Sep.01 -- Zoom Video Communications Inc. shares soared as revenue jumped to $663.5 million in the fiscal second quarter, more than four times from a year earlier. Bloomberg’s Dani Burger reports on "Bloomberg Markets: European Open."
Sep.01 -- Zoom Video Communications Inc. shares soared as revenue jumped to $663.5 million in the fiscal second quarter, more than four times from a year earlier. Bloomberg’s Dani Burger reports on "Bloomberg Markets: European Open."
Remember, Joe Biden happens to be the greatest defense of the status quo, because his administration created Obamacare. Second, I didn't hear anything that made me feel that the banks, long-time punching bags of the Democratic party, didn't even merit a whisper. No wonder that group just ignited with Discover , the credit card company, and the one-time pinata, Goldman Sachs , leading the way.
USA TODAY reached out to tax attorneys and legal experts to get their reaction to the New York Times report on Trump's taxes. Here's what they said.
Experts say this advice from the personal finance personality ought to be ignored.
The stock market is on pace for its worst month since March, though the quarter has been great. What that says about a possible October surprise.
What to make of the markets lately? Early September showed a sharp drop from peak values, but since the eighth of the month – for the past three weeks – volatility has ruled the day. All the major indexes have bouncing up and down without showing a clear trend. While increased volatility is almost certainly going to stay with us for a while, it’s time to consider defensive stocks. And that will bring us to dividends. By providing a steady income stream, no matter what the market conditions, a reliable dividend stock provides a pad for your investment portfolio when the share stop appreciating.With this in mind, we’ve used the TipRanks database to pull up three dividend stocks yielding 8% or more. That’s not all they offer, however. Each of these stocks has a Strong Buy rating, and considerable upside potential.Solar Senior Capital (SUNS)The first stock is Solar Senior Capital, an investment management company focused on an externally managed non-diversified portfolio. SUNS invests in mid-market companies, taking positions in unitranche instruments, secured loans, and first and second lien debt. The company’s investment targets are mid-market firms with below-investment grade credit ratings, and its portfolio is valued at $532.4 million.Solar’s earnings, up to 1Q20, had held steady at 35 cents per share – but that took a sudden dive in the second quarter this year, coming in at 32 cents. That drop came even as the company also reported a solid financial base, with net assets of $249 million and available capital exceeding $210 million.Despite the lower earnings, the quarterly results were sufficient to maintain the dividend. This is paid monthly, at a rate of 10 cents per common share, making the quarterly distribution 30 cents. This leads to a high payout ratio, but at current earning levels the dividend is sustainable. The annualized payment, of $1.20, gives a yield of 9.4%, which is more than 4.5x higher than the average dividend yield found among S&P index members. The company has paid out the dividend reliably, no matter the market conditions, since 2011.Covering this stock for Ladenburg, analyst Mickey Schleien rates SUNS a Buy, along with a $15 price target. This target implies an 18% upside for the coming year. (To watch Schleien’s track record, click here)Supporting his stance, Schleien writes, “…the company's pipeline is increasing with more compelling opportunities at higher yields. SUNS is operating within the incentive management fee catch-up band, and the external manager continues to waive fees to the extent necessary for NII to cover the dividend through 2020.” The Strong Buy analyst consensus rating on SUNS is unanimous, based on 3 Buy reviews. The stock’s $12.68 trading price and $15.67 average price target give a one-year upside potential of 24%. (See SUNS stock analysis on TipRanks)Barings BDC, Inc. (BBDC)Barings, the next stock on our list, is a busines development corporation. The company provides capital access and asset management for its customers, middle-market companies seeking financing solutions. Barings invests in debt, equity, and fixed income assets, and boasts over $346 billion in total assets under management.While Barings took a hard hit to revenue in the first quarter, as the corona crisis took hold, the company has seen the top line return to positive numbers in the second quarter. At $56 million, the Q2 revenue was also more than 4x higher than results in the second half of 2019. Earnings have been stable, with EPS reported between 14 and 16 cents for the past 7 quarters.In another sign of strength, Barings in August completed an agreement to acquire MVC Capital. The deal, which totals $177.5 million in cash and stock, is expected to close in 4Q20 and will create a combined company with an investment portfolio worth more than $1.2 billion.While that move is going forward, BBDC continues to reward shareholders. The company has been gradually growing its quarterly dividend payment for the past two years. The current payout is 16 cents per common share, giving an annualized payment of 64 cents and a robust yield of 8%.Raymond James analyst Robert Dodd notes the importance of the MVC transaction for BBDC: “…we expect that BBDC will recognize a top-line income contributor 'accretion of purchase discount' over the life of the MVC portfolio.” Dodd goes on to note that this will have a positive impact on the dividend, writing, “We are projecting a dividend increase following the close of the MVC acquisition. We believe the dividend could be increased from the current $0.16/share per quarter to $0.17/share in 1Q21. While we believe earnings power will exceed that level, over-coverage is a good thing in our view — and we believe projecting a 90% payout ratio is prudent.”Dodd’s comments back up his Buy rating on the stock. He gives Barings a $9.50 price