Zacks Bull and Bear of the Day Highlights: DaimlerChrysler, Kimberly-Clark, Genentech and Simon Property Group

Business Wire, August 28, 2007

CHICAGO -- Zacks Equity Research highlights DaimlerChrysler (NYSE: DAI) 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 Genentech, Inc. (NYSE: DNA) and Simon Property Group (NYSE: SPG). 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 DaimlerChrysler (NYSE: DAI). DaimlerChrysler is benefiting from aggressive efficiency initiatives, cost reduction efforts, and new model launches. The recent sale of Chrysler will allow the company to refocus its efforts on Mercedes Benz. This initiative will also lower the legacy costs for the company. Hence, we raise our outlook on the stock and rate it a Buy. The six month target price is $100.00.

Bear of the Day:

Our Bear of the Day recommendation is for Kimberly-Clark (NYSE: KMB). 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:

Genentech, Inc. (NYSE: DNA) is one of the world's largest biotechnology companies. Genentech's core technology focus is in the area of oncology, but the company develops and markets products for the treatment of cardiovascular diseases, respiratory and endocrine disorders, inflammatory and immune problems, and neurological disorders. New product offerings should make DNA also one of the fastest-growing biotechs on the market. We recommend investors continue to hold the shares. The fundamentals are very solid, but valuation and lofty expectations are a concern. Our price target is $80 per share.

Operationally, Simon Property Group (NYSE: SPG) again reported a solid quarter. Sales and rent per square foot continue to increase at a healthy pace in the company's malls, outlet centers and lifestyle centers. Second-quarter FFO [funds from operations] per share missed our estimates by $0.04, mainly due to one-time items. Simon recently acquired the Mills Corp. in a $7.9 billion deal. We like this acquisition from a strategic position, as Simon has many complementary operations, and has the size and expertise to turn around the Mills' assets. Our main concern with the stock would be valuation and signs that consumer spending is slowing at lower-price point malls, which could be an indicator that consumers are beginning to feel the effects of higher energy and lower housing prices.

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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