Xilinx, Navigant Consulting, Wells Fargo, Morgan Stanley and Citigroup – Press Releases

Source: http://www.zacks.com/stock/news/20023/Xilinx%2C+Navigant+Consulting%2C+Wells+Fargo%2C+Morgan+Stanley+and+Citigroup+-+Press+Releases
Posted on Monday, May 11th, 2009 | In Market Commentary, Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

For Immediate Release

Chicago, IL – May 11, 2009 – Zacks Equity Research highlights Xilinx (XLNX) as the Bull of the Day and Navigant Consulting (NCI) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wells Fargo (WFC), Morgan Stanley (MS) and Citigroup (C).

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:

Xilinx (XLNX) reported revenues of $395.0 million in Q4:09, down 17% y/y and down 14% q/q. Sales from all geographies and end markets declined as expected. GAAP EPS came in at $0.26 while the non-GAAP EPS came in at $0.20.

For full fiscal 2009, sales of $1.83 billion were down 1% from 2008. Sales from Asia- Pacific increased 15% year over year driven by strong sales to communications customers. Sales from all other geographies were flat or down in fiscal 2009. GAAP EPS came in at $1.36.

Going forward, visibility remains poor and hence management is providing a wide revenue range. Revenues are expected to be up 4% or down 4% sequentially. Sales from Asia Pacific and Japan are expected to be up while sales from Europe and America are expected to decline. Tax rate is projected to be approximately 21%, while the share count on a fully diluted basis should be 275 million. We continue to rate Xilinx a Buy with a target price of $22.

Bear of the Day:

Shares of Navigant Consulting (NCI) are trading at 17.2x and 16.1x our 2009 and 2010 EPS estimates, respectively, and at a 9% premium to the 2009 peer group average.

The company’s 2008 acquisition of Chicago Partners has offset revenue and operating income declines in its existing business segments.

Until we see further evidence that NCI can improve utilization rates and operating results in its largest operating segments, we believe that a premium valuation, relative to the peer group average, is unwarranted. Our price target reflects of multiple of 13x our 2009 EPS estimate.

Latest Posts on the Zacks Analyst Blog:

Stress Test Positives & Negatives

Perhaps the greatest achievement of the stress tests is that the uncertainty surrounding them is now over. The banks need a total of $74.6 billion of additional capital; they are expected to submit their plans by June 8 and raise it by November.

And they are already coming out with the plans either to tap the public markets, like Wells Fargo (WFC) and Morgan Stanley (MS), or to convert preferred shares into common equity or sell assets/business line, like Citigroup (C). However, the few weakest ones may still need a government bailout.

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

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.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

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