target, which indicates room for 19% growth over the next 12 months. (To watch Dodd’s track record, click here)Overall, Barings’ Strong Buy consensus rating is held up by 3 recent Buys against a single Hold. The company has an average price target of $9, suggesting a 12.5% upside from the $8.01 trading price. (See BBDC stock analysis on TipRanks)TriplePoint Venture Growth (TPVG)The last stock on our list is another management investment company. TriplePoint Venture is a venture capital investment firm with a portfolio focused on the tech and life sciences. These are high-growth industries that gobble up cash – but also offer the promise of high returns.TriplePoint’s earnings have been falling off this year from their peak, at 45 cents per share in Q4 of last year, even as revenue as recovered from corona-induced losses in the first quarter. For the second quarter, the top line came in at $23 million, while EPS slipped 7% to 38 cents. Even though earnings are down, they still beat the forecast by 5.5%.However, the company’s dividend payment has been remarkably stable for the past few years. Except for one downward blip in December 2018, the dividend has been consistently paid out at 36 cents per common share per quarter. This gives an annualized payment of $1.44, and a powerful yield of 12.8%. The high yield, combined with the reliable payment history, make this dividend valuable, especially in a time of near-zero interest rate policy.Christopher York, 4-star analyst with JMP Securities, believes that the recent second quarter results justify an Outperform (i.e. Buy) rating on TPVG, and his $13 price target implies an upside of 16%. (To watch York’s track record, click here)Backing his outlook, York writes, “TPVG remains our favorite BDC idea for those that trade below $500mln in market cap; we find the stock especially attractive for both yield-seeking and value investors [...] We continue to believe TriplePoint's core dividend run-rate of $0.36 is sustainable throughout 2021 and note that the total return requirement in the incentive fee should provide additional support to dividend coverage from any future credit losses.”Overall, Wall Street’s analysts have been nothing but bullish on TPVG over the past three months. Out of 5 analysts who cover the stock, all 5 are bullish. Meanwhile, their average price target of $13.30 suggests a 19% upside from current levels. (See TriplePoint’s stock analysis at TipRanks)To find good ideas for dividend 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.
The first 2020 presidential debate was held Tuesday night between U.S. President Donald Trump and former Vice President Joe Biden. Picking A Debate Winner: While some might say there were no winners from the debate, betting odds for Biden to win the presidency all gained last night.Betfair shows Biden having a 54.4% chance to win the election compared to 42.8% for Trump. This is the best odds for Biden since July 30, when he hit a high of 61.2%. Trump's best odds from Betfair were 53.9% back in March.PredictIt is showing a 2 cent boost to Biden's presidential odds, which are now 61 cents. Trump had no change and is trading at 43 cents.Electionbettingodds.com, which compiles Betfair, PredictIt and FTX, shows Biden gaining 5.1% and now having a 59.9% chance to win the election. Trump saw his odds fall 4.4% to 38.4%.What About The Stock Market? Having a consensus winner of the debate was expected to be a positive, due to the current uncertainty hurting the market. A contested election is a major concern of investors. Biden having had a lead in the polls before the debate and gaining after the debate may take away some uncertainty.The S&P 500 typically moves less than 1% the day after the first debate. In pre-market trading, the S&P 500 was up about 0.3% to 3,345.What A Biden Win Means: Trump has come down hard on relations with China. A win by Biden could boost China stocks, ETFs and technology companies with large international exposure.The iShares MSCI China ETF (NASDAQ: MCHI) is an ETF to watch, while Tencent (OTC: TCEHY) is a stock that has been hurt by U.S.-China relations.The Technology Select Sector SPDR ETF (NYSE: XLK) could gain on less regulation and tariffs put on China.Other sectors that are expected to win from a Biden presidency are renewable energy and infrastructure.The Global US infrastructure Development ETF (BATS: PAVE) is an infrastructure fund to watch with a Biden win.Biden said Tuesday he doesn't support the Green New Deal proposed by democrats, but has his own Biden Plan that will focus on renewable energy. Renewable energy-related ETFs like ALPS Clean Energy ETF (BATS: ACES), Invesco Solar ETF (NYSE: TAN) and VanEck Vectors Low Energy ETF (NYSE: SMOG) could see strong gains from a Biden election win.Biden also highlighted a focus on zero emissions going forward and a push for electric vehicles."We're going to build 500,000 charging stations on all the highways we'll be building in the future," said Biden. This could be a big win for companies like Blink Charging Co (NYSE: BLNK) and ChargePoint, which is merging with SPAC Switchback Energy Acquisition Corporation (NYSE: SBE). Biden is expected to crack down on regulation in industries in the financial, energy and health care sectors. He has also proposed raising the capital gains tax, which could hurt the overall market, but would need a Democratic sweep across Congress as well.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Stock Wars: Activision Blizzard Vs. Electronic Arts Vs. Take-Two * Asana's Direct Listing IPO: What Investors Need To Know(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
