Zacks Analyst Blog Highlights: Lear Corporation, Toyota, Nissan, Juniper Networks and Cisco Systems
Mon Jun 23, 6:00 AMCHICAGO--(BUSINESS WIRE)--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: Lear Corporation (NYSE: LEA), Toyota Motor Corp. (NYSE: TM), Nissan Motor Corp. (Nasdaq: NSANY), Juniper Networks, Inc. (Nasdaq: JNPR) and Cisco Systems (Nasdaq: CSCO).
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Here are highlights from Fridays Analyst Blog:
Lear Corp. Tightening the Belt
Lear Corporation (NYSE: LEA) is one of the largest independent automotive parts suppliers in the world, with a 9% global share. The company has undertaken a restructuring drive to contain its costs and streamline operations.
Lears expanding relationships with Hyundai, Toyota Motor Corp. (NYSE: TM) and Nissan Motor Corp. (Nasdaq: NSANY) are expected to drive revenues from Asia. As a result, we rate the shares a Hold with a target of $23.00, which is 6.8x our 2008 EPS estimate.
Lear initiated a $380 million restructuring drive to streamline the companys operations through cost reduction, capacity utilization, and closure of some plants. This plan is expected to result in 5-7% headcount reduction and 20 facility closures. Overall 40% of production is expected to be in low-cost countries. The firm is also focusing on the Seating and Electronics businesses, where Lear has very high market shares. On June 13, Lear announced that it has entered into agreements to acquire a 75% share of the automotive fabric business of New Trend Group Co., Ltd. in China.
Juniper Networks Up Against CSCO
Juniper Networks, Inc. (Nasdaq: JNPR) is enjoying robust growth in its infrastructure business as service providers spend on next generation networks. The company is well-positioned in the router business.
Although its SLT business has been disappointing as it has yet to gain strong traction in the enterprise market, we believe the service provider market will be enough to sustain recent momentum. In light of this, we maintain a Hold recommendation on the shares of JNPR.
Juniper faces stiff competition in each of its market segments, especially from industry leader Cisco Systems (Nasdaq: CSCO), which continuously implements product upgrades and follows an aggressive marketing strategy, creating considerable pricing pressure on its competitors. Moreover, Juniper is also exposed to customer concentration risks.
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