2008-10-07 12:25:00 -

- 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: United States Steel Corp. (NYSE: X), China Petroleum and Chemical Corp. (NYSE: SNP), Eastman Chemical Co. (NYSE: EMN), China Mobile Ltd. (NYSE:

CHL) and Canadian Solar, Inc. (Nasdaq: CSIQ).

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Here are highlights from Monday's Analyst Blog:

U.S. Steel Downgraded to Hold

Pittsburgh, PA-based United States Steel Corporation (NYSE: X) is a leading steel manufacturer in the U.S., and the 5th largest worldwide. It produces and sells steel mill products in North America (72% of revenue) and Europe (28% of revenue). U. S. Steel has global annual raw steel production capacity of 31.7 million net tons.

The company's volume growth will be buoyed by capacity expansion in Europe, which is showing favorable demand trends. However, rising supply from China, low demand from the automotive and residential sector and rising commodity and labor costs lead us to downgrade the stock to a Hold with a six-month target price of $65.

Sinopec Holding Steady

China Petroleum and Chemical Corp. or Sinopec (NYSE: SNP), with its head office in Beijing, China, is one of the largest petroleum and petrochemical companies in Asia. The company is the 2nd largest crude oil and natural gas producer, and the largest refiner and marketer of refined petroleum products in China. The company is also the largest producer and distributor of petrochemicals in the nation.

Sinopec's first-half 2008 results were weighed down by downstream issues that more than offset upstream volume gains. High feedstock costs due to soaring crude oil prices and the Chinese government's tight price controls on oil products in the domestic market pushed the refining segment into an operating loss.

Eastman Chemical Capacity Issues

Eastman Chemical Company (NYSE: EMN) is engaged in the manufacture and sale of chemicals, plastics and fibers. Based in Kingsport, Tennessee, the company has 13 manufacturing sites in 8 countries, supplying its products throughout the world. It provides key differentiated adhesives and specialty plastics products, is the world's largest producer of PET polymers for packaging, and is a major supplier of cellulose acetate fibers.

Eastman has a strong fibers business and solid financials. The company is likely to benefit from its recent focus on the industrial gasification business. However, a lack of free cash flow, PET capacity increases coupled with slowing growth, and PET industry overcapacity with higher raw material costs force us to rate the stock a Hold with a target of $55.

Portfolio Down? Time to CHL

China Mobile (NYSE: CHL) remains the leading Chinese wireless carrier with a 70% market share. At the end of June 2008, the company had approximately 415 million mobile subscribers and is recognized as the largest cellular service provider in the world in terms of subscribers count.

China Mobile's market valuation has declined in recent months, which we believe is mostly related to general global equity market weakness and risks associated with the impending overhaul of telecom sector by China's government. However, it remains our view that the emerging and restructured competitive entities will have unanticipated challenges deploying and advancing services to levels and coverage delivered by the China Mobile, the incumbent.

Canadian Solar Growing Stronger

Canadian Solar, Inc. (Nasdaq: CSIQ) engages in the design, development, manufacture, and sale of solar module products (ranging from 5-watt to 300-watt and using both polycrystalline and monocrystalline solar cells) that convert sunlight into electricity for various uses. The company was incorporated by Dr. Shawn Qu in Canada in 2001. In the People's Republic of China, the company has three manufacturing facilities located at Suzhou, Changshu and Luoyang.

CSIQ's bullishness has been boosted by improving company fundamentals, higher revenue guidance, capital expansion funds generated through follow-on offerings, and volatility in the price of oil. Going forward, on the back of solar panel sales growth in various global markets, extension of product lines, material cost savings through the company's more vertically-integrated production structure, higher captive generation of solar cells, long-term supply agreements, and a silicon reclamation program should, collectively, generate significant earnings growth.

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