Zacks Analyst Blog Highlights: Weatherford International, Ltd., Calgon Carbon Corp., Acergy S.A., PeopleSupport, Inc. and Garmin, Ltd

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: Weatherford International, Ltd. (NYSE: WFT), Calgon Carbon Corp. (NYSE: CCC), Acergy S.A. (Nasdaq: ACGY), PeopleSupport, Inc. (Nasdaq: PSPT) and Garmin, Ltd. (Nasdaq: GRMN).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579

Here are highlights from Monday's Analyst Blog:

Weatherford Raised to Buy Rating

Houston, Texas-based Weatherford International, Ltd. (NYSE: WFT) is a leading manufacturer and provider of equipment and services used in drilling, completion, and production of oil and natural gas wells.

We are upgrading Weatherford shares to Buy from Hold following the recent commodity-price induced weakness in the stock, which has made valuation very compelling for this quality oilfield name. The stock is down roughly 35% in the last 12 weeks, compared to the peer group's average of a 26% pullback and the roughly 4% decline in the broader S&P 500.

Calgon Carbon "Wait & CCC"

Calgon Carbon Corporation (NYSE: CCC) is a Pittsburgh, Pennsylvania based company that offers products and services that remove contaminants and odors from liquids and gases. About 62% of sales are to the Americas and 31% are to Europe. Its Activated Carbon chemicals remove and absorb organic compounds from liquids and gases, especially useful in the process of water purification.

Calgon is a leader in this segment, an area benefitting from higher prices and significant growth opportunities. However, the company is facing higher raw material costs, the risk of weakness in the equipment segment and high valuation. As a result, we rate the shares a HOLD. We have set a forward P/E multiple of 38.2x to arrive at our six-month target price of $21.

Acergy ADRs Upgraded to a Buy

London-based Acergy S.A. (Nasdaq: ACGY), previously known as Stolt Offshore S.A., is a leading oilfield contractor engaged in the designing, procurement, building, installation and servicing of a range of offshore surface and sub-surface equipment for the oil and gas industry. This equipment includes the above-water topsides and platforms used for processing oil and gas, pipelines, and electrical and hydraulic cables (also called umbilicals) used to control sub-sea wells.

We are upgrading Acergy to Buy from Hold on valuation grounds. The ADRs look very attractive at current levels, having dropped 47% in the last 12 weeks in response to the pullback in oil prices. In spite of some near-term challenges in the form of weak expected delays project awards and a tentative commodity-price environment, the long-term outlook for deepwater offshore activities remains very favorable.

PeopleSupport Lowered to Sell

PeopleSupport, Inc. (Nasdaq: PSPT) is positioned to benefit from the offshore business process outsourcing market. The Cincinnati, Ohio-based company's rapid revenue growth and investments production capacity in the Philippines and Costa Rica, however, has resulted in negative earnings surprises and significant near-term margin contraction.

The news drove the stock down to reasonable valuation levels, at which time the rating was raised to a Buy at $11.16. In August, the company received and accepted a $12.25 per share buyout offer. The stock has little appreciation left; therefore, the recommendation was been lowered to a Sell. The target price is $12.25, which is buyout offer PeopleSupport received and accepted from Aegis BPO.

Garmin Still Leading Its Market

Garmin, Ltd. (Nasdaq: GRMN) is an OEM [original equipment manufacturer] of GPS-based equipment. June quarter results were short of the consensus on both the top and bottom lines. All segments were up double-digits in 2007, and are expected to be up again in 2008.

Pricing pressures continue to intensify, however, negating some of the growth in units. Management is optimistic about material prices offsetting ASP pressures in 2008. We see increasing revenue and gradually decreasing profitability for the company.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.