Zacks Analyst Blog Highlights: Eli Lilly and Co., Marriott International, Inc., Arena Pharmaceuticals, Inc., ArvinMeritor, Inc. and Echelon Corp

Business Wire, Oct 6, 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: Eli Lilly and Co. (NYSE: LLY), Marriott International, Inc. (NYSE: MAR), Arena Pharmaceuticals, Inc. (Nasdaq: ARNA), ArvinMeritor, Inc. (NYSE: ARM) and Echelon Corp. (Nasdaq: ELON).

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Here are highlights from Friday's Analyst Blog:

Lilly - Aside from ImClone Rumors

Eli Lilly and Company (NYSE: LLY) is a global healthcare company with core products in a number of primary-care pharmaceutical markets. The leading product is Zyprexa, a treatment for schizophrenia and bipolar disorder. The company's other leading drugs include Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Byetta (type-II diabetes), Cialis (erectile dysfunction), Strattera (ADHD), and Alimta (chemotherapy).

The company is entering a challenging period, brought about by recent pipeline disappointments, most notably uncertainty surrounding antiplatelet drug Prasugrel. Although we believe the underlying fundamentals of the company remain solid, the recent pipeline setbacks and lack of clarity surrounding prasugrel will likely limit the upside to the stock.

Marriott Downgraded to Sell

We are lowering our rating on shares of Marriott International (NYSE: MAR) from Hold to Sell following the release of Q3 financial results.

The operating environment in the lodging sector has weakened substantially in recent quarters. Additionally, the company's timeshare segment is struggling, with sales down and credit market turmoil preventing the company from completing an expected note sale.

Arena Looking Better from Afar

Arena Pharmaceuticals (Nasdaq: ARNA) is a biopharmaceutical company with its primary expertise in the area of G protein-coupled receptors (GPCRs). Several blockbuster GPCR drugs such as Plavix, Claritin, Wellbutrin, and Zyprexa are already on the market in the U.S.

Arena focuses its research and development on four key pharmaceutical areas: Metabolic, Cardiovascular, Central Nervous System, and Inflammatory disorders. The company's leading pipeline candidate, lorcaserin for obesity, continues its phase III program.

ArvinMeritor Shifts to Low Gear

ArvinMeritor, Inc. (NYSE: ARM) headquartered in Troy, Michigan, is a global automotive parts manufacturer and supplier to various customers in North America, Europe, and other parts of the world. The company is a worldwide supplier of a broad range of integrated systems, modules and components for commercial, specialty and light vehicles worldwide, and has developed market positions as a leader in most of its markets.

Presently, the company is planning to spin off its Light Vehicle Systems (LVS) business. The company is undergoing dramatic cost reductions through its profit improvement initiative "Performance Plus." The company is also expanding geographically and outsourcing to low-cost countries. However, a downturn in the automotive industry, along with production cuts, coupled with rising steel and fuel prices, lead us to rate the shares a Hold.

Echelon Initiated with a $10 Target

Echelon (Nasdaq: ELON) designs, markets and sells system and network infrastructure products such as air conditioners, appliances, electricity meters, light switches, thermostats and valves for the smart grid and the network control markets. The company designs and supports systems and software that allow open and integrated control networks to connect machines and other electronic devices for the purpose of sensing, monitoring and controlling automatic doors, lighting, security systems, rail networks and many more.

The company is currently trading at its 52-week low price. After posting a strong revenue growth in 2007, Echelon provided very disappointing guidance for fiscal 2008, and blamed much of the shortfall on slow ramp of its NES [Network Energy Services] projects and delay in bookings. We believe slow bookings are likely to hamper growth in 2008.

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