Zacks Bull and Bear of the Day Highlights: Millennium Pharmaceuticals, Embraer Air, Sohu.com and CACI International

Business Wire, Feb 12, 2008

CHICAGO -- Zacks Equity Research highlights Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM) as the Bull of the Day and Embraer Air (NYSE: ERJ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Sohu.com (Nasdaq: SOHU) and CACI International (Nasdaq: CACI). 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 Millennium Pharmaceuticals, Inc. (Nasdaq: MLNM), a drug discovery and development company. The company's key product is Velcade. Although Velcade's growth slowed down in 2006 due to stiff competition from Celgene's Revlimid and Thalidomide, sales reaccelerated in 2007. The recent encouraging phase III data for 1st line treatment of MM could expand Velcade label and boost top line growth further in 2008 and beyond. The company also has a robust, interesting and early-stage pipeline which will contribute to revenue growth after 2009. As such, we upgrade Millennium shares from Hold to Buy with a price target of $18.

Bear of the Day:

Our Bear of the Day recommendation is for Embraer Air (NYSE: ERJ). The Embraer 170/190 line of 70-110 seat jets should continue to be well-received by aviation customers, in our view. But this will be partially offset by the growing concern that low-cost carriers plan to add too much capacity too quickly to the global air transport system. Additionally, the company's first, second and third quarter results were disappointing. We remain concerned over the strength of the Brazilian real, and its effect on the company's competitiveness. Finally, the complete failure of the Brazilian airports infrastructure will certainly be a problem for the company's local sales.

Analyst Blog:

Sohu.com (Nasdaq: SOHU) reported blockbuster financial results for the fourth quarter of 2007. The company's revenue and earnings greatly exceeded market expectations and company guidance because of strong growth in the online game and advertising businesses. Although SOHU faces fierce competition from different fields, the company manages to be a main player in almost each field. With the Beijing 2008 Olympics sponsorship, SOHU has a well-known brand and rich website resources to leverage the great opportunities for online business in China. Therefore, we are maintaining Buy recommendation on SOHU shares based on its strong growth momentum.

Defense and Homeland Security contractor CACI International (Nasdaq: CACI) recently posted Q2:FY08 financial results with strong revenue of $578 million versus $477 million in Q2:FY07 and our estimate of $560 million. EPS of $0.63 was in line with our estimate. The revenue growth was primarily driven by organic growth of 10.7%, specifically in the intelligence business which was up 46% y/y. Low-profit-margin subcontractor revenue drove much of the organic increase. Operating margin in the quarter was 6.6% versus 7.8% in Q2:FY07. Although operating margin did see solid sequential improvement, shifts in the timing of contract award fees and continued higher subcontractor content pressured margins. Contract award totaled $444 million in the quarter, of which approximately 75% was for new businesses.

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.

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