Zacks Analyst Blog Highlights: Toyota Motor Corp., Priceline.com Inc., Acergy S.A., Genentech, Inc. and Infosys Technologies, Ltd.

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    Here are highlights from Wednesday's Analyst Blog:

    Toyota Keeping Fit in Lean Times

Toyota Motor Corp. (NYSE:TM) continues to expand its production capacity to increase efficiency, meet local demand and simultaneously powering it to emerge as the world's financially strongest automaker. Its strong presence in North America has been further consolidated by gaining market share from leading U.S. automakers.

Moreover, the company also has a strong cash flow and a strong balance sheet. However, a sluggish US economy, rising costs, pricing pressures and huge capital expenditures prompt us to rate the stock a Hold with a six-month target price of $86.00.

Upgrading Priceline to a Buy

We are upgrading Priceline.com's (Nasdaq: PCLN) shares from Hold to Buy. The strength in Priceline.com's international business and operating expense controls continue to produce impressive operating leverage. For some time, Priceline.com has been producing growth above market expectations.

Priceline increased its operating margin to 8.8% in 2006 and 15.5% in 2007. We think the company's strong revenue growth and operating leverage should boost Priceline.com's operating margin to 19% in 2008 and 23% in 2009. And that points to sustainable long-term earnings growth of 20%.

Strength at Acergy Priced In

Acergy S.A. (Nasdaq: ACGY) delivered strong financial results for the fiscal second quarter. Net profit was up 28%, on the back of a 17% increase in operating revenue, driven by higher activity levels and improved project performance.

Acergy completed several deepwater projects during the quarter, including the Moho Bilondo, Mondo, PRA-1, and Maari projects. Visibility is good and the medium to long-term view for the business remains robust. We, however, believe that despite some recent weakness, current valuation reflects all the positives concerning the company's strong cyclical leverage and revenue growth prospects, thereby keeping our Hold recommendation unchanged.

DNA a Core Healthcare Holding

Genentech, Inc.'s (NYSE: DNA) stock has struggled over the past several quarters. However, the pipeline is solid and with renewed Avastin and Rituxan growth, the valuation looks very attractive at this level. We view the name as a core healthcare holding and reiterate our Buy rating on the stock.

The key growth driver for Genentech is blockbuster Avastin, and we believe the February approval of the drug for treating metastatic breast cancer opens up a potential billion-dollar opportunity for the company. Breast, renal cell, and glioblastoma cancer indications could double the market potential for Avastin.

Growth Slowing for Infosys

We continue to rate Infosys Technologies, Ltd. (Nasdaq: INFY) a Hold. The company reported higher than expected revenues and earnings for 1Q:FY09. It continues to strengthen strategic alliances and reorganize businesses in order to counter the effects of business cycles.

The company reported lower operating margins in the first quarter due to a high attrition rate, while benefiting from a 5.6% depreciation of the rupee. These effects were offset by lower utilization rates and effects of salary increase and visa costs. We are projecting a lower 2009 revenue growth rate of 21.0% in dollar terms while wage increase, currency and attrition remain our major concerns.

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