Tag: Financial analyst

Coverage Initiated on ‘Emerging Colossus in Diagnostics and Life Science’

… securities of Meridian Bioscience, Inc., Applied DNA Sciences, Inc., BioNTech SE and Co-Diagnostics, Inc. (including, without limitation, any option, …

In a July 27 research note, analyst Yi Chen reported that H.C. Wainwright & Co. initiated coverage on Meridian Bioscience Inc. (VIVO:NASDAQ) with a Buy rating and a $34 per share target price. The biotech’s current share price is about $24.31.

The “fully integrated” company, as described by Chen, has two primary business segments: Life Science and Diagnostics.

Life Science, which accounted for 32% of revenue as of Sept. 30, 2019, manufactures and distributes bulk antigens, antibodies, polymerase chain reaction (PCR) reagents, nucleotides and other bioresearch reagents.

Diagnostics, comprising 68% of revenue at Sept. 30, 2019, develops and markets diagnostic platforms and test kits for elevated blood lead levels and gastrointestinal and respiratory infectious diseases.

Chen highlighted that Meridian’s combination of life science and diagnostics “is poised to win during and after the pandemic.” Since the start of COVID-19, revenue from its Life Science component has “surged,” the analyst noted, due to the company providing, to its in vitro diagnostic customers, reagents for PCR tests and recombinant antigens for antibody tests for detecting SARS-CoV-2. At least 35 of Meridian’s customers have had COVID-19 tests on the market.

Further, the Cincinnati-based company recently debuted a high-sensitivity SARS-CoV-2 nucleocapsid antibody pair to be used in developing rapid antigen assays. This product rounds out its COVID-19 testing offerings, Chen wrote.

“Given that Meridian is one of a few commercial suppliers with scale and quality, that the pandemic is escalating in the U.S. and other parts of the world and that customers cannot switch suppliers for commercialized assays easily, we believe the company should continue to experience robust growth in the Life Science segment in fiscal year (FY) 2020 and FY21,” commented Chen.

Unrelated to COVID-19, Meridian is “working on a proprietary panel on its Revogene diagnostic platform, which does away with the need to RNA extraction,” Chen indicated. The removal of this step could result in a faster and cheaper testing option. The company could submit a 501(k) application for the panel, which could include testing for influenza A, influenza B and respiratory syncytial virus, in spring 2021.

Chen pointed out that Meridian has proven over the past 10-plus years that its operations are both profitable and sustainable and they are expected to continue on that trajectory in the near future at least.

The company’s growth has been internal and acquisition based, the latter due to management’s “pragmatic and opportunistic approach” to pursuing strategic deals. Chen cited the GenePOC and Exalenz deals as examples of transactions that expanded Meridian’s product portfolio.

H.C. Wainwright forecasts Meridian’s revenue in FY20 to be $232.7 million and in FY21 to be $269 million, both figures in the middle of the biotech’s guidance and equating to 15% growth each year.

As for the performance of each segment, the financial institution expects Life Science to experience topline growth of 74% in FY20 due to COVID-19 but Diagnostics to primarily drive overall growth long term. “The increasing interactions with Life Science customers in the near term could facilitate relationship building for long-term opportunities in the Diagnostics segment,” added Chen.

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Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

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Disclosures from H.C. Wainwright & Co., Meridian Bioscience Inc., Company Update, July 27, 2020

Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.

I, Yi Chen, Ph.D. CFA, Raghuram Selvaraju, Ph.D. and Blair Cohen, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.

None of the research analysts or the research analyst’s household has a financial interest in the securities of Meridian Bioscience, Inc., Applied DNA Sciences, Inc., BioNTech SE and Co-Diagnostics, Inc. (including, without limitation, any option, right, warrant, future, long or short position).

As of June 30, 2020 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Meridian Bioscience, Inc., Applied DNA Sciences, Inc., BioNTech SE and Co-Diagnostics, Inc.

Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.

The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.

The firm or its affiliates received compensation from Co-Diagnostics, Inc. for non-investment banking services in the previous 12 months.

The Firm or its affiliates did not receive compensation from Meridian Bioscience, Inc., Applied DNA Sciences, Inc. and BioNTech SE for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

The Firm or its affiliates did receive compensation from Co-Diagnostics, Inc. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.

H.C. Wainwright & Co., LLC managed or co-managed a public offering of securities for Co-Diagnostics, Inc. during the past 12 months.

The Firm does not make a market in Meridian Bioscience, Inc., Applied DNA Sciences, Inc., BioNTech SE and Co-Diagnostics, Inc. as of the date of this research report.

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Are Analysts Pounding the Table on Broadcom Inc. (NASDAQ:AVGO)?

Broadcom Inc. (NASDAQ:AVGO) currently has an A verage Broker Rating of 1.23. This number is based on the 20 sell-side firms polled by Zacks.

