Zacks Analyst Blog Highlights: Metabasis Therapeutics Inc., Schering-Plough, ASM International, Applied Materials Inc. and Beacon Roofing Supply, 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: Metabasis Therapeutics Inc. (Nasdaq: MBRX), Schering-Plough (NYSE: SGP), ASM International (Nasdaq: ASMI), Applied Materials Inc. (Nasdaq: AMAT) and Beacon Roofing Supply, Inc. (Nasdaq: BECN).

See the latest posts to the Analyst Blog: http://www.zacks.com/blog/post_info.html?g=6

Here are highlights from Wednesday’s Analyst Blog:

Partner-Seeking for Metabasis

Although Metabasis Therapeutics Inc. (Nasdaq: MBRX) reported positive results on core pipeline candidate, MB07803 for type-II diabetes, we believe that investor confidence is not likely to return until the company enters into suitable partnership deals for its candidates. We maintain our Hold rating on the stock.

Although Metabasis is currently seeking a partner for the continued development of pradefovir, after termination of the agreement with Schering-Plough (NYSE: SGP), we remain skeptical on the future of the hepatitis B candidate. Even if Metabasis is able to progress with the development, the continued delay in the initiation of phase III trials has provided competitors such as with ample time to progress their candidates through clinical trials and capture significant market share.

Newly Favorable on ASM International

ASM International (Nasdaq: ASMI) is an OEM [original equipment manufacturer] of both front-end and back-end semiconductor manufacturing equipment. The back-end business has gained significant momentum in the past two years, while the front-end business has struggled to become profitable.

On June 6, 2008, Applied Materials Inc. (Nasdaq: AMAT) offered to buy two of ASM's units for $400 million to $500 million. ASM plans to respond to the bid by June 14. The break-up value of the firm could be $30.00 per share. We rate the shares of ASMI a Buy.

Beacon Roofing Covered as a Hold

Beacon Roofing Supply, Inc. (Nasdaq: BECN) reported a second quarter loss of $0.18 per share, greater than our estimate of a loss of $0.15 per share and the prior-year level of $0.14 per share. This is due to lower margins and high operating expenses.

Going forward, while BECN benefits from market share gains, product mix, acquisitions, a scale driven reduction in purchasing costs, and other cost-reduction efforts; a slowing housing industry in the U.S. will adversely impact its sales and margins. Moreover, the stock already trades at a premium to the industry median multiple, which adequately reflects the overall positive fundamental outlook. Hence, we retain our Hold rating on shares of BECN.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

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