Zacks Analyst Blog Highlights: Canadian Pacific Railway, Univision Communications, Grupo Televisa and Tekelec, Inc.

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: Canadian Pacific Railway (NYSE:CP), Univision Communications (NYSE:UVN), Grupo Televisa (NYSE:TV) and Tekelec, Inc. (Nasdaq:TKLC).

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

Here are highlights from Wednesday's Analyst Blog:

CP Makes Deal with Steelworkers

Late yesterday, Canadian Pacific Railway (NYSE:CP) and the United Steelworkers (USW), representing 1,500 clerical workers and employees at intermodal facilities across Canada, reached a tentative three-year agreement that will take effect January 1, 2007 and extend until the end of 2009, once ratified. The tentative settlement includes improvements to wages and benefits as well as a number of work rule changes that will enhance work/life balance while, at the same time, help to improve productivity and manage costs.

CP closed up $0.37, or almost 1%, to $48.78 yesterday. We continue our Hold recommendation on Canadian Pacific Railway.

Univision Announcement

Univision Communications (NYSE:UVN), the biggest Spanish speaking U.S. television network, announced yesterday that a group of investors led by the well-known media investor Haim Saban will acquire the company for US$12.3 billion, representing US$36.25 per share. The group led by Mr. Saban includes Madison Dearborn partners, Providence Equity Partners, Texas Pacific Group, Thomas H. Lee Partners, and Saban Capital Group.

We were disappointed by this announcement, since we thought the Mexican media Grupo Televisa (NYSE:TV) would acquire Univision. In fact, Televisa already has 11.4% of the capital of Univision and made a bid to pay US$35.75 per share for the control of the company. I thought it would be really important for Televisa to make this deal, in order to become the undisputed leader of the fast growing Spanish media market in the U.S. After the deal, Televisa made a public announcement stating that Televisa "has a number of alternatives that it is considering." Televisa is already waging a legal battle against Univision concerning the supply of TV programs. Additionally, Televisa may launch a competing TV network in the U.S., or even make a new bid for the company. I believe the Univision deal is not over yet; many things will happen in the following weeks. Even though we were disappointed by the announcement, we still have a positive short-term view on Televisa, and we keep our Buy recommendation on the stock.

Tekelec Upped to Hold

Tekelec, Inc. (Nasdaq:TKLC), a provider of telecom equipment solutions to carriers, recently announced financial reporting delays which, in our opinion, have been the primary catalyst for the company's valuation decline. Although the company has taken restructuring initiatives to streamline costs, we still lack visibility related to operational performance and new growth opportunities of the company.

We are also concerned that the company's acquisitions may have resulted in unexpected complexity pertaining to financial accounting for the consolidation. We are upgrading our previous Sell recommendation to a Hold rating based on reaching our $12 valuation target, but still remain cautious about timing uncertainty of audited financial information and the lack of earnings visibility in the near term.

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

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