The Zacks Analyst Blog Highlights: Citigroup, J.P. Morgan Chase, Goldman Sachs Group, Toyota Motor and Honda Motor

CHICAGO, June 8, 2011 /PRNewswire/ -- 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: Citigroup Inc. (NYSE: C), J.P. Morgan Chase & Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS), Toyota Motor Corp. (NYSE: TM) and Honda Motor Co. (NYSE: HMC).

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Here are highlights from Tuesday's Analyst Blog:

Citi Planning Brazil Expansion

Citigroup Inc. (NYSE: C) is planning to expand its business in Brazil and intends to add around 50 branches in the country by 2015. This would increase its current network, which stands at 103 branches in Brazil in an effort to increase its checking-account holders by 80% through 2015, according to a Bloomberg report that referred to a Sao Paulo-based Valor Economico newspaper report.

The expansion is a strategic fit for Citi, which is aiming to grow its business in international markets, particularly in the emerging economies. The company's core business unit, Citicorp, generated 62% of its revenues and 72% of its net income from its international operations in the first quarter of 2011.

Citi has stepped up hiring activity in Brazil to drive growth and capitalize on trade improvement and higher cash inflows in the country. Brazil had witnessed an increase in merger and acquisitions volume, equity and debt issuance in 2010, providing enough ground for Citi to leverage them for growing its business.

Last week, Citi also announced plans of entering into definitive agreements with China's Orient Securities Company Ltd to form a securities joint venture to operate in the Chinese domestic market. The joint venture in which Citi will own 33% stake and Orient will own the remainder, will engage in investment-banking business in the Chinese domestic market, including equity and debt underwriting and advisory services.

With this, Citi joined other Wall Street biggies such as J.P. Morgan Chase & Co. (NYSE: JPM) and Goldman Sachs Group Inc. (NYSE: GS) to foray into the Chinese market with joint ventures.

We believe that such strategic expansions and partnerships will enhance Citi's global network going forward and boost its revenue base by leveraging on faster-growing emerging economies, thereby increasing its market share internationally.

Citi currently retains its Zacks #3 Rank, which translates into a short-term Hold rating. Also, considering the fundamentals, we maintain a long-term Neutral recommendation on the stock.

Toyota's New Prius Creates Frenzy

Toyota Motor Corp. (NYSE: TM) has decided to boost monthly output of its new Prius hybrid wagon, Prius Alpha, to about 70% above its initial target due to escalating orders for the vehicle. The automaker will raise monthly output to 5,000 units from 3,000 units to shorten the waiting period for the customers.

Prius Alpha is a hatchback wagon that is derived from the third generation Prius model. It features over 50% more cargo space compared with its predecessor and boasts of a fuel economy of 42 miles per gallon (mpg) in the city and a 38 mpg on the highway.

The 5-seater version of Prius Alpha, Prius V, was debuted in Japan on May 13. Priced at ¥2.35 million ($29,000), the vehicle is equipped with nickel-metal hydride (NiMH) batteries like its predecessor.

Toyota plans to start selling Prius V in North America within a year. It also plans to sell the 7-seater version of Prius Alpha in Europe as Prius+ in mid-2012.

Prius+ will be priced at ¥3 million ($37,000) in Japan. It will be equipped with lithium-ion (Li-on) batteries that take less space, allowing for more cabin room. Li-on batteries will be used for the first time in a Toyota hybrid. The automaker intends to sell 2,000 units of the new Prius per month in North America and 2,000 units per month in Europe.

Toyota, a Zacks#3 Rank (Hold) stock, posted a profit of ¥408.18 billion ($5.07 billion) or ¥130.16 ($1.60) per share for its fiscal 2011, ended March 31, 2011, that almost doubled from ¥209.46 billion or ¥66.79 per share a year ago.

The increase in profit was attributable to positive impact of ¥490.0 billion due to marketing efforts and ¥180.0 billion due to cost reduction measures, partially offset by a negative impact of ¥110.0 billion due to the earthquake in Japan and ¥290.0 billion due to unfavorable exchange rates.

Consolidated revenues in the fiscal year rose marginally by 0.23% to ¥18.99 trillion ($235.80 billion) from ¥18.95 trillion, driven by a growth in unit sales in Asia (28%) and Other regions (15%), offset partially by a decline in unit sales in Japan (11.5%), North America (3%) and Europe (7%). Total unit sales increased 0.98% to 7.31 million units during the fiscal year.

Meanwhile, Toyota's domestic competitor, Honda Motor Co. (NYSE: HMC) revealed a 38% fall in profit to ¥44.55 billion ($536 million) or ¥24.72 per share (30 cents per share) in the fourth quarter of the fiscal year ended March 31, 2011 from ¥72.18 billion or ¥39.78 per share in the same quarter of prior fiscal year.

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