Zacks Analyst Blog Highlights: TIM Participacoes S.A., American Oriental Bioengineering Inc., Sony Corp., Sappi Ltd. and Banco Bilbao Vizcaya Argentaria, S.A.

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: TIM Participações S.A. (NYSE: TSU), American Oriental Bioengineering Inc. (NYSE: AOB), Sony Corp. (NYSE: SNE), Sappi Ltd. (NYSE: SPP) and Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBV).

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Here are highlights from Wednesdays Analyst Blog:

TIM Participações Upped to Hold

We are changing our recommendation on TIM Participações S.A. (NYSE: TSU) from Sell to Hold. Third quarter 2008 results were positive with sound cash flow. The company has also improved its competitive position with a better mix of products.

We believe the company is now trading at an attractive valuation, mainly considering the good third quarter results and the positive market trends. However, the still competitive business environment in the Brazilian wireless sector remains a problem. Moreover, the current international crisis is an unsolved problem.

AOB Has the Herbal Remedy

American Oriental Bioengineering Inc. (NYSE: AOB) is a China-based specialty pharmaceutical company which develops, manufactures and commercializes both plant-based pharmaceutical (PBP) and plant-based nutraceutical (PBN) products. Third quarter financials were strong and in line with our expectations.

We expect the company to continue to deliver strong performances in the coming quarters due to relatively high growth in the Traditional Chinese Medicine market in China. We maintain our Buy rating on AOB with a price target of $16.

Warren Resrcs to Full Ramp-Up

Warren Resources (Nasdaq: WRES) is an independent energy company. We are reiterating our Buy rating on Warren Resources but are decreasing our 12-month target price to $18 per share from $31.00. Warren is a small-cap E&P player with a balanced asset portfolio that offers impressive growth potential over the next few years with relatively little risk. We estimate that total production will be nearly 28 Bcfe in 2010, nearly 2.5x the full-year 2008 level of 9.0 Bcfe.

The company has prudently scaled back its near-term growth plans in response to the unfavorable macro backdrop to meet its capital needs within internal cash flows. Despite near-term challenges, we continue to believe that the stock offers a compelling long-term value given its favorable set of growth opportunities at its natural gas-focused Atlantic Rim and oil-focused Wilmington assets.

Sony Corp. Sell Rating Reiterated

We believe Sony Corporation (NYSE: SNE) will continue to struggle as it faces competition from other innovative digital products and increasing competition from low-cost Asian manufacturers as the consumer market slows.

The company's Q2 results were disappointing, and SNE trimmed its forecast for the remainder of 2008 with lower operating income due to sluggish sales in the electronics and the games segments. Deterioration in the Japanese stock market, a weak global economy, an intensifying price competition, and a strong yen are to blame.

Banco Bilbao Downgraded to Sell

We are reducing our rating on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE: BBV) to Sell from Hold, and cutting our target price to $10 due to the deteriorating economic outlook in Spain. In its third quarter report, BBVA posted net earnings before nonrecurring items of EUR1.4 billion, up 4% from the EUR1.3 billion earned in the comparable 2007 period, but below our estimate due to lower trading revenues and higher-than expected loss provisions.

Results reflected solid growth in net interest income (up 30% year over year), due to higher volumes and improved margins. Noninterest expense rose 14% year over year, while loan loss provisions rose 89%, largely due to growing nonperforming loans.

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