Zacks Bull and Bear of the Day Highlights: Edison International, TriQuint, E.On and Callidus Software

Business Wire, May 11, 2007

CHICAGO -- Zacks Equity Research highlights Edison International (NYSE: EIX) as the Bull of the Day and TriQuint Semiconductor (Nasdaq: TQNT) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on E.On (NYSE: EON) and Callidus Software (Nasdaq: CALD). 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 Edison International (NYSE: EIX). Strong projected earnings growth in 2007-08, led by improved performance in unregulated power generation, energy trading, solid and stable utility operations, renewable energy generation, as well as ongoing transmission improvement projects and balance sheet strength are largely responsible for our bullish outlook on EIX. Accordingly, we maintain our BUY recommendation on EIX common stock with a six-month target price of $60.00. Price appreciation to our near-term valuation, coupled with the stock's recently increased $0.29 per share quarterly dividend which we view as very sustainable and secure given low projected payouts represents annualized total return potential of 21.2%.

Bear of the Day:

Our Bear of the Day recommendation is for TriQuint Semiconductor (Nasdaq: TQNT). Revenue for the period was $114.3 million, down 3% sequentially but above our estimate of $106 million. We estimated that Handset revenue fell 5% sequentially due to lower customer demand. For Q2 management sees pressure on inventory and revenue for handsets and expects total revenue in to be flat to slightly up sequentially. At the same, net inventory rose to $90 million in Q1 due to lower handset demand. Consequently, we are concerned about margins being under pressure. Accordingly, we maintain our Sell rating and have set a target price of $5.

Analyst Blog:

E.On (NYSE: EON) reported a solid first quarter, with earnings beating our estimates handily, despite lower-than-expected revenues from the unseasonably warm winter months across Europe in the first quarter. Now that the Endesa debacle is behind it, the company can regain its focus to expand its presence throughout Europe, and the deal it made with Enel/Acciona will only improve its footprint throughout Europe. While we have raised our earnings expectations for 2007, we continue to rate shares of E.On a Hold, as its stock price has factored in all the recent good news.

Callidus Software (Nasdaq: CALD) announced its financial results for Q1 [first quarter] of 2007. Revenue was $24.8 million, up 46% year over year and above our estimate of $22 million. Earnings per share was ($0.12), below our estimate of ($0.09). License revenue came in at $8.3 million, up 20% year over year. Maintenance and service revenue came to $16.5 million, up 65% year over year. Recurring revenue totaled $7.8 million, representing 31% of total revenue. Gross margins, however, declined to 49% versus 53% in the year-ago quarter. Accordingly, we are maintaining our Hold rating and have set a target price of $8.50.

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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