These reports, excerpted and edited by Barron’s, were issued recently by investment and research firms. The reports are a sampling of analysts’ thinking; they should not be considered the views or recommendations of Barron’s. Some of the reports’ issuers have provided, or hope to provide, investment-banking or other services to the companies being analyzed.
Olin Corp. OLN-NYSE
Overweight Price $37.97 on March 31
by J.P. Morgan
Olin is the largest global producer of chlorine and caustic soda and their derivatives. It has a first-place share—about 6%—of the fragmented global chlorine/caustic soda market. Starting in the second half of 2020, prices of chlorine and certain derivatives have been moving up, due to improving demand for vinyls, hurricane-related [production] outages, and logistical issues. Caustic soda demand has been slower to recover as global economic activity continues to face some Covid-19-related headwinds.
The company is shifting its business strategy from one that elevated volume growth above profit maximization to one in which profit growth takes precedence. We think that Olin stock is inexpensive and represents good value at its current price. Olin, a generator of strong free cash flow, has good cyclical characteristics, and we are early in the new economic cycle (aluminum, paper, and auto production are rising). The company also is emphasizing lower capital expenditure and other cash outlays. Price target: $48, up from $30.
Micron Technology MU-Nasdaq
Buy Price $88.21 on March 31
by Needham
We expect Micron to benefit from the recovery in the memory market, which we believe has exited a supercycle and is now in a more typical cycle. We expect MU’s top and bottom lines to benefit from growth in NAND and DRAM prices. Moreover, we view Micron as a key beneficiary of strong data-center demand and increased DRAM and NAND content in 5G handsets.
Non-GAAP gross margins have expanded meaningfully, to 32.9% (versus 30.9% last quarter and 29.1% in the same quarter last year). DRAM price increases and cost declines drove the margin expansion in Micron’s fiscal second quarter. We are raising our price target to $130 from $115, on a higher earnings-per-share estimate.
Verint Systems VRNT-NasdaqOutperform Price $45.49 on March 31
by RBC Capital Markets
Following the spinoff of Cognyte, Verint is now a pure-play customer-engagement software company. We are adjusting our price target to $55 from $65 to reflect a multiple more in line with stand-alone customer-engagement peers.
Fourth-quarter 2021 results were nicely ahead of our estimates. The highlights were again a number of large cloud deals, illustrative of the company’s traction in that market; introduction of several products, including Engagement Data Management, Workforce Scheduling, and Real-Time Agent Assist, that should leverage the Da Vinci artificial-intelligence and analytics platform, and a rise in fiscal-2022 cloud revenue growth guidance to 30%-35% from 30%.
Cooper Cos. COO-NYSE
Outperform Price $384.89 on March 30
by Raymond James
A frequent investor debate is whether Cooper [which sells medical supplies and devices], can reach its $25 million revenue sales guidance for MiSight in fiscal 2021, following $7 million in fiscal 2020 and $3 million in fiscal 2021’s first quarter. [MiSight contact lenses are designed to slow the progression of myopia in children.] Clearly, the first-quarter results imply a meaningful ramp-up in sales. If Cooper hits its fiscal-2021 guidance, it should provide greater confidence in $50 million for fiscal 2022. Our analysis indicates that 4,250 optometrists will be trained on MiSight by the end of fiscal 2021, up from the 3,100 certified at the end of the first quarter. Our conversations with Cooper management suggest that this isn’t unrealistic, and could have upside.
Abbott Laboratories ABT-NYSE
Buy Price $118.22 on March 16
by Edward Jones
Abbott is one of the most diversified medical products companies in the world and a leader in nutrition, diagnostics, and medical devices. With 40% of sales coming from emerging markets due to its generic drug and nutrition products, the company is well positioned to take advantage of higher growth in these regions. We believe that long-term growth will be driven by innovative new diabetes devices, heart devices, and diagnostic products. In addition, Abbott’s financial flexibility should allow it to invest in innovation, both internally and externally, through acquisitions.
Wingstop WING-Nasdaq
Buy Price $127.17 on March 31
by Stifel
Wingstop prereleased first-quarter-sales information tonight. The results were better than expected, with domestic comps up 20.7% [year over year], net unit growth of 41 units, and system sales growth of 30%. We are encouraged by the continued comparable sales momentum and accelerating unit growth. We have raised our first-quarter earnings estimate by two cents, to 29 cents per share. But we are disappointed that Wingstop didn’t wait until it could provide a range of profitability for the first quarter; it may run the risk of Street estimates moving too high on the sales beat. Price target: $165.
To be considered for this section, material should be sent to Research@barrons.com.
"cycle" - Google News
April 03, 2021 at 07:49AM
https://ift.tt/3sMp93z
Olin Stock Should Climb With New Economic Cycle - Barron's
"cycle" - Google News
https://ift.tt/32MWqxP
https://ift.tt/3b0YXrX
Bagikan Berita Ini
0 Response to "Olin Stock Should Climb With New Economic Cycle - Barron's"
Post a Comment