Zacks Bull and Bear of the Day Highlights: McDonald's, Kimberly-Clark, BioMarin Pharmaceuticals and NDS Group

Business Wire, August 10, 2007

CHICAGO -- Zacks Equity Research highlights McDonald's (NYSE: MCD) as the Bull of the Day and Kimberly-Clark (NYSE: KMB) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on BioMarin Pharmaceuticals, Inc. (Nasdaq: BMRN) and NDS Group (Nasdaq: NNDS). 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 McDonald's (NYSE: MCD). McDonald's Corporation's focus on core brands and innovative marketing campaigns has been successful. The company is focused on cost-control initiatives and using the cash generated from operations to retire debts, distribute dividends, and to pursue share repurchase programs. Moreover, in the long run, management aims to increase its number of franchises and decrease the number of company-owned restaurants to less than 30%. The company sees a 100-basis-point increase in return on assets, a less capital-intensive business and a steady growth in royalties.

Bear of the Day:

Our Bear of the Day recommendation is for Kimberly-Clark (NYSE: KMB). Kimberly-Clark Corporation has strong consumer brands and is well respected for product innovation, especially in the diaper category. Despite progress on the company's three cost-savings programs (FORCE, the Global Business Plan and the Strategic Cost Reduction Plan), rising raw material costs, weak European operations, and competitive pressures are constraining earnings growth. Therefore, the stock's rating is a Sell.

Analyst Blog:

BioMarin Pharmaceuticals, Inc. (Nasdaq: BMRN) develops enzyme therapies for serious chronic genetic disorders and other diseases and conditions. Its leading product, Aldurazyme, is used for treating the ultra-rare genetic disorder mucopolysaccharidosis-I (MPS-I). The company recently gained FDA and European approval for another product, Naglazyme, for the treatment of MPS-VI and Orapred ODT for asthma in children. The company presented positive phase III data on Kuvan and filed an NDA [new drug application] on the drug in May. The product pipeline is filling out, and profitability is on target for 2008. We continue to rate the shares BUY with price target of $25.00.

NDS Group (Nasdaq: NNDS) reported a solid fourth quarter with revenues and earnings beating our estimates handily. We expect the company to continue to take advantage of gaming and DVR technologies that are built into set-top boxes, and continue to win new deals in emerging markets during 2008 and beyond. We are raising our revenue and earnings outlook for 2008 while initiating new 2009 estimates that call for revenue growth of 13.5% and earnings growth of 16.5% over our new 2008 estimates.

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.

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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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