Zacks Bull and Bear of the Day Highlights: Medivation, American International Group, Tech Data, Apple and Google
CHICAGO, Nov. 7, 2011 /PRNewswire/ -- Zacks Equity Research highlights Medivation, Inc. (Nasdaq: MDVN) as the Bull of the Day and American International Group (NYSE: AIG) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tech Data Corp. (Nasdaq: TECD), Apple Inc. (Nasdaq: AAPL) and Google Inc. (Nasdaq: GOOG).
Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
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Here is a synopsis of all five stocks:
Medivation, Inc. (Nasdaq: MDVN) shares received a major boost recently with the company and its partner, Astellas, reporting impressive data on MDV3100 from a pre-specified interim analysis of a phase III study, AFFIRM. The Independent Data Monitoring Committee (IDMC) recommended that MDV3100's risk-to-benefit ratio was favorable enough to stop the study.
Medivation and Astellas intend to conduct a pre-NDA meeting with the FDA in early 2012. We believe the companies will file for regulatory approval of MDV3100 soon thereafter and expect MDV3100 to hit the market in 2013.
Based on the data that we have seen so far, we believe MDV3100 has blockbuster potential and will be a game-changer for Medivation. We are upgrading Medivation to Outperform based on the improved prospects of the company.
American International Group's (NYSE: AIG) third-quarter loss came in significantly worse than the Zacks Consensus Estimate and year-ago quarter based on weak global cues, sluggish insurance dynamics and consistent cash outflow. Although some stability was witnessed in core operations, it failed to evade the book value per share reduction.
The lock-in period for stock offering further holds back the attainment of capital flexibility in the near term. Higher restructuring charges and increasing losses from catastrophes, underwriting and investments along with adverse reserve developments are also negatively affecting the stock price. Asset disposals and repayment of a chunk of debt appears to be favorable for the new stock buyback program.
AIG is poised to accentuate its operating and capital leverage upon dilution of government stake, though it is a far-fetched goal due to the absence of any growth catalyst. Risks of execution amid intense competition also prevail.
Latest Posts on the Zacks Analyst Blog:
Tech Data's New App for Apple
Information technology (IT) products distributor, Tech Data Corp. (Nasdaq: TECD) recently launched a new mobile application known as accessTD, exclusively for Apple Inc.'s (Nasdaq: AAPL) iPhone, iPod touch and iPad.
Customers and resellers will be able to access the major features of techdata.com, Tech Data's official website, through accessTD, including product searches, pricing and availability information, order tracking, quoting and ordering.
Currently, Apple users in the United States can access the new mobile application by downloading it from the App Store for free, by logging in through their techdata.com account. Tech Data is expected to launch the new application in Canada by next month.
The mobile application is expected to improve the distribution of Tech Data products to its resellers. We believe the new application will improve Tech Data's competitive position and expand its reach going forward. Currently, Apple's iPhone, iPod and iPad are some of the highest selling devices worldwide. Cumulatively, Apple sold approximately 75 million devices in fiscal 2011, ending September 30.
The new mobile application also reflects the growing importance of mobile commerce (M-Commerce). In the US, m-commerce revenues are expected to touch the $6.0 billion mark by the end of 2011 and are forecasted to reach $31 billion by 2016, according to Forrester Research. According to a survey by Forrester, 48% of US retailers had a mobile-optimized website; 35.0% had deployed an iPhone app; 15.0% deployed Google Inc.'s (Nasdaq: GOOG) Android app and 15.0% had deployed an iPad app.
Recommendation
We expect the strong demand trend for IT to boost the company's top-line growth going forward. Moreover, aggressive share repurchase will also drive earnings growth, in our view. However, increasing competition, industry wide pricing pressure and narrow margins will remain headwinds for Tech Data going forward.
We, maintain our long-term Neutral recommendation on the stock. Currently, the stock holds a Zacks #3 Rank, implying a short-term Hold rating.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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