Category

United States

Jun 14
0

Daily Brief United States: GSI Technology , Light & Wonder , Adobe Systems and more

By | Daily Briefs, United States

In today’s briefing:

  • $GSIT. Meme Stock Or NVIDIA Slayer?
  • Light and Wonder Targets Asia for Growth After Divesting Two Verticals, Buying Social Gaming Unit
  • Adobe: Opportunities In Generative AI, Q2 Earnings And Considerations For Long-Term Holders

$GSIT. Meme Stock Or NVIDIA Slayer?

By William Keating

  • GSI Technology (GSIT US) share price is up ~5x in the past month fuelled by the fact that they have an AI Accelerator (APU) called Gemini-I
  • Launched in 2020, Gemini-I was 3 years late, has never been properly benchmarked and has thus far attracted just one customer, the Israeli military
  • We remain wholly unconvinced that GSIT is on the cusp of a breakthrough in the world of Accelerated AI

Light and Wonder Targets Asia for Growth After Divesting Two Verticals, Buying Social Gaming Unit

By Howard J Klein

  • 2022 saw Light and Wonder make a major strategic pivot from legacy units to focus on three core businesses: Gaming equipment and systems, social online gaming and IGaming.
  • Recent move to acquire the 17% of SciPlay social gaming platform it does not own has evoked investor interest in the sector due to a 29% premium on offer.
  • After taking a big tax hit related to the sale of two of its legacy verticals the company is well positioned to compete for rising Asia-Pacific gaming equipment business.

Adobe: Opportunities In Generative AI, Q2 Earnings And Considerations For Long-Term Holders

By Vladimir Dimitrov, CFA

  • Adobe’s share price is experiencing significant momentum, which is likely to be sustained for the time being.
  • Better than expected quarterly results could easily prompt a new wave of rating upgrades by the sell-side analysts.
  • Investors interested in holding Adobe for a longer period of time should not ignore some important red flags.

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Jun 13
0

Daily Brief United States: Binance Coin, Target Corp, Confluent, Crude Oil, Deere & Co, HEICO Corp, Intercontinental Exchange, Lowe’s Companies Inc, MariMed, Microchip Technology and more

By | Daily Briefs, United States

In today’s briefing:

  • Market Makers Flee Binance.US
  • Target Corporation: What Is Its Biggest Competitive Advantage? – Key Drivers
  • Confluent: Upgrade To OW On Consistent Execution And A Clear Path To Profitability. PT Raised To $37
  • The Case for Oil // Farmer Sentiment continues to fall
  • Deere & Company: Healthy Demand
  • Heico Corporation: Acquisition of Wencor Group & Other Drivers
  • Intercontinental Exchange Inc.: Noteworthy Success Of The Multi-Currency
  • Lowe’s Companies Inc: Launch of Digital MVP Business Tools for Pros & Other Developments
  • MariMed Opens First Ohio Dispensary
  • Microchip Technology: Analog & Data Centre Business Upside Is Strong – Key Drivers

Market Makers Flee Binance.US

By Kaiko

  • Binance.US is bleeding. One week after the SEC lawsuit, market makers and traders have fled the exchange en masse.
  • Liquidity, as measured by aggregated market depth for 17 tokens on the exchange, has fallen nearly 80% over the past week.
  • On June 4, the day before the SEC lawsuit, market depth was $34mn. Today, market depth is just $7mn.

Target Corporation: What Is Its Biggest Competitive Advantage? – Key Drivers

By Baptista Research

  • Target Corporation delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
  • Target’s focus on building trust and delivering affordable products to consumers led to three consecutive years of traffic growth, with a 0.9% increase in comparable traffic in Q1.
  • We give Target Corporation a ‘Buy’ rating with a revised target price.

Confluent: Upgrade To OW On Consistent Execution And A Clear Path To Profitability. PT Raised To $37

By Andrei Zakharov

  • Confluent (CFLT US), a high-growth data streaming vendor, will host Investor Day 2023 in New York City on June 13, 2023. 
  • Management will provide an update on the company’s vision and strategy. Confluent (CFLT US) shares traded up ~64% in 2023, outperforming the Nasdaq Composite, up ~27%.
  • I expect CY24 revenue to exceed $1B, driven by efficient growth at a large scale, strong growth in the cloud segment, and rapid adoption of Apache Kafka.