In the first week of September, the markets saw a sudden drop from peak values. That fall was most pronounced in the NASDAQ index, which dropped from 1,200 points – some 10% – in just 5 trading sessions. Since then, however, the situation has stabilized. Stocks have bounced up and down, but the NASDAQ has generally held steady at or near 11,000 for the past three weeks.The holding pattern is likely more important than the slide. It’s lasted longer, and appears to represent a classic market correction. The NASDAQ’s 5-month run to its September 2 all-time high left it somewhat overvalued, and it’s now fallen back to a more sustainable level. This is borne out by a look at three major components of the index, members of tech’s ‘FAANG’ club.The FAANG stocks are Facebook, Amazon, Apple, Netflix, and Google (Alphabet). They are the 800-pound gorillas of the tech world, companies of enormous size and scope, whose operations and market fluctuations have been a major driver to the NASDAQ, and the overall stock market, in recent years. And three of them have another important point in common, too: each gets a ‘Perfect 10’ rating from the TipRanks Smart Score.The Smart Score rates every stock according to set of 8 factors that have historically correlated with future outperformance, and combines them into a simple 1 to 10 scale to indicate the stock’s likely future course. Now let's see why these tech giants scored so highly, and what Wall Street’s analysts have to say about it.Facebook (FB)First on our list is Facebook. The social media giant has spawned both an industry and much controversy in the years since it burst on the scene. In recent years, Facebook has come under fire for advertising policies, privacy breaches, and accusations of censorship – but none of that has halted the long-term growth of the stock.The company makes its money selling advertising, using AI tracking algorithms to monitor account activity and create perfectly target ads. It’s a system that has introduced us, in less than one generation, to impressions, banner ads, and pay-per-click. It has changed the way we do business online.With the election coming up, Facebook is not shying away from controversial actions. The company has announced that it will ban political ads in the week before election day, as well as censor groups deemed to promote violence or spread false information about the corona pandemic. Intended to be politically neutral, these moves have drawn criticism from side of the political arena.That has not stopped Facebook from raking in the money, however. Earnings did fall 33% sequentially in the first quarter of this year – but that should be put in perspective. FB’s pattern is to register its best results in Q4 (holiday advertising), and its lowest results in Q1. With that in mind, it’s more important that, during the ‘corona quarter,’ Facebook’s Q1 EPS were up 101% year-over-year. Results in Q2 were almost as impressive, with the $1.80 EPS being up 97% year-to-date. Looking at Facebook’s near-term prospects, 5-star analyst Mark Zgutowicz of Rosenblatt Securities see plenty of reason for optimism. Zgutowicz admits that consumers may develop a ‘spending fatigue’ in the wake of anti-COVID stimulus bills, but “given Facebook’s immense exposure to ecommerce with now 9M active small business advertisers, and the holiday season soon approaching," the analyst believes "any stimulus spend fatigue will be offset [by] escalating ecommerce trajectory.”In line with these comments, Zgutowicz rates FB a Buy and sets a price target of $325. This target implies room for 24% share appreciation in the next year. (To watch Zgutowicz’s track record, click here)Overall, Facebook’s Strong Buy consensus rating is based on 38 recent reviews, with a breakdown of 33 Buy, 4 Hold, 1 lonely Sell. The shares are priced at $261.90 and have an average price target of $295.82, suggesting a 13% upside from current levels. (See FB stock analysis on TipRanks)Amazon.com (AMZN)Next up, Amazon, is the market’s second largest publicly traded company, with a market cap of $1.59 trillion and a famously high share price exceeding $3,000. Amazon has proven a master of self-reinvention since the late ‘90s, starting out as an online book seller and surviving the doc.com bubble to become, now, the world’s largest online retailer, where customers can buy everything from buttons to brie, and even books.Looking at Amazon’s performance, the most immediate salient factor is the steady rise in share value over the years. Under Jeff Bezos’ leadership, Amazon does not pay out a dividend or conduct share buybacks; investors benefit solely from share appreciation. And that appreciation has been substantial, especially for long-term investors. Just in the last five years, the stock has grown over 480%.The company has achieved this growth by taking advantage of every opportunity that comes its way – when it is not inventing those opportunities. The corona crisis was no exception to this pattern; as the social lockdown policies kept people home and closed down stores and shops, Amazon’s service became essential. Customers could order anything, and have it delivered. The company’s 2Q20 revenues reflect this success; coming in at $88.9 billion, they were up 40% year-over-year. Earnings also showed how Amazon thrived under the new conditions. Q1 results had been in-line with the previous six quarters – but in Q2, EPS jumped to $10.30, far ahead of the $1.74 estimate.In his coverage of Amazon stock, JMP’s 5-star analyst Ronald Josey notes the perfect fit of the company and the times.“The COVID-19 pandemic has clearly pulled forward eCommerce adoption by at least three years, in our view, and Amazon’s investment in its product selection and delivery network—which continues to improve—was on display this quarter. Beginning in mid-April, demand expanded beyond essentials to a more normalized mix of hardlines and softlines, and newer services like grocery delivery tripled. Overall, we believe 2Q’s execution and ability to launch newer products and services highlights Amazon’s strength as an organization,” Josey opined.Josey rates Amazon as Outperform (i.e. Buy), and his price target, at an eye-opening $4,075, suggests 29% growth for the next 12 months. (To watch Josey’s track record, click here)Overall, the Strong Buy consensus rating on Amazon is, unsurprisingly, unanimous, based on no fewer than 37 positive reviews. The share price comes in at $3,149, and the average price target of $3,732 implies an 18.5% one-year upside