Zacks Analyst Blog Highlights: Evergreen Solar and Rockwell Automation

Business Wire, July 10, 2007

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) and Rockwell Automation (NYSE: ROK).

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

Here are highlights from Monday's Analyst Blog:

Evergeen Solar Stands Out

The growth potential for the solar industry as a whole, and Evergreen Solar (Nasdaq: ESLR) in particular, remains a compelling story. Capacity expansion and near-term projected break-even earnings make it one of the fastest growing alternative energy stocks. Positives include significant new multi-year sales contracts, capacity expansions at EverQ over the next few years, improving operating efficiencies, technological upgrades, and new silicon supply contracts.

However, continuing earnings losses, huge capital expenditures and earnings dilutive stock issuances may present risks to near-term share price upside potential. Accordingly, we maintain our BUY recommendation on ESLR with a six-month target price of $11.75. Price appreciation to our near-term valuation target represents annualized total return potential of 47.3%.

The solar market's supply/demand imbalance and silicon shortage may favor Evergreen due to rapidly expanding production capacity and high silicon efficiency. We also expect the company to benefit as the company increases capacity three-fold through its EverQ partnership and reduce expenses through new production methods and technologies.

$80 Target Price on Rockwell

Rockwell Automation (NYSE: ROK) is the world's largest industrial automation company, providing power, control and information solutions to improve manufacturing productivity. March quarter top-line exceeded consensus estimates, while the bottom line met expectations. Forward guidance indicates that revenue is expected to increase 7-8% in fiscal 2007.

The power systems division has been divested for $1.8 billion. This has the impact of raising margins. We believe that the market has not yet impounded the recent attractive growth and earnings rates, and is instead focusing on the automobile segment. Consequently, we are reiterating our Buy rating on the shares.

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

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