Zacks Analyst Blog Highlights: Acadia, Allergan, Sepracor and Chevron.

CHICAGO -- 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: Acadia Pharmaceuticals (Nasdaq: ACAD), Allergan (NYSE: AGN), Sepracor (Nasdaq: SEPR) and Chevron Corporation (NYSE: CVX).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Thursday's Analyst Blog:

Target $16 on ACAD Shares

Among all the biotechnology stocks currently covered by senior pharmaceuticals analyst Jason Napodano, CFA, not many have the potential to perform as well over the next six months as Acadia Pharmaceuticals (Nasdaq: ACAD). Here are some of the reasons why:

"Acadia Pharmaceuticals is expected to release phase IIb data on ACP-103 in combination with antipsychotic drugs risperidone and haloperidol during the first quarter. We expect the results to be mixed, with enough positive trends observed to allow Acadia to continue the program and seek a partner for phase III.

"Regardless of the outcome of the phase IIb trial, we continue to rate shares of Acadia a Buy with a price target of $16. The outcome of the trial will determine just how quickly our target is achieved.

"The trial fully enrolled in October 2006 and the last patient completed enrollment in December 2006. Based on the necessary time needed to complete follow-up analysis and compile the statistical data, we expect the results to come in the end of the first quarter 2007.

"We recommend investors purchase the name at the current level despite the chance that the phase IIb trial may fail and Acadia could trade to $5. At that price, we would continue to recommend the name as a long-term play in the small-cap biotechnology market thanks to many more shots on goal with ACP-103 in PD psychosis, sleep maintenance insomnia, ACP-104 in schizophrenia, ACP-105 in muscle wasting conditions, and collaborations with Allergan (NYSE: AGN) and Sepracor (Nasdaq: SEPR). If the phase IIb trial is positive, we would expect the shares to trade above $10 in the near-term as investor confidence in the rest of the pipeline increases."

Chevron Downgraded to Hold

After nearly two-and-a-half years of a Buy rating on shares of Chevron Corporation (NYSE: CVX), Zacks senior oil and gas analyst Sheraz Mian now lowers his recommendation to Hold. His recent research report helps explain why:

"We are downgrading Chevron to Hold from Buy as we do not see any near-term catalyst that can push the stock price above our earlier $75 price objective. While Chevron no doubt has a fairly impressive inventory of development projects that will drive volume gains and reserve additions in the long run, it does not compare favorably with its peers in the near to medium term.

"This lack of near-term growth prospects, coupled with its fair valuation, particularly following its recent strong run up, account for our downgrade. We have reduced our 2007 EPS [earnings per share] estimate ($7.45 vs. $8.10) on lower volume assumptions. We have also introduced our 2008 EPS estimate at $7.32."

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

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