Zacks Bull and Bear of the Day Highlights: Alkermes, Avnet, Apple, Magellan Midstream Partners and Occidental Petroleum

 Zacks Bull and Bear of the Day Highlights: Alkermes, Avnet, Apple, Magellan
                 Midstream Partners and Occidental Petroleum

PR Newswire

CHICAGO, Oct. 26, 2012

CHICAGO, Oct. 26, 2012 /PRNewswire/ --Zacks Equity Research highlights
Alkermes Plc (Nasdaq:ALKS) as the Bull of the Day and Avnet, Inc. (NYSE:AVT)
as the Bear of the Day. In addition, Zacks Equity Research provides analysis
on Apple, Inc. (Nasdaq:AAPL), Magellan Midstream Partners L.P. (NYSE:MMP) and
Occidental Petroleum Corporation (NYSE:OXY).


Full analysis of all these stocks is available at

Here is a synopsis of all five stocks:

Bull of the Day:

We are upgrading Alkermes Plc (Nasdaq:ALKS) to Outperform following the
upwardly revised adjusted earnings guidance provided by the company for fiscal
2013. The guidance was boosted following the successful completion of the
refinancing of Alkermes' previously outstanding senior secured bank debt.

Alkermes has been performing well since the purchase of Elan's EDT unit last
year, thanks to the expanded portfolio. Moreover, the US approval of type II
diabetes drug, Bydureon, is a major positive for Alkermes as the drug offers
significant commercial potential. We are also pleased by the pipeline progress
at Alkermes.

We believe that there is significant scope for stock price appreciation from
current levels. Our price target of $24.00 is based on 6.1x our fiscal 2013
revenue estimate.

Bear of the Day:

We are downgrading our recommendation on Avnet, Inc. (NYSE:AVT) from Neutral
to Underperform. Earnings estimates for the company have declined
significantly, as the weakened economy and currency fluctuation continues to
hurt its businesses.

Moreover, the competitive strides in the industry may have a detrimental
impact on the company. However, Avnet's diversified product ranges and notable
acquisition strategy should have a positive impact on its businesses.

Mounting competition in the industry and negative foreign currency are also
likely to be causes of concern moving forward. We have set a target price of
$25.00 based on a P/E multiple of 8.9x to our 2013 EPS estimate.

Latest Posts on the Zacks Analyst Blog:

Apple Bitten Again

For the second straight fiscal 4th quarter earnings report -- and 3rd quarter
of out the last 5 -- Apple, Inc. (Nasdaq:AAPL), the world's largest company,
has come up short of expectations. Earnings per share of $8.67 missed the
Zacks Consensus Estimate of $8.85 by 2.1%. Revenues came in at $36 billion,
slightly above the $35.8 billion expected.

iPhones were the main positive for Apple's Q4: the company sold 26.9 million
iPhones, easily beating the estimated 25.3 million. This figure was obviously
boosted by the launch in late September of the iPhone 5, but is impressive
nevertheless considering the iPhone 5 was only on the market for about a week
and a half before the quarter ended.

iPads, Macs and iPods all disappointed sales expectations, with the iPad
showing notable weakness: Apple sold "just" 14 million iPad tablets in the
quarter; it was expected to have sold 15.8 million. Macs and iPods did not
miss by much, but still contributed to the weaker quarter.

Analysts had been all over the place in predicting Apple's EPS numbers.
Originally a consensus of $8.41 at the start of the quarter gave way to a big
updraft to $8.95 roughly a month later. Just in the past 7 days we'd seen 3
upward estimate revisions for AAPL and 8 downward revisions. Stronger negative
sentiment over the past 30 days can also be seen in Zacks consensus estimates
for Q1-13 and fiscal 2013.

Obviously, no company is perfect, and no stock keeps going up to infinity.
That said, Apple shares have come down around $100 since September, and with a
less-than-thrilling earnings report, might we expect shares to come down more
in the near term?

After-hours trading was halted for a time, but has since traded down another
percentage point or so. This comes after a slight sell-off ahead of earnings,
down 1.18% ($7.29) before the bell. Perhaps the call from Tim Cook & Co. can
provide some positive sentiment going forward, but the fact remains Apple's
had a bite taken out of it for the second quarter in a row.

Magellan Midstream Hike Payout

Petroleum storage and transportation firm Magellan Midstream Partners L.P.
(NYSE:MMP) – a master limited partnership – increased its quarterly common
stock distribution by 3% to 48.5 cents per unit ($1.94 per unit annualized).
The new distribution will be paid on November 14, 2012 to shareholders of
record as of November 6, 2012.

Magellan Midstream's latest payout hike marks the 42nd distribution increase
from the time of its initial public offering (IPO) in 2001.

The strength of Magellan Midstream's business model reflects the partnership's
commitment towards returning value to shareholders with its strong cash
generation capabilities. Prior to this revision, the company had increased its
quarterly distribution by 12% in July 2012.

Earlier this month, Magellan Midstream completed the split of its limited
partner units in the ratio 2:1. The partnership's board of directors had given
consent for the stock split in late August. Magellan Midstream started trading
on post-split basis from October 16 onward.

We believe that the increase in distribution will boost investor confidence in
the stock, thereby driving unit value.

Tulsa, Oklahoma-based Magellan Midstream owns and operates a diversified
portfolio of energy infrastructure assets. The partnership conducts its
operations in three segments: Petroleum Products Pipeline System, Petroleum
Products Terminals and Ammonia Pipeline System.

Magellan Midstream, which recently announced plans to set up a 400-mile long
oil transport pipeline joint venture with Los Angeles-based energy firm
Occidental Petroleum Corporation (NYSE:OXY) – currently, retains a Zacks #2
Rank, which translates into a short-term Buy rating. We also maintain our
long-term Outperform recommendation on the stock.

We like Magellan Midstream's low risk, stable business model and a proven
track record of distribution growth. The partnership's high-quality and
diversified midstream assets are also projected to generate stable and
recurring revenues by way of long-term fee-based contracts.

Get the full analysis of all these stocks by going to

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