Zacks Bull and Bear of the Day Highlights: CSX Corporation, Infineon Tech, Vivo Participacoes and Del Monte

Business Wire, July 25, 2006

CHICAGO -- Zacks Equity Research highlights CSX Corporation (NYSE:CSX) as the Bull of the Day and Infineon Tech (NYSE:IFX) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Vivo Participacoes S.A. (NYSE:VIV) and Del Monte (NYSE:DLM). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all four stocks:

Bull of the Day:

Our Bull of the Day recommendation is for CSX Corporation (NYSE:CSX). We are increasing our target price to $75 from $74. CSX posted second quarter EPS of $1.16, 21% ahead of last year and beating the $1.15 consensus and our $1.10 estimate on better-than-expected revenue growth. We are raising our EPS estimates to $4.40 from $4.25 for 2006 and to $4.85 from $4.60 for 2007. Improved productivity, lower interest expense, and continued strength in the domestic economy are expected to offset significantly higher fuel costs as hedges roll off and an increase in the effective tax rate. Reflecting its strong prospects, CSX announced a 2-for-1 stock split, a $500 million share buyback, and a 54% increase in the quarterly dividend to $0.10 post split.

Bear of the Day:

Our Bear of the Day recommendation is for Infineon Tech (NYSE:IFX). Infineon recently reported a disappointing fiscal third quarter, with revenues slightly lower than we expected, and an EPS loss while our estimates called for a slight gain. The company continues to lose money in its COMs division, and we are unsure when this area will return to profitability. The AIM division was also under pressure in the quarter, as the automotive market cooled slightly. The only strong performance came from Qimonda, the company's now separate Memory Product's unit. We continue to rate shares of IFX a Sell, and have lowered our estimates and price target on the company for the remainder of the year and for 2007.

Analyst Blog:

We are changing our recommendation on Vivo Participacoes S.A. (NYSE:VIV) from Hold to Sell. The company has a strong brand in the fast-growing Brazilian wireless business and should benefit from Brazilian economic growth. However, we remain concerned over the company's continued disappointing results, including first and second quarter of 2006, and the competitive environment that does not seem to be improving. The decision to invest US$450 million in a new GSM/EDGE network is also negative, showing the difficult competitive environment that VIV has been facing. We are also reducing our 2006 and 2007 earnings estimates.

Del Monte's (NYSE:DLM) management states that it is focused on improving shareholders value through a brand-driven strategic plan. Despite management's belief that its Transformation Plan will enhance execution and overall competitiveness, the expected earnings dilution from the acquisitions of Milk-Bone and Meow Holdings is constraining earnings progress. EPS have been and are expected to remain in the $0.65 to $0.95 range. The stock's decline has discounted much of the recent negative earnings revisions. Hence, the stock is now rated a Hold.

Get the full analysis of all four 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.

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.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.

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 by going to http://at.zacks.com/?id=2650.

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.