We are launching coverage of Sony with a target valuation of the company’s stock of $ 144. Sony is a world-renowned company with a leading position in computer games and music, as well as a popular film and television business. Sony also has a leading position in the high-sensitivity CMOS sensor market.
Tag: CRYPTO
Sustainable growth while maintaining high profit margins
Adobe in the third quarter of fiscal 2021 increased its net profit by 27% yoy, while the figure exceeded forecasts of experts. The company’s revenue jumped to $ 3.94 billion from $ 3.23 billion a year earlier. Net income for the three months ended September 3 was $ 1.21 billion, or $ 2.52 per share, compared to $ 955 million, or $ 1.97 per share, in the comparable period a year earlier. Adjusted Adobe’s earnings rose to $ 3.11 per share. The market consensus implied an increase in net income to $ 2.3 per share on revenue of $ 3.89 billion. Management of the company predicted earnings at $ 2.27 per share and revenue of $ 3.88 billion.
High potential for business growth
We kick off the Deluxe coverage and assign a fair value to the company at $ 55. We see significant growth potential for Deluxe’s business as the company continues to help corporate clients improve payment discipline, streamline operational processes and grow business volumes. First American’s recent acquisition of online and mobile payments significantly improves the Deluxe platform, which combines high cash flow (checks, promotions) with strong revenue growth (cloud services, payments).
Uber is ready for positive EBITDA
Uber Technologies reported that it received positive EBITDA in July and August, which improved its forecast for the entire current quarter. Now the company expects to receive adjusted EBITDA for the third quarter in the range from minus $ 25 million to plus $ 25 million, while the earlier expected loss of $ 100 million. The total volume of orders is projected in the range of $ 22.3-23.2 billion against the previous estimate of $ 22 -24 billion. Also, Uber has clarified the forecast for the fourth quarter and now intends to receive adjusted EBITDA in the amount of up to $ 100 million, while previously expected just a positive figure. We have improved our valuation of the company from $ 80 per share to $ 82. Our assessment is based on a differentiated approach, thanks to the global scale of the company and its market leadership position in various transport and logistics segments, coordinated by means of applications.
Markets are high again
Last week, the broad S&P 500 index gained 0.7% and ended the week at historic levels of 4,468 points. The Nasdaq 100 tech index added 0.2%, remaining slightly below the historic high, but the capitalization of the Dow Jones Industrial Average rose 0.9%, and the indicator itself conquered historic highs at around 35,515 points. Investors were encouraged by the news that the US Senate has approved an infrastructure bill with over $ 1 trillion in funding. Now it must be considered by the House of Representatives. In addition, a new $ 3.5 billion stimulus package was proposed that will fund social goals and fight poverty.
Snap doubled its quarterly revenue
Snap, the owner of the Snapchat app, posted excellent quarterly results. The company reduced its net loss in the second quarter of 2021 and more than doubled its revenue as the advertising market continues to recover. The company’s revenue in the second quarter was $ 982 million, compared with $ 454 million a year earlier. The indicator exceeded the consensus forecast of analysts at $ 846 million. Snap’s net loss in April-June decreased by 53% – to $ 151.6 million compared to $ 326 million in the same period last year. Loss on a per share basis declined to $ 0.1 from $ 0.23 on the average market forecast of $ 0.21.
Luxury Goes Digital
We’re highlighting Farfetch because we focus on the fast-growing online luxury goods market. The company operates a leading platform connecting luxury brands and boutiques. The global luxury goods market is undergoing a structural shift towards digitalization and we believe that Farfetch will be the main beneficiary of the $ 300 billion market transformation. The company’s management predicts revenue growth of an average of 16% per year over the next ten years, primarily due to growth demand from China and other emerging markets.
Buying Afterpay is the key to future success
Square posted good results for the second quarter. The company’s revenue reached $ 4.68 billion, compared with $ 1.92 billion a year earlier. The consensus forecast of analysts provided for the figure at the level of $ 5.03 billion. Net income in April-June was $ 204 million, or 40 cents per share, compared with a loss of $ 11.5 million, or 3 cents per share in the same period a year earlier. Adjusted earnings were 66 cents per share, up from 18 cents per share a year earlier. Analysts on average had forecast an indicator of 31 cents per share.
Markets Peak Again Despite Delta Strain
Last week, the main indices completely won back the correction of the week before last and again reached their absolute historical values. The capitalization of the S&P 500 increased by 2%, and the index itself rose to the level of 4,412 points. The Nasdaq 100 rose 3% and finally broke through the 15,000 mark, consolidating at 15,112. Investors started buying tech stocks again amid optimism about the sector’s growth ahead of reports from some of the industry’s biggest names. We previously noted that we expect the technology sector to outperform the broad market.
Fortinet. Strong Quarterly Results
We believe Fortinet will pleasantly surprise investors in the second quarter. We expect to see strong quarterly earnings that exceed market expectations. Strong demand for network security products and cloud solutions is having a positive effect on the company’s business. Fortinet records high demand in all regions of its presence. The company plans to publish its financial statements on August 6. We raise our target valuation for the company’s shares from $ 250 to $ 270.