potential. (See AMZN stock analysis on TipRanks)Apple, Inc. (AAPL)And now we come to Apple, the single largest component of the NASDAQ, making up over 13% of the index by weight. It is also the largest publicly traded company in the world. Two years ago, in summer 2018, Apple was the first company to ever exceed $1 trillion in market cap, and earlier this year, Apple broke above $2 trillion. The company is currently valued at $1.98 trillion.A big advantage for Apple, as the corona crisis took hold, was that the company had entered 2020 on the heels of record-breaking fourth quarter results. Apple’s Q4s are typically the company’s best, boosted, by holiday sales, and 4Q19 gave Apple a financial kick right before the sales depression of 1Q20 hit. By 2Q20, Apple’s EPS was down to just 64 cents, well below the $2.03 forecast. Revenues, however, remained at $60 billion, roughly in-line with Apple’s historic mid-year quarterly performance.Looking ahead, Apple has at least two more major advantages going forward. First, the company will be releasing its 5G-compatible iPhone 12 line this fall. And second, at least one-third of Apple’s installed iPhone user base will be entering the natural device replacement cycle over the next year. JPMorgan analyst Samik Chatterjee reviewed Apple, and sums all of the above in clear prose: “…investors have widely acknowledged the rich valuation of AAPL shares. While the $2 trn market cap valuation in itself is a significant milestone, that AAPL shares crossed it in a year with significant COVID-19 disruption testifies to the recurring nature of not only its Services, but also its Products, such that investors are now willing to pay a Services-like premium on the entire earnings stream and a modest premium on account of expectations for further revenue/earnings upside. While we acknowledge that the valuation is no longer an easy entry point into the shares, at the same time, potential upside revenue/earnings drivers as well as upcoming catalysts will make it difficult for investors to step away from the shares."To this end, Chatterjee puts a $150 price tag on AAPL shares, implying an upside of 29% and backing his Overweight (i.e. Buy) rating. (To watch Chatterjee’s track record, click here)All in all, Apple holds a Moderate Buy rating from the analyst consensus, with 35 reviews breaking down to 24 Buys, 8 Holds, and 3 Sells. The shares are selling for $115.81 and have an average price target of $122.04. This suggests a modest 5.5% upside from current levels. (See Apple stock analysis at TipRanks)To find good ideas for tech 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.
President Donald Trump reportedly must pay back more than $300 million in loans over the next four years, raising the possibility his lenders could face an unprecedented situation should he win a second term and not be able to raise the money: foreclosing on the leader of the free world. Based on Forbes magazine estimates of the value of his buildings, for instance, selling his partial interests in just two properties— an office complex in San Francisco and a Las Vegas tower that houses a hotel and condos — could bring in $500 million alone. Trump’s true financial picture has gotten renewed scrutiny in the wake of a New York Times report this week that he declared hundreds of millions in losses in recent years, allowing him to pay just $750 in taxes the year he won the presidency, and nothing for 10 of 15 years before that.
Stocks rallied solidly, despite coming off intraday highs on Mitch McConnell stimulus deal comments. Datadog led new breakouts. Tesla deliveries loom.
A new wave of optimism is splashing onto the Street. Investment firm Goldman Sachs just gave its three-month stock forecast a boost, lifting it from Neutral to Overweight, with it also projecting “high single-digital returns” for global stocks over the next year.What’s behind this updated approach? Goldman Sachs strategist Christian Mueller-Glissmann cites the impressive rebound in global earnings growth and reduced equity costs as the drivers of the estimate revision. On top of this, a “broader procyclical shift” in stocks and other assets could take place during the remainder of this year.“We have shifted more cyclical on sectors and themes tactically but still prefer growth vs. value on a strategic horizon... In the near-term, elevated uncertainty on U.S. elections and a better global growth outlook might benefit non-U.S. equities more, but in the medium term a large weight in structural growth stocks is likely to support the S&P 500,” Mueller-Glissmann noted.As for the “most important catalyst” that could spur growth optimism in the next year, the strategist points to additional clarity on when and how a COVID-19 vaccine will be available.Turning Mueller-Glissmann's outlook into concrete recommendations, Goldman Sachs’ analysts are pounding the table on three stocks that look especially compelling. According to these analysts, each name is poised to surge in the 12 months ahead.Raytheon Technologies (RTX)First up we have Raytheon Technologies, which is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers. While shares have stumbled in 2020, Goldman Sachs thinks the weakness presents a buying opportunity.Representing the firm, analyst Noah Poponak points out that RTX is “too high quality and well positioned of a company to trade at an 11% free cash flow yield on the fully aerospace-recovered and fully synergized 2023E free cash.”The analyst’s bullish outlook is largely driven by the company’s aerospace aftermarket (the secondary market that deals with the installation of equipment, spare parts, accessories and components after the sale of the aircraft by the original equipment manufacturer) business, which Poponak argues is “the best sub-market within Aerospace over the long-term.” This segment makes up roughly 45% of RTX’s aerospace revenue.Even though COVID-19 flight disruptions have weighed on this part of the business, Poponak points out total aircraft in service is down only 25% year-over-year, and flights have dipped less than 50%. He added, “China domestic traffic is now up year on year, and while international remains depressed, we believe the recovery in global air travel could be quicker from here than broad expectations for a recovery by 2023-2024.”Poponak highlights that in previous downturns, the aftermarket had to confront headwinds that arose from the increased use of parting out, inventory pooling and delayed aftermarket spending. “Even then, aftermarket grew at or faster than ASMs, and we believe there was pent-up demand heading into this downturn that support aftermarket tracking the recovery in global air travel. Long-term, we expect air traffic to grow 2X global GDP, as it has historically,” the analyst commented.Adding to the good news, the Geared Turbo Fan, which is a type of turbofan aircraft engine, product cycle could generate substantial revenue and EBIT growth at Pratt & Whitney, in Poponak’s opinion.