Zacks Analyst Blog Highlights: Banco Santander Central Hispano, S.A., Comerica Inc., CONSOL Energy Inc., Alcatel-Lucent and Newmont Mining Corp.

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: Banco Santander Central Hispano, S.A. (NYSE: STD), Comerica Inc. (NYSE: CMA), CONSOL Energy Inc. (NYSE: CNX), Alcatel-Lucent (NYSE: ALU) and Newmont Mining Corp. (NYSE: NEM).

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Here are highlights from Thursday’s Analyst Blog:

Banco Santander a Buy Up to $12

We are maintaining our Buy on Banco Santander Central Hispano, S.A. (NYSE: STD) but cutting our target price to $12. Santander reported third quarter net earnings of 2.2 billion, up 6% year over year, but below our estimate due to higher-than-expected loss provisions. The rise in nonperforming loans was the only sour note in an otherwise satisfactory performance, especially relative to European peers.

We are cutting our EPADS estimates to $2.05 from $2.20 for 2008 and to $2.25 from $2.55 for 2009, reflecting depreciation of the against the US$ and higher loan loss provisions. The company has been on a tear on the acquisition front, with most recent purchases including the UK's Alliance & Leicester, the retail operations of Bradford & Bingley plc in the UK, and the remaining 76% of Sovereign Bancorp that it did not own in the US. On balance, these should be a net positive. Santander raised its interim dividend 10%.

Comerica Stays a Sell Post-Report

Detroit-based Comerica Incorporated (NYSE: CMA) is one of the top 20 banks in the country. CMA delivers financial services in four primary geographic markets Michigan/Midwest, California/West, Texas and Florida but also has operations in numerous other states as well as in Canada and Mexico.

Comerica Inc. was two pennies short of our third quarter estimate. Credit metrics worsened further during the quarter. After reviewing the results and the outlook provided by management, we are moderating our FY08 and FY09 estimates.

CONSOL at a Great Price

We are maintaining our Buy recommendation on CONSOL Energy Inc. (NYSE: CNX). The pullback in the coal space has been overdone and does not accurately reflect global fundamentals. The supply and demand picture is still very favorable as physical prices for both metallurgical and thermal coal have remained elevated while other commodities have slid sharply.

CONSOL Energy will be able to leverage its unpriced production, high Btu [British thermal units] reserves and proximity to international markets to grow its margins and earnings. The current financial turmoil effecting main street will not be a problem for CNX as it has a solid balance sheet and strong cash flow generating abilities that will cover its capital budget in 2009.

Alcatel Still Called a Hold

Alcatel-Lucent (NYSE: ALU) reported weaker-than-expected revenues for the second quarter of 2008 and its earnings were additionally hit by restructuring charges of 265 million ($414 million).

While the company is the market share leader in several categories of telecom equipment (including DSL gear), we are concerned about the pressure on operating margins due to the challenging competitive environment, the recent softness in pricing, and the short-term disruptions from the Alcatel-Lucent merger that appear to continue. In the long term, this merger is positive for Alcatel-Lucent, although it will take several quarters for the synergies to be realized and we believe that the market’s expectations are for the integration and consolidation to go smoother than we expect.

Newmont Mining Trading Fairly

Newmont Mining (NYSE: NEM) is one of the world's largest unhedged gold producers. Gold prices are high due to higher demand, U.S. trade/budget/currency issues, and global instability. Declining grades are pushing up mining costs, prompting Newmont to reduce expenditures.

As a result, we rate the shares a Hold, with a target of $27.00 due to high valuation and declining grade quality, despite the improving fundamentals -- demand for gold is improving, jewelry demand is accelerating, and is now only down 5% year over year. Mine supply (64% of production) is also declining.

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