Zacks Analyst Blog Highlights: Actions Semiconductor Corp., Barr Pharmaceuticals, Inc., Teva Pharmaceutical Industries Ltd., Overstock.com, Inc. and Sonic Innovations, Inc

Business Wire, Oct 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: Actions Semiconductor Corp. (Nasdaq: ACTS), Barr Pharmaceuticals, Inc. (NYSE: BRL), Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA), Overstock.com, Inc. (Nasdaq: OSTK) and Sonic Innovations, Inc. (Nasdaq: SNCI).

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Here are highlights from Tuesday's Analyst Blog:

Actions Semi Speaking Quietly

Actions Semiconductor Corporation (Nasdaq: ACTS) designs and markets integrated platform solutions, including system-on-a-chips (SoCs). The firm derives virtually all its revenue from the ultra-competitive MP3 market, which has experienced serious ASP [average selling price] erosion.

June quarter results beat consensus estimates on the top and bottom-line. We are reiterating our Hold recommendation and setting a price target of $4.50. This translates to 10.4x multiple of 2008 EPADS [earnings per American Depositary Shares].

Barr Pharma Deal Should Close

Barr Pharmaceuticals, Inc. (NYSE: BRL) is a global specialty pharmaceutical company engaged in the development, manufacture and marketing of branded and generic drugs. On July 18, 2008, Barr announced that it has entered into an agreement with Teva Pharmaceuticals (Nasdaq: TEVA) whereby the latter will acquire Barr for $7.46 billion plus the assumption of net debt of approximately $1.5 billion.

We had issued a Sell rating on Barr after the company posted disappointing first-quarter results and slashed its full-year outlook. However, we moved back to a Hold rating following the Teva takeover announcement. This offer has come at the right time for Barr -- the deal should close later this year. We maintain a Hold rating with a $65 price target.

Overstock Still Not Oversold

Overstock.com, Inc. (Nasdaq: OSTK) is an online closeout retailer, offering discount, brand-name merchandise for sale primarily over the Internet. Its merchandise offerings include: CDs, DVDs, magazines, and books, music, videos and games (BMV); as well as bed and bath goods, kitchenware, watches, jewelry, electronics, sporting goods, and designer accessories.

We remain negative on OSTK shares. The company's business model is flawed. Its gross margin is not large enough to support its operating cost structure. What's more, competitive pressures are increasing in the e-commerce space, and Overstock.com doesn't stack up to larger and better-run companies in online retail.

Sonic Innovations Sounds Good

Sonic Innovations (Nasdaq: SNCI) designs, develops, manufactures and markets advanced digital hearing aids, designed to provide the highest levels of satisfaction for hearing-impaired consumers. Capitalizing on its advanced understanding of human hearing, the company has developed patented digital signal processing (DSP) technologies, and embedded them into the smallest single-chip DSP platform ever installed in a hearing aid.

SNCI has been consolidating operations in Europe to reduce operating costs and to focus resources on markets that offer the greatest profitability. Our price target is based on a price-to-sales multiple of roughly 0.6x FY09 sales estimate. The target is $3 per share.

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