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Zacks Analyst Blog Highlights: Barclays PLC, Cleveland-Cliffs, Inc., Alpha Natural Resources, Inc., Sohu.com, Inc. and Cosi, Inc.


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© Business Wire 2008
2008-10-08 12:04:03 -

- 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: Barclays PLC (NYSE: BCS), Cleveland-Cliffs, Inc. (NYSE: CLF), Alpha Natural Resources, Inc. (NYSE: ANR), Sohu.com, Inc. (Nasdaq: SOHU) and Cosi, Inc. (Nasdaq:

COSI).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: at.zacks.com/?id=4579

Here are highlights from Tuesday's Analyst Blog:

Barclays Plc Kept a Hold

We are maintaining our Hold on Barclays PLC (NYSE: BCS). The company will report its third quarter trading update on November 17.

We are reducing our EPADS estimates to $3.80 from $4.00 for 2008 and to $4.20 from $4.50 for 2009, mainly due to recent appreciation of the $ against the GBP . We expect results to continue to reflect global markets' turmoil and also the recent $1.75 billion acquisition of Lehman Brothers North American investment banking and capital markets operations, funded with GBP 701 million of new equity capital.

Cleveland-Cliffs Downgraded

Cleveland-Cliffs, Inc. (NYSE: CLF) is the largest producer of iron ore pellets in North America with a 45% share and is also a major supplier of metallurgical coal in North America with a 30% share. The company operates six iron ore mines in Michigan, Minnesota, and Eastern Canada as well as three coking coal mines in West Virginia and Alabama.

Rising prices and strong demand are pushing Cleveland Cliff's performance. Robust industrial growth in China and India has triggered demand for steel, resulting in higher demand for iron ore. Moreover, the merger with Alpha Natural Resources, Inc. (NYSE: ANR) will help Cliffs to meet the increasing global demand for coal, consolidate the supplier base and generate substantial free cash flow.

Sohu.com a Buy to $65

Sohu.com, Inc. (Nasdaq: SOHU) is a leading online brand in China. Services provided by the company include news, search, e-mail, games and wireless messaging. The company offers services through one of the most comprehensive matrices of Chinese language web properties and proprietary search engines.

Although Sohu faces fierce competition from different fields including brand advertising, online games, wireless value-added services, and search, the company manages to be a main player in almost each field. Sohu has a well-known brand and rich website resources to leverage the great opportunities for online business in China.

COSI Has Expansion Obstacles

Cosi, Inc. (Nasdaq: COSI) owns, operates and franchises a chain of 145 fast casual restaurants operating in 18 states, the District of Columbia, and the United Arab Emirates. Cosi restaurants prominently feature an open flame stone hearth in which it bakes its signature flatbread throughout the day. Cosi restaurants are located in the Northeast, Mid-Atlantic and Midwest regions of the U.S., and management plans to expand in the West.

After uncontrolled growth leading to two years of sub-par profitability, Cosi is making significant strides in its plan to return to profitability. The company has shed unprofitable locations, scaled back company-owned unit expansion, contained food and labor costs and shrank its outsized G&A.

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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.

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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 at.zacks.com/?id=4580.

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