“Given the high OE exposure to the A320neo, which has the strongest backlog of any aircraft in the market, we see Pratt OE revenue holding up better and recovering faster than peers. New GTF deliveries will drive expansion in the installed base for Pratt, which was declining for most of the 2000s. Despite the end of V2500 OE deliveries, that program is just moving into the sweet-spot for shop visits on the aftermarket side,” Poponak opined.What’s more, Poponak sees merger synergies as capable of fueling margin expansion and cash generation, with the historical synergy capture in the space implying that upside to guidance isn’t out of the question.In line with his optimistic approach, Poponak stays with the bulls. To this end, he keeps a Buy rating and $86 price target on the stock. Investors could be pocketing a gain of 49%, should this target be met in the twelve months ahead. (To watch Poponak’s track record, click here)In general, other analysts echo Poponak’s sentiment. 7 Buys and 2 Holds add up to a Strong Buy consensus rating. With an average price target of $78.63, the upside potential comes in at 36.5%. (See RTX stock analysis on TipRanks)Boeing (BA)Moving on to another player in the aerospace space, Boeing has also struggled on account of the COVID-19 pandemic, with it failing to match the pace of the broader market. That being said, Goldman Sachs has high hopes for this name going forward.Firm analyst Noah Poponak, who also covers RTX, points out that BA has already trimmed production rate plans by half, compared to the peak plan from before the COVID crisis and MAX grounding. A slower-than-anticipated air travel rebound could result in more reductions, but the analyst argues these would be much smaller than the reductions that have already been witnessed. He added, “Historically, the best buying opportunities in BA shares are right after it has capitulated to production rate cuts.”According to Poponak, compared to previous economic declines, the peak to trough in the current downturn is larger and faster, although this is partly related to the grounding of the 737 MAX in 2019. “We believe this will result in a less severe dislocation of supply and demand balance, and see deliveries recovering to 2018 levels by 2024 as global air travel recovers and airlines replace accelerated retirements,” he explained.As for how the company can fulfill its new production rate plan “given the mix of its backlog is so much more weighted to growth than replacement,” Poponak believes “the answer is that airlines during this downturn are revising that mix.” Since the pandemic’s onset, airlines have revealed higher aircraft retirement plans, and braced for less growth. “That means for a given revision in an airline’s order book, there is also a substantial mix shift toward replacement from growth within the new delivery numbers. Therefore, the backlog will not necessarily lose all of its growth orders,” the analyst stated.Additionally, following an uptick in aircraft order cancellations in March and April, the pace has slowed. “Even assuming another 200-plus unit cancellations this year, we estimate the 737 MAX would have nearly 6X years of production by the middle of the decade at our revised production rate estimates,” Poponak mentioned.When it comes to free cash flow, the analyst is also optimistic, with Poponak forecasting that BA will see positive free cash flow in 2021. “We think the market is underestimating the mid-cycle achievable aircraft unit cash margins across the major programs, extrapolating temporarily negative items into the future, and underestimating the degree of inventory unwind likely to occur in 2021,” he said.If that wasn’t enough, the MAX recertification could be a major possible catalyst. The company is working towards recertification and return to service, with Poponak expecting both to come before year-end.Taking all of the above into consideration, Poponak maintains a Buy rating and $225 price target. This target conveys his confidence in BA’s ability to climb 35% higher in the next year.Turning to the rest of the analyst community, opinions are mixed. With 8 Buys, 8 Holds and 1 Sell assigned in the last three months, the word on the Street is that BA is a Moderate Buy. At $192.40, the average price target implies 16% upside potential. (See Boeing stock analysis on TipRanks)Immatics (IMTX)Combining the discovery of true targets for cancer immunotherapies (therapies that utilize the power of the immune system) with the development of the right T cell receptors, Immatics hopes to ultimately enable a robust and specific T cell response against these targets. Based on its cutting-edge approach, Goldman Sachs counts itself as a fan.Writing for the firm, analyst Graig Suvannavejh notes that unlike CAR-T approaches, a T cell receptor (TCR)-based approach can go after targets inside the cell, and fight the 90% of cancers which are solid tumor in nature. The company is advancing two technologies: ACTengine, designed for personalized TCR-based cell therapies, and TCER, which targets TCR-based bispecific antibodies.ACTengine is the more advanced technology, with its four assets IMA201, a genetically