For Immediate Release
Chicago, IL – December 20, 2011 – Zacks Equity Research
highlights Smithfield Food (SFD) as the Bull of
the Day and BHP Billiton Ltd. (BHP) as the Bear of
the Day. In addition, Zacks Equity Research provides analysis on
Pfizer Inc. (PFE), Eli Lilly
(LLY) and Forest Labs (FRX).
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:
Smithfield Food (SFD) has
delivered strong second quarter 2012 earnings of $0.76 per share,
surpassing the Zacks Consensus Estimate by $0.07. The result was
driven by strong fresh pork earnings and robust exports despite
higher raw material costs.
Further, management has undertaken restructuring initiatives in
an effort to save costs and boost profitability, which augur well
for future operating performance. The company's vertical
integration and product mix also help increase margins.
Though rising raw material costs will continue to challenge
Smithfield in future, the company is attempting to continue its
fresh pork and hog production businesses and expand its packaged
meats business through stronger branding and innovation.
Bear of the Day:
We downgrade our recommendation on BHP Billiton Ltd. -
ADR (BHP) from Neutral to Underperform based on declining
industrial demand on the back of sluggish economic growth in Europe
and U.S. Other headwinds include competition from peers, upsurge in
oil prices and rising inflation in the emerging markets.
Turning toward expenses, the cost of improving ore grades,
mining disruptions due to natural calamities, governmental delays
as well as currency fluctuations further thwart the stock. A slower
global growth rate, on the back of the European crisis and a
dwindling U.S. economy may impact the demand for the company's
products and dampen revenue growth going forward.
Volatility in currency prices may have a significant impact on
the company s financial results going ahead. Moreover, an upsurge
in oil prices and rising core inflation in the emerging markets may
also prove detrimental to the company's growth.
Latest Posts on the Zacks Analyst Blog:
Positive Data on Pfizer’s Lyrica
Pfizer Inc. (PFE) recently presented positive
top-line data on its blockbuster drug, Lyrica (pregabalin) from a
phase III study. Pfizer said that Lyrica achieved each of its
three co-primary endpoints in the study that was conducted in
patients with restless legs syndrome (RLS). Lyrica succeeded in
showing a significant improvement compared to placebo and
pramipexole.
The randomized, double-blind, 12-month trial, A0081186, was
conducted with more than 700 patients. Patients participating in
the study were randomized to receive either a placebo, Lyrica (300
mg/day, pramipexole (0.25 mg/day) or pramipexole (0.5 mg/day).
Initial results showed that patients in the Lyrica arm
experienced a statistically significant improvement in RLS symptom
severity (as measured by the International Restless Leg Group
Rating Scale) after 12 weeks of treatment compared to placebo.
A statistically significant improvement in the proportion of
patients responding to treatment was observed in the Lyrica arm
compared to the placebo arm (as measured by the Clinical Global
Impression Improvement scale) after 12 weeks of treatment.
Besides this, treatment with Lyrica resulted in a statistically
significant reduction in the rate of augmentation (worsening of RLS
symptoms that occur after an RLS medication is started) compared
with pramipexole 0.5 mg/day over 12 months.
Common adverse events in the Lyrica arm included dizziness,
somnolence, fatigue, headache and nasopharyngitis (inflammation of
the nasal cavity and throat). Pfizer will conduct further analysis
of the data.
Lyrica, a key drug in Pfizer’s product portfolio, has
experienced a very strong ramp since its introduction. Total Lyrica
sales in 2010 were $3.0 billion. The product is approved in 110
countries and regions for indications like diabetic nerve pain,
pain after shingles, fibromyalgia and partial onset seizures in
adults with epilepsy who take one or more drugs for seizures. Other
players in the fibromyalgia market include Eli
Lilly’s (LLY) Cymbalta and Forest Labs’
(FRX) Savella.
While Pfizer said that it currently does not intend to seek
approval for the RLS indication, we note that Lyrica is being
evaluated for additional indications like chronic central
neuropathic pain following traumatic spinal cord injury and
peripheral neuropathic pain. Approval for additional indications
would boost Lyrica sales.
We currently have a Zacks #2 Rank (short term Buy rating) on
Pfizer. We are encouraged by the company’s efforts to retain market
share for blockbuster drug Lipitor, despite the loss of exclusivity
on the product. Longer-term, we are Neutral on Pfizer.
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)
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BHP BILLITN LTD (BHP): Free Stock Analysis Report
FOREST LABS A (FRX): Free Stock Analysis Report
LILLY ELI & CO (LLY): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
SMITHFIELD FOOD (SFD): Free Stock Analysis Report
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