17.81 0.00 (0.00%)
After hours: 4:50PM EDT
|Bid||17.49 x 1800|
|Ask||17.34 x 1200|
|Day's Range||17.19 - 18.47|
|52 Week Range||10.61 - 33.23|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||93.74|
|Earnings Date||Mar 03, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||29.92|
PPD today announced the cancellation of its fireside chat and related webcast at the Barclays Global Healthcare Conference
PPD, a leading global contract research organization, today reported its financial results for the fourth quarter and full year ended Dec. 31, 2019
After a week that saw loss after loss, the market bounced back. Yesterday, the Dow Jones index, which houses 30 blue-chip names, posted a record one-day point change. Putting an end to its seven-day losing streak, the index climbed 1,290 points higher, its largest single-day increase since December 2018. As for the other two major U.S. indexes, both the S&P 500 and the NASDAQ notched their biggest percentage gains in the last year.Having said that, as the number of coronavirus cases around the world approaches 90,000, Wall Street isn’t sure that better days are ahead. During an interview, Cowen’s head of market strategy Chris Pollard stated, “We’re not completely out of the woods…The market by and large had been telling us this situation was going to deteriorate, [and] equities only caught on to that last week.” He added that any growth in the short-term is “unlikely to hold.”Before rushing to sell-off holdings, investing firm Goldman Sachs reminds investors that compelling opportunities can still be found, pointing specifically to initial public offering (IPO) stocks. Using TipRanks’ Stock Screener, we were able to pinpoint 3 newly public names that are Buy-rated and backed by the analysts from Goldman Sachs as well as the rest of the Street. To top it all off, each stands to see some serious gains in the next year.Casper Sleep (CSPR)Online mattress retailer Casper Sleep burst onto the scene just last month on February 6, but it has already attracted significant attention. In its first day on the public market, the stock gained 12%, adding $2.50 to the $12 IPO price.While the market cap now lands at $358.6 million, at one point while the company was privately-held, it earned unicorn-status thanks to its $1.1 billion valuation. This drop has spurred some concern among investors, but Goldman Sachs remains optimistic about CSPR’s long-term prospects.Writing for the firm is analyst Alexandra Walvis, who points out that significant health and wellness-based tailwinds have steadily been benefiting the global sleep product market. Additionally, even though the space is known for being highly competitive, Walvis is expecting to see a “more rational environment” in the future. She added, “CSPR is uniquely positioned as a holistic sleep brand, with product and marketing creating a powerful connection with consumers and potential for a strong moat.”On top of this, Walvis cites its omnichannel strategy as a key point of strength. According to her estimates, the analyst notes that CSPR’s store count is expected to reach 180 by 2022, up from 60 as of the end of full year 2019. Based on solid unit economics, this should fuel substantial growth in terms of sales and earnings. It also doesn’t hurt that growth in brand-right partners such as Target and Costco as well as other retailer additions stand to boost wholesale sales, with sales from this segment predicted to increase from 20% to 33% of total sales.Given its attractive valuation and the fact that its marketing spend leverage has set it up for profitability, Walvis believes CSPR is bound for greatness. “While we recognize execution risk and a competitive marketplace, we believe these concerns are more than adequately reﬂected in shares given depressed valuation, and see upside to shares from current levels,” she commented.In line with her bullish thesis, Walvis kicked off her CSPR coverage by publishing a Buy recommendation. Along with the bullish call, she set a $16 price target, implying 77% upside potential. (To watch Walvis’ track record, click here)Looking at the consensus breakdown, 5 Buys and 3 Holds assigned in the last three months make the Street consensus a Moderate Buy. At $13.75, the average price target puts the upside potential at 52%. (See Casper Sleep stock analysis on TipRanks)Reynolds Consumer Products (REYN)Reynolds has made a name for itself as one of the top household products providers, and is the powerhouse behind the famous Reynolds Wrap aluminum foil and Hefty brand. Its January 30 market debut was certainly impressive, raising $1.2 billion. As the IPO was the first billion-dollar listing of 2020 in the U.S., it’s no wonder Goldman Sachs’ Jason English is excited about REYN.In a recent research note, English told clients, “We believe REYN is on the verge of driving an inﬂection in volume/mix driven