Zacks Analyst Blog Highlights: Biogen Idec, Inc., Royal Bank of Scotland Group Plc., Lloyds TSB Group Plc., HBOS Plc. and Strayer Education, Inc

Business Wire, Oct 14, 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: Biogen Idec, Inc. (Nasdaq: BIIB), Royal Bank of Scotland Group Plc. (NYSE: RBS), Lloyds TSB Group Plc. (NYSE: LYG), HBOS Plc. (NYSE: HBOS) and Strayer Education, Inc. (Nasdaq: STRA).

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Here are highlights from Monday's Analyst Blog:

Biogen Idec Upgraded to a Buy

Biogen Idec, Inc. (Nasdaq: BIIB) posted solid results in the first half of the year, driven by solid sales of multiple sclerosis drugs Avonex and Tysabri. Yet just when things were looking solid for from a fundamental standpoint, two cases of PML popped up in Europe and the stock got hammered. We do not see the risk of PML as substantial for the drug to be pulled out of the market.

When normalcy returns to the financial markets, and well-capitalized large-cap pharmaceutical companies look to go shopping in 2009, we believe Biogen will be at the top of the list. The recent significant market sell-off has created a unique and attractive opportunity to pick up Biogen Idec shares at levels 20 to 25% below what we see as fair value.

Gordon Gets It Right

The U.K. government will now own about 60% of the Royal Bank of Scotland (RBS) and about 40% of the combined Lloyds (LYG) and HBOS (HBOS).

The second element of the plan was to guarantee loans between banks. This should free up interbank lending and in turn free up lending to the real economy. Think of it this way -- the first part of the plan fixes the engine of the economy, the second part fixes the transmission. The European Union is following suit, and from his comments last week it is clear that Henry Paulson has come to his senses and will be doing something similar here with the $700 billion bailout package.

Strayer to Be Schooling the Market

Strayer Education (Nasdaq: STRA) offers undergraduate and graduate degree programs in accounting, business administration, education, information technology (IT), and public administration. The company's 55 Strayer University campuses are located in 11 states and Washington, D.C. in the eastern U.S. The company also services students nationwide and worldwide through Strayer University Online.

Management's growth strategy includes maintaining a stable enrollment rate at mature campuses while expanding by opening of new campuses and extending Strayer's online education system. The company constantly strives to meet with the evolving needs of the working adult students and their employers by continuously refining and updating its educational programs. Also, management is strongly committed to enhancing shareholder value, especially through share repurchases and dividend increases. The company maintains a debt free balance sheet.

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