The Case for Oil // Farmer Sentiment continues to fall

By The Commodity Report

  • Farmer Sentiment continues to fall Producer sentiment fell to its weakest reading since July 2022 as the Purdue University/CME Group Ag Economy Barometer declined 19 points to a reading of 104 in May.
  • The Index of Future Expectations was down 22 points to a reading of 98 in May, while the Index of Current Conditions was down 13 points to a reading of 116.
  • This month’s lower sentiment was fueled by drops in both of the barometer’s sub-indices and likely triggered by weakened crop prices, according to the University of Purdue.

Deere & Company: Healthy Demand

By Baptista Research

  • Deere managed to exceed analyst expectations in terms of revenue as well as earnings.
  • Revenues and net sales were up and price realization was positive.
  • Deere viewed production and precision ag net revenue to rise.

Heico Corporation: Acquisition of Wencor Group & Other Drivers

By Baptista Research

  • Heico delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
  • The operating income of The Flight Support Group increased, reflecting the improved gross profit margin and net sales growth.
  • The improved gross margin replicates higher net sales within Heico’s Specialty Products as well as Aftermarket Replacement Parts product lines.

Intercontinental Exchange Inc.: Noteworthy Success Of The Multi-Currency

By Baptista Research

  • Intercontinental Exchange managed to exceed analyst expectations in terms of revenue as well as earnings.
  • Their interest rate markets also saw volume rise in the first quarter due to increased hedging activity from central bank activities and banking concerns.
  • Intercontinental Exchange also had significant volumes in its SONIA contract, up 12% from the previous year.

Lowe’s Companies Inc: Launch of Digital MVP Business Tools for Pros & Other Developments

By Baptista Research

  • Lowe’s Companies delivered a positive result and managed an all-around beat in the last quarter.
  • Through its MVPs Pro Rewards Program and its expanded assortment of Pro national brands, it continues to build momentum with the Pro.
  • Despite the pressures, it is seen that the comparable Pro sales are a bit positive, with broad-based strength in several categories.

MariMed Opens First Ohio Dispensary

By Water Tower Research

  • MariMed opened a Thrive Wellness medical dispensary in Tiffin, Ohio. This is its first operational Ohio store, and MariMed now owns or manages 11 dispensaries in five states.
  • Tiffin is in Seneca County, which has more than 54,000 residents and is home to almost 5,000 students at Tiffin University.
  • MariMed’s dispensary is the only store in the Tiffin area. The closest competitor is 30 minutes away in Fremont, Ohio.

Microchip Technology: Analog & Data Centre Business Upside Is Strong – Key Drivers

By Baptista Research

  • Microchip Technology had a strong quarter.
  • Non-GAAP gross margin exceeded the company’s forecast by 171 basis points to an all-time high of 68.3% in the most recent quarter.
  • Additionally, the non-GAAP operating margin, which increased by 292 basis points from the same quarter last year to an all-time high of 47.65%, came in just below the high end of their forecast.

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Jun 12
0

Daily Brief United States: Qualcomm Inc, Technology Select Sector SPDR, Vertiv Holdings Co and more

By | Daily Briefs, United States

In today’s briefing:

  • MVIS US Listed Semiconductor 25 Index Rebalance: Chipping Away
  • Can AI Stocks Lead the Market to a New Bull?
  • From Bottlenecks to Breakthroughs

MVIS US Listed Semiconductor 25 Index Rebalance: Chipping Away

By Brian Freitas

  • The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 16 June. There are no constituent changes, but there are float and capping changes.
  • The VanEck Vectors Semiconductor (SMH US) ETF tracks the index and has an AUM of US$9.26bn.
  • Estimated one-way turnover is 3.9% resulting in a one-way trade of US$358m. The stocks are extremely liquid, the impact on the stock in terms of ADV to trade is small.

Can AI Stocks Lead the Market to a New Bull?

