In today’s briefing:
- Itau Unibanco Holding S.A.: Initiation of Coverage – Business Strategy & Key Drivers
- Monolithic Power Systems Inc.: Initiation of Coverage – Product Portfolio
- Discover Financial Services: Initiation of Coverage – Business Strategy & Key Drivers
- Intuitive Surgical (ISRG US): Robust Procedure Volume Drove 2Q23 Result; 2023 Outlook Raised
- American International Group (AIG): Initiation of Coverage – Recent Catastrophe Impact & Other Developments
- Prudential Financial Inc.: Initiation of Coverage – The Deerpath Capital Acquisition & Other Major Drivers
- PNC Financial Services Group: Initiation of Coverage – Impact Of Banking Crisis & Other Developments
Itau Unibanco Holding S.A.: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on one of the largest private sector banks in Brazil, Itau Unibanco.
- The loan portfolio showcased growth despite signs of a slowdown, with the SMEs loan portfolio registering an increase of 9.2% for Q1 2023 compared to Q1 2022.
- We initiate coverage on the stock of Itau Unibanco Holding S.A. with a ‘Hold’ rating.
Monolithic Power Systems Inc.: Initiation of Coverage – Product Portfolio
- This is our first report on Monolithic Power Systems, one of the largest semiconductor-based equipment companies.
- Revenue from communications also increased due to a slight increase in revenue from the 5G infrastructure.
- We initiate coverage on the stock of Monolithic Power Systems, Inc. with a ‘Hold’ rating.
Discover Financial Services: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Discover Financial Services, a prominent consumer finance company.
- Net interest income grew significantly, supported by an expanding net interest margin driven by higher prime rates.
- Additionally, the company introduced Discover Financial Health Improvement Fund to improve the financial well-being of low- and middle-income individuals, communities, and small enterprises.
Intuitive Surgical (ISRG US): Robust Procedure Volume Drove 2Q23 Result; 2023 Outlook Raised
- In 2Q23, Intuitive Surgical (ISRG US) recorded 15% YoY revenue growth to $1.76B, driven by growth in da Vinci procedure volume and an increase in the installed base of systems.
- 2Q23 procedure growth was 22%, compared to 14% for 2Q22 and 26% last quarter. Areas of strength included general surgery and gynecology for benign conditions, particularly in the U.S.
- The company now expects 2023 procedure volume growth of 20–23%, up from previous estimates of 18–21% growth. Significant material supply chain disruptions or hospital capacity constraints are not expected.
American International Group (AIG): Initiation of Coverage – Recent Catastrophe Impact & Other Developments
- This is our first report on insurance behemoth, AIG.
- In Q1 2023, AIG reported a net income of $3.9 billion, marking a significant turnaround from the net loss of $7.9 billion reported in Q1 2022.
- Concurrently, AIG continues to monitor market conditions and regulatory approvals as it considers reducing its ownership interest in Corebridge via a secondary offering, amongst other options.
Prudential Financial Inc.: Initiation of Coverage – The Deerpath Capital Acquisition & Other Major Drivers
- This is our first report on Prudential Financial, Inc., a major global player in financial services and insurance.
- Prudential kept transforming throughout the quarter to become less reliant on the market and better able to produce steady, long-term growth.
- The company also had the financial strength to navigate the changing macroeconomic climate because of its rock-solid balance sheet.
PNC Financial Services Group: Initiation of Coverage – Impact Of Banking Crisis & Other Developments
- This is our first report on PNC Financial Services Group, a major bank and financial service company.
- Despite a rise in the accumulated other comprehensive loss by $400 million during Q2, the tangible book value rose to $77.80.
- We initiate coverage on the stock of PNC Financial Services Group with a ‘Hold’ rating.
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