Broadcom Inc. (NASDAQ:AVGO) currently has an A verage Broker Rating of 1.23. This number is based on the 20 sell-side firms polled by Zacks. The ABR rank within the industry stands at 67. Analysts on a consensus basis are expecting that the stock will reach $344.3 within the year. The ABR is provided by Zacks which simplfies analyst ratings into an integer based number. They use a one to five scale where they translate brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating.

An evaluation of a stock’s expected performance and/or its risk level as judged by a rating agency such as Standard and Poor’s. A stock rating will usually tell the investor how well a stock’s market value relates to what analysts believe is a fair value for the stock, based on an objective evaluation of the company. The greater the amount by which the fair value exceeds the market value, the more highly recommended a buy the stock is. Conversely, if the market value of the stock exceeds the fair value of the stock, then analysts recommend that the stock be sold.

Investors are typically looking for any little advantage when it comes to the equity markets. Investors often have to figure out not only how certain companies are faring, but also how the overall global economic landscape is shaping up. Focusing in on the proper economic data can help detect overall trends in the economy. Investors who are able to hone their analytical skills might be able to put themselves in a much better position to achieve success. Being able to process and organize all of the different types of financial information that is constantly being thrown around may be a great asset to the individual trader and investor. The amount of information floating around in today’s investing climate is enormous. Zooming in on the most pertinent information can help keep things manageable.

Most recently Broadcom Inc. (NASDAQ:AVGO) posted quarterly earnings of $5.14 which compared to the sell-side estimates of 5.13. The stock’s 12-month trailing earnings per share stands at $20.94. Shares have moved $-2.62 over the past month and more recently, $-2.22 over the past week heading into the earnings announcement. There are 12 analyst projections that were taken into consideration from respected brokerage firms.

Technical investors generally rely heavily on price charts to help spot potential trades. Chartists will often try to interpret past movements with the goal of trying to gauge the future share price movements. Some charts can be extremely complex while others may be quite simple. Many traders will spend countless hours studying the signals to try to spot optimal entry and exit points. There are many different indicators that technical analysts can follow. Some traders will use standalone signals, and others will use a robust combination. Getting into the nitty-gritty of charting can be overwhelming for the beginner. Taking the time to completely understand what the charts are saying can be the difference between a big win and a major loss.

Buy Ratings

18 analysts rate Broadcom Inc. a Buy or Strong Buy, which is 90% of all the analyst ratings.

Earnings

Research analysts are predicting that Broadcom Inc. (NASDAQ:AVGO) will report earnings of $5.23 per share when the firm issues their next quarterly report. This is the consensus earnings per share number according to data from Zack’s Research.

Broadcom Inc. (NASDAQ:AVGO)closed the last session at $307.35 and sees an average of 1583755 shares trade hands in each session. The 52-week low of the stock stands at $167.87 while the current level stands at 87.21% of the 52-week High-Low range. Looking further out we can see that the stock has moved 16.04% over the past 12 weeks and -2.74% year to date.

Scanning the equity markets, it is quite obvious that there are plenty of stocks to choose from. This may make things a bit overwhelming for the beginner investor, but it should also be seen as a great opportunity. Of course, studying up on every single stock may be nearly impossible. Just focusing in on a few different stocks at a time that pique the interest may be the way to start. Investors are often bombarded with stock picking strategies and sure bet winners. Some of the information might end up being correct, but a lot of it may turn out to be nonsense. If investors decide to manage their own money, they may want to make sure that no stone is left unturned. Doing the proper amount of research can work wonders for the health of a portfolio over the course of time. Following a proven market guru may work for some, but it may leave others with many questions that have gone unanswered. What works for one investor may not work for another.

This article is informational purposes only and should not be considered a recommendation to buy or sell the stock.

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Analysts Peeling Back the Layers on NVIDIA Corporation (NASDAQ:NVDA)

NVIDIA Corporation (NASDAQ:NVDA) currently has an A verage Broker Rating of 1.45. This number is based on the 29 sell-side firms polled by Zacks.

NVIDIA Corporation (NASDAQ:NVDA) currently has an A verage Broker Rating of 1.45. This number is based on the 29 sell-side firms polled by Zacks. The ABR rank within the industry stands at 206. Analysts on a consensus basis are expecting that the stock will reach $390.92 within the year. The ABR is provided by Zacks which simplfies analyst ratings into an integer based number. They use a one to five scale where they translate brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating.

An evaluation of a stock’s expected performance and/or its risk level as judged by a rating agency such as Standard and Poor’s. A stock rating will usually tell the investor how well a stock’s market value relates to what analysts believe is a fair value for the stock, based on an objective evaluation of the company. The greater the amount by which the fair value exceeds the market value, the more highly recommended a buy the stock is. Conversely, if the market value of the stock exceeds the fair value of the stock, then analysts recommend that the stock be sold.