By Cam Hui

  • Can the AI frenzy, which appears to be in its early stages, carry the stock market to a new bull? An academic study indicates that’s the wrong question to ask.
  • The right question is to determine whether we are in an equity bull so that AI stocks can take advantage of the bull trend. Breadth needs to broaden out.
  • The other and more conventional explanation of market structure is an unhealthy advance against a backdrop of a market that’s positioning for a recession.

From Bottlenecks to Breakthroughs

By subSPAC

  • The evolution of the digital age over the last two decades has seen an uninterrupted growth trajectory for the data center market, with demand being driven by increasing storage and computing requirements, as well as the widespread shift from on-premises infrastructure to cloud solutions.
  • Developments in software applications and IT have reshaped the way clients interact with data, instigating a significant expansion of data center inventory.
  • As the wheel of progress spins inexorably forward, Fortune 500 companies are turning their gaze toward the vast and uncharted frontier of Artificial Intelligence (AI) and its applications. 

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Jun 11
0

Daily Brief United States: AppLovin Corp, Home Depot Inc, Unity Software and more

By | Daily Briefs, United States

In today’s briefing:

  • AppLovin Corporation: Extended Global Partnership with OPPO & Other Developments
  • The Home Depot Inc.: Can It Bounce Back From This Dull Phase? – Key Drivers
  • Unity Software Inc.: The Unity Industry Launch Could Be A Game Changer – Key Drivers

AppLovin Corporation: Extended Global Partnership with OPPO & Other Developments

By Baptista Research

  • AppLovin delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.
  • The management’s belief in the resilience of mobile gaming was validated, as the category remained stable even during uncertain economic times.
  • The development of AXON 2, their advanced technology, has been a priority, with ongoing upgrades expected to bring significant revenue and cash flow improvements.

The Home Depot Inc.: Can It Bounce Back From This Dull Phase? – Key Drivers

By Baptista Research

  • Home Depot delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
  • However, despite these challenges, Home Depot observed strength in key spring-related categories, such as live goods and other garden-related products, where the weather was more favorable.
  • Despite the challenges, Home Depot’s dedicated team prioritizes associates and customers, delivering value and service throughout the quarter.

Unity Software Inc.: The Unity Industry Launch Could Be A Game Changer – Key Drivers

By Baptista Research

  • Unity Software delivered a mixed set of results for the previous quarter, with revenues above the analyst consensus.
  • Unity believes AI is a positive force for the industry and its creators, leveraging the sustainable competitive advantages provided by its platform.
  • We give Unity Software Inc. a ‘Hold’ rating with a revised target price.

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Jun 10
0

Daily Brief United States: Tandem Diabetes Care, Elastic NV, Coinbase, Henry Schein, ROBLOX , Fox Corporation, Twilio Inc, Tyson Foods Inc Cl A, Waters Corp, Wynn Resorts and more

By | Daily Briefs, United States

In today’s briefing:

  • Tandem Diabetes Care (TNDM US): Missed Earnings + Severe Competition = A Bitter Pill to Swallow
  • Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133
  • Coinbase: The Outlook Is Cloudy After The SEC Lawsuit
  • Henry Schein Inc.: Acquisition of Regional Health Care Group & Other Drivers
  • Roblox Corporation: Launch Of Generative AI Game Creation Tools & Other Drivers
  • Fox Corporation: Formation of Tubi Media Group To Lead Fox’s Digital Expansion Efforts – Key Drivers
  • Twilio Inc.: Sale Of IoT Business
  • Tyson Foods Inc.: Continued Challenges In Beef
  • Waters Corporation: Can It Weather the Storm in China? – Key Drivers
  • Wynn Resorts

Tandem Diabetes Care (TNDM US): Missed Earnings + Severe Competition = A Bitter Pill to Swallow

By Tina Banerjee

  • Tandem Diabetes Care (TNDM US) has been consistently missing earnings expectations. This is taking a toll on the share price performance, with shares plunging ~61% over the last one year.
  • Tandem’s nearest rival has recently launched its new insulin pump in the U.S. This will affect Tandem’s Q2 sales growth. Tandem guided for 10–12% revenue growth in 2023.
  • Tandem is a hugely beaten down stock. However, it will be wise to wait for Tandem to launch new product, ensure its good uptake amid competition, and exhibit earnings stability.

