In today’s briefing:
- The Dollar O’ Meter #1 – 5 Ways to Gauge the Usd Outlook
- Campbell Soup: Key Drivers
- Cirrus Logic Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
- Columbia Sportswear: Key Drivers, Financial Forecasts, DCF & Comparables Valuation, Risks (01/23)
- Adobe Inc: Major Drivers
- Oracle Corporation: New Cloud Zone & Other Developments
- Plug Power Inc: Partnership With Nikola Corporation & Other Drivers
- Cummins Inc: Acquisition Of Siemens’ Commercial Vehicles Business & Other Drivers
The Dollar O’ Meter #1 – 5 Ways to Gauge the Usd Outlook
- Our models suggest that we should see further weakness in the USD in the coming months.
- Expected interest rate divergence (EU/US) would, all else equal, strengthen the Euro relative to the Dollar.
- Another source of dollar weakness can be attributed to the rise in the Chinese credit impulse.
Campbell Soup: Key Drivers
- Campbell Soup is off to a good start to the fiscal year and delivered an all-around beat.
- Meals & beverages delivered a strong performance, and there is growth in key brands, particularly RTS (Ready-To-Serve) soups, Mexican sauces, and Italian soup, well-outpaced the growth.
- We provide the stock of Campbell Soup with a ‘Hold’ rating and a revision in the target price.
Cirrus Logic Inc: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (01/23)
- Cirrus delivered a decent quarterly result with an all-around beat, driven by greater smartphone unit volumes linked to its customers’ new product launches, resulting in revenue over the high end of its target range.
- Furthermore, with the development of Cirrus’ 22-nm codec, audio sensing and other signal processing use cases will benefit from increased performance and power efficiency.
- The management has been working with several customers to design their first amplifier created especially for this market.
Columbia Sportswear: Key Drivers, Financial Forecasts, DCF & Comparables Valuation, Risks (01/23)
- Columbia Sportswear delivered a mixed set of third-quarter results as it failed to meet the revenue expectations of Wall Street given the economic, geopolitical, and supply chain challenges.
- Consumer challenges are being solved by innovations like Omni-Heat Infinity and the recently unveiled Omni-Heat Helix.
- The patent-pending Omni-Heat Helix from Columbia uses highly effective insulation cells to optimize warmth while ensuring breathability.
Adobe Inc: Major Drivers
- Adobe managed a decent result in the last quarter meeting the revenue expectations of Wall Street and managing an earnings beat.
- The company delivered 15% growth in the top-line for the 2022 fiscal with $17.61 billion in revenue.
- We remain confident in their long-term strategies and give Adobe a ‘Hold’ rating with a revised target price.
Oracle Corporation: New Cloud Zone & Other Developments
- Oracle had a strong quarter and saw its revenue increase by 25%.
- Even with Cerner excluded, total revenue increased by 9% in constant currency, exceeding Q1 and surpassing revenue from the same period last year.
- Oracle’s liquidity is also solid as it held over $7.4 billion in cash and marketable securities at the end of the quarter.
Plug Power Inc: Partnership With Nikola Corporation & Other Drivers
- Plug Power delivered another below par result in the quarter, failing to meet Wall Street expectations in terms of revenues as well as earnings.
- The management claims that its fully developed green hydrogen platform has the potential to make it profitable.
- In the hydrogen and fuel cell industries, Plug Power has a first-mover advantage which drives investor optimism.
Cummins Inc: Acquisition Of Siemens’ Commercial Vehicles Business & Other Drivers
- Cummins delivered a mixed set of results for the quarter, surpassing the revenue expectations of Wall Street but missing out on earnings.
- Also, through its subsidiary Meritor, Cummins announced the completion of its acquisition of the commercial vehicles business of Siemens.
- Demand for the products of the company remained quite strong across its key regions and markets, which resulted in strong revenue in this quarter.
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