CHICAGO, March 22, 2011 /PRNewswire/ -- Zacks Equity Research highlights: Jones Lang LaSalle (NYSE: JLL) as the Bull of the Day and Universal Technical Institute (NYSE: UTI) as the Bear of the Day. In addition, Zacks Equity Research provides analysis Wells Fargo (NYSE: WFC), J.P. Morgan (NYSE: JPM) and Bank of America (NYSE: BAC).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
We are changing our long-term recommendation for Jones Lang LaSalle (NYSE: JLL) from Neutral to Outperform as we anticipate it to perform well above the broader market. Jones Lang reported record revenues in fiscal 2010 and expects to maintain the momentum in 2011 as well, with continued recovery in the market fundamentals.
Jones Lang LaSalle operates as a single-source provider of real estate solutions with a broad range of real estate product and services, and an extensive knowledge of domestic and international real estate markets. In addition, Jones Lang has a strong balance sheet that enables it to continually invest in value drivers that act as key differentiators against tough competition.
Our long-term Outperform recommendation on the stock indicates that it would perform well above the broader market. Our target price of $118.00, 22.9X 2011 EPS, reflects this view.
Universal Technical Institute's (NYSE: UTI) average enrollment rose 8.5% but dropped 690 basis points sequentially. The rate of fall in the new enrollments accelerated to 13% during the most recent quarter, following a decline of 5% in fourth-quarter 2010.
Management warned that enrollment of new students for fiscal 2011 will be below the prior-year level due to regulations proposed by the Department of Education, and will consequently result in a single-digit revenue growth.
Hence, we maintain our Underperform rating on the stock. We have a long-term Underperform recommendation on the stock. Our target price of $16.00, 12.5X 2011 EPS, reflects this view.
Latest Posts on the Zacks Analyst Blog:
Big Bank Dividends a Bad Idea
One of the most significant story to go unnoticed lately is the effort to effectively repeal the Dodd-Frank financial reforms by defunding any ability to implement them. This is happening less than three years after deregulation of the financial industry and a lack of desire on the part of the regulators to enforce the remaining regulations brought the world economy to its knees.
The budgets of the existing regulators such as the SEC have been slashed by the House. It remains to be seen if the Senate will go along, but if it doesn't it substantially raises the odds of a shutdown of the Federal Government. No a great idea in my book when we are involved in three separate military operations.
A government shutdown would not help market confidence and would be extremely damaging to the economy. The attitude of the GOP on these matters was summed up by the new head of the House Financial Services Committee Spencer Bachus:
"In Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks."
We had more than eight years (the Clinton Administration was also very deregulatory when it came to the Financial Services industry) where the regulators were absolutely servile to the banking industry, and the result was a disaster that devastated the lives of millions and caused the worst recession since the Great Depression. Now the attitude in D.C. is as if that never happened.
The Dodd-Frank legislation was a small step in the right direction. If the Kaufman-Brown amendment had passed, it would have been a major step in the right direction. It would have limited the size of the biggest banks and gotten rid of the "too big to fail" problem.
The immediate response in the crisis was to make the "too big to fail" problem much, much worse as Wells Fargo (NYSE: WFC) gobbled up Wachovia, J.P. Morgan (NYSE: JPM) consumed what was left of Bear Stearns and Washington Mutual, and Bank of America (NYSE: BAC) ate Countrywide and then Merrill Lynch. The reason for doing so was "any port in a storm," but the long-run problem was made far worse.
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.
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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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