Trammell Crow and Nippon Telegraph & Telephone
CHICAGO--(BUSINESS WIRE)--Aug. 22, 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: Kongzhong (Nasdaq:KONG),
China Mobile (NYSE:CHL), Sunoco (NYSE:SUN), Trammell Crow (NYSE:TCC)
and Nippon Telegraph & Telephone Corp. (NYSE:NTT).
See the latest posts to the Analyst Blog by visiting:
Here are highlights from Monday's Analyst Blog:
Kongzhong Target Adjusted to $9
Although Kongzhong (Nasdaq:KONG) announced satisfactory financial
results of the second quarter of 2006, its stock price has declined
greatly since China Mobile (NYSE: CHL) announced its new measure to
service providers. However, Chinese wireless value-added service
providers have great potential and have grown rapidly in the past
three years. Moreover, Kongzhong's leading position on the 2.5G
platform in China will help the company make full use of the 3G
opportunity in the future.
Overall, we don't think its current stock price fairly represents
the company's intrinsic value. Therefore, we are maintaining our Buy
recommendation for Kongzhong's stock.
Raising Estimates on SUN
Sunoco's (NYSE:SUN) reported better-than-expected second-quarter
2006 results, reflecting substantially improved realized refining
margins. We have raised our 2006 EPS estimate to $8.66 from $7.35, to
reflect the second-quarter gain and continued strong refining margins.
Our overall positive outlook for the group - as well as the stock -
With a number of major new petroleum-product specifications coming
into force this year, the supply situation is expected to remain under
pressure. This, we believe, should help keep refining margins at or
above mid-cycle levels in the near to medium term.
Trammell Crow Stays a Buy
We are reiterating our Buy recommendation on shares of Trammell
Crow (NYSE:TCC). The company continues to have positive earnings
momentum in most business segments, and we believe it will likely
continue throughout 2006. We like management's focus on expanding its
operating margins, and greatly expanding its development pipeline.
The Global Services division had another solid quarter, as demand
is still strong in user and investor services. Additionally, the
company should start to realize benefits from its large in process
development pipeline over the next couple of quarters.
Low Visibility at NTT
Nippon Telegraph & Telephone Corp. (NYSE:NTT), the largest
provider of fixed-line and wireless telephony services in Japan,
declared disappointing first quarter (ended June) fiscal 2007 results
with net income falling almost 19% year-over-year. The company faces
intense pricing pressure as other service providers churn NTT's
subscriber base with competitive voice, broadband data and wireless
services in most areas of Japan. This continues to impact NTT's
customer retention, top-line sales level and profit margins.
While the company has given a fairly optimistic outlook for the
rest of the current fiscal year, we believe near-term challenges like
continuous market loss of mobile services to smaller competitors limit
upside visibility. We reiterate our Hold rating for NTT as we look for
substantiated indicators of growth with deployed broadband and
fiber-to-the-home infrastructure that provide advanced service
See the latest posts to the Analyst Blog by visiting
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