Zacks Analyst Blog Highlights: Apple, Motorola, InterContinental Hotels and Votorantim Celulose.

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: Apple, Inc. (Nasdaq:AAPL), Motorola (NYSE:MOT),

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

Here are highlights from Thursday's Analyst Blog:

Apple's Effect on MOT

The iPhone announcement was expected, but the delivery speech by Steve Jobs - CEO of Apple, Inc. (Nasdaq:AAPL) - and the ability to integrate music/video pod with cell voice and wireless email in a single device appears to be the holy grail in the wireless world at this stage. The news from Apple added salt to Motorola's (NYSE:MOT) wound, as MOT just guided lower for the quarter earlier in the week.

Apple's iPhone still faces market launch hurdles. The $499+ pricing per device appears steep to consumers, unless it is accompanied by carrier subsidies to share the cost. We also expect Motorola to vigorously defend its market share, possibly by introducing similar offerings. If it is easy for new cell phone players to provide products in the market; barriers to entry are no longer what they use to be.

Motorola needs to stay focused on segments where it maintains differentiated technology, such as business users and applications. Its recent acquisition of Symbol Technologies is an example of solutions that can be directed at segments where competition is not as intense and where margins are more significant. We still maintain a Buy rating at cheaper share prices and as Motorola expands business in communications areas other than just consumer mobile phones, and as it stokes sales in emerging markets.

Hotels Make Strong Recovery

In the world of travel and leisure, "merger mania" has been heating up lately. Forecasts for 2007 look to be in line with the past year's activity thus far. As I told Travel Distribution Report recently, "Last year was a record year for hotel transaction activity. And now there are rumors about InterContinental Hotels (NYSE:IHG) being potentially acquired by a private equity owner, which is driving up that stock price.

"Today, you're seeing owners pushing [their] room rate higher without sacrificing occupancy, and the market is handling well the lack of new supplyORevPAR was up about 8 percent in 2006 for U.S. hotels."

Downgrade on VCP

We are changing our recommendation on Votorantim Celulose (NYSE:VCP) from Buy to Hold. Third quarter results were solid and in line with our expectations. We expect good results for the fourth quarter 2006, as prices remain high and Asian demand seems heated. However, the continued strength of the Brazilian real coupled with the increasing risk for an end of the cycle period for commodity prices in general is highly concerning. All considered, we believe that it is time for a more cautious approach on VCP.

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

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