Thursday, August 25, 2016
Today's must-read reports are for GlaxoSmithKline (GSK), Blackstone Group (BX) and Mylan (MYL).
Shares of Glaxo have gained more than 8% year-to-date. Glaxo's Q2 results were good with the company beating on all fronts. The analyst likes Glaxo's diversified base and presence in different geographical areas, which should help support revenues. The performance of new products as well as those acquired from Novartis is also encouraging. Glaxo's efforts to develop its pipeline and efforts to increase cost efficiency are also encouraging. However, challenges remain in the form of increasing competition, genericization and pricing pressure, (You can read the full research report on Glaxo here.)
Blackstone's shares have gained more than 10% year-to-date. The analyst thinks that Blackstone remains well positioned to capitalize on the changing investment landscape by making long-term investments and augmenting its fund-raising ability. This will lead to continued growth in AUM. Further, the company continues to benefit from the changing investor preference for alternative assets and other risk management strategies. However, mounting operating expenses – which might increase further owing to requirement of more headcount for its well performing funds – remain a major concern (You can read the full research report on Blackstone here.)
Mylan's shares have not being having a good time of late. Mylan's second-quarter results were mixed with the company beating on earnings but missing top-line estimates. The analyst likes Mylan's pursuit of prudent acquisitions and the fact that it is inking strategic deals to drive long-term growth. Moreover, the acquisition of the Renaissance topicals business, when combined with the Meda buyout, is expected to position Mylan as a leader in dermatology. (You can read the full research report on Mylan here.)
Other noteworthy reports we are featuring today include Electronic Arts (EA), Lululemon (LULU) and Whole Foods (WFM).
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Today's Must Read
Featured Reports
MarketAxess MKTX Beats Q2 Earnings on Volume Growth
MarketAxess' earnings outperformance came from record trading volume growth, driven by a powerful combination of market share gains across all core products, and growth from Europe trading business.
Dycom DY Q3 Results Driven by Thriving Wireline Networks
The covering analyst believes that Dycom's results will continue to gain from extensive deployment of 1-Gigabyte wireline networks, robust market share and surge in wireless carriers services.
Whole Foods' WFM Strategic Efforts to Help Fend off Competition
Whole Foods is revamping its pricing strategy and concentrating on value offerings. Also, it has launched a new store concept to target millennials and stave off competition.
QLT QLTI to Gain from Merger, Lead Candidate, Risks Remain
The Zacks analyst feels that the focus will be on QLT's upcoming merger with Aegerion as well as on its sole pipeline candidate, QLT091001.
BioDelivery BDSI Posts In-Line Loss in Q2, Revenues Top
The Zacks analyst believes Bunavail will benefit from new contract wins & the HHS ruling while Belbuca has immense commercial potential
Lululemon LULU Poised for Growth on Strategic Initiatives
The covering analyst thinks Lululemon exhibits immense long-term growth opportunity based on its potential to expand square footage and enhance its business globally.
Frontier's FTR New Wireline Assets to Create Cost Synergies
The Zacks analyst believes that the newly acquired wireline assets from Verizon will continue to bring cost synergies.
New Upgrades
NCI Building NCS to Gain From Increased Business Activity
The Zacks analyst believes that NCI Building's increased business activity will boost results. Restructuring and reorganization, acquisitions and backlog growth also bodes well for NCI.
Deals, Equity Investments to Boost PDL BioPharma PDLI
The covering analyst thinks PDL BioPharma will gain from a recent strategic shift, under which the company will make equity investments in product-focused companies. The ARIAD deal is another positive.
Electronic Arts EA to Gain from Strong Digital Business
The Zack analyst believes EA's strengthening digital business along its well known franchises will boost financials but competitive and hit driven nature of video game industry begets caution.
New Downgrades
Flowserve FLS Takes a Beating from Delayed Client Spending
Increased project deferrals due to factors like rise in market volatility, sustained commodity price weakness and reduced visibility in key markets are undermining Flowserve's prospects.
Decline in Ability to Pay Base Rent Could Hurt Federal Realty FRT
Despite Federal Realty's Q2 earnings beat, the covering analyst believes any appreciable fall in the tenants' abilities to pay base rent will negatively impact its operating results.
Lexmark LXK Hurt by Soft Traditional Printing Demand
The Zacks analyst thinks that declining demand for traditional printing hardware, prevailing macroeconomic uncertainties and stiff competition will continue to impact Lexmark's near-term performance.
WHOLE FOODS MKT WFM: Free Stock Analysis Report
MYLAN NV MYL: Free Stock Analysis Report
LULULEMON ATHLT LULU: Free Stock Analysis Report
GLAXOSMITHKLINE GSK: Free Stock Analysis Report
ELECTR ARTS INC EA: Free Stock Analysis Report
BLACKSTONE GRP BX: Free Stock Analysis Report
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