Here are highlights from Monday's Analyst Blog:

Weatherford Raised to Buy Rating

Houston, Texas-based Weatherford International, Ltd. (NYSE: WFT) is a leading manufacturer and provider of equipment and services used in drilling, completion, and production of oil and natural gas wells.

We are upgrading Weatherford shares to Buy from Hold following the recent commodity-price induced weakness in the stock, which has made valuation very compelling for this quality oilfield name. The stock is down roughly 35% in the last 12 weeks, compared to the peer group's average of a 26% pullback and the roughly 4% decline in the broader S&P 500.

Calgon Carbon "Wait & CCC"

Calgon Carbon Corporation (NYSE: CCC) is a Pittsburgh, Pennsylvania based company that offers products and services that remove contaminants and odors from liquids and gases. About 62% of sales are to the Americas and 31% are to Europe. Its Activated Carbon chemicals remove and absorb organic compounds from liquids and gases, especially useful in the process of water purification.

Calgon is a leader in this segment, an area benefitting from higher prices and significant growth opportunities. However, the company is facing higher raw material costs, the risk of weakness in the equipment segment and high valuation. As a result, we rate the shares a HOLD. We have set a forward P/E multiple of 38.2x to arrive at our six-month target price of $21.

Acergy ADRs Upgraded to a Buy

London-based Acergy S.A. (Nasdaq: ACGY), previously known as Stolt Offshore S.A., is a leading oilfield contractor engaged in the designing, procurement, building, installation and servicing of a range of offshore surface and sub-surface equipment for the oil and gas industry. This equipment includes the above-water topsides and platforms used for processing oil and gas, pipelines, and electrical and hydraulic cables (also called umbilicals) used to control sub-sea wells.

We are upgrading Acergy to Buy from Hold on valuation grounds. The ADRs look very attractive at current levels, having dropped 47% in the last 12 weeks in response to the pullback in oil prices. In spite of some near-term challenges in the form of weak expected delays project awards and a tentative commodity-price environment, the long-term outlook for deepwater offshore activities remains very favorable.

PeopleSupport Lowered to Sell

PeopleSupport, Inc. (Nasdaq: PSPT) is positioned to benefit from the offshore business process outsourcing market. The Cincinnati, Ohio-based company's rapid revenue growth and investments production capacity in the Philippines and Costa Rica, however, has resulted in negative earnings surprises and significant near-term margin contraction.

The news drove the stock down to reasonable valuation levels, at which time the rating was raised to a Buy at $11.16. In August, the company received and accepted a $12.25 per share buyout offer. The stock has little appreciation left; therefore, the recommendation was been lowered to a Sell. The target price is $12.25, which is buyout offer PeopleSupport received and accepted from Aegis BPO.

Garmin Still Leading Its Market

Garmin, Ltd. (Nasdaq: GRMN) is an OEM [original equipment manufacturer] of GPS-based equipment. June quarter results were short of the consensus on both the top and bottom lines. All segments were up double-digits in 2007, and are expected to be up again in 2008.

Pricing pressures continue to intensify, however, negating some of the growth in units. Management is optimistic about material prices offsetting ASP pressures in 2008. We see increasing revenue and gradually decreasing profitability for the company.

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According to him, the slave labour activities of Globestar /Acergy must be stopped forthwith.

Akporeha said that Globestar/Acergy, an oil company, has been operating in the Niger Delta Region for the past 20 years with a workforce of about 250 workers.

But he lamented that the workers, who have been on the pay roll of the oil company for about 20 years, were being treated as slave workers.

"Our members in Globestar/Acergy are working without a working condition of service. This situation is an aberration as far as oil operatirns are concerned in Nigeria," the Union leader said.

According to him, in spite of the unacceptable position in the operation of Globestar / Acergy Oil Company, the situation was made worse by the continued denial of the workers rights by management of the company.

The oil company, he stated, has been keeping the workers in perpetual status of casual workers for over 20 years now, adding that the workers work in the offshore operations for a continued period of three months with just one period of time off.

"This is compounded by the fact that the workers are not even paid in their period of time off, after three months of hard work in the sea," he said.