engineered T cell product candidate that targets melanoma-associated antigen 4 or 8, IMA202, which targets melanoma-associated antigen 1, IMA203, which targets preferentially expressed antigen in melanoma (PRAME) and IMA204 that targets COL6A3 (found in a tumor’s stroma and is highly prevalent in the tumor microenvironment/TME in a broad range of cancers) expected to enter the clinic soon.Using the TCER platform, IMTX is developing IMA401 and IMA402, or “off-the-shelf” biologics consisting of a portion of the TCR which directly recognizes cancer cells and a T cell recruiter domain which recruits and activates the patient’s T cells.Speaking to the market opportunity, Suvannavejh mentioned, “Cancer immunotherapies have made great strides over the past decade, and in particular, advances seen with CAR-T have paved the way for cell therapy-based approaches... CAR-T, however, has to date only shown limited effect in treating cancers that are solid tumor in nature. With more than 90% of all cancers being solid tumors — with lung, breast, colorectal and prostate cancers accounting for c.60% of the total — this is the opportunity for IMTX.” To this end, he believes cumulative 2035 sales could land at $15.5 billion for the ACTengine-based assets.Reflecting another positive, since 2017, IMTX has inked at least one significant partnership per year with top global biopharma companies. According to Suvannavejh, each provided non-dilutive funding opportunities.The analyst added, “...the ARYA Sciences Acquisition Corporation, a special purpose acquisition company (SPAC), merger that enabled IMTX to become a publicly traded entity brought in a deep roster of well-known, experienced healthcare-dedicated institutional investors. Taken together, we find these to be validating of IMTX’s longer-term prospects.”Looking ahead, the initial clinical data readouts for IMA201, IMA202 and IMA203, which are slated for Q1 2021, and investigational new drug (IND) application submissions for IMA204 and IMA401 in 2021 and YE2021, respectively, reflect key potential catalysts, in Suvannavejh’s opinion.Everything that IMTX has going for it convinced Suvannavejh to reiterate his Buy rating. Along with the call, he attached a $17 price target, suggesting 73% upside potential. (To watch Suvannavejh’s track record, click here)Are other analysts in agreement? They are. Only Buy ratings, 4, in fact, have been issued in the last three months. Therefore, the message is clear: IMTX is a Strong Buy. Given the $19 average price target, shares could soar 93% in the next year. (See Immatics stock analysis on TipRanks)To find good ideas for 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.
(Bloomberg) -- When Jan Skvarka joined biotechnology firm Trillium Therapeutics Inc. as chief executive officer, he made a big bet to reshape the company and went all-in on a cancer treatment platform. Now, he’s reaping the rewards.It was the gamble of a lifetime for the 53-year-old CEO, who decided to shutter the drug developer’s lead program on treating tumors directly and instead focus on cancer-fighting technology for patients with different blood cancers. Investors cheered, rewarding him with a 3,600% stock-surge since he joined the company a year ago.Trillium is the No. 1 stock on Canada’s S&P/TSX Composite Index this year, skyrocketing past tech behemoth Shopify Inc. by almost 10-fold. It’s U.S.-listed shares are the fourth best-performing company on the Nasdaq Composite Index.Despite its epic stock-market rally, every analyst covering the company rates it a buy, signaling that further gains are on the horizon for investors that missed out on Trillium’s initial boom. Wall Street has an average 12-month share price target of $17.58, implying gains of about 30% over the coming year, data compiled by Bloomberg show. Trillium’s shares closed trading at $13.55 on Tuesday.“We need to walk before we run, but if you ask me what our ultimate aspirations are, it’s to challenge chemotherapy,” Skvarka, a former partner of Bain & Co. and Harvard Business School graduate, said by phone.The rebirth of Cambridge, Massachusetts-based Trillium attracted a who’s who of health-focused hedge funds and snagged a $25 million investment from industry giant Pfizer Inc. For Skvarka, who celebrated the anniversary of his first year last weekend, the decision to restructure the company and focus on a newer cancer technology has transformed the drugmaker into a firm with a market cap of about $1.3 billion. Last Halloween, it had a value of a mere $7 million.Some of the hedge funds that have invested in the company, like Millennium Management LLC and Avoro Capital Advisors, have cashed in on part of the year’s gains, while others including Ghost Tree Capital LLC have piled onto their positions.Trillium, like many drug-developing peers that are focused on cancer therapies, is looking to improve on current treatment options and help patients live longer lives.“It’s a very exciting time,” Skvarka said. “We are squarely out of the realm of preclinical data and in the realm of clinical data.”M&A Target?Those aspirations are where the company’s cancer medicines, TTI-621 and TTI-622, come in. The pair of programs, which have shown promising results in early stage studies, are in an emerging class of cancer-fighting technologies that triggered Gilead Sciences Inc.’s $4.9 billion takeout of peer Forty Seven Inc. earlier this year. That deal has sparked speculation that Trillium could be among the next group of companies snatched up by bigger players amid the industry’s rush of deals.While Skvarka wouldn’t comment on whether the company has been approached about a sale, he said that Trillium’s goal is to keep its options open for the time being.“The way we struck the Pfizer deal was very important for us as it kept our optionality open” for the future, he said. “I am a big believer of optionality and having as many options as possible. The options for us are to continue alone or strike a global partnership potentially a way down the road.”For 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.
