Zacks Analyst Blog Highlights: Philip Morris International, Inc., Altria Group, Inc., Cleveland BioLabs, Inc., Scientific Games Corp. and FactSet Research Systems Inc

Business Wire, Sept 30, 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: Philip Morris International, Inc. (NYSE: PMI), Altria Group, Inc. (NYSE: MO), Cleveland BioLabs, Inc. (Nasdaq: CBLI), Scientific Games Corp. (Nasdaq: SGMS) and FactSet Research Systems Inc. (NYSE: FDS).

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Here are highlights from Monday's Analyst Blog:

Philip Morris Not Quite on Fire

Philip Morris International, Inc. (NYSE: PMI) has a history of strong operating and financial performance. The management has a credible strategy of growing EPS in the range of 10% to 12% and returning a substantial portion of the New York-based cigarette maker's cash flow to shareholders.

The stock of Philip Morris International has only been trading since the end of March this year. However, PMI has experienced an adverse mix shift as lower margin markets have grown faster than the company's average. In addition, the company is exposed to risks from litigation, higher excise taxation, and increased smoking restrictions. Having followed the tobacco industry for two decades, the stock should trade at a slight premium to Altria's (NYSE: MO) stock, which has traded in a P/E multiple range of 6 to 18 over the last 10 years.

Cleveland Bio a Biodefense Play

Cleveland BioLabs (Nasdaq: CBLI) is a drug discovery and development company, utilizing its discoveries regarding apoptosis to treat cancer and protect normal tissues from exposure to radiation and other stresses. The Buffalo, New York company is developing its compounds for Biodefense, treatment of cancer and tissue protection due to external stress.

We are excited about the company's robust pipeline of clinical candidates, its unique positioning, and the immense market potential if the company can successfully develop and commercialize the compounds. We maintain our Buy rating on the stock with a target price of $6. We arrive at our target price by applying a P/S multiple of 8x to the 2011 revenue of $32.35 million, discounted back at 25 percent for 3 years.

Scientific Games a Good Bet

Scientific Games (Nasdaq: SGMS) has a leading position in several markets, including the instant ticket and online lottery markets. In addition, Scientific Games continues to win significant contracts in both the instant ticket and online lottery markets from both domestic and international lottery authorities.

Also, the company has made several acquisitions that have accelerated top line growth. Ron Perelman, a world-renowned private investor, owns 28.1% of the company's stock. The Buy rating is maintained.

FactSet Relies on Banking Industry

FactSet Research Systems, Inc. (NYSE: FDS) is a leading provider of global online integrated data-related products and services for the investment community (primarily bankers, investment managers and brokerage firms). The company combines information from more than 200 databases into its online service and provides tools to download and customize data for investment and portfolio analysis. FactSet generates revenue on a monthly subscription basis from its clients.

Moreover, we remain cautious of FactSet's bookings, given large losses at major financial institutions. We therefore maintain our Hold recommendation on the stock and have cut our six-month target price to $55.50.

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