The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
CNBC did a deep dive through the most recent Wall Street research to find stocks that analysts say are underappreciated.Marketsread more
Shares of MasterCard are up 46% this year, and 1120% since 2011, getting a boost from the strong U.S. consumer.Investingread more
CNBC sat in on an "empathy training" at Amazon PillPack's Somerville offices, which is part of new hire orientation.Technologyread more
Trade with China is the 'big unknown' for the Federal Reserve as it decides how best to support the U.S. economy, says Council on Foreign Relations Director of International...Futures Nowread more
Lobbying experts said the visit is likely an attempt to be in lawmakers' ears as they consider legislation that would impact Facebook.Technologyread more
Yardeni Research's Edward Yardeni believes the U.S. economy is picking up steam.Trading Nationread more
Iran's audacious drone and cruise missile attack on Saudi Arabia's oil producing facilities has provided a critical test yet for the Trump administration's foreign policy. A...Politicsread more
Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
Here are the biggest calls on Wall Street Tuesday:
"We are no longer willing to engage in a debate where the Bull case is that Power is "not that bad", the stock can be valued on $1+ in FCF, and GECS is merely a zero... We are willing to consider that zero industrial FCF is not a sustainable level but the stock is not reflecting that as a run rate with an $85 B market cap... The answer to us is somewhere in between where the stock is today and zero and that is where generally our PT sits... Much Buy-rated sell side analysis still seems to us to be built on a notion that things can V-shape hard in 2020/2021 off of a high base of FCF – contrary to what the CEO said... If it is indeed modest negative FCF, we estimate this would mean enterprise FCF of -$4.5 B, which would suggest that soon after the $1 anchor became +$0.50 as we had shown in prior research, the +$0.50 has now become close to NEGATIVE $0.50.....We disagree with the view that it's "not that bad", and while "cutting numbers, reiterating Buy" is fairly common for the sell side, we reject this approach of cut and push to the next year, which has been going on for almost two decades now for some... Unlike prior episodes that were based on next year, this seems to stretch into 2021, a whole new level... As long as this sentiment prevails, we don't think the stock can bottom......Our PT remains $6 and looks generous after today's news..."
"The only true incremental information that came out of today's presentation was GE setting a cautious expectation for negative Industrial FCF in '19 without committing to an exact range prior to March 14th (we think could be as low as negative $2-$4bn in GE's outlook next Thursday)... We cut our Industrial FCF forecast from +$2bn to -$2bn as we now assume cash headwind from Alstom legacy litigations, more restructuring in Power, larger drag from the exit of Working Capital Solutions business in GE Capital, and less reliance on $13bn of receivables factoring... Most of the negative revision is driven by Power... Based on lower FCF forecast, we trim our PO from $13 to $12..."
"Looking past strong 18A profit, underlying pressures make implied expectations difficult to meet, as highlighted by new 10-K warnings... Keys: (1) 19E off to weak start for TRIP & OTAs; (2) Visitors may start declining; (3) Younger age demos are using GOOG more... We expect profit to slow to single digits by 20E, and a multiple more in line with peers... Downgrade to underperform; PT $40 (from $50)..."
"While we see the company as benefitting from its partnership with AWS and a potential deeper relationship with Microsoft, as reported by the Information, we see these as having a limited impact on financials this coming FY... As such, based on our view of more normalized comps and limited upside to topline over the course of the year, we downgrade the shares to Sell from Neutral as we see better risk reward in other names... To be clear, our rating is not a view on the company's execution, which has been excellent, but rather one where we see multiple expansion from current levels as unlikely..."
"Teva should deliver financial upside in the coming qtrs due to cost cuts and conservative Copaxone guidance... But we believe the market has largely priced that into the stock's premium valuation... We think that TEVA requires more out-year growth visibility to drive outperformance... Downgrade to EW..."
"Following a substantial reset, we believe Mylan's equity can finally outperform over the course of 2019... MYL is trading close to historical valuation lows, and business prospects appear set to improve... Upgrade to OW with a PT of $35 (>25% upside)..."