Zacks Analyst Blog Highlights: Toyota Motor Corp., Whole Foods Market, Inc., Penn Virginia Resource Partners, Trident Microsystems Inc. and Lloyds TSB Group plc.
CHICAGO--(BUSINESS WIRE)--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: Toyota Motor Corp. (NYSE: TM), Whole Foods Market, Inc. (Nasdaq: WFMI), Penn Virginia Resource Partners (NYSE: PVR), Incyte Corp. (Nasdaq: INCY) and Lloyds TSB Group plc. (NYSE: LYG).
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Here are highlights from Friday’s Analyst Blog:
Toyota Down to Reasonable Value
Toyota Motor Corporation (ADR) (NYSE: TM) continues to expand its production capacity in a manner that increases efficiency and meets local demand, powering it to emerge as the world's financially strongest automaker. A strong presence in North America has been further consolidated by gaining market share from the leading U.S. automakers.
Moreover, the company also has a strong cash flow and a strong balance sheet. However, Toyota is unable to offset sales losses in America even as it continues an aggressive expansion in China, the Middle East, and other emerging markets.
Whole Foods a Buy Up to $15
Whole Foods Market, Inc. (Nasdaq: WFMI) fiscal fourth quarter results were weak, as expected. Excluding store closure costs, the company earned $0.13 per share, matching our estimate. Including those costs, Whole Foods had EPS of $0.01.
More importantly, at least for the near term, Whole Foods Market secured an equity investment of $425 million, which should alleviate any credit-related concerns for the company. Looking ahead to 2009, the company expects sales of $8.3 billion and EPS $0.68-$0.75 including FTC [Federal Trade Commission]-related legal costs and preferred stock dividends.
Penn Virginia Target Unchanged
Penn Virginia Resource Partners (NYSE: PVR) reported earnings today of $0.20 per adjusted limited partner unit, a decrease of 54% from Q3'08 due to increased cash payments to settle derivative contracts and higher interest expense. Operating income was higher year-over-year due to increases in royalties per ton and throughput volumes.
We are maintaining our recommendation and leaving our target price unchanged. We are currently assessing PVR's market position as it relates to the tough economic and financial markets. We will issue a full report in the near future.
Incyte Risk/Reward Balanced
We maintain a Hold rating on the shares of Incyte Corp. (Nasdaq: INCY), a Wilmington, DE-based drug discovery and development company, primarily in the focus on oral compounds to treat HIV, inflammation, and cancer.
DFC had been the company’s key growth driver. The discontinuation of DFC was a big setback for the company. However, we are pleased to see the progress in the company’s other product candidates, especially the JAK inhibitor program for RA.
Lloyds TSB Properly Valued
We are maintaining our Hold on Lloyds TSB Group plc (NYSE: LYG). In its third quarter trading update, Lloyds noted that market dislocation, higher impairments, particularly in corporate loans, and insurance-related volatility led to a substantial reduction in statutory pretax profit for the first nine months.
In other news, Lloyds revised the terms of its HBOS purchase, a UK bank with £681 billion in total assets, to 0.605 Lloyds share for every HBOS share from 0.833, expected to be completed in early 2009. At the same time, Lloyds announced that it will participate in the UK government’s bank capital and funding package. Lloyds will sell £4.5 billion ordinary shares and £1 billion in preference shares to the UK government.
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