In today’s briefing:
- Awaiting CPI Thursday; Expect 4100-4165 SPX to Cap Upside; Buy Ideas Within Gold Miners, Insurance
- Hilton Worldwide Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- Matador Resources: Downgraded To Sell; 50% Downside Possible
- Chubb Limited: Initiation of Coverage – Expansion In China & Other Drivers
- Mastercard: Turning Cautiously Positive On The Business As Recession Looms Ahead
- Hilton Worldwide Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Citigroup: A Q4 Earnings Beat Is Highly Possible
- Edwards Lifesciences Corporation: Initiation of Coverage – Recent Approvals & Other Drivers
Awaiting CPI Thursday; Expect 4100-4165 SPX to Cap Upside; Buy Ideas Within Gold Miners, Insurance
- We currently see the market indexes as consolidating within broad horizontal trading ranges, and we expect these ranges to continue for months, and quite possibly for the entirety of 2023.
- We see the top-end of the range at 4100-4165 on the S&P 500, while the bottom-end is at the 2022 lows (3490).
- With yesterday’s break above 3910 it tells us a tradable rally has begun, with 4100-4165 our target
Hilton Worldwide Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers
- This is our first report on Hilton Worldwide, one of the largest hotel chains in the world.
- Despite the good performance, Hilton failed to meet Wall Street expectations with respect to revenues but it did manage an earnings beat.
- We initiate coverage on the stock of Hilton Worldwide Holdings with a ‘Hold’ rating.
Matador Resources: Downgraded To Sell; 50% Downside Possible
- Matador Resources’ exponential growth trajectory could be crushed by less supportive oil and gas prices, which might compress the firm’s earnings per share.
- However, acquisitions and expansion projects will be challenging during a period embodied by unfavorable capital structures and recession risk.
- It’s been ten months since we covered Matador Resources’ (NYSE:MTDR) stock.
Chubb Limited: Initiation of Coverage – Expansion In China & Other Drivers
- This is our first report on insurance major, Chubb.
- The company had an excellent quarter given the enormous underwriting outcomes and it delivered an all-around beat.
- During the quarter, Chubb continued to accelerate the turnover of its portfolio in a targeted manner.
Mastercard: Turning Cautiously Positive On The Business As Recession Looms Ahead
- As M&A activity has cooled down, some risks for shareholders have been reduced and management has prioritized higher returns to shareholders.
- Although I am turning cautiously positive on Mastercard, there are still risks that need to be considered, according to Mastercard’s chief executive.
- The performance gap between Mastercard (NYSE:MA) and the S&P 500 that opened in 2021 has now been completely closed.
Hilton Worldwide Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
- Hilton Worldwide is one of the largest hotel chains in the world.
- Hilton’s management also announced several strategic alliances to strengthen their international network and improve the guest experience.
- All categories saw rates rise above levels from 2019, with transitory leisure rates rising into the high teens and business transient and group rates rising into the mid-single digits.
Citigroup: A Q4 Earnings Beat Is Highly Possible
- Most of the bank’s restructuring charges will be phased out of its valuation as they are non-core.
- However, a residual income model suggests that Citigroup’s stock is tremendously undervalued.
- The bank is scheduled to release its Q4 earnings report on Friday, and we are exceptionally bullish.
Edwards Lifesciences Corporation: Initiation of Coverage – Recent Approvals & Other Drivers
- This is our first report on Edwards Lifesciences, a market leading manufacturer of heart valve systems and repair products.
- The last quarter was highly disappointing as Edwards failed to meet Wall Street expectations in terms of revenues as well as earnings.
- Besides, their market-leading SAPIEN 3 Ultra transcatheter aortic heart valve combines Edwards’ ground-breaking RESILIA technology.
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