Zacks Analyst Blog Highlights: United Therapeutics Corp., Eli Lilly & Co., Pfizer Inc., Cost Plus, Inc. and Ultra Clean Holdings, Inc.

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Here are highlights from Monday's Analyst Blog:

Sell-Rated UTHR Tumbles

Back in August 2008, Zacks senior pharmaceutical analyst Jason Napodano, CFA, initiated coverage of high-flying United Therapeutics Corporation (Nasdaq: UTHR) with a Sell rating at nearly $110 per share. The negative recommendation gained significant attention considering UTHR's stock was up 50% over the prior six months, and 12 of the 15 analysts on the Street that cover the stock rated the shares a Buy. Jason's Sell call is one of only two negative opinions on the stock.

United Therapeutics agreed to pay Eli Lilly & Co. (NYSE: LLY) $150 million to license the U.S. rights to Cialis (tadalafil), Lilly's blockbuster drug for erectile dysfunction (ED), for use in PAH. Given the mechanism of action, Cialis could have significant potential for use in hypertension. (Pfizer Inc.'s (NYSE: PFE) ED drug, Viagra [sildenafil], is currently approved for use in PAH under the brand name Revatio.) In return, Lilly will make a $150 million equity investment in United Therapeutics.

Cost Plus a Sell Pre-Earnings

We expect Cost Plus, Inc. (Nasdaq: CPWM) to report disappointing results for the third quarter. The company's sales trends have been weak for some time, and the current macro-economic headwinds are not helping Cost Plus, Inc.'s prospects.

What's more, several retailers have indicated that mall traffic suffered a severe decline in September, which will further pressure the company's results. Its losses are mounting, and its balance sheet remains weak. This combination does not point to a higher stock price.

Ultra Clean Forecast Spotless

Ultra Clean Holdings, Inc. (Nasdaq: UCTT) is a supplier of gas panels to semiconductor manufacturing OEMs. September quarter top and bottom-line results met consensus estimates. The company is expanding its product line to include frame assemblies, top plate assemblies and process modules.

The Seiger acquisition is progressing seamlessly and the company is transitioning several product lines to Shanghai. This has the effect of diversifying the revenue base as well as growing margins.

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