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CHICAGO--(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: aQuantive, Inc. (Nasdaq: AQNT), Microsoft Corporation (Nasdaq: MSFT), Metabolix Inc. (Nasdaq: MBLX) and Archer Daniels Midland (NYSE: ADM).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673


Here are highlights from Friday's Analyst Blog:

aQuantive Being Bought by MSFT
aQuantive, Inc. (Nasdaq: AQNT) has agreed to be acquired by Microsoft Corporation (Nasdaq: MSFT) for $66.50 per share in cash, bringing the total deal to approximately $6 billion. AQNT is a leader in digital marketing, and with this acquisition, Microsoft is making a large commitment to online advertising. The deal is expected to close in Microsoft's first half of fiscal 2008, or the second half of calendar 2007.

We therefore maintain a Hold rating on the shares of AQNT and raise our six-month target price to $66.50, as we believe the transaction is likely to clear all hurdles. Because the online advertising market is extremely fragmented, we don't expect to see any antitrust delays, and believe the deal will close as scheduled.

On May 8, 2007, aQuantive, Inc. announced financial results for the first quarter ended March 31, 2007. Results for the quarter were strong with both revenues and EPS (earnings per share) above management's and consensus expectations. Revenue for the quarter was $142.6 million, representing an increase of 54.7% from $92.2 million reported in the same quarter last year.

Maintaining Metabolix at a Hold

Metabolix Inc. (Nasdaq: MBLX) is a biotechnology company focused on the development and commercialization of environmentally sustainable, economically attractive alternatives to petrochemical-based plastics, fuels and chemicals. We are pleased to see the company's progress with its lead technology platform, PHA Natural Plastic. The company is set to commence commercial production of Natural Plastic in the second half of 2008. However, Metabolix is several years away from achieving profitability. We maintain our Hold rating with a price target of $26.

The company's lead technology platform, Natural Plastic, is a proprietary, large-scale microbial fermentation system which has been developed to produce a wide range of naturally occurring polymers known as polyhydroxyalkanoates (PHA). Metabolix's second technology platform, which is still in an early stage of development, is a biomass refinery system that uses switchgrass to co-produce both Natural Plastic and biomass feedstock for the production of ethanol or other biofuels.

Metabolix has a strategic alliance in place with Archer Daniels Midland (NYSE: ADM) for the commercialization of Natural Plastic. Besides this, the company enjoys the support of the U.S. Department of Energy and the U.S. Department of Agriculture for the switchgrass project. However, we do not see the company achieving profitability over the next several years even with the commercialization of Natural Plastic in 2008. As ADM is providing a major part of the capital required for the commercialization of the product, all profits from the joint venture will be distributed to ADM until it recovers its investment. Therefore, we believe that it will be several years before Metabolix succeeds in achieving profitability.

Dean Foods a Buy on Valuation

Management at Dean Foods (NYSE: DF) has taken definitive actions to improve shareholder value from the spin-off of TreeHouse Foods in 2005 to a $15 per share special dividend in 2007. Management has focused on the branded products business, reduced SKUs (stock keeping units), and integrated strategic acquisitions in the Dairy Group.

In 2007, management expects to complete the implementation of SAP (NYSE: SAP) throughout the company. Any relief from the expected lower price realizations in the organic milk market will dramatically accelerate earnings growth. The rating is being raised to a Buy.

The stock of Dean Foods Company has traded in a P/E (price-to-earnings) multiple range of 11.5 to 21.7 over the last five years. The stock is currently trading at 14.5 times trailing 12-month EPS (earnings per share). Despite the increased debt-to-capitalization ratio from the decision to spin-off TreeHouse Foods without any debt and the additional debt incurred to pay a special dividend, management's actions are creating a faster-growing, higher-margin company. The six-month target price of $37.25 is based on a 21 P/E multiple on our year-end (depressed) earnings estimate.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

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