Zacks Analyst Blog Highlights: Alkermes, Hewitt Associates, Bank of America and TOTAL S.A.

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: Alkermes, Inc. (Nasdaq: ALKS), Hewitt Associates (NYSE: HEW), Bank of America (NYSE: BAC) and TOTAL S.A. (NYSE: TOT).

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

Here are highlights from Wednesday's Analyst Blog:

Alkermes' Target Price Set at $20

Alkermes, Inc. (Nasdaq: ALKS) is a drug delivery biotech company which utilizes specialized drug delivery technologies to develop drugs for the treatment of some major diseases. Its expertise in the area of drug delivery has allowed it to develop a pipeline of extended-release injectable and pulmonary drug products for the healthcare industry.

The company has two products on the market, and we are optimistic about a number of mid- to late-stage candidates. Alkermes achieved profitability in fiscal 2007, and we expect to see strong top-line growth in the coming years. We maintain our Buy rating on Alkermes shares with a target price of $20.

High Valuation on Hewitt Shares

While Hewitt Associates (NYSE: HEW) is the clear leader in the emerging human resources BPO (business process outsourcing) market, near term results continue to be negatively impacted by the up-front costs as the company develops this business niche. In addition, revenue declined in fiscal 2006, primarily due to the loss of the Bank of America (NYSE: BAC) contract.

Also, the acquisition of Exult has compressed the company's overall margin. The stock appears overvalued on depressed earnings from business development upfront costs; hence, the stock is rated a Sell.

Hewitt Associates is currently selling at 25.2 times trailing 12-month EPS [earnings per share]. Over the last few years, the stock has traded in a wide P/E [price-to-earnings] range of 16 to 26. Management believes earnings will continue to be negatively impacted by expenses throughout fiscal 2007 and in fiscal 2008.

TOTAL Firing on All Cylinders

We maintain our Buy rating on TOTAL S.A. (NYSE: TOT) ADRs after the company reported first quarter results. We continue to like the company for its positive production-growth profile, attractive returns, and an improving outlook for the refining and chemical businesses.

We also like the company's active share buyback program and the 16% increase in the interim dividend. Although growth in production is still lower than its peers, we expect momentum to accelerate in the coming quarters.

TOTAL has consistently produced above-average results in terms of production growth, reserve replacement ratios as well as finding and development (F&D) costs. While most of its super major peers are finding it difficult to achieve any upstream growth, TOTAL is producing robust upstream growth performance. This impressive growth momentum continued in the 2006. TOTAL's five-year average reserve replacement ratio and F&D costs are some of the best in the industry.

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

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