Zacks Bull and Bear of the Day Highlights: Tenneco, Millennium Pharmaceuticals, DJO, Inc. and General Growth Properties

Business Wire, June 27, 2007

CHICAGO -- Zacks Equity Research highlights Tenneco, Inc. (NYSE: TEN) as the Bull of the Day and Millennium Pharmaceuticals (Nasdaq: MLNM) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on DJO, Inc. (NYSE: DJO) and General Growth Properties (NYSE: GGP). 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 Tenneco, Inc. (NYSE: TEN). Tenneco is witnessing revenue improvements and has been successful in cost reduction efforts and restructuring activities. The company holds a leading position in nearly every product category it offers. Moreover, diversification has proved to be a major positive for the company. We set a six-month target price of $40.00 and rate the shares a Buy.

Bear of the Day:

Our Bear of the Day recommendation is for Millennium Pharmaceuticals (Nasdaq: MLNM). Millennium relies heavily on Velcade, the company's only product on the market, for both short-term and long-term growth. However, Velcade's growth has slowed down since 2006 due to stiff competition from Celgene's Revlimid and Thalidomide. As such, we maintain our Sell rating on the shares with a price target of $9.

Analyst Blog:

DJO, Inc. (NYSE: DJO) reported first quarter earnings below expectations. Acquisition and related production costs affected EPS [earnings per share] and the company lowered its 2007 EPS guidance. Although DJO's stock price fell on the lowered outlook, we believed the discounted valuation was unwarranted. We therefore upgraded DJO to Buy on May 8, 2007. Now, however, the stock has recently approached our $42.00 price target. Based on valuation, therefore, we are revising our recommendation from Buy to Hold. Maintaining a roughly in-line group average P/E/G [price-to-earnings growth] of 1.5x 2008, our price target remains at $42.00, or 21x our 2008 EPS estimate.

General Growth Properties (NYSE: GGP) had a relatively strong 1st quarter, as most operating metrics showed improvement over past results. Retail spending is still holding up and there is no evidence that retailers are curtailing their demand for space. In addition, GGP boasts a strong redevelopment and development pipeline, which should add to earnings as projects come on line. Tempering our enthusiasm for GGP is the company's high leverage, low yield and what will be a slow year for the company's master planned community segment. Retail REITs are down so far this year, and the sector-wide correction to continue throughout 2007.

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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