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: IPOs
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.
Oracle will maintain its leading position
Oracle revenues for the quarter ended August 31 were $ 9.73 billion, up from $ 9.37 billion in the same period last year and a market consensus of $ 9.76 billion. by 6%, to $ 7.4 billion. Oracle increased its net profit by 9.3%, to $ 2.46 billion, or $ 0.86 per share. In the first quarter of the last fiscal year, the company posted net income of $ 2.25 billion, or $ 0.72 per share. Adjusted earnings were $ 1.03 per share, up from $ 0.72 last year, better than the market consensus of $ 0.97. Management said the company expects revenues to rise 3-5% in the next fiscal quarter. Adjusted earnings are forecast at $ 1.09-1.13 per share, slightly above market expectations. In the past quarter, Oracle bought back its own shares for $ 8 billion, while the number of its shares over the past 10 years has decreased by 46%.
Aviation Market Recovery Will Support Raytheon Technologies Business
Despite the short-term negative impact of the new Delta coronavirus strain, the aviation recovery will provide significant support to Collins and Pratt’s business in 2022 with the potential to increase EPS to $ 4.8. Raytheon Technologies is competing with General Electric and Rolls-Royce to retool the B-52 fleet as part of a $ 11 billion 608 engine program. We think Pratt has an advantage as the company offers a derivative of the proven PW800 and supplies all of the previous generation engines for the B-52, which enhances the company’s integration expertise. The air travel market began to grow, albeit at a slower pace than previously expected, as the positive momentum in Europe is partially offset by weaker demand for air services in China and the United States. As a result, we cut our estimate of Raytheon Technologies’ 2021 revenue by $ 0.2bn to $ 64.65bn. However, we expect to see EPS at $ 4.02 against the market consensus of $ 4.07.
Facebook doubled profit for the quarter
Facebook in the second quarter doubled its net profit and revenue by 56%. Net income in April-June was $ 10.394 billion, or $ 3.61 per share, compared to $ 5.178 billion, or $ 1.8 per share, received in the same period last year. Revenue increased to $ 29.077 billion from $ 18.687 billion a year earlier, while advertising revenues increased by 56% – to $ 28.58 billion. The market consensus assumed earnings growth to $ 3.04 per share on revenue of $ 27.85 billion.
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.
Microsoft reported a record net profit and revenue
Microsoft posted record-breaking net income and revenues for fiscal 2021 that ended June 30, which far surpassed market consensus. The company’s net profit rose 38% to $ 61.27 billion, adjusted profit increased 37% to $ 60.65 billion. Revenue increased 18% to $ 168.1 billion. In the fourth fiscal quarter, net income jumped 47% – to $ 16.458 billion, or $ 2.17 per share, compared with $ 11.202 billion, or $ 1.46 per share received in the comparable period of the previous year. Quarterly revenue increased by 21% and reached $ 46.152 billion against $ 38.033 billion a year earlier. The market expected the company’s quarterly earnings of $ 1.92 per share on revenue of $ 44.22 billion.
FDA Approves Intelligent Knee Implant
Zimmer Biomet Holdings announced that the FDA has approved Persona IQ, which will enable ZBH to launch the world’s first intelligent implant that can completely replace the knee joint. Persona IQ will be a significant addition to ZBEdge ZBH’s growing portfolio, contributing to the expected acceleration in Kneefranchise’s revenue growth