Zacks Analyst Blog Highlights: Telmex, Embratel, Lexicon Genetics, Xoma and Genentech.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: Telmex (NYSE NYSE See: New York Stock Exchange :TMX TMX Translation Memory eXchange TMX Trimix (mixture of oxygen, helium and nitrogen used by divers) TMX Tandem Mirror Experiment TMx Time Management System TMX Transparent Matrix (switch; Hekimian) ), Embratel (NYSE:EMT See Efficient markets theory. ), Lexicon Genetics (Nasdaq:LEXG), Xoma (Nasdaq:XOMA) and Genentech (NYSE:DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. ). See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2673 Here are highlights from Wednesday's Analyst Blog: Note on Telmex/Embratel This past Monday, Telmex (NYSE:TMX) announced its intention to make a cash tender offer to acquire all the shares of the Brazilian company Embratel (NYSE:EMT) it doesn't already own. Telmex offered R$ 6.95 per share (US$16.79 per ADR ADR - Astra Digital Radio ), above Monday's closing price of R$5.53 (US$13.50 per ADR). About 28% of total shares are at stake, which values the deal at about R$915 million (US$440 million). The offer is subject to approval by a regulator in Brazil. The deal was unexpected and the market reacted aggressively, with the Embratel ADR appreciating more than 19% in just one day. We do believe that the deal is very positive for stockholders, since the company is facing some short-term problems, and the growth potential remains in the medium- to long-term. We believe Telmex will find no problems to get the approval for the deal from both Brazilian authorities and the stockholders. We will be issuing a new report in the following days, but we are keeping our Hold recommendation since the stock price already reacted and the upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar now is limited. Buy Rating on Lexicon Genetics Lexicon Genetics, Inc. (Nasdaq:LEXG) is focused on defining the functions of genes using the "gene knockout  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. " technology. Through this technology, the company disrupts the function of genes in mice to identify points of therapeutic intervention or drug targets. The company is currently engaged in research and development of small molecule drugs in a broad area of diseases. We are pleased with the progress made by the company with its "gene knockout" technology, and expect at least one compound to move into clinical trials this year. We believe 2006 will be a catalyst-filled year for the company. We maintain our Buy rating with a $6.50 target. We see the Genome5000 target identification platform as a viable discovery tool, which should allow the company to continue to receive and grow its research alliance revenues. We were pleased to see the recent deals with Organon or·ga·non or or·ga·num n. pl. or·ga·nons or or·ga·nums or or·ga·na 1. An organ. 2. A set of principles for use in scientific investigation. organon pl. organa [Gr.] organ. and Xoma (Nasdaq:XOMA), and the expansion of a previous Genentech (NYSE:DNA) agreement. We believe the company will enter into several such agreements in 2006, which should help drive top-line growth. We are currently modeling total revenue of $82.8 million for 2006. The fundamentals of the company still look strong, and the shares are attractive on a Price/Sales ratio Price-to-sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the company's revenue in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share , trading at only 4.0 x sales, versus a peer-group average of around 10 x. We believe that Lexicon shares trade at this discount, due to the early stage nature of its pipeline products and lack of a meaningful push toward profitability before 2010. However, we believe that Lexicon shares do offer upside at the current level, particularly if it is able to execute drug development programs as planned. We therefore assign a Buy rating to LEXG shares with a target price of $6.5 per share, which is based on 5x 2006 total revenues. 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. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this free newsletter today by visiting http://at.zacks.com/?id=2674. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. 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