Cache. CHICAGO--(BUSINESS WIRE)--Aug. 3, 2006 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: Endesa-Chile (NYSE: EOC), ViroPharma, Inc. (Nasdaq: VPHM) and Cache (Nasdaq: CACH). See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673 Here are highlights from Wednesday's Analyst Blog: Heat Wave Affects Utes As we expect the current heat wave and triple-digit temperatures across the country to continue throughout August, record peak electricity demand will push the power grid to its limit. Brown-outs and black-outs, like we saw on the East Coast in August 2003, represent a high probability event which would adversely impact 3rd quarter and full fiscal year 2006 earnings at utilities operating within the hottest regions of the country. With most utility stocks appearing fully valued - even expensive - relative to Treasury rates, our view of stock performance for the remainder of 2006 is skewed to the downside. Although Utes likely remain a popular defensive trade amid ongoing geopolitical risks around the globe, the sector is not without its own problems. Endesa-Chile Upgraded We are changing our recommendation on Endesa-Chile (NYSE: EOC), from Sell to Hold. The company has been reporting solid results, and second quarter 2006 results were better than expected. Nevertheless, we remain concerned with the uncertain regulatory environment in Argentina, increasing natural gas prices, and export restrictions from the Argentine government. Moreover, the company's exposure to the volatile Latin American economies remains a concern, and the stock's valuation already incorporates the positive economic environment in Latin America. VPHM Still at a Discount ViroPharma, Inc. (Nasdaq: VPHM) is a pharmaceutical company engaged in the development and commercialization of products that address diseases caused by infectious agents such as a virus or pathogenic bacteria. The company has one approved product, Vancocin Capsules, for the treatment of antibiotic-associated infection, and two mid-stage candidates for viral infections. Recent concerns over a generic alternative to Vancocin have hampered the stock. This is keeping ViroPharma trading at a significant discount to its peers. The company has filed a Citizen's Petition to the FDA-OGD to halt generic entrants. Outside of Vancocin, late-stage candidate Maribavir offers the next substantial growth opportunity. We believe the shares are vastly undervalued. Our target is $16. Treading Water at CACH Including a $0.22/share restructuring charge related to the closing of its poor-performing Lillie Rubin stores, Cache's (Nasdaq: CACH) second quarter results were in line with our previous estimate. We revised our future to exclude the restructuring charges discontinued operations. Our 2006 EPS estimate goes from $0.79 to $1.03, and 2007 EPS estimate goes to $1.27 from $0.96. On an apples-to-apples comparison, we upped our annual EPS estimate by $0.02 in each year. All told, the stock looks like it will tread water for the next few quarters as investors assess the company's restructuring efforts. As a result, we think a neutral view on the stock is appropriate. See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645 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 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. CONTACT: Zacks.com Terry Ruffolo, 312-630-9880, ext. 213 www.zacks.com
Zacks Analyst Blog Highlights: Endesa-Chile, ViroPharma and
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