Zacks Bull and Bear of the Day Highlights: Inter Parfums, JC Penney, Cleveland BioLabs, O2Micro International and Honda

CHICAGO--(BUSINESS WIRE)--Zacks Equity Research highlights Inter Parfums, Inc. (Nasdaq: IPAR) as the Bull of the Day and JC Penney (NYSE: JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Cleveland BioLabs, Inc. (Nasdaq: CBLI), O2Micro International, Inc. (Nasdaq: OIIM) and Honda Motor Company (NYSE: HMC).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day: Inter Parfums, Inc. (Nasdaq: IPAR)

Headquartered in New York City, Inter Parfums is a worldwide marketer of prestige and mass-market perfumes and cosmetics, specializing in prestige fragrances with a focus on licensed designer brands. Prestige fragrances represent 89% of total sales.

Inter Parfums’ growth strategy of acquiring exclusive worldwide licenses and developing new prestige fragrances under the brand names acquired from the licenses has resulted in a 19.5% five-year sales growth rate. Management has aggressively pursued additional license agreements, and has also entered the skin-care category.

Due to attractive valuation, the stock is now rated a Buy. Inter Parfums, Inc. has exhibited an above-average sales growth rate, but earnings growth has lagged sales growth due to the inherent risks associated with new products development that is dependent on renewable licensing agreements. The target price of $15.75 is based on an 18 P/E on 12-month trailing earnings.

Bear of the Day: JC Penney (NYSE: JCP)

We reiterate our Sell rating on JC Penney shares. The company reported weak third quarter earnings and again lowered guidance. JC Penney now expects to earn $0.90-$1.05 per share in the fourth quarter, well below our previous estimate of $1.31.

What’s more, the difficult macro environment is taking its toll on consumer discretionary spending and JC Penney’s results. We are heading into the important holiday shopping season, which is the worst time for any retailer to find its stores struggling to generate sales growth. That does not bode well for JCP’s earnings or its stock price.

We are reducing our estimates for 2008 and 2009. Our target price is $14 or about 8x our fiscal 2009 EPS estimate.

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Cleveland BioLabs, Inc. (Nasdaq: CBLI)

Cleveland BioLabs is a drug discovery and development company, utilizing its discoveries regarding apoptosis to treat cancer and protect normal tissues from exposure to radiation and other stresses. The company is developing its compounds for Biodefense, treatment of cancer and tissue protection due to external stress.

We are excited about the company's robust pipeline of clinical candidates, its unique positioning, and the immense market potential if the company can successfully develop and commercialize the compounds. We maintain our Buy rating on the stock with a revised target price of $4.50.

O2Micro International, Inc. (Nasdaq: OIIM)

O2Micro has a strong position in the notebook computing market and a growing position in the LCD monitor and LCD TV markets. Management has focused investments into these new vertical markets, attempting to broaden its product portfolio.

The LCD TV markets represent an opportunity to grow its revenue base and boost margins to the low sixties; however, the soft macro environment has delayed this. O2Micro International, Inc. is pricing at a very reasonable valuation (2.65 per share in cash). Consequently, we reiterate our Buy rating on OIIM.

Honda Motor Company (NYSE: HMC)

Honda is expanding its business in Asia, growing its global network to increase efficiency and introducing new products to satisfy local markets.

The company also expects prices to increase and year over year incentives to decline in fiscal 2009, which will push revenues further. In fiscal 2009, Honda expects to sell 4.08 million units in the automobile business; an increase of 155,000 units from fiscal 2008.

Further, capacity expansion plans in Asia and a new sales strategy in Japan inspire optimism about Honda’s future prospects. However, rising raw material prices and selling and administrative (SG&A) expenses are likely to dent margins.

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About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

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