Operating Lease and Pension Interest Rates - December 2020

January 6, 2021, 6:12 PM·30 min read

<!DOCTYPE html> <html lang="" xml:lang=""> <head> <title>DOCUMENT SUBTYPE</title> <meta http-equiv="Content-Type" content="text/html; charset=UTF-8"/> <meta name="generator" content="pdftohtml 0.36"/> <meta name="author" content="Josh Hardin"/> <meta name="keywords" content=""/> <meta name="date" content="2021-01-06T17:48:57+00:00"/> <meta name="subject" content=""/> <style type="text/css">  </style> </head> <body bgcolor="#A0A0A0" vlink="blue" link="blue">  <a name="1"></a> <style type="text/css">  </style> <div id="page1-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1259907001.png" alt="background image"/>     MARKET   OUTLOOK  Operating Leases   - Monthly  <chron>JANUARY 6, 2021</chron>                      CAPI TAL  MARKETS RESEARCH    Moody’s Analytics markets and distributes all Moody’s Capital Markets Research, Inc.  materials.  Moody’s Capital Markets Research, Inc  is  a subsidiary of Moody’s Corporation.  Moody’s  Analytics  does not provide investment  advisory services  or products. For further  detail, please see the last page.  Operating Lease and Pension Interest Rates     Operating Lease and Pension Interest Rates Used in Standard Adjustments   - Report Date: December 31, 2020  Median yields for regular coupon (no zero coupons or floating rate) bonds rated by Moody’s with maturities  between six and eight years and outstanding values of more than <money>$50 million</money>.  Each observation is unweighted  in the sample, and the yields are calculated for end-of-month values.      Rating  12/31/2020  Aaa  0.94  Aa1  1.07  Aa2  1.40  Aa3  1.19  A1  1.93  A2  1.77  A3  1.86  Baa1  1.87  Baa2  1.90  Baa3  2.46  Ba1  3.71  Ba2  4.16  Ba3  4.11  B1  4.41  B2  4.84  B3  5.40  Caa  6.28                Moody’s   Capital   Markets   Research,   Inc.  Contact:  <a href="mailto:help@moodys.com"><a href="mailto:help@moodys.com">help@moodys.com</a></a> <a href="mailto:help@moodys.com"> </a> <PhoneNo>212.553.4399</PhoneNo>   </div>  <a name="2"></a> <style type="text/css">  </style> <div id="page2-div" style="position:relative;width:918px;height:1188px;"> <img width="918" height="1188" src="http://mco.acquiremedia.com/images/PBC_1259907002.png" alt="background image"/>                                                                                  CAPI TAL  MARKETS RESEARCH    <chron>JANUARY 6,  2021</chron>  CAPITAL  MARKETS RESEARCH, INC.  /  MARKET OUTLOOK   /  <a href="http://MOODYS.COM">MOODYS.COM</a>            © 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.  CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE 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Trelegy was initially approved in the US as the first once-daily single inhaler triple therapy for the treatment of COPD. Like many biopharmas, Theravance has high overhead and its approved drugs are at the start of their profitable lives. This keeps the net earnings and revenues down, at least for the near-term, and leads to a discount share price – TBPH has slipped 32% over the past 52 weeks. Covering the stock for Leerink, analyst Geoff Porges remains bullish on Theravance, mainly due to the combination of its robust pipeline and its approved treatments for lung diseases. “Theravance’s respiratory medicines are its key near-term valuation drivers… We still forecast ~$2.4B in WW Triple sales at peak (2027E). Beyond TBPH’s commercial/partnered assets, the company is also developing an improved JAK inhibitor (JAKi) partnered with JNJ (OP) for inflammatory bowel disease (IBD), and a norepinephrine and serotonin reuptake inhibitor (NSRI) TD-9855 (ampreloxetine) for neurogenic orthostatic hypotension (nOH). Each of these drugs leverages novel delivery of unique compounds against proven mechanisms-of-action and could offer superior safety and/or treatment effect, from their wider therapeutic windows,” Porges noted. To this end, Porges rates TBPH an Outperform (i.e. Buy) and gives it a $35 price target, implying an impressive one-year upside of 104%. (To watch Porges’ track record, click here) Overall, there are 5 reviews on file, and all are to Buy, making the Strong Buy consensus unanimous. TBPH shares are priced at $16.95, and their $33.60 average price target suggests a 97% upside from that level. (See TBPH stock analysis on TipRanks) NiSource, Inc. (NI) NiSource is a utility holding company, with subsidiaries in the natural gas and electricity sectors. NiSource provides power and gas to over 4 million customers in Indiana, Kentucky, Maryland, Massachusetts, Ohio, Pennsylvania, and Virginia. The majority of NiSource’s customers, about 88%, are in the gas sector; the company’s electric operations serve customers in Indiana only. The company saw revenues in the third quarter come in at $902 million, down from $962 in the prior quarter and $931 in the year-ago quarter. Overall, however, revenues have conformed to the company’s historic pattern: The second and third quarters are relatively low, while the top line increases with cold weather in Q4 and peaks in Q1. This is typical of utility companies in North America. Despite the lower year-over-year revenues, NiSource has felt confident enough to maintain its dividend payment, holding it steady at 21 cents per common share through 2020. This annualizes to 84 cents, and gives a yield of 3.8%. Not only has the company felt confident to pay income to shareholders, it has also felt confident to invest heavily in renewable energy resources. The company has a FY20 capital spending plan exceeding $1.7 billion, and is guiding toward $1.3 billion for FY21. These