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Zacks Analyst Blog Highlights: Endesa-Chile, ViroPharma and

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 
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Continuous coverage is provided for a universe of 1,150 publicly
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performance. Recommendations and target prices are six-month time
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