sales growth while at the same time beneﬁting from deﬂationary input costs. As such, we see strong EBITDA and free cash ﬂow growth going forward. We also take comfort in REYN’s unique defensive traits, which should position the company to deliver consistent, albeit modest, growth through various economic cycles.”According to English, its dominant positioning in the market, more than 65% of sales come from categories that REYN is the top player in, suggests that it can maintain “relatively healthy” margins. Not to mention the company is particularly strong when it comes to private label goods, which could limit risk in times of duress for consumers.The analyst also argues that unlike other consumer staples names, REYN is tied to industrial commodities. “Thus in times of economic slowdown, we anticipate REYN’s input costs to decline, providing the opportunity for outsized EBITDA growth,” English noted.As for sales growth, English believes that “its recent distribution wins in the Home Improvement sector and its easy comparisons in 1H20” could drive organic sales growth of 0.8%-plus, up from -3.5%.It should come as no surprise, then, that English initiated coverage by placing a Buy rating on the stock. Should his $36 price target be met, shares could be in for a twelve-month gain of 28%. (To watch English’s track record, click here)What do other analysts think is in store for REYN? As it happens, out of 8 total analysts that have issued a recent review, 7 were bullish, making the consensus rating a Strong Buy. With an average price target of $35.63, the upside potential lands just slightly below English’s forecast at 26%. (See Reynolds stock analysis on TipRanks)PPD (PPD)Switching gears now, the last stock on our list is a contract research organization (CRO) that offers drug development, laboratory and lifecycle management services, serving names inhabiting the pharmaceutical, biotech, medical device, academic and government spaces.The company also had its first day of trading on February 6, pricing shares at $27 each. After raising $1.86 billion, it’s safe to say the Street has been thoroughly impressed.Goldman Sachs analyst Robert Jones argues that “PPD shares in our view represent an opportunity to buy a top-tier CRO with plenty of momentum against a healthy demand backdrop.” His bullish thesis is driven partly by the fact that PPD has been a key player in the CRO space for several years.On top of this, when you look at other CROs, Jones thinks that the company’s unique site and patient data strategy over the previous seven years has made it stand out. “As biopharma selection criteria of CROs moves further towards accelerating patient recruitment, we expect PPD’s AES capabilities to enable differentiation. In the RWE space, where expect more rapid industry growth, PPD has a leading franchise (Evidera), which screened as a top-2 player in our survey,” he said.Adding to the good news, the Goldman Sachs analyst sees the CRO industry as being “healthy” thanks to both the public and private funding of biotech over the past few years. With its industry-leading labs as well as the assumption that bookings growth will most likely increase, Jones also expects modest EBITDA margin expansion and debt reﬁnancing to spur double-digit EPS growth.Jones concluded by noting, “With solid bookings growth, a year of top-line acceleration in 2019 with further potential upside to numbers, and a path to signiﬁcant deleveraging, we see a core mid/large-cap exposure to an attractive end-market.” It makes sense, then, that the four-star analyst started off his PPD coverage by issuing a bullish call and setting a $34 price target. This conveys his confidence in PPD’s ability to surge 26% over the next twelve months. (To watch Jones’ track record, click here)In general, the rest of the Street is on the same page. With 12 Buys and a single hold received in the last three months, the word on the Street is that PPD is a Strong Buy. In addition, the $33.29 average price target brings the upside potential to 24%. (See PPD stock analysis on TipRanks)
(Bloomberg) -- Need a reason to stay cautious? Look no further than the credit markets.Measures of investor fear in the U.S. investment-grade and high-yield corporate bond markets shrugged off the rally in stocks Monday amid another session marked by pulled loans and little new-issue activity.The cost to protect a basket of blue-chip securities in the credit default swaps market rose for an eighth day to about 67.9 basis points, according to ICE Data Services. A similar index for speculative-grade debt, which trades on price, was also in the red much of the day while the S&P 500 jumped as much as 2.9%.The divergence underscores bond buyers’ continued caution in a corner of the market that many investors say still looks expensive. Risk premiums in the investment-grade corporate credit market jumped the most since the financial crisis on a percentage basis last week, but still offer just 1.22 percentage points of pickup over Treasuries.