In today’s briefing:
- Doosan Bobcat Block Deal Sale: Concerned About North America Construction Sector Downturn
- Elastic N.V.: Does The Impressive Cloud Growth Make This A ‘Buy’? – Key Drivers
- Tesla: Riding The Wave (Update)
- Broadcom Inc.: Introduction of Wi-Fi RF FEM & Other Developments
- The Cooper Companies Inc.: Is It The Future Of Vision Correction? – Key Drivers
- Dell Technologies Inc.: Partnership With Ericsson For Cloud RAN & Other Developments
- Guidewire Software Inc.: Leadership In The Insurance Software Market Is Here To Stay? – Key Drivers
- Workday Inc.: Expanding The Global Footprint
- Zscaler Inc.: Is Zero Trust Architecture The Future of Security? – Key Drivers
- Hormel Foods Corporation: Does It Have Any Kind Of Competitive Advantage? – Key Drivers
Doosan Bobcat Block Deal Sale: Concerned About North America Construction Sector Downturn
- After the market close on 20 June, Doosan Enerbility announced that it will sell 5 million shares of Doosan Bobcat through a block deal worth about 300 billion won.
- The block deal price range is from 54,800 won to 56,200 won, which represents a discount range from 6.18% to 8.51% (versus current price).
- We have a negative view of Doosan Bobcat block deal as we expect lower share price of Doosan Bobcat in 2H 2023 due to construction sector downturn in North America.
Elastic N.V.: Does The Impressive Cloud Growth Make This A ‘Buy’? – Key Drivers
- Elastic managed to exceed analyst expectations in terms of revenue as well as earnings.
- In Q4, total revenue increased by 19% year over year in constant currency, while Elastic Cloud increased by 30% year over year in constant currency.
- The subscription revenue was $256 million, increasing 16% year over year or 18% in constant currency, and made up 91% of the overall revenue.
Tesla: Riding The Wave (Update)
- Risks such as potential asset impairments, the stock’s volatility, and industry fragmentation persist.
- However, key valuation metrics coupled with our analysis leaves us with the conclusion that Tesla’s stock remains grossly undervalued.
- The company’s price cuts might be phased out by softening material costs, the company says.
Broadcom Inc.: Introduction of Wi-Fi RF FEM & Other Developments
- Broadcom delivered a positive result and managed an all-around beat in the last quarter.
- Semiconductor Solutions’ revenue showed an increase, driven by stable growth in core software despite some challenges in the Brocade business.
- They remain confident about their prospects and anticipate continued growth in semiconductor revenue for the upcoming quarter.
The Cooper Companies Inc.: Is It The Future Of Vision Correction? – Key Drivers
- Cooper delivered a solid result and managed an all-around beat in the last quarter.
- CooperSurgical also reported high revenues and achieved ten consecutive quarters of double-digit organic revenue growth, led by their fertility business.
- In addition to the strong financial performance, CooperVision’s new product launches, expanded product ranges, and market-leading flexibility contributed to the positive results.
Dell Technologies Inc.: Partnership With Ericsson For Cloud RAN & Other Developments
- Dell Technologies managed to exceed analyst expectations in terms of revenue as well as earnings.
- They also made significant strides in their innovation agenda, introducing new cloud platforms, edge solutions, AI collaborations, and security initiatives.
- We give Dell Technologies a ‘Hold’ rating with a revised target price.
Guidewire Software Inc.: Leadership In The Insurance Software Market Is Here To Stay? – Key Drivers
- Guidewire Software delivered a mixed set of results in its most recent result, with revenues falling short of Wall Street expectations but above-par earnings.
- Their third quarter result was highlighted by continuous demand for InsuranceSuite Cloud and ARR and profitability, which exceeded expectations.
- We give Guidewire Software a ‘Hold’ rating with a revised target price.
Workday Inc.: Expanding The Global Footprint
- Workday managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.
- In the quarter, subscription revenue increased by 20% year over year to $1.53 billion.
- Outside of the United States, overall revenue was $420 million, which represents 25% of total sales.
Zscaler Inc.: Is Zero Trust Architecture The Future of Security? – Key Drivers
- Zscaler managed to exceed analyst expectations in terms of revenue as well as earnings.
- The company’s disciplined approach, high gross retention rates, and high operating income contributed to its success.
- We give Zscaler a ‘Hold’ rating with a revised target price.
Hormel Foods Corporation: Does It Have Any Kind Of Competitive Advantage? – Key Drivers
- Hormel Foods Corporation delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.
- The company made progress in rectifying inefficiencies and plans to responsibly manage and lower inventory levels in the future despite the margin impact from inventory adjustments.
- We give Hormel Foods Corporation a ‘Hold’ rating with a revised target price.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
