Zacks Analyst Blog Highlights: Interstate Hotels & Resorts, Inc, Qiagen N.V., Rackable Systems, Inc., Yahoo! Inc. and Amazon.com Inc.
CHICAGO, Aug 08, 2008 (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: Interstate Hotels & Resorts,
Inc. (NYSE: IHR), Qiagen N.V. (Nasdaq: QGEN), Rackable Systems, Inc.
(Nasdaq: RACK), Yahoo! Inc. (Nasdaq: YHOO) and Amazon.com Inc.
(Nasdaq: AMZN).
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Here are highlights from Thursday's Analyst Blog:
Interstate Hotels Stays a Buy
We reiterate our Buy rating on shares of Interstate Hotels &
Resorts, Inc. (NYSE: IHR) following the release of second-quarter
financial results. Although in our opinion the company has made great
strides in recent months, the operating environment in the U.S.
lodging industry is feeling the impact of weak economic growth and
financial pressure on consumers. We believe that the company is
well-positioned to benefit given an improvement in economic
conditions.
We feel that shares of IHR are undervalued near current levels and
that the investors have yet to properly account for the numerous
management contracts added in the company's third-party management
portfolio, the expansion of its joint venture portfolio including
several international ventures in high-growth regions, and the extent
of total EBITDA now generated by the wholly-owned portfolio.
Qiagen Spending for Growth
Qiagen N.V. (Nasdaq: QGEN), through its subsidiaries in Europe,
Asia, Australia, Canada, and the U.S., operates in the life sciences
industry with a portfolio of more than 500 products and automated
solutions. Though the molecular diagnostic and research market offer
enormous growth, the company faces stiff competition. As such, we
maintain our Hold rating for Qiagen.
The company continues to remain aggressive on the acquisition
front. The most significant deal closed by the company in July 2007,
is the acquisition of Digene Corp., which should boost the topline
going forward. Another recent significant acquisition was Corbett Life
Sciences which occurred in July 2008.
Rackable Shelved for Now
Rackable Systems, Inc. (Nasdaq: RACK) continues to lead in green
technologies for lower power consumption, high-density servers. RACK
reported disappointing Q2 results, which it blamed on a onetime
discount to win a new customer and component shortages.
Although second quarter results were a setback of the progress
RACK has made over the past year, we believe it is still on track for
improvement. Rackable had suffered from aggressive price competition
in the past. Mark Barrenechea, the company's new CEO, is focused on
maintaining its competitive advantage in the form of power efficient
and leading-edge technologies, which it had drifted away from. The
company currently has nine active customers out of the top 20 Internet
sites in the United States, with the likes of Yahoo! Inc. (Nasdaq:
YHOO) and Amazon.com Inc. (Nasdaq: AMZN).
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