daytrana is applied to intact skin and delivers methylphenidate through the skin into the bloodstream.
The patch, sold in strengths of 10 mg, 15 mg, 20 mg and 30 mg should be worn for nine hours. The patch remains effective for several hours after its removal. Data from a late-stage, multi-center, randomized, double-blind, placebo-controlled study (n=217) demonstrated the efficacy of Daytrana as an ADHD therapy for the patient population aged between 13 to 17 years. However, side-effects of the drug include reduction in appetite, nausea, insomnia, weight loss, dizziness, stomach pain, anorexia and redness or rash in the area of the application of the patch.
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.
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