Zacks Analyst Blog Highlights: Itron Inc., Akamai Technologies, Inc., Finisar Corp., Credit Suisse Group, or CSG and Allergan, Inc

Business Wire, Dec 15, 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: Itron Inc. (NASDAQ: ITRI), Akamai Technologies, Inc. (NASDAQ: AKAM), Finisar Corp. (NASDAQ: FNSR), Credit Suisse Group, or CSG (NYSE: CS) and Allergan, Inc. (NYSE: AGN).

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Here are highlights from Friday's Analyst Blog:

Itron Inc. Metering It Out

Itron Inc. (NASDAQ: ITRI) provides products and services for the energy and water industries. It produces electricity, gas, water and heat meters; and various other associated metering products for residential, commercial and industrial (C&I), and transmission and distribution customers.

Itron should continue to benefit from new technologies, strong domestic market position, and opportunities for growth in the US and internationally. Even so, our optimism is tempered by increasing competitive pressures, technology risks, and the long sales cycle nature of its customers. Also, we expect the recent appreciation of the U.S. dollar to limit near-term revenue growth.

Akamai Sensitive to Downturn

Akamai Technologies, Inc. (NASDAQ: AKAM) is a global provider of distributed e-business infrastructure services and solutions. Its services include dynamic content and application delivery, application performance technologies, traffic management, etc. Akamai's high-margin, value-added solutions such as Application Performance Solutions, Dynamic Site Solutions, and Stream OS are expected to drive revenue and margin expansion in the coming quarters.

Though Q3 2008 results were better than expected, Akamai has disappointed us as of late. We believe that as AKAM serves consumer focused companies, it is more sensitive to consumer spending than much of the IT space.

Finisar Looking Toward Next Year

Finisar Corp. (NASDAQ: FNSR) is a leading provider of fiber optical products as well as network test and monitoring systems. With a strong product portfolio and vertically integrated business model, FNSR is well-positioned in the fiber optic market. Moreover, the company's merger with Optium will be accretive to its 2009 non-GAAP EPS.

With restructuring efforts in the past and the spin-off of its NetWisdom product line, Finisar has been able to narrow down its operating losses, and should turn a GAAP profit during fiscal 2009. Given its leadership position in LAN/SAN and Metro Ethernet products and its strong hold in the growing 10/40 Gbs optical transceiver market, we continue to believe that Finisar will trade in-line with most of its relevant competitors. However, we are growing increasingly concerned about IT spending as the European market appears to be slowing.

Credit Suisse Estimates Lowered

We are continuing our Hold on Credit Suisse Group, or CSG (NYSE: CS). On December 4, CSG announced a 4th quarter net loss of CHF3 billion through the end of November due to weakness at the investment bank, which is being restructured. The investment bank will reduce risk-weighted assets by 43%, headcount will be cut by 11%, and total costs will fall by CHF2 billion.

In the third quarter (in line with its pre-announcement), CSG posted a net loss of CHF1.3 billion compared to net earnings of CHF1.3 billion a year ago. This poor performance reflected large trading losses and further writedowns in the leveraged finance and structured products businesses. In other news, Credit Suisse has raised CHF10 billion in Tier 1 capital, with a pro forma Tier 1 ratio of 13.7% at September 30, 2008, which exceeds regulatory requirements for 2013.

Allergan: Neutral in Current Market

Allergan, Inc. (NYSE: AGN) is a global specialty pharmaceutical company that develops and commercializes innovative products for the eye care, neuromodulator, skin care and other specialty markets.

Allergan has been expanding into new therapeutic areas through acquisitions over the past few quarters. We believe these acquisitions will provide the company with the opportunity to drive growth in its existing business and to expand into new areas of business. We are optimistic that Allergan's presence across different segments and geographies should help maintain decent growth going forward even in the face of global economic weakness and foreign currency headwinds.

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