Focus On Profitability Expansion And Durable Growth: PT Reduced To $112 From $133

By Andrei Zakharov

  • Elastic NV (ESTC US) reported a solid 4QFY23, reflecting a stronger-than-expected non-GAAP operating margin of ~9% and GAAP subscription gross margin of ~79%. 
  • Elastic cloud revenue grew 28% y/y, representing 40% of total revenue. Elastic cloud is scaling well, and margins improved faster-than-anticipated. 
  • We are concerned about slowing H1 FY24 y/y growth in total revenue and failure to achieve the $2B revenue mark in FY25. Price target to $112.

Coinbase: The Outlook Is Cloudy After The SEC Lawsuit

By Kevin George

  • Coinbase lost 16% of its value after the SEC announced a lawsuit against the company.
  • The lawsuit comes 24 hours after a similar action against rival exchange Binance, which saw $780 million in outflows.
  • Coinbase may continue to make quarterly losses due to market uncertainty, loss of deposits and potential SEC fines.

Henry Schein Inc.: Acquisition of Regional Health Care Group & Other Drivers

By Baptista Research

  • Henry Schein delivered a mixed set of results for the previous quarter, with revenues above analyst expectations but below-par earnings.
  • The global dental specialties business saw increased sales growth, particularly in premium product lines and implant sales.
  • Henry Schein made notable acquisitions, including a majority stake in Biotech Dental, a leading provider of dental implants and clear aligners, and the planned entry into the Brazilian implant market with the acquisition of S.I.N.

Roblox Corporation: Launch Of Generative AI Game Creation Tools & Other Drivers

By Baptista Research

  • Roblox delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.
  • They achieved positive cash flow and generated substantial free cash during the quarter.
  • Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Fox Corporation: Formation of Tubi Media Group To Lead Fox’s Digital Expansion Efforts – Key Drivers

By Baptista Research

  • Fox Corporation delivered an all-around beat in the previous quarter.
  • The significant Super Bowl LVII bolstered the quarter’s success on the Fox Broadcast Network, which generated significant advertising revenue across their businesses and contributed to a remarkable 61% growth in advertising revenue in the Television segment.
  • Despite the industry challenges, We give Fox Corporation a ‘Hold’ rating with a revised target price.

Twilio Inc.: Sale Of IoT Business

By Baptista Research

  • Twilio delivered an all-around beat in the previous quarter.
  • It was a challenging quarter as the company navigated through changes and headwinds in a demanding macro environment.
  • The management acknowledged the moderation in consumer-facing usage patterns and the impact of lapping peak crypto usage from the previous year.

Tyson Foods Inc.: Continued Challenges In Beef

By Baptista Research

  • Tyson Foods delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
  • While the overall performance was disappointing compared to the previous year, Tyson Foods claims to have performed reasonably in volume and dollar sales, gaining market share in the retail core business lines.
  • Despite these challenges, Tyson Foods remains focused on strengthening its branded foods business.

Waters Corporation: Can It Weather the Storm in China? – Key Drivers

By Baptista Research

  • Waters Corporation delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as earnings expectations of Wall Street.
  • Waters Corporation continues to invest in high-growth adjacencies and has a pending acquisition of Wyatt.
  • Waters Corporation is focused on managing the challenges and maintaining its growth trajectory, emphasizing customer needs and market opportunities.

Wynn Resorts

By Baptista Research

  • Wynn Resorts managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
  • In Las Vegas, Wynn Resorts achieved significant results in Q1, supported by a thriving consumer base.
  • In Macau, Wynn Resorts generated significant earnings despite some challenges, including a lower VIP hold.

