In today’s briefing:
- Tyro Offers Due Diligence To Potentia
- Intel 4Q22: How Many Kitchen Sinks?
- Teradyne Inc: Merger of AutoGuide Mobile Robots & MiR & Other Drivers
- Major Top on U.S. Dollar; Overweight Non-U.S. And Europe/UK; Buys in Tech, Comm., Discretionary
- Gen Digital (formerly Norton Lifelock): Financial Forecasts
- DocuSign Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
- Five9 Inc: R&D Expansion & Other Drivers
- Cognizant Technology Solutions: Acquisition Of AustinCSI & Other Drivers
- Amkor Technology: Entry Into TSMC’s OIP 3DFabric Alliance & Other Developments
- Lumentum Holdings: R&D Expansion & Other Drivers
Tyro Offers Due Diligence To Potentia
- After Potentia bumped indicative terms to A$1.60/share last month, Tyro Payments (TYR AU)‘s board considered the revised terms remained below what is considered fair, and has ceased all discussions.
- Following discussions between Tyro and Potentia, the Tyro Board is now providing Potentia with a 4-week period of due diligence to “enable Potentia to develop a significantly improved proposal“.
- No indicative price was mentioned. Mike Cannon-Brookes’ Grok Ventures was open to a competing proposal of A$1.85/share.
Intel 4Q22: How Many Kitchen Sinks?
- How many kitchens does Intel have? Intel guided 1Q2023 revenues to $11B, down 40% YoY / 22% QoQ and 21% (!!) below consensus $14B.
- 1Q23 gross margins ex-accounting change guided to 36%, the lowest since 1986!
- Intel’s worsening FCF means dividend cuts are on the table.
Teradyne Inc: Merger of AutoGuide Mobile Robots & MiR & Other Drivers
- Teradyne delivered a solid result in the last quarter as the company surpassed analyst expectations with respect to revenues as well as earnings.
- At the operating level, it cleared some supply bottlenecks that allowed the company to ship more of semiconductor test products than previously planned.
- Automation Group’s quarter revenue, in constant currency, grew.
Major Top on U.S. Dollar; Overweight Non-U.S. And Europe/UK; Buys in Tech, Comm., Discretionary
- 2023 gameplan remains unchanged; we see limited upside from here for ACWI-US, and we expect a rangebound year of trading on ACWI-US with $93 capping upside and $75-77 capping downside
- We also remain overweight Europe/UK, we want to add exposure on pullbacks to China/Hong Kong/EM, and overweight non-U.S. equities (MSCI ACWI ex-US) relative to MSCI ACWI
- We highlight buy ideas within Technology, Communications, and Consumer Discretionary. The UK/Europe and Hong Kong/China continue to make up the majority of our buy recommendations
Gen Digital (formerly Norton Lifelock): Financial Forecasts
- After combining the Norton LifeLock and Avast businesses, the company has been renamed as Gen Digital – a corporation with the goal to develop technological solutions that will allow users to profit fully from the online environment while maintaining their privacy and confidence.
- Today, the company’s brand portfolio includes well-known brands, including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
DocuSign Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
- DocuSign delivered solid quarter results despite the challenging operating environment, surpassing Wall Street expectations in terms of both, the top and bottom lines.
- However, the company stills see healthy results with customers recognizing DocuSign high-ROI applications that are cost-effective, efficient, and easy to use.
- DocuSign is continuing its innovation on the CLM front, solidifying its execution, customer validation, and vision within the CLM space.
Five9 Inc: R&D Expansion & Other Drivers
- Five9 delivered an all-around beat in its last result as the company stock has seen a reversal in fortunes over the past few weeks.
- The company gets leverage from its channels, ecosystem of partners, and system integrators, which helped it build its pipeline in its last result.
- Overall, we provide the stock of Five9 with a ‘Hold’ rating and a revision in the target price.
Cognizant Technology Solutions: Acquisition Of AustinCSI & Other Drivers
- With its results around the corner, it would be interesting to look at Cognizant’s results from the last quarter.
- The company had delivered revenue below the guidance range of the management, primarily driven by a lower billable headcount in North America.
- Cognizant has been seeing revenue growth from health services and from products and resources driven by demand for its digital services among travel and hospitality, consumer goods, automotive, and logistics clients.
Amkor Technology: Entry Into TSMC’s OIP 3DFabric Alliance & Other Developments
- Amkor Technology delivered excellent results in the last quarter and managed an all-around beat as its end markets showed a very strong demand.
- Whereas market forecasts are weakened in some areas and the industry has been facing near-term macroeconomic headwinds, demand for the company’s advanced packaging technology stays strong, and the momentum strengthened in this quarter.
- Revenue from computing end markets increased, and the test business of the company grew.
Lumentum Holdings: R&D Expansion & Other Drivers
- Lumentum Holdings delivered a strong result in the last quarter and managed an all-around beat.
- This quarter reported strong demand from customers.
- Overall, the demand for the Telecom products of Lumentum remains strong, particularly in edge networking applications.
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