In today’s briefing:
- SDRL: Attractive Value, PT to $62
- Mondelez: Ignore The Noise And Invest In Strong And Well-Managed Brands
- Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers
- The Clorox Company: Unmasking Their Strategy to Restore Pre-Pandemic Margins! – Major Drivers
- Confluent. 2Q Wrap: Solid Results and Leadership Position In a $60B+ TAM
- Traders Remain Neutral Commodities // Copper Loses as China Falls Apart
- Dynatrace Inc.: Will The Rookout Acquisition Become A Major Growth Catalyst? – Key Drivers
- FMC Corporation: Decoding Their Strategy Amidst FX Headwinds and Declining Cash Flow! – Major Drivers
- McKesson Corporation: Decoding the Success Behind Their Broad-Based Momentum! – Major Drivers
- MGM Resorts International: An International Strategy That’s Raising Eyebrows? – Major Drivers
SDRL: Attractive Value, PT to $62
- SDRL reporting second quarter results provided greater insight on the contribution of Aquadrill to SDRL’s financials and sets the course for how the business could benefit from current day rates
- SDRL has two drill ships set for contract expiration at year end and another two more vessels expected off contract by end of 2024, not including those with contract options
- Our new price target of $62 from $50 values SDRL in line with its peers even though SDRL is not levered
Mondelez: Ignore The Noise And Invest In Strong And Well-Managed Brands
- Mondelez has outperformed the market both on an absolute and risk-adjusted basis.
- The company is in a very good position to improve margins to higher levels than currently expected.
- The stock remains as one of my favourite picks in the sector. The stock is one of the company’s favourite picks.
Emerson Electric Co.: A Story Of Digital Transformation To Empower Process Manufacturers – Key Drivers
- Emerson Electric’s results were a major disappointment as the company failed to meet the revenue as well as the earnings expectations of Wall Street.
- The company’s focus on key growth areas, including energy transition, nearshoring, and its leading software portfolio, positions it to capture growth opportunities and drive value for its customers and stakeholders in the foreseeable future.
- The company’s pricing strategies, and solid operational performance are key factors that contributed to the exceptional results in the third quarter.
The Clorox Company: Unmasking Their Strategy to Restore Pre-Pandemic Margins! – Major Drivers
- The Clorox Company managed to exceed analyst expectations in terms of revenue and earnings.
- Strong results at the quarter’s end highlight the tremendous progress the company has made with its strategic priorities.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Confluent. 2Q Wrap: Solid Results and Leadership Position In a $60B+ TAM
- I remain bullish on the stock and reiterate a $37 PT. Confluent (CFLT US) delivered upside to total revenue, gross margin, and non-GAAP operating margin estimates.
- The company raised guidance for CY23 total revenue and profitability. There were plenty of positives, including cloud momentum and customer demand.
- The US-based data streaming pioneer appears well positioned to outperform my estimates, and I see a path to profitability (non-GAAP) in CY24 at the earliest.
Traders Remain Neutral Commodities // Copper Loses as China Falls Apart
- Orange juice futures hit an all-time high last week as citrus crops all across the US have been hammered by a series of hurricanes and the spread of citrus greening, an incurable disease spread by insects.
- The vast majority of oranges produced in the US come from Florida, which has been hobbled by hurricanes and a cold snap, massively hampering supply.
- Such headwinds are responsible for the supply shortage in oranges, which has driven up prices that will eventually filter through to consumers.
Dynatrace Inc.: Will The Rookout Acquisition Become A Major Growth Catalyst? – Key Drivers
- Dynatrace Inc. delivered a strong result and managed an all-around beat in the quarter.
- With a new CRO and a strong vision for the future, Dynatrace is in a good position in the cloud-based software landscape.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
FMC Corporation: Decoding Their Strategy Amidst FX Headwinds and Declining Cash Flow! – Major Drivers
- FMC Corporation delivered a disappointing set of results as the company could not meet the revenue and earnings expectations of Wall Street.
- The company presented several challenges, including FX headwinds, lower EBITDA margin, higher interest expenses, and a decline in free cash flow due to the impact of a channel inventory reset.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
McKesson Corporation: Decoding the Success Behind Their Broad-Based Momentum! – Major Drivers
- McKesson Corporation managed to exceed analyst expectations in terms of revenue as well as earnings.
- McKesson’s core distribution businesses, particularly pharmaceutical distribution, exhibited broad-based momentum with solid growth across customer channels.
- We give McKesson Corporation a ‘Hold’ rating with a revised target price.
MGM Resorts International: An International Strategy That’s Raising Eyebrows? – Major Drivers
- MGM Resorts International delivered an all-around beat in the most recent quarterly result, demonstrating robust growth, highlighted by a record for consolidated net revenues.
- The company showcased strength across its diverse portfolio, with solid earnings from domestic operations, particularly notable in MGM China and BetMGM.
- Regional operations also displayed year-over-year growth on a same-store basis, reflecting the company’s commitment to maximizing profitability while delivering exceptional customer service.
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