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Zacks Analyst Blog Highlights: AstraZeneca, Darden Restaurants, Inc., Charles Schwab Corporation, Stein Mart and Shire – Press Releases

Source: http://www.zacks.com/stock/news/21563/Zacks+Analyst+Blog+Highlights%3A+AstraZeneca%2C+Darden+Restaurants%2C+Inc.%2C+Charles+Schwab+Corporation%2C+Stein+Mart+and+Shire+-+Press+Releases
Posted on Monday, June 29th, 2009 | In Market Commentary, Stocks to Watch
Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

For Immediate Release

Chicago, IL – June 29, 2009 – 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: AstraZeneca (AZN), Darden Restaurants, Inc. (DRI), Charles Schwab Corporation (SCHW), Stein Mart (SMRT) and Shire (SHPGY).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

AstraZeneca’s Pipeline Must Deliver

We currently rate shares of AstraZeneca (AZN) a Hold with a $47 price target. The company is facing a number of challenges as it enters 2009, most notably generic competition to Toprol-XL, Nexium, Casodex and Pulmicort.

The just-announced increase to the cost-cutting program will aid EPS in the near-term, but we do not believe this will be enough to compensate for continued revenue deterioration beyond 2010. Atacand and Arimidex will both be subject to generic competition in 2010, then Seroquel and Symbicort lose U.S. patent protection in 2011 and 2012, respectively. This puts significantly more pressure on the company to commercialize its late-stage pipeline.

Darden Increases Dividend

On June 23, 2009, Darden Restaurants, Inc. (DRI) increased its quarterly dividend by 25% to $0.25 per share, resulting in an annual dividend of $1.00 per share. Previously, the company had paid a quarterly dividend of $0.20 per share. The increased dividend would be paid on August 3, 2009 to shareholders as of July 10, 2009.

In another move to increase shareholders’ return, the company repurchased 0.4 million shares in 4Q09, the most recently reported quarter. In fiscal 2009, Darden spent $145 million to buyback 5.1 million shares. Since the commencement of the share repurchase program in December 1995, the company has repurchased over 152 million shares for an aggregate amount of $2.92 billion under its authorization of 162.4 million shares.

Chas. Schwab to Bolster Growth

On June 25, 2009, Charles Schwab Corporation (SCHW), the largest independent investment advisor in the U.S., disclosed a series of new initiatives that will help the company grow significantly by managing costs and improving their efficiency.

SCHW’s client-advisor relationship has been facing significant dilemmas due to the ongoing troubled market condition. And, as there is a need for greater efficiency in their businesses, the current clients require more involvement from their advisors.

Retail Small-Cap Spotlight: SMRT

The Retail Small Cap Spotlight will highlight small retailing stocks with upside potential that are flying under the radar of the analyst community.

Today, we are looking at small cap retailer Stein Mart (SMRT). We think Stein Mart could be good way to play the consumer trading down, which we expect to last much longer than most market observers.

Stein Mart operations combine the traditional department or specialty store with an off-priced business. We think this strategy to offer higher quality goods at lower prices is ideal for the current economic environment.

Shire: New Products Filling Holes

While the loss of exclusivity of Shire (SHPGY) Adderall XR will result in revenue falling in 2009 relative to 2008, we believe Vyvanse will be able to continue to post strong sales growth due to its strong differentiating characteristics.

We believe the drug is much more than just an Adderall XR substitute, which should allow continued share gains despite significant generic competition. The adult indication should provide an additional catalyst to growth.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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