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Jun 09
0

Daily Brief United States: Occidental Petroleum, Airbnb Inc, Electronic Arts, Palantir Technologies Inc, Transdigm Group, Skyworks Solutions, Zoetis Inc, Viatris, Jacobs Solutions , Gatos Silver and more

By | Daily Briefs, United States

In today’s briefing:

  • Occidental Petroleum Corporation: Notable Progress On The Carbon Capture Front & Other Developments
  • Airbnb Inc.: Possible Revenue Growth From The Affordable Rooms Offering – Key Drivers
  • Electronic Arts Inc.: New Game Launches & Other Drivers
  • Palantir Technologies Inc.: New AI Platform Could Become The Secret Sauce For Continued Hyper Growth – Key Drivers
  • TransDigm Group Incorporated: Acquisition of Calspan Corporation & Other Drivers
  • Skyworks Solutions Inc.: Does The Improving Pipeline And Robust Product Portfolio Make It A ‘Buy’? – Key Drivers
  • Zoetis Inc.: International Business Leads Growth
  • Viatris Inc.: Emerging Market Growth Makes Up Disappointing Performance? – Key Drivers
  • Jacobs Engineering Group: Infra Growth & The Palantir Partnership Accelerating Its Upward Trajectory? – Key Drivers
  • Gatos Silver’s Bi-Quarterly Earnings Reviewed

Occidental Petroleum Corporation: Notable Progress On The Carbon Capture Front & Other Developments

By Baptista Research

  • Occidental Petroleum Corporation delivered a disappointing set of results as the company was unable to meet the revenue expectations as well as the earnings expectations of Wall Street.
  • However, their disciplined approach to capital spending and operational excellence has led to some progress in their shareholder return framework.
  • We give Occidental Petroleum Corporation a ‘Hold’ rating with a revised target price.

Airbnb Inc.: Possible Revenue Growth From The Affordable Rooms Offering – Key Drivers

By Baptista Research

  • Airbnb delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.
  • The company experienced significantly high bookings, with over 120 million Nights and Experiences Booked in Q1.
  • Revenue grew significantly year-over-year, and the quarter was the most profitable GAAP-based.

Electronic Arts Inc.: New Game Launches & Other Drivers

By Baptista Research

  • Electronic Arts managed to surpass the revenue expectations as well as the earnings expectations of Wall Street in its recent quarterly result.
  • The fiscal year 2023 saw EA SPORTS FIFA thrive, with double-digit growth in net bookings and FIFA 23 becoming the best-selling title in franchise history.
  • We give Electronic Arts Inc. a ‘Hold’ rating with a revised target price.

Palantir Technologies Inc.: New AI Platform Could Become The Secret Sauce For Continued Hyper Growth – Key Drivers

By Baptista Research

  • Palantir Technologies delivered an all-around beat in the most recent quarterly result with solid revenue growth driven by the U.S. commercial business and disciplined spending management.
  • Their commercial segment saw significant revenue growth, while the government showed strength.
  • Their expanding adjusted operating margins and strong cash flow generation highlight their ability to manage costs while driving revenue growth effectively.

TransDigm Group Incorporated: Acquisition of Calspan Corporation & Other Drivers

By Baptista Research

  • TransDigm Group managed to exceed analyst expectations in terms of revenue as well as earnings in its recent quarterly result.
  • With approximately 90% of net sales generated by unique proprietary products, the company’s focus on aftermarket revenues has provided stability and higher margins.
  • TransDigm experienced substantial growth in total commercial revenues and bookings across all major market channels.

Skyworks Solutions Inc.: Does The Improving Pipeline And Robust Product Portfolio Make It A ‘Buy’? – Key Drivers

By Baptista Research

  • It was a decent second quarter for Skyworks as the results were on par with the analyst consensus estimates.
  • The market trends, such as the growth of WiFi and electric vehicles, present significant growth potential for Skyworks.
  • With its successful second-quarter performance, Skyworks’ expanding customer relationships, global scale, and efficient cash flow engine position them well for future growth opportunities in the rapidly evolving connectivity landscape.

Zoetis Inc.: International Business Leads Growth

By Baptista Research

  • Zoetis delivered a mixed set of results for the previous quarter with revenues well below analyst expectations but managed an earnings beat.
  • While revenues from companion animal products were flat operationally, their livestock portfolio led to the results with a 12% operational gain in revenue.
  • Zoetis’ team anticipates flat operational growth in its cattle portfolio and double-digit operational growth for its cutting-edge companion animal portfolio.

