Zacks Bull and Bear of the Day Highlights: Allianz Aktiengesell, General Motors, Atmel Corp., Kimco Realty and Cabela’s

CHICAGO--(BUSINESS WIRE)--Zacks Equity Research highlights Allianz Aktiengesell (NYSE: AZ) as the Bull of the Day and General Motors (NYSE: GM) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Atmel Corporation (Nasdaq: ATML), Kimco Realty Corp. (NYSE: KIM) and Cabela’s, Inc. (NYSE: CAB).

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: Allianz Aktiengesell (NYSE: AZ)

We are maintaining our Buy recommendation before the Q2 results due on August 7. Despite the writedown of assets at Dresdner’s, Allianz’s property and casualty insurance business is doing well with a 17 percent rise in Q1 operating profit. At its current price, valuation is undemanding as the stock trades at a significant discount to its peers. Our target price is $20.00.

Bear of the Day: General Motors (NYSE: GM)

General Motors Corporation is one of the largest automobile manufacturers in the U.S. and the world. Weak North American sales, falling production volumes, and rising raw material costs are increasing our concerns. Significant incentives to stimulate sales and keep inventories lean are eating into margins.

Furthermore, GM sales are hampered by poor resale values. The company is at a disadvantage compared to its competition owing to huge pension and health care costs. These issues compel us to rate the shares a Sell with a six-month target price of $7.00.

Latest Posts on the Zacks Analyst Blog:

Atmel Corporation (Nasdaq: ATML)

Atmel Corp. reported Q2:FY08 revenues of $420.9 million, up 4.1% year-over-year and up 2.4% quarter-to-quarter basis. Gross margin came in at 36.5% compared to 35.5% in Q1 08. Going forward, the management expects revenues to be down 3%-7% in Q3:FY08, due to one-time revenue adjustment. Excluding these adjustments, Q3 organic revenue guidance is for up 1% to 4% sequentially. We had earlier upgraded ATML to a Hold and have adjusted our target price to $4.25.

The company has announced the sale of its Irving, Texas, wafer fabrication facility for $38 million in cash. In addition, the company recognized a gain of $3 million with this sale in relation to a supply contract that had been previously reserved.

Kimco Realty Corp. (NYSE: KIM)

Kimco Realty slightly missed our 2Q estimates by $0.03 per share. Despite the miss, operating results were still good in the company’s core portfolio. Portfolio occupancy remains high at nearly 96% and rental rates continue to increase as leases roll.

The company is ramping up investment in the growing economies of Latin America which will eventually help provide more diversification and higher returns than US projects. Expect occupancies and rental rates to decrease in the coming quarters as consumer spending continues to fall. We maintain our Buy rating. Larger, diversified retail REITs [real estate investment trusts] with low comparative debt will be able to better withstand the US economic downturn.

Cabela’s, Inc. (NYSE: CAB)

Cabela's, Inc.'s second-quarter results were in-line with consensus expectations. The management also reiterated its full-year earnings-per-share (EPS) guidance of sales growth in the mid teens and EPS growth in the mid-single digits.

For Cabela's to meet its full-year guidance, the company is going to have experience an improvement in its business. Given the difficult macro conditions impacting the consumer, we don't believe Cabela's will meet management's outlook.

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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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