2008-10-10 12:03:03 -

- 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: AstraZeneca PLC (NYSE: AZN), Phase Forward (NASDAQ: PFWD), Omnicom Group (NYSE: OMC), Acorda Therapeutics (NASDAQ: ACOR) and Digital River, Inc. (NASDAQ: DRIV).

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Here are highlights from Thursday's Analyst Blog:

AstraZeneca a Hold on Generics

AstraZeneca PLC (NYSE: AZN) is engaged in the research, development, manufacturing and marketing of ethical (prescription) pharmaceutical products. The company ranks among the top pharmaceutical companies in the world based on revenues and global sales force. It is a leader in cardiovascular, cancer and gastrointestinal drugs.

Key drugs such as Crestor, Seroquel and Symbicort will continue to be the driving force of growth until the company can commercialize its pipeline. Generic competition will eat into revenue growth, but productivity initiatives should pay off in the form of healthier margins and mid-single digit earnings growth for the next few years.

Phase Forward Richly Priced

Phase Forward (NASDAQ: PFWD) provides the software and services to assist clients in improving the efficiency of their clinical trials. The company offers a suite of applications that allow users to rapidly create electronic case report forms (eCRFs) and facilitate fast data entry and cleaning through an intuitive interface. Its Web-based architecture enables clinical trials at locations around the world.

Management had earlier stated that it will no longer provide bookings guidance and backlog metrics and indicated that 75% of 2008 revenues will come from beginning backlog. Going forward, management narrowed its revenue guidance for 2008 and now expects to report revenues between $167 million and $169 million, compared to the previous forecast of revenues between $165 million and $169 million, while non-GAAP EPS is anticipated around $0.48-$0.49.

Omnicom Competition Stiffens

Omnicom Group (NYSE: OMC) is the holding company for a group of independent advertising and communication services firms. The group of companies provides traditional media advertising (Advertising), Customer Relationship Management (CRM), Public Relations (PR), and specialty marketing & communication services (Specialty) through its 62,000 employees in all major markets around the world.

The company continues to generate solid organic revenue growth and new business wins. In addition, management continues to acquire complementary companies that either serve or have the ability to serve the existing client base through the extension of the company's platform of services.

Acorda Upgraded On Valuation

Zacks senior pharmaceutical analyst Jason Napodano, CFA upgraded shares of Acorda Therapeutics (NASDAQ: ACOR) today, noting, "At today's price of $18 per share, the name looks fairly valued with our expectations and we are upgrading the name to Hold." Napodano had previously rated shares of Acorda a Sell with a $22 target since June 2008 when he downgraded the name at roughly $33 per share. The analysts believed in June 2008 that expectations for sales of the key pipeline drug, Fampridine-SR, were too high and the valuation was stretched.

Acorda recently completed two positive phase III trials on Fampridine-SR, a drug designed to improve the walking speed and other quality of life measures in patients with all types of multiple sclerosis. A filing in the U.S. is expected in the first quarter of 2009. Napodano believes that Acorda has "an excellent chance" at gaining approval for Fampridine-SR in 2010. His analysis pegs the drugs peak U.S. sales potential at around $500 million. Outside the U.S., Acorda is expected to partner Fampridine-SR for upfront cash and backend royalties. Napodano notes that this catalyst, expected perhaps in the next few months, could send the shares back to his $22 fair value assessment.

Digital River Down to a Trickle

Digital River, Inc. (NASDAQ: DRIV) provides e-commerce solutions for software publishers and retailers worldwide. The company delivers software and other digital goods online for over 40,000 customers. Because of its extensive network of partnerships, the company has collected valuable data on purchasing behavior and is able to offer direct marketing services to a broad array of clients. Digital River provides an outsourcing solution that allows its clients to promote their own brands while leveraging the company's investment in infrastructure and technology.

Despite uncertain macroeconomic conditions, management raised its guidance for 2008 and now expects revenues to come around $410 million, up from earlier projection of $401 million. Non-GAAP EPS is estimated around $2.00 (at 27% tax rate), up from the previous forecast of $1.89 (at 31% tax rate).

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