Viatris Inc.: Emerging Market Growth Makes Up Disappointing Performance? – Key Drivers

By Baptista Research

  • Viatris’ results were a major disappointment as the company failed to meet the revenue expectations as well as the earnings expectations of Wall Street.
  • The company achieved decent results in developed markets, with a full European version driven by critical brands and generics.
  • The company expects mid-single-digit growth in this segment, primarily driven by the brand category.

Jacobs Engineering Group: Infra Growth & The Palantir Partnership Accelerating Its Upward Trajectory? – Key Drivers

By Baptista Research

  • Jacobs Engineering Group managed to exceed analyst expectations in terms of revenue as well as earnings.
  • The People and Places line of business of Jacobs Engineering delivered a strong performance.
  • The divergent solutions operating unit had a strong operating profit with up in operating profit.

Gatos Silver’s Bi-Quarterly Earnings Reviewed

By Pearl Gray Equity and Research

  • Sources suggest Silver is set to receive long-term support.
  • However, the futures market implies that a short-term price retracement is possible.
  • Despite the stock’s tailwinds, a 30% year-over-year surge places Gatos in overvalued territory.

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Jun 08
0

Daily Brief United States: Alphabet Inc Cl C, Capital One Financial and more

By | Daily Briefs, United States

In today’s briefing:

  • Analysis of Top 100 Korean YouTube Channels + Significant Market Share Gains for YouTube in Korea
  • US Banks – A Closer Look at Office Exposure and Revisiting Capital Adequacy

Analysis of Top 100 Korean YouTube Channels + Significant Market Share Gains for YouTube in Korea

By Douglas Kim

  • In this insight, we provided the most recent ranking of the top 100 most popular YouTube channels in Korea (according to Socialblade website).
  • The top 100 YouTube channels in Korea have received 390.7 billion in total views as of June 2023. Of these total views, K-Pop channels views accounted for 46.4% share.
  • YouTube has been meaningfully taking away market share from Kakao and Naver in the past three years. KakaoTalk’s MAU was 41.5 million in May 2023. YouTube was a close second.

US Banks – A Closer Look at Office Exposure and Revisiting Capital Adequacy

By Victor Galliano

  • Credit quality risks are rising in US commercial real estate (CRE) and specifically in office property; furthermore, the prospect of increasing US Treasury bond issuance may heighten T-bond volatility
  • We screen for US banks that have strong capital ratios, that can deliver premium returns and can confront the rising credit quality challenges, especially in CRE
  • We maintain buys on M&T Bank and Western Alliance, adding Capital One with its healthy capital ratios and low office exposure; we recommend profit taking on First Horizon

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Jun 07
0

Daily Brief United States: iShares Russell 2000 ETF, Crude Oil, Hewlett Packard Co, Ball , Cons Tomoka Land Co Florida, Broadcom and more

By | Daily Briefs, United States

In today’s briefing:

  • Russell 2000 Breakout Attempt Underway; Small-Cap Breadth Improving; KRE, KBE, XRT Test Key Levels
  • WTI and Gold Targets
  • Dell, HP, Qualcomm Signal AI-Driven PC Refresh Cycle, 2024E PC Growth, Accelerated Windows Upgrades
  • Ball Corporation: What Is Its Biggest Competitive Advantage? – Key Drivers
  • CTO Realty Growth: One Of The Few Investable REITs Out There
  • Broadcom: Proceed With Caution

Russell 2000 Breakout Attempt Underway; Small-Cap Breadth Improving; KRE, KBE, XRT Test Key Levels

By Joe Jasper

  • The S&P 500 broke above 4200 and the 2-month megaphone pattern on Friday, and is already approaching the 4300-4325 area which we have anticipated would cap upside for 2023.
  • While we would be cautious at these levels given our expectation for inflation to remain elevated, we cannot get too bearish if the S&P 500 is above 4165-4200.
  • Breadth remains weak within the S&P 500, but we are starting to see breadth improvement within small-cap Russell 2000 (IWM). More on that below, IWM targets include $190 and $200-202.

WTI and Gold Targets

By Thomas Schroeder

  • Oil and gold remain under pressure due to a firm US dollar. Use strikes to the downside in oil to re cycle a short near 75 resistance. 
  • Our sell call in gold at 2,060 is pressing below 1,980 with a target of 1,900 where we start to probe for an intermediate cycle low.
  • We view this as a tactical pullback within a more bullish macro cycle. USD counter play.

