Zacks Analyst Blog Highlights: Comerica Inc., Advance Auto Parts, Inc., Eurand N.V., Cephalon Inc. and GlaxoSmithKline Plc.

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Here are highlights from Monday's Analyst Blog:

Comerica Target Lowered Further

Comerica Inc.'s (NYSE: CMA | Quote | Chart | News | PowerRating) second quarter adjusted earnings from continuing operations of $0.58 per share were four cents short of our estimate. The miss mainly stemmed from a decline in net interest margin (down 31 bps sequentially to 2.91%) and a rise in the provision for loan losses.

Continued deterioration in the residential real estate development loan portfolio, mainly in California, resulted in the increase of nonperforming assets to 1.44% (up 37 bps sequentially) of total loans and foreclosed property. As we suspect that the credit related costs will remain high in the coming quarters and the company may also need to cut its dividend, we have further lowered our EPS estimates and our six-month target price.

Advanced Auto Kept in Neutral

In the second quarter, Advance Auto Parts, Inc. (NYSE: AAP) reported diluted earnings per share were $0.79, compared to $0.64 in the prior-year period. Net sales increased to $1.24 billion from $1.17 billion in the same period last year. The revenue increase reflected a net addition of 138 new stores in the past 12 months. Comparable store sales saw an increase of 2.9% compared to 1.2% increase in the same quarter of the previous year.

AAP expects increased investments and fuel costs to constrain profit growth in 2008. Thus, we are maintaining a Hold recommendation until costs are contained and same store sales improve. We set a six-month target price of $47.00.

Eurand Pharma Pipeline Impressive

Eurand N.V. (Nasdaq: EURX | Quote | Chart | News | PowerRating) is engaged in the development, manufacture and commercialization of enhanced pharmaceutical and biopharmaceutical products based on its proprietary drug-formulation technologies. The Food & Drug Administration (FDA) issued an approvable letter for Zentase, the company's lead drug candidate for the treatment of exocrine pancreatic insufficiency, in June.

A timely response to the approvable letter will ensure launch of the drug by year-end. We note that the FDA did not seek additional trials for the approval of Zentase. Strong sales of Zentase coupled with the royalties on the sales of Cephalon Inc.'s (Nasdaq: CEPH) Amrix and GlaxoSmithKline Plc's (NYSE: GSK | Quote | Chart | News | PowerRating) EUR-1048 will drive the company to profitability in 2009 and beyond.

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