If you're single and die in 2020, you can have up to $11.58 million in assets before your heirs have to worry about paying a penny in estate taxes. Knowing that, you might assume only the super wealthy need to worry about estate planning. "Estate taxes are only part of it," says Jeff Bush, president of Informed Family Financial Services in Norristown, Pennsylvania.
An elite corps of patient, concentrated shareholders quietly underpins corporate America. This group, which Warren Buffett dubbed “high-quality shareholders” back in 1978, contrasts with today’s dominant index funds, which hold for long periods but do not concentrate, and momentum traders or many activists, who often concentrate heavily, but rarely hold for long. Every investor, adviser and manager would benefit from familiarity with these high-quality shareholders.
Palantir (PLTR) opened at $10 a share when it started trading on the New York Stock Exchange this Wednesday. The stock went as high as $11.42 during the first 10 minutes of trading.
After calling the March bottom, Fundstrat's Tom Lee says he has a new level in the S&P 500 to watch.
(Bloomberg) -- Palantir Technologies Inc. fell 5% from its opening trades in its debut as a public company, ending a 17-year tradition of secrecy surrounding the software business co-founded by Peter Thiel.The data analytics company’s share price fell to $9.50 after opening Wednesday at $10 on the New York Stock Exchange. Palantir listed its shares directly on the exchange, rather than raising capital through an initial public offering. As in the three other major direct listings that have taken place, the exchange had set a reference price -- $7.25 for Palantir -- to help guide investors and to allow shares to begin trading.Palantir ended the day with a market capitalization of about $15.7 billion based on its listed shares, according to data compiled by Bloomberg. On a fully diluted basis based on all the shares covered in its filings, the company has a value of almost $21 billion, in line with the $20 billion valuation private investors awarded it in 2015.Going public was the right decision for Palantir, Chief Executive Officer and co-founder Alex Karp said in an interview, without commenting directly on the first day’s trading.“We didn’t need to change our culture,” he said, referring among other things to Palantir’s tight group of insiders and their support for the programs run by U.S. government agencies. “I feel really good.”Karp, Thiel and a tight-knit group of leaders will retain tight control of the company through a three-tiered share structure and voting rights. That’s needed to assure customers -- some of them controversial -- that they can trust the company, Karp said.“It gives our clients enormous comfort that we will stand by them when times are good and when times are bad,” Karp said. “We support some of the most clandestine operations in the world.”Companies are racing to go public in the U.S., where investors are welcoming new stocks ahead of a presidential election likely to drive volatility. Companies raised $61 billion from initial public offerings this quarter, the busiest on record, according to data compiled by Bloomberg. Software businesses were at the forefront of the listing boom. Snowflake Inc., the largest of them, raised $3.9 billion including so-called greenshoe shares in its IPO this month.Asana Inc., a software company backed by Thiel’s venture capital firm Founders Fund, also went public Wednesday through a direct listing, an unconventional mechanism for taking a company public. Asana’s shares gained 6.7% from their opening price, giving the company a value of about $5.5 billion on a fully diluted basis.Palantir traveled a long and sometimes rough road to its public debut. Thiel helped start the company in 2003 with early funding from an arm of the U.S. Central Intelligence Agency, but Palantir’s darling status among U.S. government agencies didn’t translate into success with businesses for well over a decade.Named for the all-seeing stones in the fictional “Lord of the Rings” trilogy, Palantir combines myriad, ever-changing data streams into one centralized “source of truth.” Customers, including the U.S. Defense Department and pharmaceutical giant Merck KGaA, then mine that information and analyze it to make decisions. The results are presented as a series of spiderweb-like visuals, making information accessible to non-technical users.For years, Palantir operated much like a consultancy, dispatching its engineers to customer sites to implement the software and build one-off applications. The model was expensive, and Palantir incurred heavy losses for most of its history. The business remains unprofitable.When Palantir built a new software platform, Foundry, in 2016, the company cut costs by automating much of the grunt work and said it reduced time to set up customers from months to days. Palantir expects to deliver an adjusted profit this year on more than $1 billion in revenue.Competition for global customers will be fierce. Palantir only began building a sales team in 2019. The company currently has about 125 customers, with the U.S. Army being the largest representing 15% of revenue.Palantir’s chairman, Thiel, and its work for government agencies including U.S. immigration have sparked concerns among corporate watchdogs and human rights groups including Amnesty International. The company has also drawn rebukes from governance experts who point out that Thiel will have power with little accountability because of multi-class stock that grants him outsize power in perpetuity.Palantir followed other tech companies in its decision to bypass a traditional IPO. Spotify Technology SA went public through a direct listing in 2018 and Slack Technologies Inc. followed last year.In a direct listing, employees and other shareholders can sell stock without the company issuing new shares to raise capital. Slack and Spotify each soared on their first day of trading, reaching valuations of $19.5 billion and $27.8 billion, respectively.(Updates with CEO’s comments in fourth paragraph.)For 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.