expenditures will fund ‘green’ energy projects. NI is currently trading at $21.67, a striking distance from its 52-week low. One analyst, however, thinks this lower stock price gives investors an attractive entry point today. Argus analyst Gary Hovis rates NI a Buy along with a $32 price target. This figure implies a 48% upside from current levels. (To watch Hovis' track record, click here) "NI shares appear favorably valued at 18.1-times our 2021 EPS estimate, below the average multiple of 21.6 for comparable electric and gas utilities," Hovis noted. "NiSource could also become a buyout target, as larger utilitiesand private equity firms have purchased smaller utilities because oftheir stable earnings growth and above-average dividend yields." Overall, Wall Street sees a clear path forward for NiSource – a fact clear from the unanimous Strong Buy consensus rating, based on 3 recent Buy-side reviews. The shares are selling for $21.68, and the average price target of $28.75 suggests an upside of ~32% on the one-year timeframe. (See NI stock analysis on TipRanks) To find good ideas for beaten-down stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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MarketWatch
Value stocks are about to come out of their coma, says index fund powerhouse Vanguard
The idea that value stocks are finally about to awaken after a decadelong slumber is almost a joke in financial circles. What is at least slightly different about Vanguard’s perspective is that its model suggests that investors have been correct in shunning value stocks, at least until the last few years. “Our research indicates that a value premium does exist and that the recent outperformance of growth stocks can be partially explained by downward-trending long-term inflation levels and the lack of material acceleration in earnings growth over the last decade,” the firm says.
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Sorrento Stock Could Hit $30, Says Analyst
The major U.S. equity-indexes are hovering around all-time highs, and a question that frequently pops up these days, is whether some companies’ valuations might be overstretched. However, some operate at the opposite end of the spectrum, and could yet offer investors untapped opportunities. H.C. Wainwright analyst Ram Selvaraju points in the direction of Sorrento Therapeutics (SRNE), as one such company. Selvaraju rates SRNE a Buy along with a $30 price target, which implies a 275% upside from current levels. (To watch Selvaraju’s track record, click here) So, what’s behind the optimistic outlook? Well, for starters, Sorrento has a stake in two cell-based immunotherapy companies that could “drive value in Sorrento shares over the coming months.” One is Celularity, a clinical-stage cell therapeutics company focused on cellular medicines for cancer, infectious diseases, and degenerative diseases. Celularity is expected to go public later this year via a SPAC merger with GX Acquisition Corp. The merged company’s equity value following the transaction’s closure will land at roughly $1.7 billion. Selvaraju estimates Sorrento's position should be worth in the $200 million region. The second company is NantKwest, which recently signed a deal to merge with ImmunityBio. The transaction is expected to close in 1H21. Sorrento owns roughly 8.2 million shares of the clinical-stage immunotherapy company. These are currently worth around $121 million, going by NantKwest’s recent share price. Additionally, the analyst highlights Sorrento’s “burgeoning portfolio of assets spanning three distinct therapeutic areas (non-opioid pain management, oncology and COVID-19).” In fact, on the Covid-19 front alone, Sorrento has taken a broad-based approach and has a long list of diagnostic, prophylactic and therapeutic offerings in the pipeline, with “updates likely to come fast and furious.” These include two rapid detection tests; COVI-STIX, for which the company filed for Emergency Use Authorization (EUA) in the U.S. in December, and COVI-TRACE, which Selvaraju claims could come in handy at any mass gathering event. “We believe that the incentive to facilitate the large-scale and indeed ubiquitous deployment of the COVI-TRACE test is extremely high and governments worldwide may seek to implement this in their respective regions,” the 5-star analyst opined. Other Covid-19 candidates include COVIGUARD - a SARS-CoV-2 neutralizing antibody, COVI-AMG - an affinity-matured version of the COVIGUARD neutralizing antibody, a neutralizing antibody cocktail named COVI-SHIELD and COVIDTRAP, an ACE2 receptor decoy, intended to imitate the mammalian ACE2 receptor that acts as the primary portal for the SARS-CoV-2 virus to penetrate human cells. It has been relatively quiet when it comes to other analyst activity. In the last three months, only 2 analysts have issued ratings. However, as they were both Buys, the word on the Street is that SRNE is a Moderate Buy. Based on the $25.50 average price target, shares could climb 219% higher in the next twelve months. (See SRNE stock analysis on TipRanks) To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
2d ago
Barrons.com
Big Pension Bought Up Tesla, Apple, Microsoft, and GE Stock
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Yahoo Finance
How Elon Musk and Jeff Bezos can help save our democracy
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Benzinga
Cramer Gives His Opinion On Occidental Petroleum, Salesforce And More
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Fortune
The good news and ominous warnings in JPMorgan’s earnings call
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