Zacks Analyst Blog Highlights: Epicor Software Corp., Amylin Pharmaceuticals, Inc., CNOOC Ltd., Skyworks Solutions, Inc. and Nokia Corp

Business Wire, Oct 2, 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: Epicor Software Corp. (Nasdaq: EPIC), Amylin Pharmaceuticals, Inc. (Nasdaq: AMLN), CNOOC Ltd. (NYSE: CEO), Skyworks Solutions, Inc. (Nasdaq: SWKS) and Nokia Corp. (NYSE: NOK).

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Here are highlights from Wednesday's Analyst Blog:

Epicor Software Guidance Down

Epicor Software's (Nasdaq: EPIC) solutions automate and integrate critical business information across the entire value chain so that customers, suppliers, partners and employees can collaborate on competing more effectively in the global marketplace. Epicor sells products designed for specific types of manufacturing, products such as metal fabrication, industrial machinery, automotive, electronics, consumer goods and aerospace.

Management downgraded its guidance for 2008, primarily due to a cautious outlook for the retail business and expectation for additional investment for the launch of Epicor V9.0. Revenues are now expected between $525 million and $535 million, down from the earlier estimate $536-$544 million.

Amylin Pharma Still Overvalued

San Diego-based Amylin Pharmaceuticals, Inc.'s (Nasdaq: AMLN) diabetes drugs Byetta and Symlin sales were both in-line with expectations in the second quarter. However, the Amylin story is tied to the success or failure of phase III potential blockbuster, exenatide LAR. Although the data on LAR presented last month at ADA looked good, we are unconvinced that it will be enough to drive the kind of profitability that justifies an expansion in valuation.

Amylin currently trades at 21x our 2012 EPS estimate of $0.91. The 2012 multiple is a 100% premium to the large-cap pharma / biotechnology peer-group average of 10x 2012 EPS. We believe this premium by Amylin is not warranted given significant questions that surround the future growth of Byetta. Additionally, we are concerned that the recent pancreatitis fears will cause a delay in the LAR filing, currently guided for the middle of 2009.

CNOOC Maintains Dominance Offshore

CNOOC, Ltd. (NYSE: CEO) is one of the three oil companies in China and one of the largest independent oil and gas exploration and production companies of the world. It is China's dominant producer of offshore crude oil and natural gas.

We are maintaining our Buy recommendation on CNOOC ADRs following the company's strong first half 2008 operational results. Net income surged 89%, driven by higher oil prices and volume growth. Volumes were up 8.3% in the first half of the year, with full-year growth expected to exceed that level.

Skyworks Still Shooting Sparks

Skyworks Solutions, Inc. (Nasdaq: SWKS) was formed through the merger of the wireless business of Conexant Systems, Inc. and Alpha Industries, Inc. on June 25, 2002. The company is headquartered in Woburn, Massachusetts. Skyworks designs, manufactures and markets wireless semiconductor solutions for the mobile communications industry.

SWKS appears to be winning business in handset semis -- Nokia (NYSE: NOK) in particular -- as well as successfully broadening its footprint in linear products. Going forward, based on new product ramps at leading handset customers and continued end-market diversification, management expects revenues of $225 million in Q4 while EPS is anticipated to be $0.20.

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