Zacks Bull and Bear of the Day Highlights: Brookfield Infrastructure Partners, Bunge, Teva Pharmaceutical Industries, Shire and Bayer
CHICAGO, Feb. 22, 2013 /PRNewswire/ -- Zacks Equity Research highlights Brookfield Infrastructure Partners (NYSE: BIP) as the Bull of the Day and Bunge Limited (NYSE: BG) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Teva Pharmaceutical Industries Ltd. (NYSE: TEVA), Shire (Nasdaq: SHPG) and Bayer (OTC:BAYRY).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Founded in 2007, Brookfield Infrastructure Partners (NYSE: BIP) is a global owner and operator of high quality infrastructure assets in utilities, transportation, energy and timber businesses. Based in Bermuda, the partnership owns holding corporations in the U.S., Canada and other jurisdiction.
The high quality, long life assets allow the partnership to generate solid and consistent cash flow. Brookfield Infrastructure Partners L.P. is a subsidiary of Brookfield Asset Management Inc. The company has a market capitalization of ~$8 billion and is traded on NYSE and TSX exchanges.
The board of directors of Brookfield Infrastructure Partners approved to increase the quarterly cash distribution rate to $0.43 per unit, a 15% increase from $0.375 distributed in the previous quarter.
The company has an excellent track record of distribution growth—compound annual growth of over 10% over past five years and has a very attractive distribution yield of ~4.5% currently.
Further, the distributions are backed by stable cash flows as 85% of the cash flows are generated from regulated business or long-term contacts.
Bunge Limited (NYSE: BG), based in White Plains, NY, is a leading agribusiness and food company with integrated operations all over the world—in about 40 countries. It is a global leader in oilseed processing, and grain & oilseed marketing. The company has four business segments 1) Agribusiness, 2) Sugar & Bioenergy 3) Food & Ingredients and 4) Fertilizers.
The company came out with its IPO in 2001 and has expanded though many significant acquisitions since then.
BG released its results for the fourth quarter of 2012 on February 7, 2013. The quarter resulted in a loss of $1.99 per diluted share from continuing operations, before adjustments.
Disappointing results were mainly due to weak performance by the Agribusiness segment and a loss in the Sugar & Bioenergy segment. Rising corn costs, foreign exchange losses and weak global economic conditions hurt the results.
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FDA Approves Teva's Generic Adderal
Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) recently announced that it has gained US Food and Drug Administration (FDA) approval for its generic version of Shire's (Nasdaq: SHPG) Adderall XR capsules (5mg, 10mg, 15mg, 20mg, 25mg and 30 mg).
According to IMS, Adderall XR, which is approved for the treatment of attention deficit hyperactivity disorder, delivered annual sales (both branded and generic) of about $2 billion in the US as of Dec 31, 2012.
Teva already sells a generic version of Adderall XR under a 2006 license and distribution agreement with Shire. Per the terms of the agreement, Shire has to supply product to Teva through Apr 1, 2014.
With the FDA granting final approval, Teva can now remain in the Adderall XR market even after the expiry of its supply agreement with Shire.
Teva currently carries a Zacks Rank #3 (Hold). The company, which is going through a transition period, provided disappointing guidance for 2013. However, with the company not including the impact of its cost-savings plan in its guidance, we believe Teva is leaving some room for delivering above expectations. Share buybacks also leave some room for upside.
We expect investor focus to remain on the execution of the company's new strategy. Earlier this year, Teva sold off its animal health business in the US to Bayer (OTC:BAYRY). This will allow the company to focus on developing, manufacturing and marketing branded and generic drugs globally -- Teva's primary areas of strength.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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