Top Research Reports For Visa, Charter Communications & Biogen
Zacks Investment Research | Feb 08, 2019 04:16AM ET
Friday, February 8, 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 Visa (V), Charter Communications (NASDAQ:CHTR) and Biogen (BIIB). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
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Visa’s shares have outperformed the Zacks Financial Transaction Services industry over the past year (+20.5% vs. +16%). Visa’s first-quarter fiscal 2019 earnings beat expectations and increased year over year. The results were driven by growth in payments volume, cross-border volume and processed transactions, and a lower tax rate.
The Zacks analyst thinks Visa’s strategic acquisitions and alliances, technology upgrades and effective marketing have paved the way for long-term growth and consistent increase in revenues. Visa is well poised to gain from growing electronic payment processing and a solid brand name. Its strong capital position enables investments in business.
Nevertheless, high client incentives and operating expenses, and foreign exchange volatility might put pressure on margins. Softness in cross border volumes is another concern.
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Shares of Charter Communications have outperformed the Zacks Cable TV industry over the past year (-1.4% vs. -5.1%). Charter’s fourth-quarter 2018 revenues increased on growth in Internet, video, advertising and commercial revenues. Growth in Internet customers and rate adjustments aided Internet revenues in the reported quarter.
Additionally, Charter’s Spectrum Internet Gig service, which uses DOCSIS 3.1 technology, is available across its entire footprint. The Zacks analyst thinks this service, which provides enhanced Internet speed is expected to further boost subscriber growth. Moreover, Charter’s All Digital initiative, which will help the company offer advanced products and services and enhance video picture quality is now complete across its entire residential and business footprint.
However, Charter’s bottom line suffered due to higher interest expense. The company continues to struggle in a saturated and competitive multi-channel U.S. video market.
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Biogen’s shares have outperformed the Zacks Biomedical and Genetics industry in the past year (-2.5% vs. -17.1%). Biogen beat estimates for earnings and sales in Q4. Biogen has a strong position in the MS market. The Zacks analyst likes the company’s efforts to diversify beyond MS to other areas like Alzheimer’s, Parkinson's and stroke among others.
Meanwhile, its newest drug Spinraza is performing well and has multi-billion dollar potential. Biogen’s efforts to regularly in-license assets to build its pipeline are encouraging since several of them have transformative potential. Several data readouts are expected in 2019 with multiple potential launches in the early 2020s.
However, its core MS business, excluding Ocrevus royalties, has been largely flat. Also, potential competition to Spinraza from competitors’ gene therapy programs for SMA is a concern. Though Biogen’s CNS pipeline is attractive, it is a high-risk area.
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Other noteworthy reports we are featuring today include BP plc (LON:BP), Roche (RHHBY) and BB&T (BBT).
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Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly
Today's Must Read/h6
Featured Reports/h6
Per the Zacks analyst, strong growth of Ocrevus, Perjeta, Tecentriq, Alecensa and Hemlibra has helped Roche offset lower sales due to biosimilar competition in Europe.
Per the Zacks analyst, BB&T's merger with SunTrust is expected to lead to cost savings and earnings accretion.
While the Zacks analyst is optimistic about BP's strong portfolio of upstream projects, the oil spill incident of 2010 continues to affect the firm.
Per the Zacks analyst, Archer Daniels' cost-savings and Readiness programs are likely to boost its bottom line.
AmerisourceBergen gains ground on its World Courier business. The Zacks analyst is pessimistic about cutthroat competition in the MedTech Space.
Per the Zacks analyst, Fortinet is benefiting from strong global demand for Security Fabric offerings, which is aided by digital transformation and security refresh cycle across most industries.
Per the Zacks analyst, impressive performance of iRobot's robotic business, should drive the company's revenues in the quarters to come.
Per the Zacks analyst, strong growth of Ocrevus, Perjeta, Tecentriq, Alecensa and Hemlibra has helped Roche offset lower sales due to biosimilar competition in Europe.
Per the Zacks analyst, BB&T's merger with SunTrust is expected to lead to cost savings and earnings accretion.
While the Zacks analyst is optimistic about BP's strong portfolio of upstream projects, the oil spill incident of 2010 continues to affect the firm.
Per the Zacks analyst, Archer Daniels' cost-savings and Readiness programs are likely to boost its bottom line.
AmerisourceBergen gains ground on its World Courier business. The Zacks analyst is pessimistic about cutthroat competition in the MedTech Space.
Per the Zacks analyst, Fortinet is benefiting from strong global demand for Security Fabric offerings, which is aided by digital transformation and security refresh cycle across most industries.
Per the Zacks analyst, impressive performance of iRobot's robotic business, should drive the company's revenues in the quarters to come.
New Upgrades/h6
Per the Zacks analyst, VeriSign benefits from higher .com and .net domain name registrations as well as improving renewal rates.
Per the Zacks analyst, AMETEK's buyouts of FMH Aerospace, Motec, Arizona Instrument and Soundcom are aiding its segmental performance. Also, robust organic growth continues to drive the top-line.
The Zacks analyst is encouraged by Chipotle's focus on food-safety programs various sales-building initiatives and greater digital innovation that is continuing to drive the company's overall topline.
Per the Zacks analyst, VeriSign benefits from higher .com and .net domain name registrations as well as improving renewal rates.
Per the Zacks analyst, AMETEK's buyouts of FMH Aerospace, Motec, Arizona Instrument and Soundcom are aiding its segmental performance. Also, robust organic growth continues to drive the top-line.
The Zacks analyst is encouraged by Chipotle's focus on food-safety programs various sales-building initiatives and greater digital innovation that is continuing to drive the company's overall topline.
New Downgrades/h6
Per the Zacks analyst, widening of Agency MBS spread is expected to hurt AGNC Investment's net book value. Further, escalating cost of funds remains a concern.
Per the Zacks analyst, Infineon is having a tough time, given the need to make large capital investments to maintain a competitive cost position. Stiff competition from peers is another major concern.
The Zacks analyst believes higher land, labor and material costs pose a threat to Toll Brothers' gross margins.
Per the Zacks analyst, widening of Agency MBS spread is expected to hurt AGNC Investment's net book value. Further, escalating cost of funds remains a concern.
Per the Zacks analyst, Infineon is having a tough time, given the need to make large capital investments to maintain a competitive cost position. Stiff competition from peers is another major concern.
The Zacks analyst believes higher land, labor and material costs pose a threat to Toll Brothers' gross margins.
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