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Analog Devices, TOTAL S.A., General Motors, Ford and Toyota

^{Published on 2010-07-09 16:25:38 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights Analog Devices (NYSE: [ ADI ]) as the Bull of the Day and TOTAL S.A. (NYSE: [ TOT ]) the Bear of the Day. In addition, Zacks Equity Research provides analysis on General Motors (OTC: [ MTLQQ ]), Ford Motor Co. (NYSE: [ F ]) and Toyota Motor Corp (NYSE: [ TM ]).

Full analysis of all these stocks is available at [ http://at.zacks.com/?id=2678 ].

Here is a synopsis of all five stocks:

[ Bull of the Day ]:

Analog Devices (NYSE: [ ADI ]) is a leading supplier of analog and DSP integrated circuits. The company's April quarter earnings exceeded the Zacks Consensus estimate, driven by particularly strong demand for all major products sold into the industrial and automotive markets.

We expect the strength to continue through 2010, as consumer and computing markets gain further momentum. Cash flow also remains impressive. Although we see competitive pressures and capex cuts in China impacting results near-term, we believe Analog Devices has turned the corner.

ADI shares are trading at 12.7X our estimated earnings for fiscal 2010, compared to 17.5X for the peer group, a significant discount. Consequently, we are upgrading ADI shares from Neutral to Outperform.

[ Bear of the Day ]:

TOTAL S.A.'s (NYSE: [ TOT ]) weak near- to medium-term production outlook and the risks related to the present constrained commodity environment have led us to downgrade the long-term recommendation for the stock to Underperform from Neutral with a target of $42.00.

In the near term, oil prices are expected to remain weak due to moderation of global oil demand in general and China in particular. All this will bring down production and affect refining margins, leading to poor financial performance by the company.

We are also concerned about the company's high level of capital spending, which may result in reduced returns going forward.

Latest Posts on the Zacks [ Analyst Blog ]:

GM to Sell Steering Biz

General Motors (OTC: [ MTLQQ ]) has announced to sell its Saginaw, Michigan-based Nexteer steering business to China-based Pacific Century Motors. Pacific Century Motors is a joint venture between Beijing-based auto components supplier Tempo Group and E-Town, the financing and investing arm of the Beijing municipal government.

None of the parties have disclosed the terms of the deal. However, some sources have revealed that the Nexteer Automotive unit will be sold for about $450 million.

In October last year, GM acquired the Nexteer steering manufacturing unit from its former subsidiary, Delphi Corp., as a part of the lattera™s bankruptcy filings. Delphi was GM's parts-making unit until it was spun off as an independent entity in 1999. However, GM planned to sell off the unit in order to concentrate on its four core brands: Chevrolet, Cadillac, GMC and Buick.

The new GM was formed after emerging from bankruptcy on July 10, 2009 through the acquisition of substantially all the assets and certain liabilities of Motors Liquidation Company or the old GM. The new GM retained the four core brands, along with most of its overseas operations, and dropped the Saturn, Saab, Pontiac and Hummer brands.

Nexteer has 22 steering and halfshaft manufacturing facilities, 6 engineering facilities and 14 customer support centers spread across North and South America, Europe and Asia. Its customers include Fiat SpA, Ford Motor Co. (NYSE: [ F ]), Toyota Motor Corp (NYSE: [ TM ]), Chrysler Group LLC and PSA Peugeot Citroen, apart from GM itself. It also supplies to some automakers in China, India and South America.

Get the full analysis of all these stocks by going to [ http://at.zacks.com/?id=2649 ].

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