Zacks Bull and Bear of the Day Highlights: Abbott Labs, Avici Systems, Vodafone and Snap-on

Business Wire, Dec 12, 2007

CHICAGO -- Zacks Equity Research highlights Abbott Laboratories (NYSE: ABT) as the Bull of the Day and Avici Systems (Nasdaq: AVCI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Vodafone (NYSE: VOD) and Snap-on, Inc. (NYSE: SNA). Full analysis of all these 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 Abbott Laboratories (NYSE: ABT). Abbott Labs discovers, develops, manufactures and sells a diversified line of healthcare products. We expect a sizable pick-up in earnings growth rate over the next few years driven by strong sales of its lead product Humira, a rapidly growing vascular business, and on several new drug applications recently filed with the FDA. Based on our model, the company is expected to deliver double-digit growth from 2007 through 2010. We believe ABT possesses a low risk profile and will continue to trade at an industry premium. Accordingly, we reiterate our Buy recommendation with a price target of $66.

Bear of the Day:

Our Bear of the Day recommendation is for Avici Systems (Nasdaq: AVCI). Although strong end-of-life router sales are driving better-than-expected revenue, our long-term outlook for Avici Systems remains unchanged. We believe Soapstone offers a unique product and are encouraged by its compatibility with Nortel and Extreme, however we expect revenues to ramp slowly. Six months from now, investors will likely be concerned about a lack of visibility into revenue growth from software. As such, we maintain a Sell rating on the shares and lower our six month price target to $6.50.

Analyst Blog:

We maintain our Buy recommendation for Vodafone (NYSE: VOD), the largest revenue generating international wireless carrier. We expect the firm to carry on delivering solid operating results, while increasing shareholder returns through higher dividend payments and share repurchases. The company maintains a healthy dividend payout ratio of 60%. Meanwhile, momentum is also building for the company's 3G (Third Generation) wireless services and Vodafone is gaining market share in most of its key markets. Furthermore, the company is focusing on opportunities in untapped emerging markets, such as South East Asia to foster growth. Recent acquisitions and divestitures are forecasted to provide operational efficiency and expand its top-line revenue.

Snap-on, Inc. (NYSE: SNA) has reported upside earnings surprises for seven consecutive quarters. Management has successfully delivered more predictable and consistent financial performance through the implementation of the 'Driven to Deliver' and 'Rapid Continuous Improvement' programs. The supply chain and franchise improvement initiatives have also considerably expanded the operating margin over the past three quarters. Through a structured approach of supply chain and franchise improvement initiatives, order-fill rates are improving and profitability is increasing across all operating segments except the Tools Group.

Get the full analysis of all these 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.

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