Zacks Analyst Blog Highlights: Ariba, Aztar Corporation, OmniVision and SAP.

CHICAGO -- 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: Ariba (Nasdaq:ARBA), Aztar Corporation (NYSE:AZR),

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

Here are highlights from Friday's Analyst Blog:

Revenue Miss for Ariba

In Ariba's (Nasdaq:ARBA) Q3 report, revenue was $73.6 million, down 5% year over year. The lower-than-expected revenue came from a shortfall in services revenue. Ariba signed 20 deals greater than $1 million, compared to 17 last quarter. The subscription software backlog was $68 million at the end of the quarter, up $1 million versus last quarter. And software license revenue appears to be stable.

Still, we would like to see more evidence that its subscription software model is transitioning successfully. Moreover, we are concerned that the economy is showing signs of a slowdown. Accordingly, we continue to rate the stock a Hold and have set a target price of $8.

Expect Aztar Deal to Close in 4Q

We maintain our Hold rating for Aztar Corporation (NYSE:AZR) following the release of third quarter financial results. On October 17, Aztar shareholders approved the merger with Columbia Sussex Corporation. The all-cash deal values shares at $54. The merger is subject to traditional closing conditions and the receipt of necessary gaming approvals. We expect the offer to close in the fourth quarter of 2006.

OVTI May Be Volatile

OmniVision (Nasdaq:OVTI) is an OEM of CMOS image sensors and support circuitry used within digital still cameras and wireless camera handsets. First quarter results missed consensus estimates on both the top and bottom lines. Forward guidance is for a -1% to 6% revenue growth in the next quarter. Weak pricing and a negative sales mix are expected to limit near-term results, although the first 2 Meg product (10-15% revenue contribution expected by calendar year-end) will eventually offset the impact.

Several new markets such as automotive and medical offer exciting growth opportunities. The shares are heavily shorted, so we expect some volatility. We are retaining our Hold rating on OVTI shares.

Decent Q3 for SAP

SAP (NYSE:SAP) recorded a solid third quarter, with revenues and earnings beating our forecasts. The company's software revenues were very strong with strong growth across all geographic regions, despite weakness in Germany. The company continues to improve on its operating margins, which has boosted its earnings in the quarter.

While these results are solid, we are maintaining our outlook for the fourth quarter, although we have slightly raised our margin expectations. We continue to rate shares of SAP a Hold, and have slightly raised our price target to $54 based on the company selling at 30x our 2006 earnings estimate.

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

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