The company's S-1 lays the groundwork for what is widely expected to be one of the largest initial public offerings of the year, second only to Uber's IPO in May. It's also...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
Trump's tweet comes a day after Apple put out a press release describing the money it spends on U.S.-based suppliers and vendors.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
President Donald Trump held a call on Wednesday with the CEOs of three major U.S. banks, according to people with knowledge of the situation.Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
Scientists say the smoke plumes, filled with megatons of tiny, harmful particles, could travel to other areas of the world and cause serious respiratory problems for people.Weather & Natural Disastersread more
Some Weight Watchers loyalists applaud Kurbo by WW. But nutritionists worry Kurbo promotes an unhealthy relationship with food during an especially impressionable time.Health and Scienceread more
Benefits from what President Trump called "the biggest reform of all time" to the tax code have dwindled to a faint breeze just 20 months after its enactment, writes John...Politicsread more
Epstein, 66, was found in his cell in Manhattan federal lockup Saturday morning and transferred to a nearby hospital, where he was subsequently pronounced dead.Politicsread more
Air travelers faced delays at U.S. airports on Friday afternoon after a computer issue snarled processing of international arrivals.Airlinesread more
Here are the biggest calls on Wall Street on Monday:
"FB is within 2% of our price target and we are downgrading our rating to Hold (from Buy) as we worry about: a) the negative financial impact of FB's strategic pivot toward privacy and encrypted messages; b) growing risks of regulation; and c) horrific images uploaded to FB (like the recent New Zealand events) that are technologically difficult to block at the 100% level and which hurt FB's brand... Together, we believe these risks are causing a Negative Network Effect, as evidenced by senior management departures... Network Effects act as flywheel accelerator for both value creation and value destruction.... We make no changes to our estimates, which are below Wall Street consensus estimates... "
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"While we continue to think estimates have been de-risked in 2019, the revenue impact of a more privacy centric platform could raise questions on three-year growth... Highest usage growth areas for FB were noted as private messaging, ephemeral stories, and small groups, which have lower current monetization and raises the revenue risk from a potential ongoing usage transition... While FB still has big opportunities to improve the monetization of stories and messaging, the question is if usage will deteriorate on core news feed... We are staying constructive as we think news feed usage has stabilized after a summer trough, but would turn more cautious if usage data deteriorates...We are maintaining our estimates and lowering our PO to $187 based on a lower multiple of 20x 2020e GAAP EPS plus $13/share in cash to reflect monetization uncertainty (prior 24x)...Based on a more limited upside view for FB (stock up 27% YTD vs S&P up 13%) ,we are shifting to Google as top near -term FANG idea given potential for a valuation sentiment uptick on assets including Waymo and Cloud (April conference)... "
"DG is doing what all best-in-class retailers do – investing from a position of strength to widen its competitive edge, even if it means NT guidance disappoints. It is critical to invest when times are good to be better positioned should the tide turn. We've seen this time and time again from other best-in-class retailers – in our universe, we would include COST and WMT; in other sectors, HD, ORLY, and MCD. Accordingly, while DG's investments led to disappointing FY19 guidance, DG should (and will) capitalize on the opportunity to widen its competitive moat as Fresh/Fast Track investments will lead to: 1) greater frequency of visits, 2) a more robust/efficient supply chain, 3) lower costs-to-serve, and 4) labor productivity gains. FY19 is an investment year – we acknowledge that – but DG is positioning itself to gain share LT... "
"The gist of our thesis is the timing is now better for the story to play out – Expectations and sentiment are pretty low, even as fundamentals are picking up (backlog acceleration, peaking investment/cost headwinds, higher FCF yield etc.,)... Post the 06/19 Power sale close, JCI should be a more focused pure play buildings automation company and much of the noise and distraction should be behind them.... In our view the embedded earning for F'19/F'20 is $2.45/$2.80 (incld. Power sale proceeds deployed), indicating a PE of ~17x/15x (not far from where it is trading now), on our street high $42 price target... "
"At $106 (as of 03/15 close), the stock appears to be priced for superb execution in F'19, in our view... Our bull bear scenario indicates risk reward is skewed to the downside... We acknowledge our downgrade is valuation driven... The mgmt has remarkably steered through price-cost headwinds in 2018 and that has set performance expectations higher..Key points..1) Expectations are at cycle high - 70% of the street has a buy on IR – highest since 2012.. Buyside sentiment is trending at the high end of historical range as well... 2) C-HVAC growth expectations are above trend... This is fine given institutional acceleration outlooks but not much head room left, in our view... Climate revenue growth for 2019 is 6% vs normalized 5% growth averaged between 2013-2017. 2018 growth was a record 9% and as such is a tough comp... 3) Any missteps likely costly for IR. Given high expectations, any shortfall in resi would be considered share loss to the re-emerging peer LII.... 4) Industrial order growth moderated in 2018 vs expectations for a pickup in momentum... The trend could continue near term. ..5) NTM FCF yield is slightly below last 5 yr trend (5.6% now vs 6.5% average the last few years. NTM FCF yield is also lower vs peers like JCI (6% IR vs 8% JCI)... "
"Chipotle remains our top recovery investment recommendation and we have a high degree of conviction that current strategic initiatives can continue to generate improving fundamentals... As the company progresses through its recovery process we believe the conversation (from a stock perspective) eventually shifts to one that focuses on identifying incremental strategies to maximize shareholder value... In that vein, we offer an initial examination of the potential behind transforming Chipotle's international store base (currently only ~14 company-owned units across the UK, France, and Germany) into a growing franchise business... Although hypothetical, such a future transformation could help to unlock incremental profitability (driving an estimated $2 to $5 in earnings power), drive upside to global growth, and potentially set up CMG shares for some measure of multiple expansion as the company becomes incrementally asset-light, over time... We reiterate our Overweight rating and are increasing our price target to $725 on CMG shares... "
"Okta's strong results since its April 2017 IPO continue to demonstrate the growing role that identity is playing in the wider enterprise IT ecosystem, given its crucial positioning at the intersection of heightened concerns around security, increasingly complex multi-cloud environments, and the digital revolution of businesses in every sector... As digital transformations continue to drive discussion at the C-level, we believe that identity will play an important role in establishing more robust internal processes around access and authentication across increasingly complex enterprise IT topologies, while serving as an important tool in driving more secure experiences for users outside the organization...
In our view, Okta remains the leader in Identity and Access Management within the enterprise, and continues to beneﬁt from its role as an independent, third party management platform for identity and user authentication that works across cloud environments to provide a uniﬁed platform to manage access to applications, devices, and third-party application programming interfaces... "
"We are assuming coverage with a Neutral rating (vs previous rating of Buy) and a $120 TP (vs previous TP of $140). While the company has two brands with good global growth potential in Tommy Hilfiger and Calvin Klein, PVH overall is still heavily dependent on the North America wholesale and outlet channels (we estimate these channels combined represent ~50% of sales)... Despite management typically beating guidance in the past, we are concerned that exposure to wholesale/outlet channels will weigh on sales and profits in the coming years, limiting upside... "
"Despite multiple unexpected headwinds affecting DGX's 2018, including greater denials and higher-than-expected patient concessions, among other factors, we are optimistic that long-term growth drivers are intact, including greater in-network access, continuing innovation, consumer-centric initiatives, and capital deployment, where reimbursement pressures and recent payer contract shifts will likely spur industry consolidation... These drivers should support +3-5% top-line growth (+1-3% organic) and +4-6% earnings growth long term, dynamics that we view as adequately reflected in the consensus and our expectations, limiting more meaningful upside near term... "