“The investment-grade market is being very conservative around how it looks at and prices risk,” said Lon Erickson, a portfolio manager at Thornburg Investment Management. “We’re not wholeheartedly jumping in right now.”The U.S. investment-grade new-issue market was shut again Monday, extending a week-long issuance drought. Outside of typical August and December seasonal slowdowns, it was the first week with no new deals since July 2018. Investors yanked a record $2.02 billion from the largest exchange-traded high-grade bond fund in the five days through Friday.In the high-yield market, Cleveland-Cliffs Inc. is the sole issuer testing the waters after making structural tweaks to appeal to more investors. New leveraged loans have also struggled. PPD Inc. postponed a planned $4.1 billion sale, following a decision from Bausch Health Cos. to delay an $8 billion financing package last week. Risky loans lost 1.3% in February for their worst showing since December 2018.UBS Group AG analysts led by Stephen Caprio wrote in a note Monday that there are reasons to be cautious.A “severe virus with persistently high reinfection rates” hasn’t been ruled out yet, and could drive U.S. high-yield defaults north of 5%.So far, much of the pain in the junk bonds has come from energy companies. That debt has sunk more than 6% in the past week, compared with the broader market’s 2.6% drop.“We expect a very volatile path ahead, but would not panic,” the analysts wrote.BlackRock Inc. is also turning more careful toward credit. The world’s largest asset manager said in a note Monday that it was cutting its view on corporate debt worldwide to neutral from overweight and is “on the lookout for any signs of a liquidity crunch or deterioration in financial conditions.”Investors uncertain about the ultimate impact of the virus are waiting for more economic and earnings data, said Nichole Hammond, a senior portfolio manager at Angel Oak Capital Advisors.“The market is looking for some stability in equities, especially for high yield,” Hammond said. “Risk markets have calmed down from last week, but there is still a fair amount of uncertainty over what this actually means for the global economy over the coming quarters.”\--With assistance from Olivia Raimonde and Paula Seligson.To contact the reporter on this story: Claire Boston in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Boris Korby, Christopher DeRezaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
PPD Inc. shares soared 14% in their trading debut Thursday, after the drug research company's initial public offering priced at the high end of its $24 to $27 price range. The company sold 60 million shares to raise $1.62 billion. Sixteen banks underwrote the deal, led by Barclays, JPMorgan, Morgan Stanley and Goldman Sachs. Proceeds of the deal will be used to pay down debt and for general corporate purposes. "We are a leading provider of drug development services to the biopharmaceutical industry, focused on helping our customers bring their new medicines to patients around the world," the company says in its prospectus.
PPD Inc. plans to raise more than $1.6 billion after pricing its initial public offering at the high end of its range late Wednesday. The drug research company said it is pricing 60 million shares at $27 apiece, after setting a range of $24 to $27 last week. Underwriters will get an option of an additional 9 million shares to cover overallotments, PPD said. The stock is set to trade on the Nasdaq on Thursday.
The initial public offering market is expected to crank into gear in the next two weeks, with at least two billion-dollar deals on the slate, including a well-known consumer name that may be viewed as a safe bet in a nervous market.
PPD Inc. said Monday terms of its initial public offering have been set, as the North Carolina-based drug development services provider for the biopharmaceutical industry looks to raise up to $1.62 billion. The company said it is offering 60 million shares in the IPO, which is expected to price between $24 and $27 a share. With 339.4 million shares to be outstanding after the IPO, PPD could be valued at up to $9.16 billion. The stock is expected to list on the Nasdaq under the ticker symbol "PPD." Barclays, J.P. Morgan, Morgan Stanley and Goldman Sachs are the lead underwriters. The company reported net income of $47.9 million on revenue of $2.98 billion for the nine months ended Sept. 30, after income of $59.7 million on revenue of $2.77 billion in the same period a year ago. The company is looking to go public at a time that the Renaissance IPO ETF has rallied 14.6% over the past three months, while the SPDR Health Care Select Sector ETF has advanced 11.3% and the S&P 500 has gained 9.0%.