Zacks Bull and Bear of the Day Highlights: Zumiez, Ness Technologies, Patni Computer Services and Maguire Properties

Business Wire, Nov 9, 2007

CHICAGO -- Zacks Equity Research highlights Zumiez, Inc. (Nasdaq: ZUMZ) as the Bull of the Day and Ness Technologies (Nasdaq: NSTC) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Patni Computer Services (NYSE: PTI) and Maguire Properties (NYSE: MPG). 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 Zumiez, Inc. (Nasdaq: ZUMZ). Despite the Company's third quarter earnings shortfall, we remain fans of the Zumiez shopping experience as well as its long-term growth prospects. As a result, we reiterate our Buy rating on Zumiez. While we don't expect the stock rebound immediately, we think long-term holders will be rewarded for making buys during the current sell-off.

Bear of the Day:

Our Bear of the Day recommendation is for Ness Technologies (Nasdaq: NSTC). Ness Technologies is a small player in a challenging market for IT services. Outside the Israeli government market, the company faces intense competition from established players. Our fears that it would miss full-year results are being realized, and we believe that there are better opportunities available to investors. Given this thesis, we maintain a Sell rating on NSTC shares with a six-month target price of $10.00.

Analyst Blog:

Patni Computer Services (NYSE: PTI) reported its results for the third quarter of 2007 with in line revenues and earnings exceeding our estimates due to foreign exchange hedging gains. Excluding these items, PTI's earnings would have been below our estimates. We have lowered our revenue and earnings estimates for the remainder of 2007 and believe that the company has significant execution risks going forward, although it may continue to see a currency tailwind. While the company reported an in-line third quarter of 2007, we lowered our fourth quarter revenue expectations to $171 million, taking our full year 2007 revenue estimate to $660 million, down $3 million from our earlier projection of $663 million. For 2008, we have lowered our total revenue target to $759 million from our previous estimate of $763 million.

Overall 3Q results were weaker than expected, and Maguire Properties (NYSE: MPG) missed our lowered FFO (funds from operations) estimates by $0.10 per share. We are again lowering our full-year estimate by 10% due to the miss. Occupancy has dropped due to subprime-lender exposure. In addition, interest expense has increased substantially from last year due to the $2.8 billion EOP portfolio purchase. MPG is in the process of selling assets to de-lever from what might have been an overpriced acquisition. Despite the miss, we still rate MPG a Hold as the company has assets in some of the strongest US office markets. Our six-month target price for the stock is $26.00.

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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