While making its routine choice of an overperforming stock and an underperforming stock for the day, Chicago-based Zacks Equity Research came to the same place: San Diego.
Zacks analysts selected San Diego-based Sempra Energy as its “bull of the day” Nov. 29, while naming Amylin Pharmaceuticals its “bear of the day.”
Utilities holding company Sempra was named the bull of the day based on what Zacks said was an impressive first three quarters of 2006. The company’s development of new natural gas pipelines, storage and new solar power contracts increased its bullish standing as well.
Zacks set a “buy” recommendation on Sempra with a six-month target price of $59.50.
Traded on the New York Stock Exchange as SRE, Sempra closed on Nov. 28 at $54.40.
On the opposite end, Zacks analysts said that, despite exceeding expectations in diabetes drug sales for the past two quarters, Amylin Pharmaceuticals , which develops and commercializes drugs for the treatment of diabetes, obesity and cardiovascular disease , faces increased competition in its industry.
Zacks also said that Amylin’s early- and mid-stage product candidates are years from the market.
Based on Zacks’ 2010 earnings per share estimate, Amylin stock is at about a 150 percent premium and Zacks expects prices to drop to $32, giving it the lowly distinction, “bear of the day.”
Traded on the Nasdaq as AMLN, Amylin closed on Nov. 28 at $41.25.
Zacks Equity Research provides qualitative and quantitative analysis of 1,150 publicly traded stocks and can be accessed at www.zacks.com.
, Andy Killion