Zacks Analyst Blog Highlights: Evergreen Solar, Onyx Pharmaceuticals, Pfizer and Double Eagle Petroleum

Business Wire, Nov 10, 2006

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day, the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Evergreen Solar (Nasdaq:ESLR), Onyx Pharmaceuticals (Nasdaq:ONXX), Pfizer (NYSE:PFE) and Double Eagle Petroleum (Nasdaq:DBLE).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673.

Here are highlights from Thursday's Analyst Blog:

Evergreen Solar Rates a Buy

The growth potential for the solar industry as a whole, and Evergreen Solar (Nasdaq: ESLR) in particular remains a compelling story. Burgeoning revenue and a much improved net earnings make it one of the fastest-growing alternative energy stocks going into 2007. Positives include significant new multi-year sales contracts, capacity expansions at EverQ over the next few years, improving operating efficiencies, technological upgrades, and a new silicon supply contract.

However, continuing earnings losses and stock-based compensation expenses partially moderate its upside potential over the near-term. Accordingly, we upgrade ESLR to Buy with a six-month target price of $9.75.

Upgrade for ONXX

We are optimistic about the potential of Onyx Pharmaceuticals' (Nasdaq:ONXX) oncology candidate Nexavar (sorafenib) due to its better than expected performance in the third quarter of 2006. However, we are cautious on the future for Nexavar. Unfortunately, the drug has entered a highly competitive market, and data on Pfizer's (NYSE:PFE) Sutent at ASCO outshined that of Nexavar.

We believe Nexavar sales will continue to grow over the next several years, but fail to achieve meaningful penetration unless additional clinical trials demonstrate utility in other indications. We upgrade the shares from Sell to Hold based on the third quarter performance of Nexavar. Our target price is $21.

A Buy on Double Eagle

Double Eagle Petroleum (Nasdaq:DBLE) released slightly better than expected third-quarter results this morning. Compared to the year-earlier quarter, production, realized pricing, and diluted EPS are down. Compared with our estimates however, the numbers are a slightly positive surprise.

Diluted EPS came in at $0.04, compared to our estimate of $0.03 and comparable earnings of $0.11. Both production and G&A expenses were lower than we expected. Average realized pricing was $5.49 per Mcfe, down YoY but higher than we expected. Though no significant project updates were given in the release, we hope to hear word on the progression of Cow Creek's EIS during today's call.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645.

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