Investors are constantly looking to find winning stocks that have been largely overlooked. With markets still riding high, this may not be the easiest thing in the world right now. Finding those perfect stocks before they become household names may take a lot of research and homework. Many investors will apply various strategies for picking stocks. If there was one that worked for everybody, it would make things super easy. Of course, this is not the case. Obviously, there are no guarantees in the stock market. Some investors may only focus on the fundamentals of a company and completely ignore the technicals. Others may choose to only watch technicals and never take a look at the underlying company information. Combining both areas of research may help give a better feel of what is going on with the stock in the long term and the short term. Individual investors who manage their own portfolios may need to put in a lot more time than those who don’t. Successful investors often have an uncanny way of filtering out the noise and keeping their focus on the right information.

Research analysts are predicting that NVIDIA Corporation (NASDAQ:NVDA) will report earnings of $1.93 per share when the firm issues their next quarterly report. This is the consensus earnings per share number according to data from Zack’s Research.

NVIDIA Corporation (NASDAQ:NVDA) closed the last session at $408.62 and sees an average of 8894394 shares trade hands in each session. The 52-week low of the stock stands at $148.77 while the current level stands at 95.65% of the 52-week High-Low range. Looking further out we can see that the stock has moved 39.11% over the past 12 weeks and 73.66% year to date.

Most recently NVIDIA Corporation (NASDAQ:NVDA) posted quarterly earnings of $1.8 which compared to the sell-side estimates of 1.69. The stock’s 12-month trailing earnings per share stands at $6.71. Shares have moved $7.56 over the past month and more recently, $-1.09 over the past week heading into the earnings announcement. There are 12 analyst projections that were taken into consideration from respected brokerage firms.

Investors may have various goals when it comes to making money in the stock market. Putting hard earned capital to work can pay off nicely when the proper research is completed. Investing in the stock market may not be for everyone, but it may be one of the best ways to see higher returns. Many successful investors share some of the same basic characteristics. They are typically hardworking, patient, disciplined, and work with a studious critical eye. Knowing the ins and outs of the stock market is something that may be learned over time with a lot of hard work. Although investing in the stock market entails a higher degree of risk compared to other investments, the rewards have the potential to be much greater.

24 analysts rate NVIDIA Corporation a Buy or Strong Buy, which is 82.76% of all the analyst ratings.

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Priming the Pump: What Are Analysts Saying About Lyft, Inc. (:LYFT)?

(:LYFT) currently has an Average Broker Rating of 1.77. The ABR rank within the industry stands at 87. This number is based on the 26 sell-side firms …

Lyft, Inc. (:LYFT) currently has an Average Broker Rating of 1.77. The ABR rank within the industry stands at 87. This number is based on the 26 sell-side firms polled by Zacks.

Each brokerage research report carries with it some form of recommendation. The brokerage firms may use different lingo for their rating systems (like saying Outperform instead of Buy), but they can all be properly sorted into our 5 level classification system that is now the industry standard. Each of the 5 classifications has a value associated with it to help compute the ABR.

As the name implies the ABR will show you the Average of Brokerage Recommendations on a given stock. The benefit is that you quickly get a snapshot of where Wall Street stands on a stock without having to read a mountain of research reports.

Broker recommendations are made by brokerage firms (for example, JP Morgan) and are not an outright recommendation to buy or sell a share, but instead give an indication of how the broker thinks the company will perform relative to its sector. Their recommendations are issued over a particular period of time. The recommendations provided in the Research Centre are shown on a 75 day rolling basis. Each brokerage firm has its own way of rating that may make it difficult to compare broker recommendations between the brokerage houses.

For example, at one brokerage “buy” may be the strongest recommendation, while at another “buy” could be second to a “strong buy” rating. The second-highest ratings also have a number of different other names: “accumulate”, “outperform”, “moderate buy” or “overweight”.

Analysts on a consensus basis are expecting that the stock will reach $49.71 within the year.

Investors might be taking a closer look into the crystal ball to try and decipher what is in store for the second half of the year in the stock market. While cautious optimism may be the prevailing sentiment, many investors will be looking to take the portfolio to the next level. With markets still riding high, the big question is whether the momentum will push stocks higher or if the bears start to take over. There may still be a few undervalued stocks with much more upside potential ready to make big moves. Finding these stocks may involve doing a little more homework. Investors may be looking to take advantage of any little sell-off that might provide some bargain buying opportunities.

Lyft, Inc. (:LYFT)closed the last session at $29.49 and sees an average of 6704183 shares trade hands in each session. The 52-week low of the stock stands at $16.05 while the current level stands at 27.17% of the 52-week High-Low range. Looking further out we can see that the stock has moved 10.53% over the past 12 weeks and -31.45% year to date.

