Zacks Bull and Bear of the Day Highlights: Kimco Realty, Pfizer, National Semiconductor and Telemar.

CHICAGO -- Zacks Equity Research highlights Kimco Realty Corp. (NYSE: KIM) as the Bull of the Day and Pfizer, Inc. (NYSE: PFE) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on National Semiconductor (NYSE: NSM) and Telemar (NYSE: TNE). Full analysis of all four stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all four stocks:

Bull of the Day:

Our Bull of the Day recommendation is for Kimco Realty Corp. (NYSE: KIM). Shopping center owners continue to increase rents at a healthy pace. KIM had another strong year; full-year 2006 FFO [funds from operations] exceeded our estimates by $0.03 per share. In response to a better-than-expected quarter, we have raised our full year 2007 estimates by $0.03 per share. The company's portfolio occupancy remains high at over 95%, and we expect continued 10%+ rate increases on new and renewal leases in 2007. We are also encouraged by increasing contributions from the company's other lines of business, including its merchant building division, mortgage-financing arm, and preferred equity program.

Bear of the Day:

Our Bear of the Day recommendation is for Pfizer, Inc. (NYSE: PFE). We continue to rate Pfizer a Sell based on a shrinking top-line and weak late-stage pipeline. The discontinuation of leading pipeline product, torcetrapib, was devastating to Pfizer's top- and bottom-line growth prospects beyond 2010. Pfizer announced (yet another) major restructuring and cost-cutting initiative in early 2007. We do not find cost-cutting and share buybacks as a viable long-term growth strategy. The company will probably seek to do multiple deals in the pharma and biotech industry in 2007. The risk of over-paying or failing to successfully integrate on these acquisitions is high. In our view, the stock does not become attractive on a dividend and cash-flow basis until the low $20s per share.

Analyst Blog:

In Q307 [third quarter of 2007, ended February], revenue for National Semiconductor (NYSE: NSM) was $431.0 million, down 14% sequentially. Including the impact of stock-based compensation, earnings came in at $0.23 per share. Both revenue and EPS [earnings per share] in the quarter were in line with our estimates. Gross margin in Q3 was 59.8%, up from 58.9% in Q2. This is due to a richer mix of high-margin analog revenue and despite a lower level of utilization versus last quarter. Because of a rise in bookings and backlog as well as balanced inventories, Q4 revenue is expected to rise 3% to 6% sequentially. We are reiterating our Buy rating and maintain our target price to $28.

We are changing our current recommendation on Tele Norte Leste Participacoes, or Telemar (NYSE: TNE), from Hold to Buy. Even though competition in the wireless and long distance segments remains fierce, the company posted better-than-expected fourth quarter of 2006 results. Moreover, we continue to have a positive view on the Brazilian economic outlook and the company's stable and strong cash flow, and good earnings growth. Finally, we believe the solid dividend yield and attractive valuation will attract investors in the short term.

Get the full analysis of all four stocks by going to http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

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