CHICAGO, Jan. 10, 2012 /PRNewswire/ -- 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 Brightpoint Inc. (Nasdaq: CELL), AT&T Inc. (NYSE: T), Research In Motion Ltd. (Nasdaq: RIMM), Apple Inc. (Nasdaq: AAPL) and Nokia Corp. (NYSE: NOK).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday's Analyst Blog:
Brightpoint Upgraded to Outperform
We upgrade our recommendation on Brightpoint Inc. (Nasdaq: CELL) to Outperform based on the fact that the galloping demand for high-end smartphones and tablets throughout the world will drive the company's valuation level higher in the near future. We believe the long-term business prospect of Brightpoint remains intriguing buoyed by the growing demand for high-end pocket digital assistances globally. Newly owned distribution contracts coupled with effective cost control strategies are likely to pave the way for Brightpoint's future earnings growth.
We believe the termination of the proposed merger between AT&T Inc. (NYSE: T) and T-Mobile USA is a major respite for Brightpoint. Logistic services are the high-margin business for Brightpoint. T-Mobile USA is one of the largest logistic customers generating around 20% of the company's total logistic revenue. Logistic services generate only 9%-10% of Brightpoint's total revenue, but command 49%-50% of gross margin. In contrast to T-Mobile, AT&T outsourced its activation services to Synchronous Technologies. If this acquisition takes place, AT&T may not continue with Brightpoint, which could significantly reduce both the top line and bottom line of the company.
Brightpoint has a solid global customer base. Management continues to seek new operational initiatives that foster improved customer handling of handsets, in particular PDA's, data cards and 3G wireless devices. The company entered into agreements with large telecom equipment and services corporations, such as Research In Motion Ltd. (Nasdaq: RIMM), HTC Corp, Apple Inc. (Nasdaq: AAPL), and Nokia Corp. (NYSE: NOK), for the distribution of handheld devices. Furthermore, the stock price is currently trading at attractive multiples with respect to several valuation metrics compared with both the S&P 500 average and its peers.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis 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 this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.
Share this article