Zacks Analyst Blog Highlights: Chevron Corp., Linktone Ltd., DRDGOLD Ltd., Salesforce.com, Inc. and UTStarcom, Inc.

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: Chevron Corp. (NYSE: CVX), Linktone Ltd. (Nasdaq: LTON), DRDGOLD Ltd. (Nasdaq: DROOY), Salesforce.com, Inc. (NYSE: CRM) and UTStarcom, Inc. (Nasdaq: UTSI).

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Here are highlights from Friday’s Analyst Blog:

Chevron at a Great Value

We are upgrading Chevron Corp. (NYSE: CVX) shares to Buy from Hold following the stock’s recent commodity-price related weakness. We think that the risk-reward trade-off is very favorable at current levels.

While a weak oil price environment may weigh on the stock over the coming weeks, we believe that Chevron’s strong pipeline -- which is projected to add more than 1 MMBOE/d by 2011 -- and impressive recent exploration successes have significantly improved its long-term upstream growth prospects.

Linktone Unprofitable Thru '09

Linktone Ltd. (Nasdaq: LTON) is a provider of wireless interactive entertainment services for mobile telephone users and advertising services to enterprises in China.

The Chinese wireless value-added services market has seen increasingly intense competition and the policy/regulatory changes have a material impact on Linktone’s business. However, the company’s revenue has increased sequentially for three consecutive quarters, which may indicate that the worst time for Linktone has passed. Advertising service business may become another revenue source for the company.

DRDGOLD with Certain Challenges

In the fourth quarter, unhedged gold-producing company DRDGOLD Ltd.’s (Nasdaq: DROOY) headline earnings from continuing operations were $2.52 per share, compared to a loss from continuing operations of $0.25 per share in the year ago quarter when measured in constant currencies. Total revenue was $65 million, up 30% from $50 million recorded in the previous year’s corresponding quarter when measured in constant currencies. Gold production from continuing operations for the quarter was 1% higher at 71,211 oz.

With minimal debt on its balance sheet, DRDGOLD is well positioned to undertake expansion activities. However, there are some challenges facing the company with respect to its aging assets, environmental laws, currency risks and power shortages. Thus, we rate the stock a Hold with a six-month target price of $6.

Salesforce.com Trending Strong

Salesforce.com, Inc. (NYSE: CRM) is the market leader in the on-demand Customer Relationship Management (CRM) space and continues to see substantial subscriber and customer growth.

While the company reported strong second half results and raised full-year revenue guidance, dilution from the InStranet acquisition will result in lower than expected second half EPS. Although this will penalize the stock, we believe InStranet makes strategic sense, and over the long-term EPS growth will accelerate. We therefore reiterate our Buy rating on Salesforce.com's shares.

UTStarcom Keeping Grounded

UTStarcom, Inc. (Nasdaq: UTSI), a provider of IP-based telecom equipments, announced encouraging second quarter 2008 financial results, above our estimates.

This was primarily due to growing acceptance for the company’s IPTV solutions and personal communications devices (PCD). We believe market demand for the company’s IPTV and optical transport solutions remains firm as opportunities appear respectable at several carriers in Asia and Latin America. Recent divestiture of the PCD and mobile solutions businesses will foster adequate focus on the company’s core IP-based business, while simultaneously improving overall margins.

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