Health & Fitness
Health and Fitness
Health and Fitness
Thu, February 26, 2009 Zacks Bull & Bear of the Day Highlights: Pozen Inc., First Advantage Corp., Agrium, CF Industries and Terra Industries
CHICAGO--([ BUSINESS WIRE ])--Zacks Equity Research picks Pozen Inc. (Nasdaq: POZN) as Bull of the Day and First Advantage Corporation (Nasdaq: FADV) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on Agrium Inc. (NYSE: AGU), CF Industries (NYSE: CF) and Terra Industries (NYSE: TRA).
Full analysis of all these stocks is available at: [ http://at.zacks.com/?id=2678 ]
Bull of the Day
Pozen Inc. (Nasdaq: POZN) is one of our top-picks for small-cap biotech. We see the fundamentals as strong and the valuation as absurdly low.
Treximet trends are improving and sales should start to dramatically improve in the coming months. Plus, with the FDA recently confirming the primary endpoint in the phase III PN clinical trials, Pozen and partner AstraZeneca should be in position to file for approval of PN by the middle of the year.
Phase III plans for PA are also moving forward and should begin by the third quarter. We see both products as $500 million opportunities. By 2013, we think Pozen can deliver revenues close to $200 million, with net income well above $100 million.
We would be aggressive buyers of the stock at this level. Our target is $12.
Bear of the Day
We maintain our Sell rating on shares of First Advantage Corporation (Nasdaq: FADV) following the release of Q4 results. Although the company posted revenue gains in its Data Services business, we do not believe that the current level of revenue generation within the segment will be sustainable in the long-term.
Additionally, revenues, operating income and margins all continued to deteriorate for the company as a whole during the quarter. We believe that, given the present earnings growth outlook and the current level of economic uncertainty, the current valuation is unwarranted.
Our $9.50 six-month target price for FADV is based on a P/E multiple of 11.5x estimated 2009 EPS.
Recent Analysis from the Analyst Blog
Agrium Bid: Bottom for Fertilizers?
Agrium Inc. (NYSE: AGU) today made a hostile $3.6 billion bid for CF Industries (NYSE: CF). The bid is for $72/share, which is a 30% premium to the previous day's closing price. It is one share of Agrium plus $31.70 in cash. Committed financing is in place from Canadian banks.
Agrium has been acquisitive, and recently completed the acquisition of UAP Holdings, a fertilizer distributor. This deal would triple Agrium's capacity to make phosphates and nitrogen-based fertilizers. There would be $150 million in synergies, and the deal is conditional on CF Industries dropping its bid for Terra Industries (NYSE: TRA).
The deal would be accretive in 2010. Prices have fallen for fertilizers, along with other commodities. However, there has been some slight improvement in recent weeks, implying the market has hit a bottom.
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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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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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