Top Research Reports For September 12, 2016
Zacks Investment Research | Sep 12, 2016 03:35AM ET
Monday, September 12, 2016
Today's must-read reports are for Qualcomm (NASDAQ:QCOM) (QCOM), Priceline (PCLN) and Walgreens (WBA).
Shares of Qualcomm declined over the last trading session due to broader market concerns. But the analyst still likes the buy-rated stock for its leadership position in the global wireless baseband chipset market and its growing presence in related opportunities such as mobile computing and IoT. The company's new patent license agreements with Chinese smartphone makers should boost Qualcomm’s top line and also solidify its footing in the Chinese market. (You can here. )
Priceline’s shares also moved lower over the last trading session due to rate hike related concerns. However, the analyst remains optimistic about the buy-rated stock since its strong quarterly report has helped sustain the stock's positive momentum, which reflect the online travel vendor's impressive execution and strong growth in an otherwise tough macro environment. With almost 80% of its bookings coming from international markets, Priceline's guidance shows none of the issues that we saw with peers Expedia (NASDAQ:EXPE) and tripAdvisor. (You can here .)
Walgreens’ shares were down by over 2% following the U.S. FTC’s update regarding the Walgreens store divestment, needed for the Rite Aid acquisition to be closed. The analyst still likes the stock since the proposed buyout of Rite Aid, should expand Walgreens Boots’ business realm in the U.S. over the long term. Walgreens continues to hold a strong cash position, which is evident from its increased cash flow reserve in the last-reported third quarter. (You can here .)
Other noteworthy reports we are featuring today include American Airlines (AAL), Discovery Communications (NASDAQ:DISCA) (DISCA) and Pepsi (PEP).
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Mark Vickery
Senior Editor
Note: Sheraz Mian regularly provides earnings analysis on Zacks.com and appears frequently in the print and electronic media. His weekly earnings related articles include .
Today's Must Read/h6
Featured Reports/h6
Though mindful of headwinds like declining PRASM facing the company, the Zacks analyst is positive on the final approval gained by American Airlines to initiate commercial flights to Havana.
The covering analyst is positive on Discovery's decision to renew its distribution partnership with AT&T.
The Zacks analyst believes Microsemi's planned acquisitions backed by its strong fundamentals will help it to expand in key areas and achieve targeted revenues.
The covering analyst thinks the company slashed its sales view due to sluggish demand for pet foods.
While the alliance with Volkswagen (DE:VOWG_p), product launches & cost-saving initiatives are positives, the Zacks analyst thinks economic uncertainties in Brazil and weak guidance pose concerns.
The covering analyst believes the company is positioned well with new launches and acquisitions but weakness in certain businesses, high debt and macroeconomic headwinds remain.
The Zacks analyst believes LinkedIn's continued investments for providing new products and services will drive member growth and user engagement, thereby boosting advertising revenues.
Though mindful of headwinds like declining PRASM facing the company, the Zacks analyst is positive on the final approval gained by American Airlines to initiate commercial flights to Havana.
The covering analyst is positive on Discovery's decision to renew its distribution partnership with AT&T.
The Zacks analyst believes Microsemi's planned acquisitions backed by its strong fundamentals will help it to expand in key areas and achieve targeted revenues.
The covering analyst thinks the company slashed its sales view due to sluggish demand for pet foods.
While the alliance with Volkswagen (DE:VOWG_p), product launches & cost-saving initiatives are positives, the Zacks analyst thinks economic uncertainties in Brazil and weak guidance pose concerns.
The covering analyst believes the company is positioned well with new launches and acquisitions but weakness in certain businesses, high debt and macroeconomic headwinds remain.
The Zacks analyst believes LinkedIn's continued investments for providing new products and services will drive member growth and user engagement, thereby boosting advertising revenues.
New Upgrades/h6
The covering analyst appreciates Deere's focus on investments in new products and geographies. Favorable market trends supported by increasing population and rising living standards remain tailwinds.
Philips has restructured itself as a healthcare company and has been extensively benefiting from high healthcare spending. Also, its lighting business is proving conducive to its growth.
The Zacks analyst believe Pepsi's new product lineup, aggressive marketing, productivity improvement and cost-saving initiatives should give a boost to profits.
The covering analyst appreciates Deere's focus on investments in new products and geographies. Favorable market trends supported by increasing population and rising living standards remain tailwinds.
Philips has restructured itself as a healthcare company and has been extensively benefiting from high healthcare spending. Also, its lighting business is proving conducive to its growth.
The Zacks analyst believe Pepsi's new product lineup, aggressive marketing, productivity improvement and cost-saving initiatives should give a boost to profits.
New Downgrades/h6
According to the Zacks analyst, currency remains a drag on PPG's top line. The company is also exposed to macroeconomic challenges and sluggishness across some of its end-markets.
The covering analyst thinks that entry of generics, pricing pressure for drugs like Pegasys and Xeloda and challenges in the diabetes care business will adversely impact the company's performance.
The Zacks analyst think Brown Forman (NYSE:BFb) remains threatened by currency woes and unstable emerging market conditions, which along with sale of Southern Comfort and Touca brands dented first quarter sales.
According to the Zacks analyst, currency remains a drag on PPG's top line. The company is also exposed to macroeconomic challenges and sluggishness across some of its end-markets.
The covering analyst thinks that entry of generics, pricing pressure for drugs like Pegasys and Xeloda and challenges in the diabetes care business will adversely impact the company's performance.
The Zacks analyst think Brown Forman (NYSE:BFb) remains threatened by currency woes and unstable emerging market conditions, which along with sale of Southern Comfort and Touca brands dented first quarter sales.
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