Zacks Analyst Blog Highlights: Newmont Mining Corp., Ball Corp., Cyclacel Pharmaceuticals, Inc., Commerce Bancshares, Inc. and Verisign, 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: Newmont Mining Corp. (NYSE: NEM), Ball Corp. (NYSE: BLL), Cyclacel Pharmaceuticals, Inc. (Nasdaq: CYCC), Commerce Bancshares, Inc. (Nasdaq: CBSH) and Verisign, Inc. (Nasdaq: VRSN).

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Here are highlights from Wednesday’s Analyst Blog:

Newmont Mining Sees Costs Rise

Newmont Mining Corp. (NYSE: NEM) is one of the world’s largest unhedged gold producers. Gold prices are skyrocketing due to higher demand, U.S. trade/budget/currency issues, and global instability. Declining grades are pushing up mining costs, prompting the company to reduce expenditure. As a result, we rate the shares a Hold, with a target of $47.50 due to high valuation and declining grade quality, despite the improving fundamentals.

Newmont Mining plans to focus on completing the construction of Boddington in Australia. Development of the Boddington project was approximately 77% complete at the end of second quarter 2008, with mill start-up expected in late 2008 or early 2009. The company completed the construction of Yanacocha gold mill in Peru during the second quarter of 2008. The gold mill started in March 2008 and commercial production began in the second quarter of 2008. Equity gold production from the mill is currently expected to average 200,000-250,000 oz per annum.

Ball Corp. Looks to Get Rolling

Ball Corp. (NYSE: BLL) reported 2Q08 EPS of $1.10, up 6.8% year-over-year, due to earnings growth in Metal Food & Household Products Packaging, Americas, segment and the Aerospace and Technologies segment, lower interest and tax expense and share repurchases.

Going forward, Ball’s earnings should benefit from strong packaging fundamentals amid growing beverage can demand as well as its cost-containment efforts through closing non-core operations. Nevertheless, the Metal Food and Household Products Packaging, Americas, unit is suffering from continued lower food can volumes. Also, in the company’s PET business, soft prices (due to market overcapacity) and low volumes are limiting margin expansion. We reiterate a Hold recommendation on shares of BLL.

Cyclacel Pharma in Early Cycle

Cyclacel Pharmaceuticals, Inc.’s (Nasdaq: CYCC) lead pipeline candidate, CYC202, is being developed for the treatment of non-small-cell lung cancer. However, CYC202, as well as other pipeline candidates, are still in early to mid-stage clinical development process and several years away from commercialization. As such, we maintain a Hold rating on the stock.

The company bolstered its oncology/hematology program with the acquisition of Align in October 2007. The acquisition provides Cyclacel with three marketed drugs and a revenue stream. Although we believe the development of CYC202 presents a significant commercial opportunity for the company, it is still several years away from reaching the market.

Commerce Bancshares Pricey

Commerce Bancshares, Inc.'s (Nasdaq: CBSH) diluted operating earnings (excluding the gain on sale of a branch in southeastern Kansas) of $0.71 per share were in-line with our estimates, but two pennies ahead of consensus. Earnings were driven by expansion in net interest margin and strong growth in non-interest revenue, while expenses remained under control.

Non-performing assets were somewhat stable but charge-offs increased during the quarter. After reviewing the results and based on credit concerns, we are moderating our FY08 and FY09 estimates but maintaining our Hold recommendation on the shares of CBSH with a six-month target price of $47.50 per share.

VRSN Warrants Some Skepticism

Verisign, Inc. (Nasdaq: VRSN) reported $303 million in revenues during Q2, up 17.1% y/y but down 14.4% q/q. Revenues from core business (Domain Names, SSL Certificates, and Identity and Authentication Services (IAS), came in at $233 million. GAAP EPS came in at ($0.35) for the quarter. Pro-forma EPS of $0.25 exceeded our estimate by $0.03.

Core business generated a non-GAAP operating margin of 34.2%, up from 30.3% registered in Q1 2008. Growth in the naming business slowed down. The management provided Q3 revenue guidance of $236-241 million. They remain confident of exiting 2008 with an operating margin of 35%.

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