Top Analyst Reports For Intel, Oracle & Novo Nordisk
Zacks Investment Research | Oct 15, 2019 12:59AM ET
Tuesday, October 15, 2019
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel (INTC), Oracle (ORCL) and Novo Nordisk (CSE:NOVOb) (NVO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Intel’s shares have outperformed the Zacks General Semiconductor industry year to date (3.1% vs. -6.4%). The Zacks analyst believes that Intel is benefiting from rising demand witnessed in its higher performance products, both in data center and client domains.
Moreover, synergies from its Mobileye (F:0ME) acquisition and growing clout in ADAS market favor the company’s growth prospects. Further, Intel’s strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs, and 3D XPoint memory is yielding results.
The launch of its new 10nm-technology-based AI chip, Springhill, holds promise. However, weakness in demand from China and softness in NAND flash pricing trends, expenses pertaining to 10-nanometer (nm) ramp and constrained supply remain major concerns. Moreover, intensifying competition and pricing pressure from AMD remains a headwind.
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Shares of Oracle have gained 3.4% in the past six months, compared with the Zacks Computer Software industry’s rise of 8.2%. The Zacks analyst believes that Oracle is benefiting from strong adoption of cloud-based solutions, comprising NetSuite ERP, Fusion ERP and Fusion HCM, among others.
Partnerships with the likes of Accenture (NYSE:ACN) and Microsoft (NASDAQ:MSFT) are expected to aid Oracle in expanding cloud-based clientele. Moreover, strong demand for the latest autonomous database supported by ML is likely to bolster the top line and provide a competitive edge against Amazon (NASDAQ:AMZN) Web Services (AWS) in the Database-as-a-Service market.
Nonetheless, stiff competition in the cloud market from dominant players is anticipated to weigh on profits. Further, lower hardware volumes are expected to hurt the top line, keeping margins under pressure. Additionally, integration risks from buyouts remain a concern. Notably, shares of Oracle have underperformed the industry in the past year.
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Novo Nordisk’s shares have gained 9% over the past three months, compared with the Zacks Biotech industry’s rise of 0.4%. The Zacks analyst believes a solid performance from Tresiba, Victoza, Ozempic, Xultophy and Saxenda have driven the company’s sales in the year so far.
Label expansion of Victoza continues to boost performance. Ozempic, the company’s once-weekly GLP-1, continues to gain market share. The FDA recently approved semaglutide in tablet form under the brand name, Rybelsus. The company continues to evaluate the candidate for multiple indications. Shares of the company have outperformed the industry year to date.
However, lower realized prices in the United States, loss of exclusivity for products in hormone replacement therapy and intensifying competition within the diabetes and biopharmaceuticals markets will adversely impact sales, going ahead.
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Other noteworthy reports we are featuring today include ConocoPhillips (NYSE:COP) (COP), Occidental Petroleum (OXY) and Advanced Micro Devices (NASDAQ:AMD) (AMD).
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Today's Must Read/h6
Featured Reports/h6
The Zacks analyst believes that ConocoPhillips' Australia-West asset divestment, including the Athena field, is likely to enable it to generate more value from US shale amid surging operating costs.
Per the Zacks analyst, Advanced Micro's release of Radeon RX Vega family of GPUs and alliance with companies like Baidu (NASDAQ:BIDU), Amazon, Tencent, Microsoft and JD.com will drive the top and bottom line.
Per the Zacks Analyst, CBRE Group will ride high on buyouts that expand and reinforce service offerings and enhance geographic reach.
AmerisourceBergen gains ground on its World Courier business. The Zacks Analyst is pessimistic about cutthroat competition in the MedTech Space.
The Zacks analyst likes Cheniere's competitive advantage of being the first and dominant natural gas exporter in the U.S. market.
Per the Zacks analyst, its growing revenues driven by premium growth and accretive acquisitions has led to significant growth.
Per the Zacks Analyst, strategic acquisitions will boost Jones Lang LaSalle's business and drive inorganic growth. Yet, low real estate transaction volumes is a concern.
The Zacks analyst believes that ConocoPhillips' Australia-West asset divestment, including the Athena field, is likely to enable it to generate more value from US shale amid surging operating costs.
Per the Zacks analyst, Advanced Micro's release of Radeon RX Vega family of GPUs and alliance with companies like Baidu (NASDAQ:BIDU), Amazon, Tencent, Microsoft and JD.com will drive the top and bottom line.
Per the Zacks Analyst, CBRE Group will ride high on buyouts that expand and reinforce service offerings and enhance geographic reach.
AmerisourceBergen gains ground on its World Courier business. The Zacks Analyst is pessimistic about cutthroat competition in the MedTech Space.
The Zacks analyst likes Cheniere's competitive advantage of being the first and dominant natural gas exporter in the U.S. market.
Per the Zacks analyst, its growing revenues driven by premium growth and accretive acquisitions has led to significant growth.
Per the Zacks Analyst, strategic acquisitions will boost Jones Lang LaSalle's business and drive inorganic growth. Yet, low real estate transaction volumes is a concern.
New Upgrades/h6
Per the Zacks analyst, Skechers' international wholesale business remains a key sales driver. Management expects international business to increase at a mid-teens rate over the balance of the year.
The Zacks analyst is impressed by the robust rise in passenger unit revenues on the back of strong travel demand. The company's focus on capacity discipline is also aiding its performance.
Per the Zacks analyst, Cohen & Steers' revenues will continue to grow driven by robust assets balance, diverse product offerings and investment strategies. Its capital deployments remain impressive.
Per the Zacks analyst, Skechers' international wholesale business remains a key sales driver. Management expects international business to increase at a mid-teens rate over the balance of the year.
The Zacks analyst is impressed by the robust rise in passenger unit revenues on the back of strong travel demand. The company's focus on capacity discipline is also aiding its performance.
Per the Zacks analyst, Cohen & Steers' revenues will continue to grow driven by robust assets balance, diverse product offerings and investment strategies. Its capital deployments remain impressive.
New Downgrades/h6
Per the Zacks analyst Occidental's margins could be adversely impacted by the rising global freight rates due to the U.S. sanction on Chinese supertanker operators.
Per the Zacks analyst, pressure on investment management fees amid muted AUM growth along with impact of new regulations continue to pose concerns for Franklin.
Per the Zacks Analyst, higher maintenance costs owing to annual shutdowns of major facilities, rising raw material costs and unfavorable foreign currency will impact Domtar's results.
Per the Zacks analyst Occidental's margins could be adversely impacted by the rising global freight rates due to the U.S. sanction on Chinese supertanker operators.
Per the Zacks analyst, pressure on investment management fees amid muted AUM growth along with impact of new regulations continue to pose concerns for Franklin.
Per the Zacks Analyst, higher maintenance costs owing to annual shutdowns of major facilities, rising raw material costs and unfavorable foreign currency will impact Domtar's results.
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