CHICAGO, Aug. 15, 2011 /PRNewswire/ -- Zacks Equity Research highlights Optimer Pharmaceuticals (Nasdaq: OPTR) as the Bull of the Day and Unisys Corp. (NYSE: UIS) as the Bear of the Day. In addition, Zacks Equity Research provides analysis Wells Fargo & Co. (NYSE: WFC), JPMorgan Chase & Co. (NYSE: JPM) and Bank of America Corp. (NYSE: BAC).
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Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.
Here is a synopsis of all five stocks:
Optimer Pharmaceuticals' (Nasdaq: OPTR) second quarter 2011 loss per share of $0.52 was wider than the year-ago loss, but we are encouraged by the FDA approval and subsequent launch of Dificid, an antibiotic which treats a condition known as CDAD. Dificid scores better than currently available treatment options on many parameters.
Particularly, we believe the inclusion of superior recurrence benefits over Vancocin in the product label will provide valuable benefit and help Dificid sales. Further, the deals with Cubist and Astellas are positive for Optimer as it will benefit from their experience in marketing hospital-based antibiotics.
Thus, we have an Outperform recommendation on Optimer with a target price of $9.00. Optimer also currently carries a Zacks #1 Rank (Strong Buy).
Unisys Corp. (NYSE: UIS) recently reported second-quarter results that were impacted by the continued weakness in the U.S. Federal business and lower ClearPath sales. Although Unisys has recently been restructuring its business to improve profitability, we do not see any catalyst driving the stock higher in the near-term.
Estimates have moved lower of late. Based on a bleak outlook in the coming quarters, we downgrade our recommendation to Underperform from Neutral.
Accordingly, we set a target price of $16.00, derived by applying a P/E multiple of roughly 5.4x our 2011 EPS estimate of $2.97. Unisys currently carries a Zacks #5 Rank (Strong Sell).
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Home Loans Call for Legal Safety
In recent quarters, U.S. banks are struggling with legal issues related to mortgage-backed securities issued during the financial crisis. Consequently, the Securities and Exchange Commission (SEC) and other U.S. regulators are proactively trying to recover losses through lawsuits against banks that were involved in malpractices related to selling mortgage-backed securities.
As a safety measure, the Consumer Financial Protection Bureau (CFPB) is working on a proposal to persuade banks to offer straightforward loans by providing a legal protection, so that uncertainty of principal repayments is minimized. The consumer agency is anticipated to issue final regulations by early 2012.
The proposal follows banks' demand for legal protection as they faced significant legal troubles during the recession. Without any legal protection, banks would hesitate to provide loans. As a result, loans would be expensive and the credit availability to consumers will also reduce.
Large banks such as Wells Fargo & Co. (NYSE: WFC), JPMorgan Chase & Co. (NYSE: JPM) and Bank of America Corp. (NYSE: BAC) have submitted letters to the board asking for specifications regarding legal protection in providing loans.
In January 2011, a proposed rule on the related matter was issued by the Federal Reserve. Effective from July 2011, the board transferred the jurisdiction to CFPB with the primary mission of convincing financial institutions, primarily banks and mortgage lenders, for providing consumers with the information they need to make proper decisions about credit, mortgages and loans.
The CFPB was initiated to offer security to consumers from deceptive practices of financial institutions and make financial rules more effective. The banks are in demand of strong legal safety for future high-quality loans.
Implementation of the final rules will clear the picture and help banks in taking decisions related to lending. This would, in turn, help investors as well.
Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.
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