Zacks Analyst Blog Highlights: Celgene Corp., Cytori Therapeutics, CAI International, Inc., Sinopec and Smith Micro Software, Inc

Business Wire, Jan 5, 2009

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: Celgene Corp. (NASDAQ: CELG), Cytori Therapeutics (NASDAQ: CYTX), CAI International, Inc. (NYSE: CAP), Sinopec (NYSE: SNP) and Smith Micro Software, Inc. (NASDAQ: SMSI).

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Here are highlights from Friday's Analyst Blog:

Celgene's Healthy Outlook

Celgene Corp. (NASDAQ: CELG) is a fully integrated biotechnology company focused on discovery, development and commercialization of drugs in the area of cancer and immune/inflammatory diseases.

The acquisition of Pharmion brings three medically meaningful products -- Thalomid, Revlimid and Vidaza -- into market, which will drive growth in 2009 and beyond. The myelodysplastic syndrome (MDS) market will be dominated by Celgene with complementary Vidaza and Revlimid, although Revlimid and Thalomid face tough competition in the multiple myeloma (MM) market.

Also, its strong balance sheet and deep pipeline will provide long-term growth for the company. Our price target is $70.

Buy Cytori Therapeutics to $8

This is clearly an exciting time for Cytori Therapeutics (NASDAQ: CYTX), as the company has begun to record product sales revenues from early-adopter Celution System placements in Europe and Asia.

Additionally, sales of StemSource cell banking are also now beginning to ramp. Ultimately, the clinical data will determine the pace at which the ramp continues in the next several years. We have been encouraged by the small clinical data seen so far using Cytori's technology.

CAI Int'l Staying Contained

Founded in 1989, CAI International, Inc. (NYSE: CAP) is the one of the world's largest intermodal container leasing and management company, with roughly a 6% market share of the worldwide leased container fleet. This consists of standardized steel boxes used to transport cargo by a number of means, including ship, truck, and rail.

We are maintaining our diluted EPS estimates at $1.31 for 2008 and $1.35 for 2009. We are continuing our Hold on CAI International, but cutting our target price to $3.25. CAP pays no common dividend.

Sinopec Relies on Chinese Market

We are maintaining our Hold recommendation on China Petroleum & Chemical Corp., or Sinopec (NYSE: SNP) ADRs ahead of fourth-quarter results. While the stock has dropped in the current downturn, it still trades at a premium to its Chinese and other emerging market oil peers.

Sinopec's leverage to the lucrative Chinese market is expected to help sustain its growth momentum. But market-distorting fuel price caps and heavy taxes offset most, if not all, of the Chinese market positives, in our view.

Additionally, extent of the slowdown in the Chinese market, in response to the global economic weakness, still remains uncertain. Our target price is $62 per share.

Smith Micro Keeps Its Buy Rec

Smith Micro Software, Inc. (NASDAQ: SMSI) is a developer of wireless communications software and utility software for multiple OS platforms. It has significant relationships with several large cellular providers and OEM cell phone manufacturers.

We remain encouraged by the company's recent results and strong brand recognition. However, we believe the weakening macro environment and declining consumer spending is likely to slowdown its main segment, Connectivity.

We therefore lower our estimates for 2009. Our rating remains a BUY with a lower six month target price of $8.50.

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