Top Research Reports for Intel, Novartis & Toyota

Monday, April 27, 2020

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel (INTC), Novartis (NVS) and Toyota Motor (TM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Intel’s shares have underperformed the Zacks General Semiconductor industry over the past six months (+3.7% vs. +11.5%). The Zacks analyst believes that robust mix of high-performance second-generation Xeon Scalable processors and solid demand from Cloud service providers is expected to drive near-term growth.

The company is also making advancements in the IoT space, courtesy of product introductions and tie ups. Moreover, Intel is witnessing strong momentum for its first 10-nanometer (nm) mobile CPU.

Notably, the company has not provided 2020 guidance citing coronavirus crisis-induced business uncertainty. Further, declining PC total addressable market, higher expenses pertaining to 10-nm ramp up and constrained supply amid coronavirus outbreak in China remain concerns.

(You can read the full research report on Intel here >>>)

Shares of Novartis have gained +11% over the past year against the Zacks Large Cap Pharmaceuticals industry’s rise of +12.4%. The Zacks analyst believes that pipeline setbacks and generic competition for additional drugs are concerning.

Novartis has a strong oncology portfolio and a formidable generics business. The solid performance of key drugs like Cosentyx and Entresto, and contribution from gene therapy, Zolgensma, have boosted the performance in recent times and offset the impact of generic competition for legacy drugs. New launches like Piqray, Mayzent and Beovu should further boost sales.

The biosimilar portfolio also gains traction with new key approvals. The deep pipeline is encouraging as well. Novartis is also focusing on developing treatments for coronavirus and a positive outcome will boost the stock significantly. However, price erosion in the United States has adversely impacted the generics business.

(You can read the full research report on Novartis here >>>)

Toyota’s shares have lost -13.3% over the past three months against the Zacks Foreign Automotive industry’s fall of -18.4%. The Zacks analyst believes that expanding portfolio of product lines is driving Toyota’s prospects.

In order to capitalize on the accelerated global shift to electric cars, the auto giant of Japan is focusing on developing electric and autonomous vehicles. Toyota is working on hydrogen fuel stations in collaboration with various partners. The company aims to achieve half its global sales from electric vehicles by 2025. However, anticipating a slowdown in India, China, Indonesia and Thailand, the company narrowed its annual vehicle sales target for fiscal 2020.

Moreover, coronavirus woes and high research and development expenses on advanced technologies for the development of EVs and driverless cars are also likely to dent near-term margins. Its high debt levels also remain a concern. As such, investors are recommended to wait for a better entry point.

(You can read the full research report on Toyota here >>>)

Other noteworthy reports we are featuring today include Union Pacific (UNP), Southern (SO) and Biogen (BIIB).

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Sheraz Mian

Director of Research

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Intel (INTC) Rides on AI-based Alliances & Product Rollouts

New Drugs Boost Novartis (NVS) Amid Generic Competition

Focus on Electric Cars Aids Toyota (TM), High Debt Ails

Featured Reports

Volume Woes Ail Union Pacific (UNP,) Free Cash Flow Aids

The Zacks analyst lauds the company's ability to generate free cash flow. However, volume contraction (down 7% in Q120) due to weak shipments following coronavirus is worrisome.

Southern Company (SO) Buoyed by Regulated Customer Growth

The Zacks analyst believes that increase in Southern's regulated business customer base will support its revenue growth but is concerned over timing and cost overrun related to Vogtle project.

Biogen (BIIB) Drug Sales to Show Mixed Impact of COVID-19

The Zacks analyst notes that while COVID-19 is unlikely to significantly weigh on sales of Biogen's key drug, Tecfidera in 2020, sales of Tysabri and Spinraza may be hurt by the same.

Low Debt, Cost Control Support Vale (VALE) Amid Low Prices

Per the Zacks analyst, lower debt levels and focus on improving quality, productivity and lowering costs will drive Vale's growth despite the impact of lower commodity prices.

Kinder Morgan (KMI) Banks on PHP Development, Debts High

The Zacks analyst believes that Kinder Morgan's proposed Permian Highway Pipeline (PHP) project will fetch it stable fee-based revenues.

End-Market Strength & Diversification Aids Amphenol (APH)

Per the Zacks analyst, Amphenol benefits from strong military and commercial aerospace end-market demand.

Cerner (CERN) Rides on EHR & EMRs, Margin Contraction a Woe

Per the Zacks analyst, Cerner continues to benefit from its lucrative EHR (Electronic Health Record) & EMR (Electronic Medical Record) platforms. But operating margin contraction remains a concern.

New Upgrades

Philips (PHG) Benefits from Solid Portable Ventilator Demand

Per the Zacks analyst, Phlips is benefiting from strong demand for portable ventilators amid the coronavirus pandemic. This is expected to drive Connected Care top-line growth in the near term.

Products Innovation & Digital Efforts to Aid Mattel (MAT)

Per the Zacks analyst, product innovation, marketing partnerships, promotional initiatives and digital efforts along with increased focus on structural simplification bode well for Mattel.

Guess? (GES) Sales to Benefit From Solid Digital Initiatives

Per the Zacks analyst, Guess?'s ongoing online operations amid coronavirus will offer some cushion against lost store sales. The company has been gaining from moves to aid e-commerce and mobile sales.

New Downgrades

Weak Revenues, High Expenses Drag HCA Healthcare (HCA)

Per the Zacks analyst, the coronavirus pandemic puts a pressure on revenues due to cancellation in elective surgeries, which weighs on the margins. Its high cost level is another concern.

Foot Locker (FL) Top-Line to Bear the Brunt of Coronavirus

Coronavirus outbreak has hurt Foot Locker business activities compelling it to close stores amid shrinking demand and supply chain hurdles. Per the Zacks analysts, this is likely to hit sales results.

TD Ameritrade (AMTD) Exposed to Escalating Technology Costs

Per the Zacks analyst, investments in newer technologies and advice and guidance offerings are likely to weigh on TD Ameritrade's cost base. Also, unsustainable capital deployment remains a concern.

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Union Pacific Corporation (UNP) : Free Stock Analysis Report
 
Toyota Motor Corporation (TM) : Free Stock Analysis Report
 
Southern Company (The) (SO) : Free Stock Analysis Report
 
Novartis AG (NVS) : Free Stock Analysis Report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
Biogen Inc. (BIIB) : Free Stock Analysis Report
 
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