A Dow Jones rally was hit after Senate Majority Leader Mitch McConnell cast doubt on a possible coronavirus relief deal.
What a ride 2020 has been so far for Nio (NIO). The Chinese EV manufacturer has taken the bull by the horns and has ridden it all the way to massive gains of 427%.There’s no doubt the hype on EV vehicles in 2020 is almost at fever pitch, with investors banking on the sector disrupting the entire auto industry over the coming years. However, as in any emerging industry there will be winners and losers.After initiating coverage of Nio earlier this month, the main pushback for Deutsche bank's Edison Yu from investors concerned the fact Nio “does not create the same level of excitement and loyalty in China that Tesla or the German luxury automakers command.”While Yu concedes that “given NIO is an upstart,” there is some truth to that assertion. The analyst points to recent data that shows “NIO is increasingly perceived by customers as a high-quality premium brand with best-in class technology and service.”The evidence is twofold.First, according to a study in leading Chinese automotive web portal Bitauto, which measured how likely a customer is to refer a car brand to others, NIO was both the highest-ranking premium brand and overall brand (54%), beating Tesla (52%) and BMW (42%).“The study suggested this could be due to aggressive promotional activity and customers putting more value on post-purchase service, which is an area we believe NIO thrives in,” Yu said.Secondly, Nio beat Tesla again in J.D. Power’s 2020 China New Energy Vehicle (NEV) Experience Index Study, coming in as the top brand in the BEV segment “based on problems per 100 vehicles.”The study also showed that the proportion of NEV owners born in the 1990s has risen from 24% in 2019 to 37% indicating “that younger buyers are much more open to emerging brands.”All of which leads Yu to conclude, “We believe NIO can take material share in the premium segment as consumers begin to understand the value proposition and quality of its products and services. Near term, we continue to expect record 3Q/4Q deliveries and margin, boosted by the newly launched EC6 SUV coupe (deliveries began on Friday), 100 kWh battery pack option, and BaaS roll-out.”To this end, Yu reiterated a Buy rating on NIO shares along with a $24 price target. According to Yu, then, there’s room for another 15% of upside from current levels. (To watch Yu’s track record, click here)So, that’s Deutsche Bank’s view, what does the rest of the Street have in mind for the stock? NIO's Moderate Buy consensus rating is based on 4 Buy ratings, 3 Holds and 1 Sell. However, the analysts expect shares to trend downwards by 19% as indicated by the $17.14 average price target. (See Nio stock analysis on TipRanks)To find good ideas for 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.
(Bloomberg) -- More than 500 JPMorgan Chase & Co. employees got assistance from taxpayers aimed at helping businesses through the pandemic -- and dozens of them shouldn’t have, according to people with knowledge of the firm’s internal investigation.The discovery that so many people at the largest and most profitable U.S. bank had tapped the Economic Injury Disaster Loan program raised suspicions inside the company and set off a hasty probe, the full extent of which hasn’t been previously reported. Bloomberg broke the news earlier this month that at least some staff had abused the program.After noticing hundreds of employees had received government funds in their accounts, the bank began scrutinizing director-level employees and workers who received certain amounts, according to people with knowledge of the confidential review who spoke on condition they not be named. Of almost two dozen in that first group, the bank found five -- none of them director-level employees -- had improperly tapped the program, one of the people said.Ultimately, the bank’s look at hundreds of deposits found many were probably legitimate -- providing funds, for example, to side businesses run on workers’ own time. A JPMorgan spokeswoman declined to comment on its investigation.The figures shed light on the scope of a probe that has spooked the banking industry, in which JPMorgan is known as a standard-bearer with more than a quarter million employees. While JPMorgan revealed its efforts in an all-staff memo, rival banks have remained silent on whether any employees improperly tapped the money.The Small Business Administration has urged U.S. banks to look out for suspicious deposits from the EIDL program to their customers and even their own staff. While the program offers loans to businesses, much of the concern has focused on its advances of as much as $10,000 that don’t have to be repaid. A Bloomberg Businessweek analysis of SBA data in August identified at least $1.3 billion in suspicious payments.JPMorgan sent a memo to its roughly 256,000 employees on Sept. 8 in which senior leaders said they had seen “instances of customers misusing Paycheck Protection Program Loans, unemployment benefits and other government programs” and that some employees had fallen short on ethical standards, too.For 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.
Raytheon Technologies was formed after the merger of Raytheon and United Technologies' defense and aviation businesses.