Zacks Bull and Bear of the Day Highlights: Salesforce.com, Comerica, CallWave, Dr. Reddy's and Daimler

CHICAGO--(BUSINESS WIRE)--Zacks Equity Research highlights Salesforce.com (NYSE: CRM) as the Bull of the Day and Comerica (NYSE: CMA) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on CallWave (Nasdaq: CALL), Dr. Reddy's Laboratories, Ltd. (NYSE: RDY) and Daimler AG (NYSE: DAI).

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: Salesforce.com (NYSE: CRM)

Salesforce.com, inc. is the market leader in the on-demand CRM space and continues to see substantial subscriber and customer growth. We believe over the long-term CRM will be the leader in a potentially huge market for on-demand software. CRM has consistently beaten expectations and raised estimates. The company has had strong traction in the larger enterprise market and has partnered with Google to serve small businesses. We reiterate our Buy recommendation on CRM shares with a six-month price target of $83.00.

Bear of the Day: Comerica (NYSE: CMA)

CMA’s 1Q08 earnings from continuing operations of $0.73 per share were substantially short of estimates. The miss mainly stemmed from a decline in net interest margin (down 21 bps sequentially to 3.22%) and a steep rise in the provision for loan losses (up 47.2% sequentially to $159 million). Continued deterioration in the residential real estate development loan portfolio, mainly in California, resulted in the increase of non-performing assets and net charge-offs to 1.07% (up 24 bps) and 0.85% (up 35 bps), respectively, of total loans at the end of 1Q08. After reviewing the results, we have further lowered our EPS estimates and our six-month target price.

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CallWave (Nasdaq: CALL)

CallWave is continuing with the implementation of a revised business strategy and is redirecting resources to products focused on fixed-mobile convergence. In addition, the company has shifted to indirect selling (focus on phone companies) from sales and marketing addressing consumers directly.

Although these changes incorporate additional business risks and will result in net earnings losses, they are expected to provide top-line sales momentum over the next two years. We believe the challenging transition to a new business model (which is more dependent on wireless services and sales through local phone companies) and exposure to competitive offerings in the market will continue to limit stock appreciation.

Dr. Reddy's Laboratories, Ltd. (NYSE: RDY)

Dr. Reddy's is a global pharmaceutical company located in Hyderabad, India. RDY produces active pharmaceutical ingredients (API), finished dosage forms, and branded and generic pharmaceutical products for the global market.

While fiscal 2007 was a very strong year for the company, the lack of significant generic product launches, intense pricing pressure in the generics market, and declining revenues from the Mexico CPS and betapharm businesses took a toll on the company's performance in fiscal 2008. Though we expect RDY to swing back to growth in fiscal 2009, we believe it will take some time for the company to resolve the situation in Germany and Mexico.

Daimler AG (NYSE: DAI)

German car and truck maker Daimler is currently benefiting from aggressive efficiency initiatives, cost reduction efforts, and new model launches. We believe the company will benefit from its focus on the emerging markets including Russia, China and India. Strong earnings performance gives a positive view on the stock.

On the flip-side, Daimler faces many challenges, including exchange rate fluctuations, weak auto pricing, rising costs for raw material and compliance with carbon emission reductions. While the company expects lower demand for passenger cars in 2008 and flat revenue from Western Europe, the slowing U.S. economy continues to hurt its performance in the NAFTA (North American Free Trade Agreement) region.

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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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