Zacks Analyst Blog Highlights: L-3 Communications Holdings Inc., Methanex Corp., Union Pacific Corporation, Cypress Semiconductor Corporation and SunPower.

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: L-3 Communications Holdings Inc. (NYSE: LLL), Methanex Corp. (NASDAQ: MEOH), Union Pacific Corporation (NYSE: UNP), Cypress Semiconductor Corporation (NYSE: CY) and SunPower (NASDAQ: SPWRA).

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Here are highlights from Wednesday’s Analyst Blog:

L-3 Comms Well Defended

Headquartered in New York City, L-3 Communications Holdings Inc. (NYSE: LLL) is a leading supplier of a broad range of products and services used in a number of aerospace and defense platforms. The company supplies subsystems on many platforms that are used for secure communication networks; mobile satellite communications; information security systems; shipboard communications; naval power systems; fuses and safety & arming devices for missiles and munitions; microwave assemblies for radars and missiles; telemetry and instrumentation; and airport security systems.

L-3 reported stable 3rd quarter 2008 results with sales up 6% year-over-year, net income up 6.5%, and fully-diluted EPS up 11%. The company's funded backlog increased 18% to $11.3 billion, with a book-to-bill ratio of 1.08 during the recently reported 3rd quarter of 2008.

Methanex in Proper Value Range

Methanex Corp. (NASDAQ: MEOH) is the world’s largest supplier of methanol. Headquartered in Vancouver, British Columbia, Canada, Methanex has production facilities in Chile, Trinidad and New Zealand. The company is benefiting from improving fundamentals. New applications for methanol imply strong future growth. Potential markets for methanol include dimethyl ether and bio-diesel businesses.

However, the company is afflicted by natural gas supply shortages and rising energy costs. It saw production declines of 30,000 tons of methanol at its Trinidad facility and abandoned operations at its Waitara Valley facility in New Zealand. Methanex also incurred negative cash margins on reselling methanol purchased from other producers. Further, the current global financial crisis has lowered demand for the company’s products. This forces us to rate the stock a Hold with a target of $10.50.

UNP Sees Light Thru Tunnel

We are retaining our Hold on Union Pacific Corporation (NYSE: UNP), but cutting our target price to $53. In line with earnings guidance provided on September 22, UNP posted 3rd quarter EPS of $1.38, up 37% year over year, and better than consensus of $1.30 and our estimate of $1.15, largely due to higher-than-expected revenue growth and declining fuel costs that contributed about $0.10 per share. Revenues advanced 16% as higher rates (revenue per car up 22%) offset a 5% volume decline.

We are raising our 2008 diluted EPS estimate from $4.15 to $4.54, the mid-point of revised earnings guidance of $4.50-4.60 range (up from $4.00-4.20 before), and our 2009 EPS estimate to $5.10 from $5.00.

Cypress Semi Weathers the Storm

Cypress Semiconductor Corporation (NYSE: CY) is an original equipment manufacturer (OEM) of digital and mixed-signal integrated circuits (ICs). The company is organized into three main segments and SunPower (NASDAQ: SPWRA), a majority-owned subsidiary offering solar power products.

Cypress develops and manufactures a broad range of digital and mixed signal ICs. Third-quarter revenue exceeded consensus expectations, although the EPS fell short. Forward guidance is for a 20-26% revenue decline in Q4.

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