Zacks Analyst Blog Highlights: Safeway, Cirrus Logic, Inc., Celgene Corp., PACCAR Inc. and Daimler

Business Wire, Oct 10, 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: Safeway (NYSE: SWY), Cirrus Logic, Inc. (NASDAQ: CRUS), Celgene Corp. (NASDAQ: CELG), PACCAR Inc. (NASDAQ: PCAR) and Daimler (NYSE: DAI).

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Here are highlights from Thursday's Analyst Blog:

Safeway Upgraded on Valuation

We are upgrading Safeway (NYSE: SWY), a major food and drug retailer in North America, shares from Hold to Buy. The recent sell-off in its shares has created a buying opportunity, in our view.

Despite business going pretty much as expected, SWY shares are down 19% in the last two months and 30% in the last year. Safeway shares have sold off because of risks associated with the difficult macro-environment that has consumers trading down to cheaper alternatives, as well as the credit crisis that has impacted the entire stock market.

Cirrus Logic a Buy at These Prices

Based in Austin, TX, Cirrus Logic, Inc. (NASDAQ: CRUS) offers high-performance analog, mixed signal and digital processing integrated circuits. The company outsources wafer fabrication, assembly and testing operations to external foundries and concentrates its efforts on R&D [research and development].

Cirrus Logic's Industrial Division has a significant component of very profitable revenue from oil exploration companies. The company's oil-based revenue depends more on exploration activity than on oil production. Crude oil prices have decline significantly from their high. However, this may not last as the balance of supply and demand is in close balance.

Celgene Valued at a Premium

Celgene Corp. (NASDAQ: CELG) is a fully integrated biotechnology company focused on discovery, development and commercialization of drugs in the area of cancer and immune/inflammatory diseases. The acquisition of Pharmion brings three medically meaningful products -- Thalomid, Revlimid and Vidaza -- into market for hematology and oncology, which will drive growth in 2008 and beyond.

However, we are concerned about the tough competition from Velcade and other products for MDS and MM. Label expansion on Revlimid and Vidaza into other hematological cancers should offer upside for Celgene.

PACCAR Downshifts Ahead

PACCAR Inc. (NASDAQ: PCAR) is a designer, manufacturer and customer support provider of premium light-, medium- and heavy-duty trucks. The company is benefiting from rising prices and increasing market share, along with strong growth in Mexico and Australia.

However, a strong Class 8 market downturn in the US leads us to rate the stock a Hold with a target of $35.00. PACCAR is the third-largest manufacturer of Class 6-8 heavy-duty trucks (with capacity of more than 15 metric tons) in the world after Volvo and Daimler (NYSE: DAI).

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