The Zacks Analyst Blog Highlights: Goldman Sachs Group, Carlyle Group, Vale, West Pharmaceutical and Rexam
CHICAGO, Sept. 11, 2012 /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 The Goldman Sachs Group Inc. (NYSE:GS), The Carlyle Group LP (Nasdaq:CG), Vale S.A. (NYSE:VALE), West Pharmaceutical Services (NYSE:WST) and Rexam plc. (OTC:REXMY).
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Here are highlights from Monday's Analyst Blog:
Goldman to Vend Cogentrix
The Goldman Sachs Group Inc. (NYSE:GS) came up with the decision to divest its North Carolina-based Cogentrix Energy LLC, the power plant development unit, to Carlyle Infrastructure Partners, the infrastructure fund of The Carlyle Group LP (Nasdaq:CG). Financial terms of the deal, which is anticipated to be closed in the fourth quarter of 2012, remained undisclosed.
Under the terms of the deal, Carlyle will receive admittance to three coal-fired and two solar power plants in Florida, Virginia, Colorado and California, along with a development pipeline with over 550 megawatts (MW) of operational capacity. However, Goldman will hold a minority stake in one of the power plants.
With such an investment, Carlyle aims to acquire significant market share in the energy business. Carlyle will finance the deal with the help of infrastructural fund of $1.14 billion.
In 2003, Goldman purchased Cogentrix for $115 million and took over $2.3 billion in debt. Since then, Cogentrix has acquired 26 coal- and natural-gas-fired power plants. However, after the acquisition in the last decade, Goldman vended most of the plants in order to reap financial benefits from the proceedings of the sale. Moreover, through the sales, it aims to maximize the value of the remaining assets and receive commercial benefits.
Other commodity sector investments of Goldman include U.S. metals warehousing firm Metro International bought in 2010, and earlier in 2012, Goldman paid about $400 million to acquire Colombian coal mine assets from Brazil-based Vale S.A. (NYSE:VALE).
With the investment in the energy business, Carlyle strategizes to expand in a significant segment of the global economy. Working with the diligent development team of Cogentrix, Carlyle will be able to enhance its investment capabilities. Moreover, with such initiatives, development of conventional and renewable power projects across the U.S. is expected.
Goldman currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Considering the fundamentals, we also maintain a long-term 'Neutral' recommendation on the stock.
West Pharma Ties with Janssen Biotech
West Pharmaceutical Services (NYSE:WST) inked an agreement with Janssen Biotech, Inc. to develop and manufacture a leading-edge self-injection product. Per the agreement, West will market the latest self-injection technology, aptly named SelfDose.
SelfDose, developed by Janssen Biotech will meet patient needs by simplifying self-injection technology for various pharmaceutical and biologic drugs. The collaboration will enable West to enhance its existing portfolio of self-injection technology as it is under obligation to co-develop and commercialize SelfDose. Janssen Biotech's latest offering delivers advanced manual injection and complements West's ConfiDose and SmartDose injection technologies.
The agreement allows West to provide technological and regulatory support to Janssen Biotech. Management at West is optimistic about its collaboration with Janssen Biotech as the opportunity will enable the company to meet its business goals.
West's undertaking for business expansion while providing quality solutions to its consumers is rooted in this recent collaboration. According to the company, SelfDose can eliminate the problems emanating from the lack of a safe and effective medication delivery mechanism, especially when the administrator is the patient.
West is a global leader in provision of drug administration systems and components for packaging, as well as delivery of injectable drugs and delivery system components across various industries. The company has a significant competitive advantage in the market it serves. Additionally, it continues to make headway into new geographies to expand its business.
However, macroeconomic pressure across the globe remains a headwind.
West, which competes with Rexam plc. (OTC:REXMY), currently has a Zacks #2 Rank, which translates into a short-term Buy rating.
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