Zacks Analyst Blog Highlights: Companhia Paranaense de Energia, Medtronic, Inc., Telephone & Data Systems, Inc., United States Cellular Corp. and McCormick & Schmick's Seafood Restaurants Inc.

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Here are highlights from Friday's Analyst Blog:

COPEL's Big Near-Term Potential

We are keeping our Buy recommendation on Companhia Paranaense de Energia, or COPEL (NYSE: ELP). The company's second quarter results were positive, and the short-term outlook is also positive due to the company's various investments.

In addition, the Brazilian business environment remains encouraging; the energy consumption in Brazil is still heated; and the short-to-medium-term outlook for energy consumption in Brazil is very encouraging. Moreover, becoming a part of the SAGBPo Paulo Stock Exchange's Level 1 of Corporate Governance will enhance the positive aspects of the company. Finally, COPEL shares are trading at an attractive valuation.

Medtronic Reaffirmed a Hold

Medtronic, Inc.'s (NYSE: MDT | Quote | Chart | News | PowerRating) story is improving -- product approvals and launches and a renewed focus on operating margins should drive healthy near-term EPS growth. An increase in quarterly dividends and reiteration of guidance reaffirms our position on this stock. We leave our estimates unchanged and bring valuation closer in-line with peers.

Medtronic is a market leader in cardiology and spine devices that benefits from scale, resources and incremental sales synergies within the medical devices industry. The company is strengthening its position in neurology and stents, two high-growth markets. A deep product pipeline and strong R&D program leaves MDT well positioned for long-term organic growth, not relying purely upon acquisitions.

TDS Growth Engine US Cellular

We maintain our Hold recommendation for Telephone & Data Systems, Inc. (NYSE: TDS) following the release of recent quarterly results. The wireless business (U.S. Cellular -- AMEX: USM), driven by gains in service and data revenues, remains the growth engine for the company, which offset declines in wireline segment revenue and loss of physical access lines.

The company continues to maintain low churn (customer switch) while increasing operating return per subscriber. The management continues its share buyback initiative and has provided a positive outlook for 2008, focusing on improving profitability through network technology upgrades and strengthening its brand image.

McCormick & Schmick's Traffic Low

McCormick & Schmick's (Nasdaq: MSSR | Quote | Chart | News | PowerRating) is suffering declining traffic and comps as cash-squeezed consumers are dining out less. Early signals indicate that traffic may be stabilizing and we think historical levels of growth and profitability will resume when the economy recovers. Meanwhile, with debt-to-capital of just 12 percent, the company can comfortably continue its expansion plan, which has been greatly scaled back for 2009 to 6 units from 11 planned for 2008.

However, we think the management's 2008 EPS guidance of $0.64-0.74 is aggressive (the Wall Street consensus is $0.66). The guidance is very back-end loaded, incorporating substantial improvements in comps and margin expansion in the second half of the year, despite murky visibility. That said, we think the low end of guidance may be doable as MSSR laps poor back half of 2007 comps.

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