Zacks Bull and Bear of the Day Highlights: American Tower, BJ's Restaurants, Teekay Corporation, Buckeye Partners and AutoZone

Business Wire, May 22, 2008

CHICAGO -- Zacks Equity Research highlights American Tower (NYSE: AMT) as the Bull of the Day and BJ's Restaurants (NYSE: BJ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Teekay Corporation (NYSE: TK), Buckeye Partners (NYSE: BPL) and AutoZone, Inc. (NYSE: AZO).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day: American Tower (NYSE: AMT)

We reaffirm our Buy recommendation with a higher valuation target for American Tower, a leading operator of wireless communications towers in the USA, Mexico and Brazil, following first quarter 2008 financial results that were better than our estimates. Overall performance has been driven by substantial demand for more tower space to facilitate high-speed data services and mobile video, in particular 3G and WiMAX technologies.

The company continues to improve on several of its financial metric benchmarks and has sequentially outperformed its peer group on an EBITDA margin basis. Although a substantial level of debt remains concerning, management has provided a financial outlook that operating cash flow is likely to increase 15% in fiscal 2008. Our long-term view regarding the wireless tower industry remains positive, and we believe American Tower is well positioned to capitalize on emerging telecom network deployment opportunities.

Bear of the Day: BJ's Restaurants (NYSE: BJ)

BJ's shares are richly priced and incorporate what we believe are overly optimistic same-store sales and earnings estimates. Our EPS estimates significantly lag the consensus ($0.52 and $0.64 for 2008E and 2009E, respectively), and we think there is substantial downside risk in the shares that results fall short of high investor expectations. Our six-month price target is $12 and incorporates a multiple of 22x 2009E earnings.

Latest Posts on the Zacks Analyst Blog:

Teekay Corporation (NYSE: TK)

We are maintaining our Hold on Teekay Corporation, but increasing our target price to $54. TK reported first quarter diluted EPS of $0.83 before nonrecurring items, below the consensus of $0.96 and our estimate of $1.26, largely reflecting higher-than-expected expense growth.

Despite this, we are maintaining our 2008 diluted EPS estimate at $3.00 due to increased revenue expectations from current strengthening in spot tanker freight rates, reflecting growing tanker demand, limited fleet growth and higher volumes of crude imports into China.

Buckeye Partners (NYSE: BPL)

We are maintaining our Hold recommendation and price objective on Buckeye Partners units as we continue to believe that current valuation adequately reflects Buckeye's middling growth prospects. The partnership's recent quarterly results were on the weaker side, reflecting lower-than-expected volumes and an increase in number of LP units.

However, the partnership's revenue was up significantly, buoyed by contributions from the Lodi Gas Storage and Farm & Home acquisitions. Importantly, the partnership raised its quarterly distribution by 1.5% sequentially to the annualized run rate of $3.40 per unit.

AutoZone, Inc. (NYSE: AZO)

We keep our Hold rating on AutoZone, Inc. The largest U.S. auto parts retailer has been suffering from sluggish same-store sales in the past few quarters due to stiff competition from peers.

In order to maintain its footing, AutoZone must revamp its current business model and boost its commercial business. Right now, 84 percent of the company's business is retail. The high reliance on private label products could be a hindrance to its commercial business. As a result, costs could rise on account of higher staffing levels at the store.

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: 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.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2677.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.