Zacks Bull and Bear of the Day Highlights: Sprint Nextel, Apartment Investment & Management Company, Solectron Corporation, National Grid and KeySpan

Business Wire, March 28, 2006

CHICAGO -- Zacks Equity Research highlights Sprint Nextel (NYSE:S) as the Bull of the Day and Apartment Investment & Management Company (NYSE:AIV) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Solectron Corporation (NYSE:SLR), National Grid (NYSE:NGG) and KeySpan (NYSE:KSE).

Here is a synopsis of all four stocks:

Bull of the Day:

Our Buy recommendation for Sprint (NYSE:S) is based on our belief that the combined Sprint/Nextel entity will have the necessary scale to compete on an equal footing with the wireless industry giants. The businesses should be complementary, since Nextel's strength is in the business and wireless markets, whereas Sprint has historically focused on the consumer customer base. In addition, operational and capital spending synergies are expected to exceed $14.5 billion. Finally, the valuation appears reasonable considering the firm's above-average growth prospects.

Bear of the Day:

We are reiterating our Sell recommendation and raising our target price to $44.00 per share for Apartment Investment & Management Company (NYSE:AIV), or AIMCO. The company continues to struggle with heavy maintenance capex, negative dividend coverage, and average markets. Operating results improved this quarter, as the apartment business continues to get stronger with higher interest rates curtailing move outs. However, we still think there are more attractive options in the multifamily sector among companies with better long-term growth prospects. On a positive note, the company's SEC investigation has been terminated with no action taken against AIMCO.

Analyst Blog:

While Solectron Corporation's (NYSE:SLR) 'Lean' manufacturing initiatives should help keep operating expenses under control, current operating margins are well below its peer group, a condition that is unlikely to change without revenue growth. Until Solectron is able to demonstrate revenue growth through the ramp of new projects, we believe the stock will continue to underperform the market. We therefore rate the company Sell with a six-month price target of $3.00.

National Grid (NYSE:NGG) and KeySpan (NYSE:KSE) maintain a definitive agreement under which National Grid will acquire KeySpan for $42.00 per share in cash. The terms of the agreement value KeySpan at approximately $7.3 billion, with an enterprise value of $11.8 billion. The boards of both companies unanimously approved the acquisition. Upon completion of the transaction, KeySpan will become a wholly-owned subsidiary of National Grid and will continue to operate as KeySpan. The transaction is subject to customary closing conditions, including the approval of the shareholders of both companies, certain federal and state regulatory approvals and clearance under the Hart-Scott-Rodino Act. The transaction is targeted to close by early 2007. Price appreciation to our six-month $42 target price, combined with the recently increased $0.465 per share quarterly dividend - which we deem secure - represents annualized total return potential of 10.6%.

Get the full analysis of all four stocks by going to http://at.zacks.com/?id=2646.

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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