CHICAGO, May 9, 2011 /PRNewswire/ -- Zacks Equity Research
highlights: Lincoln Electric (Nasdaq: LECO) as the Bull of
the Day and Fujifilm Holdings (OTC: FUJIY), as the Bear of
the Day. In addition, Zacks Equity Research provides analysis on
Paychex Inc. (Nasdaq: PAYX), Citibank (NYSE: C), and
SunTrust Banks Inc. (NYSE: STI).
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Full analysis of all these stocks is available at
http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Bull of the Day:
Lincoln Electric's (Nasdaq: LECO) first quarter adjusted
earnings were ahead of the Zacks Consensus Estimate. The company is
pursuing a multi-year strategy to become more cost competitive by
building manufacturing facilities in Eastern Europe and Asia.
Recently, Lincoln Electric strengthened its Russian presence
through the acquisition of Mezhgosmetiz-Mtsensk OAO and OOO
Severstal-metiz. The company also partnered with IPG Photonics
Corporation to explore global opportunities in the high-power laser
welding and cutting market.
Furthermore, demand for its products is on the rise, leading us
to believe that the company will post strong growth on the heels of
an economic recovery and investments in the emerging markets. Our
six-month target price of $94.00
equates to about 22.5x our earnings estimate for 2011. We view the
$1.24 per common share annual
dividend as secure, implying an expected return of about 21% over
the period.
Bear of the Day:
We downgrade our rating of Fujifilm Holdings (OTC: FUJIY)
to Underperform, backed by Fuji's stock performance primarily based
on currency fluctuation impact, rising raw material prices and the
recent Great East Japan earthquake aftermath.
Moreover, decrease in demand for FDP materials and declining
profitability at the digital camera business due to intense price
competition weakens our outlook on the stock. The company's
earnings per ADR in fiscal 2011 were recorded at $1.47, below the Zacks Consensus Estimate of
$1.62 per ADR.
However, Fuji's plan for establishment in the emerging markets
with innovative products, sales promotion as well as its structural
reforms in the existing business may help to recover the
anticipated bullish performance.
Latest Posts on the Zacks Analyst Blog:
Paychex Takes Over ePlan Services
New York-based outsourcing
service provider Paychex Inc. (Nasdaq: PAYX) recently
completed the acquisition of recordkeeping and administrative
solutions provider, ePlan Services. Financial details of the
transaction were not divulged. Post acquisition, ePlan Services
will operate as a wholly owned subsidiary of Paychex and all the
employees will be retained.
Denver-based ePlan Services
serves the financial advisory market with its software tools that
automate the administration of 401(k) plans (a retirement plan
under which both employees and employers can contribute). The tool
also provides greater transparency to the fee structures for
services, through a fee disclosure option built into the tool.
Currently, the company serves roughly 4000 retirement plans.
ePlan Services' Web-based platform will complement Paychex'
existing recordkeeping business. With years of experience, Paychex
was acknowledged as the leading recordkeeper in the U.S. by
PLANSPONSOR magazine.
With ePlan Services' under its wing, Paychex will be able to
serve financial advisers with clarity into fee structures as the
market transitions to full disclosure models to keep pace with
consumer and legislative demand.
We find enhanced financial advisory services encouraging as
these are likely to attract more clients, and in turn drive revenue
growth in Paychex' HR Solutions segment.
Apart from this, Paychex also solidified its Payroll Services
segment with the acquisition of the online payroll solutions
provider, SurePayroll Inc. in December
2010. The deal cost the company $115.0 million in cash.
SurePayroll's user-friendly online payroll solutions are
specifically targeted at small businesses. It serves about 30,000
small businesses with its online software-as-a-service (SaaS)
payroll product.
Apart from this, SurePayroll shares channel partnerships with
renowned financial institutions, such as Citibank (NYSE: C),
Harris Bank and SunTrust Banks
Inc. (NYSE: STI), which forward the company's offerings to
their respective small business customers through private-label and
referrals.
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.
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