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: STOCKS & FUNDS
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.
Booster dose proved to be effective
New data show that booster vaccinations with Johnson & Johnson provide enhanced protection after two months, while new single dose data show consistent vaccine efficacy. The Johnson & Johnson Covid-19 booster shot is reportedly 94% effective when given two months after the first dose, while the drug remains well tolerated with comparable side effects. The new data allows the company to ask the FDA to allow re-injections of the roughly 14.8 million Americans who have so far received only the first component of the company’s vaccine. Johnson & Johnson predicts COVID-19 vaccine sales in 2021 will be approximately $ 2.5 billion, and approval of a booster dose could lead to higher vaccine revenues in 2022.
Microsoft made its shareholders happy
Microsoft will increase its quarterly dividend by 11% and launch a new $ 60 billion share buyback program. The dividend will be $ 0.62 per share, up $ 0.06 from the previous quarter. Dividends will be paid on December 9 to shareholders from the register as of November 18. The share buyback program approved by Microsoft’s board of directors does not have a specific expiry date and may be terminated at any time. The company has set the AGM for November 30th. It will be held online. The indicative dividend yield on Microsoft shares is 0.85% per annum. The company began paying dividends in 2003, while the annual shareholder payments are constantly growing. Thus, Microsoft’s first dividend was only 8 cents per quarter. The company has paid its shareholders 56 cents a share for the past four quarters and is now starting to pay 62 cents a share, which is not bad for a tech sector.
Investor Day May Support Booz Allen Stock
Weak Q2 growth makes our FY2022 outlook rather aggressive. We project organic revenue growth of 4-7%. However, we see the company aggressively recruiting staff amid strong demand for cybersecurity services and artificial intelligence solutions. Therefore, we have improved our estimate for revenue growth for fiscal 2023 to 9-10%. On the eve of Investor Day, which will take place on October 5, we are improving our estimate of the fair value of the company’s shares from $ 93 to $ 100.
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.
Strong results lead to better company valuation
Zscaler released strong financial results for the fourth fiscal quarter, which exceeded market expectations. The company’s revenue rose 57% yoy to $ 197.1 million, and earnings per share increased 70% yoy to $ 0.14. The strong quarter was driven by the expansion of the company’s product line in all market segments, verticals and geographic regions of presence. We believe that by the end of the first fiscal quarter of 2022, the company will be able to earn revenue of $ 211 million (+ 48% yoy), and net income per share at the level of $ 0.12. We estimate that Zscaler will have revenues of $ 940-950mn for the full fiscal year 2022, and earnings per share will increase to $ 0.52-0.56. We raise our target fair value for the company’s shares from $ 255 to $ 314.