Zacks Analyst Blog Highlights: Westamerica Bancorp., Gol Linhas Aereas Inteligentes S.A., Burlington Northern Santa Fe Corp., Turkcell Iletisim Hizmetleri A.S. and Dendreon Corp

Business Wire, August 18, 2008

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: Westamerica Bancorp. (Nasdaq: WABC), Gol Linhas Aereas Inteligentes S.A. (NYSE: GOL), Burlington Northern Santa Fe Corp. (NYSE: BNI), Turkcell Iletisim Hizmetleri A.S. (NYSE: TKC) and Dendreon Corp. (Nasdaq: DNDN).

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Here are highlights from Friday's Analyst Blog:

Westamerica Slogging Through

Westamerica Bancorporation's (Nasdaq: WABC) 2Q08 diluted operating earnings of $0.77 per share were in-line with estimates. Results were supported by a 37 bps sequential increase in net interest margin and unchanged provision for loan losses. On the downside, credit quality worsened during the quarter and growth continued to be elusive.

After reviewing the results, we are slightly moderating our FY08 and FY09 estimates to $3.10 per share and $3.25 per share, respectively. Currently, WABC trades at 17.2 times the consensus forward estimate, a 21% premium to the peer group median. On a price-to-book basis, the shares now trade at 283% premium to the peer median, versus 355% premium as on May 28, 2008.

GOL Scores a Tie in Brazil

We are keeping our Hold recommendation on Gol Linhas (NYSE: GOL). The company has been enjoying impressive growth in the Brazilian domestic airline industry for the last few years, and the short-term growth outlook remains quite encouraging.

It is important to note that 2007 earnings were highly affected by the infrastructure crisis in the Brazilian airports, a problem that showed a slightly improvement in the first half of 2008. Additionally, 2008 results are now affected by high oil prices. Gol remains one of the fastest growing airlines in the world and with the acquisition of VRG the short-term growth outlook seems positive.

Burlington Northern Chugs Along

Burlington Northern Santa Fe Corporation (NYSE: BNI) reported 2008 second quarter diluted EPS before nonrecurring items of $1.34, up 18% year over year and $0.04 above consensus, but $0.08 below our estimate, as expenses came in higher than expected.

As a result, we are cutting our 2008 EPS estimate to $5.95 from $6.05, in line with the company's earnings guidance of less than $6.00 per share. Our 2009 EPS estimate remains $6.90. We are continuing our Hold on the shares.

Turkcell Stays a Hold Near-Term

Turkcell Iletisim Hizmetleri A.S. (NYSE: TKC) missed our estimates in terms of revenue and earnings for first quarter of 2008 although we were delighted to see operating expenses being much lower than our estimates.

The stock is trading at 8.3x our newly-lowered 2008 EPADS estimate and 6.4x our new 2009 EPADS estimate, which represents a hefty discount to the average of European wireless carriers. While the company's growth prospects are solid, more so due to award of 3G license to its 100% subsidiary Kibris Mobile Telekomunikasyon Ltd. Sti (KKTCell) and we have adjusted our 2008 revenue estimates slightly downwards along with our earnings estimates.

Dendreon Risk: Provenge Delays

The fate of Dendreon Corp.'s (Nasdaq: DNDN) key product candidate, Provenge prostate cancer vaccine, will be dependent on the ongoing IMPACT phase III trial. Positive interim results from the trial in October will enable the company to amend the biologic license application filing for Provenge. Therefore, we maintain our Hold rating on the shares.

The Food and Drug Administration's approvable letter was a surprise to us since it usually follows the advice of its expert panel which recommended the immediate approval of Provenge at its March 29, 2007 meeting. The decision may delay the approval and launch of Provenge until 2009 at the earliest. Approval of Provenge is critical for the financial performance of the company because the product has blockbuster status and successful commercialization of Provenge can drive a company of Dendreon's size to strong profitability.

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