Dell, HP, Qualcomm Signal AI-Driven PC Refresh Cycle, 2024E PC Growth, Accelerated Windows Upgrades

By Vincent Fernando, CFA

  • HP and Dell’s industry outlook after their results last week indicate a PC market stabilizing and set for growth in 2024E. Qualcomm provided AI comments at a recent conference.
  • Both HP and Dell managed to beat earnings expectations despite experiencing 20%+ YoY revenue declines. Neither stock’s price has made a significant move since results.
  • AI incorporated into Windows 11 and PC’s themselves could be a major reason for companies and consumers to buy new PC’s. PC’s are being designed to run AI capabilities locally.

Ball Corporation: What Is Its Biggest Competitive Advantage? – Key Drivers

By Baptista Research

  • Amid tough year-over-year comparisons, largely driven by business divestments, Ball Corporation delivered a mixed set of results for the previous quarter with revenues well below analyst expectations but managed an earnings beat.
  • The company’s aluminum beverage, as well as aerosol shipments, were in line with the regional expectations of the management.
  • However, the sales of the quarter decreased because of the sale of the company’s Russian business, lower volumes, currency translation, and pass-through of lower aluminum prices.

CTO Realty Growth: One Of The Few Investable REITs Out There

By Pearl Gray Equity and Research

  • CTO Realty Growth, Inc. possesses the necessary characteristics to outperform the market.
  • Diminishing credit spreads and more predictable inflation could result in tailwinds for best-in-class cyclical REITs such as CTO.
  • Real Estate Investment Trusts (“REITs”) situated in the United States have underperformed the S&P 500 (SP500) by approximately 10% during the past year, which should not be a surprise as factors such as rising credit

Broadcom: Proceed With Caution

By Vladimir Dimitrov, CFA

  • Broadcom Inc. has been the best-performing semiconductor stock over the past 3-month period.
  • Robust demand partially justifies the recent share price increase, but not all the way to a near double-digit revenue multiple.
  • Just three months ago, I analyzed Broadcom Inc.’s (NASDAQ:AVGO) strong business model through the lens of profitability, competitive advantages and capital allocation.

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Jun 06
0

Daily Brief United States: Apple Inc, Adeia, Elevance Health , Copper, Godaddy Inc Class A, Hyatt Hotels Corp Cl A, Mckesson Corp, Paypal Holdings, Royal Caribbean Cruises, Teleflex Inc and more

By | Daily Briefs, United States

In today’s briefing:

  • History Could Repeat For Apple With A Hardware High
  • ADEA: Undiscovered AI
  • Elevance Health: A Critical Update (Rating Downgrade)
  • The World Has a New No. 2 Copper Supplier – El Nino Effects Start to Sink In?
  • GoDaddy Inc: Tapping Into The AI Market For Growth? – Major Drivers
  • Hyatt Hotels Corporation: The New Extended Stay Offering Could Be A Game Changer? – Key Drivers
  • McKesson Corporation: A Streamlined Portfolio After Recent Divestitures – Key Drivers
  • PayPal Holdings Inc.: AI-Driven Innovations & TPV Growth Are A Positive Sign – Key Drivers
  • Royal Caribbean Cruises Ltd.: Poised For An Improved 2023? – Key Drivers
  • Teleflex Incorporated: New Launches & Other Key Drivers

History Could Repeat For Apple With A Hardware High

By Kevin George

  • Apple’s stock reached an all-time high ahead of the 2023 Worldwide Developer Conference.
  • The company unveiled its mixed-reality headset, Apple Vision Pro, which could revolutionize communications and be a game-changer for the metaverse.
  • McKinsey predicts that the headset could be a $5 trillion opportunity by 2030.