Akporeha said that; "The Globestar offshore workers of NUPENG are already on strike and we are asking that the management come to the aid of the workers and start meaningful discussion with the union, otherwise the zone shall be constrained to mobilise its numerous members to go on strike in solidarity with our enslaved members.The strike is going to cut across the informal and the formal sector of the Union , by that, we are talking about the downstream and the upstream which involves petroleum marketing and even at this point, we might ask that production should be tampered with."

It reiterated its 'overweight' stance on Vallourec and Subsea 7 which also fit this theme.

It said another preferred play is Sevan Marine, because of its strong longer-term growth prospects and near-term catalysts.

Morgan Stanley said a significant overhang for the sector has now gone following a 24 percent fall in the Brent crude oil price and a comparable correction in Oil Services stocks since mid-June.

It forecasts the European Oil Service sector to grow 23 percent in 2009 and 19 percent in 2010 and said oil prices would have to fall another 30 percent to $80 per barrel before they would have an impact on sector fundamentals. deborah.hyde@thomson.com dlh/ejp

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Here are highlights from Wednesday's Analyst Blog:

Toyota Keeping Fit in Lean Times

Toyota Motor Corp. (NYSE:TM) continues to expand its production capacity to increase efficiency, meet local demand and simultaneously powering it to emerge as the world's financially strongest automaker. Its strong presence in North America has been further consolidated by gaining market share from leading U.S. automakers.

Moreover, the company also has a strong cash flow and a strong balance sheet. However, a sluggish US economy, rising costs, pricing pressures and huge capital expenditures prompt us to rate the stock a Hold with a six-month target price of $86.00.

Upgrading Priceline to a Buy

We are upgrading Priceline.com's (Nasdaq: PCLN) shares from Hold to Buy. The strength in Priceline.com's international business and operating expense controls continue to produce impressive operating leverage. For some time, Priceline.com has been producing growth above market expectations.

Priceline increased its operating margin to 8.8% in 2006 and 15.5% in 2007. We think the company's strong revenue growth and operating leverage should boost Priceline.com's operating margin to 19% in 2008 and 23% in 2009. And that points to sustainable long-term earnings growth of 20%.

Strength at Acergy Priced In

Acergy S.A. (Nasdaq: ACGY) delivered strong financial results for the fiscal second quarter. Net profit was up 28%, on the back of a 17% increase in operating revenue, driven by higher activity levels and improved project performance.

Acergy completed several deepwater projects during the quarter, including the Moho Bilondo, Mondo, PRA-1, and Maari projects. Visibility is good and the medium to long-term view for the business remains robust. We, however, believe that despite some recent weakness, current valuation reflects all the positives concerning the company's strong cyclical leverage and revenue growth prospects, thereby keeping our Hold recommendation unchanged.

DNA a Core Healthcare Holding

Genentech, Inc.'s (NYSE: DNA) stock has struggled over the past several quarters. However, the pipeline is solid and with renewed Avastin and Rituxan growth, the valuation looks very attractive at this level. We view the name as a core healthcare holding and reiterate our Buy rating on the stock.

The key growth driver for Genentech is blockbuster Avastin, and we believe the February approval of the drug for treating metastatic breast cancer opens up a potential billion-dollar opportunity for the company. Breast, renal cell, and glioblastoma cancer indications could double the market potential for Avastin.

Growth Slowing for Infosys

We continue to rate Infosys Technologies, Ltd. (Nasdaq: INFY) a Hold. The company reported higher than expected revenues and earnings for 1Q:FY09. It continues to strengthen strategic alliances and reorganize businesses in order to counter the effects of business cycles.

The company reported lower operating margins in the first quarter due to a high attrition rate, while benefiting from a 5.6% depreciation of the rupee. These effects were offset by lower utilization rates and effects of salary increase and visa costs. We are projecting a lower 2009 revenue growth rate of 21.0% in dollar terms while wage increase, currency and attrition remain our major concerns.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.

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=2677

About Zacks

Zacks.com is a property of Zacks Investment Research, 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. 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=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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.

SOURCE: Zacks.com

Zacks.com
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com