Top 3 Research Reports For August 15, 2016
Zacks Investment Research | Aug 15, 2016 02:44AM ET
Monday, August 15, 2016
Today's must-read reports are for AstraZeneca (AZN), Caterpillar (NYSE:CAT) and Exelon (NYSE:EXC).
AstraZeneca shares have rallied from the mid-June lows, erasing most of the stock's earlier underperformance. The Pound weakness following the Brexit vote has been helpful to this London-based pharma giant. The company has also benefited from the failure of Bristol-Myers' cancer drug, which has put the spotlight on its candidates in that space. These immediate catalysts aside, the analyst likes AstraZeneca’s strong diversified portfolio, expanding presence in emerging markets, ongoing cost-cutting initiatives and robust pipeline. (You can here>> )
Caterpillar shares have been strong performers this year, up more than 22% year-to-date on hopes that the worst was behind this beleagured mining and construction equipment maker. Caterpillar’s earnings picture continues to remain challenged, as the 22% drop in Q2 earnings shows. This tough operating environment has forced management to squeeze more expenses out of the operation. The analyst also points to the improving construction sector as a potential offset to the weak mining sector. (You can here>> )
Exelon shares continue to benefit from the market's hunger for yield (it yields a juicy 3.6%). But a safe dividend isn't Excelon's sole claim to fame - it reported solid results for the June quarter, partly boosted by contributions from the acquired Pepco Holdings assets. The analyst likes the utility's investments, which will strengthen its infrastructure and expand operations. Additionally, its decision to shut down loss making nuclear plants will drive performance. (You can here>> )
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Sheraz Mian
Director of Research
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Today's Must Read/h6
Featured Reports/h6
The Zacks analyst believes that despite coal-related headwinds, the Q2 earnings beat is a positive. Norfolk Southern's efforts to reward shareholders are also encouraging.
The Zacks analyst thinks that Moneygram's investment in its digital channel and cost control initiatives will bring long term growth.
The Zacks analyst believes that Bayer's Q2 results were mixed with the company topping bottom-line estimates but missing on revenues marginally.
The Zacks analyst believes that Intrexon's efforts to expand through collaborations and acquisitions are encouraging.
Kite's posted wider than expected Q2 loss. However, the Zacks analyst is encouraged by Kite's progress with KTE-C19 which could be filed for FDA approval in late 2016.
The Zacks analyst believes that despite coal-related headwinds, the Q2 earnings beat is a positive. Norfolk Southern's efforts to reward shareholders are also encouraging.
The Zacks analyst thinks that Moneygram's investment in its digital channel and cost control initiatives will bring long term growth.
The Zacks analyst believes that Bayer's Q2 results were mixed with the company topping bottom-line estimates but missing on revenues marginally.
The Zacks analyst believes that Intrexon's efforts to expand through collaborations and acquisitions are encouraging.
Kite's posted wider than expected Q2 loss. However, the Zacks analyst is encouraged by Kite's progress with KTE-C19 which could be filed for FDA approval in late 2016.
New Upgrades/h6
The Zacks analyst believes that increase in residential broadband offerings and government satellite business is proving to be conducive to ViaSat's top-line growth.
According to the covering analyst, MS franchise sales & cost-cutting efforts will continue driving Biogen's performance. The company is also progressing with its pipeline.
The Zacks analyst believes that increase in residential broadband offerings and government satellite business is proving to be conducive to ViaSat's top-line growth.
According to the covering analyst, MS franchise sales & cost-cutting efforts will continue driving Biogen's performance. The company is also progressing with its pipeline.
New Downgrades/h6
The Zacks analyst thinks that despite Q2 earnings beat, higher expenses related to acquired outdoor advertising assets could reduce Lamar's free cash flow and strain its margins.
According to the covering analyst, despite Apache's initiatives to align capital spending with its cash flows, oil market turmoil and low prices have made the Zacks analyst turn cautious on the stock.
The Zacks analyst thinks that despite Q2 earnings beat, higher expenses related to acquired outdoor advertising assets could reduce Lamar's free cash flow and strain its margins.
According to the covering analyst, despite Apache's initiatives to align capital spending with its cash flows, oil market turmoil and low prices have made the Zacks analyst turn cautious on the stock.
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