ADEA: Undiscovered AI

By Hamed Khorsand

  • ADEA could be the most under the radar artificial intelligence (“AI”) beneficiary through its patent portfolio related to hybrid bonding
  • Hybrid bonding is expected to help usher the next generation of semiconductors to handle the growing need for speed and bandwidth with lower power consumption
  • ADEA’s stock has been mainly valued on the free cash flow it is able to generate from its media patent portfolio with little value given to ADEA’s semiconductor patent portfolio

Elevance Health: A Critical Update (Rating Downgrade)

By Pearl Gray Equity and Research

  • Elevance Health, Inc. has been active in the M&A market with the divestiture of its life disability business and a “new markets” acquisition.
  • However, evidence suggests that success is not guaranteed, according to the company.
  • The company’s stock has been downgraded to a moderate buy.

The World Has a New No. 2 Copper Supplier – El Nino Effects Start to Sink In?

By The Commodity Report

  • El Nino effects start to sink in? During last week grain prices saw building up some momentum.
  • The DSCI drought index also surged after many weeks of continuous declines.
  • Nevertheless, we should actually see lots of rain during the summer in the US if we’ll see a classic El Nino.

GoDaddy Inc: Tapping Into The AI Market For Growth? – Major Drivers

By Baptista Research

  • In the first quarter, GoDaddy drove double-digit growth in its Commerce and Applications segment, supported by 10% ARR growth in its Create and Grow products.
  • The Core Platform revenue of GoDaddy was $698 million, with a strong normalized EBITDA margin.
  • The newly managed WooCommerce store offering of GoDaddy replaced its old managed WordPress Commerce offering.

Hyatt Hotels Corporation: The New Extended Stay Offering Could Be A Game Changer? – Key Drivers

By Baptista Research

  • Hyatt Hotels delivered a mixed set of results in its most recent quarter with revenues above Wall Street expectations but below-par earnings.
  • Hyatt achieved significant net room expansions, with more than 5000 rooms added on a gross in the quarter.
  • In the quarter, Hyatt completes its Dream Hotel Group acquisition.

McKesson Corporation: A Streamlined Portfolio After Recent Divestitures – Key Drivers

By Baptista Research

  • McKesson managed an all-around beat in the last quarter, closing out a solid fiscal 2023 with full-year revenues of $277 billion and adjusted earnings per diluted share of $25.94.
  • The core Pharmaceutical Distribution business supported growth in the U.S.
  • Pharmaceutical segment, and they divested their European operations to streamline their portfolio.

PayPal Holdings Inc.: AI-Driven Innovations & TPV Growth Are A Positive Sign – Key Drivers

By Baptista Research

  • PayPal had a successful quarter and managed an all-around beat as it experienced stronger-than-expected growth across its key financial metrics.
  • The Total Payment Volume (TPV) from branded checkout significantly accelerated, while unbranded TPV growth also saw a notable increase.
  • The company has made significant strides in upgrading its merchant and consumer experiences and is committed to executing cost-effectively and efficiently.

Royal Caribbean Cruises Ltd.: Poised For An Improved 2023? – Key Drivers

By Baptista Research

  • Royal Caribbean delivered a solid result managed an all-around beat in the last quarter.
  • For both ticket and onboard, solid demand for Caribbean itineraries is translated into advanced load factors at quite a better-than-expected pricing.
  • Moreover, secular tailwinds continued benefitting Royal Caribbean, with consumers shifting spending and preferences from goods to experiences, resulting in strong travel and entertainment spend.

Teleflex Incorporated: New Launches & Other Key Drivers

By Baptista Research

  • Teleflex had a strong start to 2023 with an all-around beat.
  • For the first quarter, the revenues of Teleflex were $710.9 million, a year-over-year increase.
  • Teleflex continues to benefit from its diversified portfolio and viewed strength across its largest product categories, including OnControl, balloon pumps, and complex catheters.

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Jun 05
0

Daily Brief United States: SoFi and more

By | Daily Briefs, United States

In today’s briefing:

  • Beyond Student Loans

Beyond Student Loans

By subSPAC

  • With the inception of the pandemic, borrowers have largely been wrestling with financial distress, compelling fintech companies like SoFi technologies, which banks on student loan financing, to largely reimagine their business model.
  • SoFi has moved away from its core business over the past three years, instead casting a wider net, extending its services to include diverse financial products, personal loans, and its banking-as-a-service business targeting enterprise customers.
  • In 2023, SoFi has had to grapple with mounting external pressures emanating from a slowing economy.

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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