Zacks Analyst Blog Highlights: CME Group, InterContinental Exchange, Solectron Corp. and Flextronics.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: CME CME See: Chicago Mercantile Exchange CME See Chicago Mercantile Exchange (CME). Group (NYSE NYSE See: New York Stock Exchange : CME), InterContinental Exchange (NYSE: ICE), Solectron Corp. (NYSE: SLR (1) (Scalable Linear Recording) A line of magnetic tape drives from Tandberg Data that evolved from the QIC Data Cartridge format. See QIC. (2) (Single Lens Reflex) A camera that uses the same lens for viewing and shooting. ) and Flextronics (Nasdaq: FLEX). See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673 Here are highlights from Tuesday's Analyst Blog: Merger Assists CME Report 2Q07 earnings came in at $ 3.57 per share for CME Group (NYSE: CME), two pennies ahead of revised consensus, but short of our estimate for the quarter. Growth remained solid with the CBOT-CME merger supporting the stock prices. Revenue came in lower than estimated, owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de lower average rate per contract; though expense control remains exemplary at CME. The merger will be dilutive to EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. [earnings per share] in 2007, but will add significantly further on. As such, we have moderated our estimates for the remaining two quarters of 2007. We view the $3.44 annual dividend as secure. We are reiterating our Hold on CME. However, we are bumping our target price to $580 per share prior to the company issuing financial guidance for the combined entity during 3Q07. On July 6, 2007, CME raised its offer for CBOT See Chicago Board of Trade. CBOT See Chicago Board of Trade (CBOT). , the best and final bid offered CBOT shareholders a stock exchange ratio of 0.375, up from a prior proposal of 0.350. The revised terms mean that the CBOT shareholders would receive 36.2% of a combined company, up from 34.6%. As of closing prices on that date, CME's bid was worth about $11.9 billion, versus InterContinental Exchange's (NYSE: ICE) offer of $11.8 billion. On July 12, 2007, CME and CBOT announced the completion of the merger of their companies. The combined company, CME Group Inc., will trade on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and NASDAQ under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors CME. Acquisition Should Help FLEX With the announced acquisition of Solectron Corp. (NYSE: SLR), we believe Flextronics (Nasdaq: FLEX) will be a consolidator of the industry given its relatively strong competitive position and size. We believe that the industry revenue growth is stagnating and consolidation will continue for the foreseeable future. Although we are negative on the industry as a whole, we rate Flextronics a Hold given its leadership position. We maintain our six month target price of $12.00. With continued weakness in residential real estate, the consumer business is likely to remain weak, which could pose a risk for FLEX as 20% of its revenue currently comes from the consumer business. Europe has demonstrated weakness for the past year, but is the only region showing year-over-year declines for Flextronics. Further, in the ODM (Original Design Manufacturer) A contract manufacturer that uses its own designs and intellectual property (IP). See contract manufacturer. [original design manufacturing] market, competition is intensifying rapidly. See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645 About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis Qualitative Analysis Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations. to help investors know what stocks to buy and which to sell for the long-term. Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons. Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. 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