CHICAGO, March 30, 2011 /PRNewswire/ -- Zacks Equity
Research highlights: Dell Inc. (Nasdaq: DELL) as the
Bull of the Day and AXIS Capital (NYSE: AXS) as the
Bear of the Day. In addition, Zacks Equity Research provides
analysis on Polycom Inc. (Nasdaq: PLCM), Cisco
System Inc. (Nasdaq: CSCO) and Logitech
International SA (Nasdaq: LOGI).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
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:
Dell Inc. (Nasdaq: DELL) reported decent fourth
quarter numbers, with earnings per share (EPS) and revenues moving
up from the year-ago quarter. New products, a stronger services
business, opportunities in the Electronic Medical Record sector,
along with the introduction of Dell Streak were the achievements of
the year.
Dell also benefited from the expanded customer base that
resulted from the Perot acquisition. The stock is trading at a
42.7% discount to the peer group based on forward earnings estimate
for 2011. Dell is currently trading at a P/E multiple of 9.2x our
fiscal 2011 EPS estimate of $1.60.
We have an Outperform rating on Dell with a target price of
$18.00, which represents a multiple
of 11.3x fiscal 2011 EPS estimate, below the industry average and
S&P 500.
Bear of the Day:
We are downgrading AXIS Capital's (NYSE: AXS)
to Underperform as we expect the company to suffer majorly from
catastrophic losses. We also believe that near-term results will
remain curtailed, given the current stress in the overall economy
and the soft pricing environment.
Though rate increases and growth opportunities have resulted in
increased premiums in the Reinsurance segment, significant growth
in the Insurance segment remains elusive.
Our six-month target price of $31.00 equates to 27.0x our earnings estimate for
2011. This implies a total negative return of 6.3% for the period
when combined with the annual dividend of $0.92. This is consistent with our long-term
Underperform recommendation on the stock.
Latest Posts on the Zacks Analyst Blog:
Videoconferencing Market Thriving
Videoconferencing and telepresence becomes utmost
necessity for large enterprises to reduce costs when the economy
has started to recover from recession. Business enterprises are
restricting their travel budgets as cost control measures. This
makes high-definition telepresence solutions a cost-induced
alternative in an increasingly interactive world. This market
stands to gain in the near future since enterprises, governments,
and educational institutions are increasingly recognizing the
productivity-enhancing benefits of video conferencing.
In a recent study, Infonetics estimated that the worldwide
videoconferencing market size will reach $5
billion by 2015. According to Infonetics, the global
videoconferencing market size was $2.2
billion in 2010, up 18% year over year. Earlier, Gartner
predicted an even rosier picture that videoconferencing market size
will reach $8.6 billion by 2015.
We believe, in the long-run, the videoconferencing solutions
market will see healthy demand as a result of several positive
industry trends, including globalization and the proliferation of
branch offices; concerns about time demand and high cost of travel;
homeland security and other government initiatives; as well as
distance learning and healthcare applications.
The two major players in this market are Polycom
Inc. (Nasdaq: PLCM) and Cisco System
Inc. (Nasdaq: CSCO), which gains a major foothold
after acquiring Tandberg TV. These two entities together commands
more than 80% of the global videoconferencing market with almost
equal share between them. However, as of now, Polycom remains the
only pure play telepresence solutions provider, which is yet to
collaborate with another company. Logitech International
SA (Nasdaq: LOGI) also joins the fray through its
acquisition of privately held LifeSize Communications Inc. Another
major player is Avaya.
Get the full analysis of all these stocks by going to
http://at.zacks.com/?id=2649.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two
stocks that are likely to outperform (Bull) or underperform (Bear)
the markets over the next 3-6 months.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides
analysis from Zacks Equity Research about the latest news and
events impacting stocks and the financial markets.
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