Zacks Bull and Bear of the Day Highlights: Toyota Motor, ConocoPhillips,
Facebook, Morgan Stanley and NASDAQ
CHICAGO, May 31, 2012
CHICAGO, May 31, 2012 /PRNewswire/ -- Zacks Equity Research highlights Toyota
Motor Corp.(NYSE:TM) as the Bull of the Day and ConocoPhillips(NYSE:COP) as
the Bear of the Day. In addition, Zacks Equity Research provides analysis on
Facebook(Nasdaq:FB), Morgan Stanley (NYSE:MS) and NASDAQ (Nasdaq:NDAQ)
Full analysis of all these stocks is available at
Here is a synopsis of all five stocks:
Bull of the Day:
Toyota Motor Corp.(NYSE:TM) continues to play a pivotal role in the global
market for fuel-efficient and environment-friendly vehicles. It also expects
to benefit from its cost reduction measures and continued focus on the
However, the company reported a 30.5% drop in profits to Y283.56 billion ($3.7
billion) or Y90.20 ($1.17) per share, and a 2% dip in revenues to ?18.58
trillion ($241.59 billion) in fiscal 2012. For fiscal 2013, it expects higher
consolidated revenues of Y22.00 trillion, operating income of ?1.00 trillion
yen and profits of Y760.0 billion, compared with fiscal 2012.
Therefore, we have upgraded our recommendation on shares of the company to
Outperform from Neutral and set a target price of $93.00. This amounts to
14.4X our 2013 EPS estimate, and reflects our upgraded recommendation.
Bear of the Day:
We are downgrading our recommendation forConocoPhillips(NYSE:COP) to
Underperform from Neutral, reflecting lackluster first quarter results on
account of lower production volume. The company's performance in the coming
months is expected to be weighed down by unpredictable global economic
conditions, erratic supply/demand fundamentals of oil and gas, and
international business risks.
Furthermore, the company's future earnings will be decided by execution
capability on the recently concluded acquisitions of two deepwater blocks in
Angola, as well as receipt of 74 blocks in the Gulf of Mexico, with the
planned appraisal of Tiber and Shenandoah wells later in 2012.
Thus, we believe there are no positive catalysts for ConocoPhillips and expect
it to underperform the broader market. Our $47 price objective reflects a P/E
of 7.1 on our 2012 EPS estimate, which is well within the historical trading
Latest Posts on the Zacks Analyst Blog:
Who Should Be Blamed for the Facebook Fiasco?
Facebook(Nasdaq:FB) shares are currently trading at $28.10, more than 25%
below their IPO debut price. The most hyped IPO in history actually turned out
one of the worstfor the investors.
Who do you think should be blamed for the fiasco?
Morgan Stanley (NYSE:MS): The underwriters, in particulars the lead
underwriter Morgan Stanley should be held responsible for the IPO mispricing.
Just days before the IPO, the underwriters agreed to increase the size and
price of the IPO. Further, the company's revenue forecasts were revised
downward during the road-show and the underwriters failed to properly disclose
the resulting changes to analysts' financial forecasts. It appears that the
revised figures were only passed along verbally to certain large institutional
NASDAQ (Nasdaq:NDAQ): The technical problems on the first day of trading,
starting with the delay in start of trading to delay/failure in confirmation
of clients'' trades led to unprecedented confusion and later chaos. A number
of investors dumped shares on the first day due to the confusion which send
the shares plummeting below their IPO price, when the underwriters had step
Mark Zuckerberg: As the CEO of the company, Zuckerberg should share the blame
for the IPO's unreasonably high valuation and large size. Further, the reports
about Zuckerberg buying Instagram for $1 billion without consulting the board,
lead to great concerns about the corporate governance at the company and the
ability of the CEO to protect the interest of the investors.
Investors: Facebook investors deserve little sympathy. As Tracey pointed out
in her post yesterday, many inexperienced investors invested in the IPO due to
its hype. It was well known that the company's revenues were going to be
volatile. GM had pulled its advertising campaign from Facebook, just days
ahead of the IPO. So, why did they invest in Facebook?
Get the full analysis of all these stocks by going to
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are
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