Research analysts are predicting that Lyft, Inc. (:LYFT)will report earnings of $-1.14 per share when the firm issues their next quarterly report. This is the consensus earnings per share number according to data from Zack’s Research.

Most recently Lyft, Inc. (:LYFT) posted quarterly earnings of $-0.32 which compared to the sell-side estimates of -1.55. The stock’s 12-month trailing earnings per share stands at $-1.82. Shares have moved $-10.66 over the past month and more recently, $-3.28 over the past week heading into the earnings announcement. There are 9 analyst projections that were taken into consideration from respected brokerage firms.

17 analysts rate Lyft, Inc. a Buy or Strong Buy, which is 65.38% of all the analyst ratings.

As the next earnings season comes into focus, investors will be keeping watch on the performance of companies that they own. A company that continually exceeds earnings projections is most likely on the right track. On the other end of the spectrum, a company that frequently misses earnings projections might provide some insight to the fact that something isn’t right. Although it is important to keep track of earnings estimates and results, it shouldn’t be the only thing that the investor is looking at regarding the stock. Just because a company misses or beats expectations for one quarter may not mean anything super special. Tracking performance over a longer period of time can help paint the bigger picture of what is going on with the company. Sharp investors often have the ability to look deeper into the numbers to see the actual causes of an earnings hit or miss. Of course estimates are just that, estimates, and some analysts may be more accurate than others.

This article is informational purposes only and should not be considered a recommendation to buy or sell the stock.

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Tesla Filing Reveals More About Electric Vehicle Credits

The Tesla 10-Q report—the company’s quarterly Securities and Exchange … Bulls and bears are sharply divided on the stock, and the figures will …

The quarterly sales total was a large number and higher than in the past, which generated some concern among analysts. GLJ Research analyst Gordon Johnson, for instance, believes the company pulled forward credit sales to earn a profit, qualifying the company for inclusion in the S&P 500.

The 10Q doesn’t indicate that Tesla pulled forward sales, but it does show that company did recognize $140 million in deferred sales of regulatory credits during the quarter. The deferred-revenue balance was $140 million as of March 31, but it fell to zero as of the end of June. Tesla has said in recent filings that it expected to recognized the deferred revenue in 2020. It appears to have recognized it during the second quarter.

Sometimes accounting rules require companies to defer sales because, essentially, the transactions aren’t complete, even if cash has come in the door. When revenue is deferred, it doesn’t hit the income statement right away. Sales, of course, generate earnings that increase shareholders’ equity.

Deferred sales become a liability, offsetting cash coming in the door, essentially because a company still has to do something before the money can hit the income statement. Assets always match the sum of liabilities plus shareholders equity.

Less difficult to understand is a comment from CFO Zachary Kirkhorn on the second-quarter conference call. He said regulatory credit sales should double in 2020 from the 2019 level. That implies another $226 million will be recognized in 2020, totaling about $113 million per quarter. The number is lower than in the first and second quarters, but not too different from past levels.

Warranties

Warranty spending and expenses—figures that indicate how much of sales are going out the door again to service vehicles with problems—are another area where regulatory filings have much better detail than typical quarterly earnings news releases.

Accounting rules require companies to reflect warranty-related expenses in their accounts when they sell a car. The actual spending on repairs happens later, as vehicles age.

In the case of Tesla, warranty spending is trending lower—adjusted for the size of the company. That’s a good thing. Quarterly spending remains below quarterly warranty expenses, adjusted for car sales. That’s to be expected since all warranty expenses don’t show up at once.

The figures need to be adjusted for sales or deliveries because Tesla is growing rapidly.

Bull-Bear Controversy

All large, publicly traded firms make regular SEC filings. They usually come and go without much fanfare. But everything for Tesla is magnified these days because the car company has become such a controversial stock.

A few metrics highlight the divergence in analysts’ views of Tesla. For starters, analysts’ price targets range from roughly $300 to $2,300 a share—a $2,000 spread that is more than 100% of the current stock price. The gap is roughly three times as wide as the average bull-bear spread for stocks in the Dow Jones Industrial Average.

What is more, more analysts rate shares the equivalent of Sell than Buy. That is unusual, given that the average Buy-rating ratio for stocks in the Dow is about 55%. Typically, eight analysts rate an average Dow stock Buy for every one that rates it Sell.

Investors, too, have some beef with Tesla’s valuation. About 9% of shares available for trading have been borrowed and sold by bearish investors betting on share-price declines. That is about four times the average short-interest ratio for stocks in the Dow.

Tesla stock fell 4.1% Tuesday after Bernstein analyst Toni Sacconaghi downgraded the stock to Sell from Hold.

Year to date, Tesla shares are up about 250%, far exceeding the performance of other car companies, the S&P 500, and the Dow.

Write to Al Root at allen.root@dowjones.com

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