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 Tuesday:
J.P. Morgan believes the recent run-up in Yum shares leaves little upside to their estimates.
"While we do believe in YUM's long-term earnings algorithm of mid- to high-single-digit system-wide sales growth driven by ~4% unit growth and 2-3% worldwide comps, the 9% YTD run in the share price—and the corresponding multiple increase to 23.3x C20E P/E—leaves little upside to our estimates... ":
J.P. Morgan is bullish on Domino's sales growth.
"We believe DPZ's algorithm to achieve 8-12% system-wide sales growth remains intact... We are focused on its lowest-cost delivery platform and believe recent multiple compression to slower growing peers presents an opportunity...Our DPZ price target remains $270, or 25x C20E EPS, while our YUM price target is $94 or 21.7x C20E EPS with DPZ implying a 3.6% FCF yield at this multiple and YUM a 4.5% yield... We agree with company guidance that DPZ is an 8-12% system-wide sales growth company driven by 6-8% unit growth, 3-6% US comps, and 3-6% international comps... Dunkin', McDonalds, and Wendy's growth metrics are much lower, but DPZ offers the best comparison to YUM in our coverage today... "
Telsey believes Europe and growing competition provide challenges for Booking Holdings.
"With 4Q earnings season over, we have re-evaluated our outlook on the OTA sector and for BKNG in particular... We are lowering our PT to $1,800 and downgrading the stock to MP due to: (1) a weaker European economic outlook; and (2) growing threats from Airbnb and Google, which are now encroaching on BKNG's core hotel offering... While BKNG's valuation is not overly stretched, we believe these incremental challenges warrant a move to the sidelines... "
Argus is bullish long-term on Boeing but believes management needs to be more pro-active in its response to 737 Max groundings.
"We have been long-time bulls on the BA shares, raising our rating to BUY in May 2012, when the share price was $69... Since our upgrade, the shares have appreciated almost 540%, not including dividends... However, the shares have fallen almost 17% from their highs in the wake of the second fatal crash of a Boeing airplane.... We think the long-term outlook for Boeing is bright and are maintaining our five-year BUY rating... If the cause of the crashes turns out to be a mechanical or an engineering issue, Boeing can correct the problem and the industry, which is heavily dependent on the plane, the 737 Max jet, can move on.... "
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Sandler O'Neill believes management changes create uncertainty for MetLife.
"1) The company will have a new chief executive officer beginning with 1Q19 earnings... We believe this increases the possibility of execution risk after replacing a long-time, well-known executive at the company... 2) With a new CEO coming in along with the company increasingly talking about building up a sizeable asset management operation in recent years, we believe this increases the potential for an asset management acquisition the investment community does not greet with enthusiasm.... 3) We believe shares are currently appropriately valued trading at 7.7x 2020 and 92% book value ex-AOCI as compared to the peer group average of 7.6x and 124% considering we anticipate MET's operating ROE ex- AOCI in 2020 of 10.7% to be well below the peer group average of 14.6% and median of 12.8%... And especially so given our expectation for earnings to grow in 2019 vs. 2018 by 0.2%... 4) More specifically, we believe shares of PRU at 7.1x 2020 and 111% book value ex-AOCI with an operating ROE ex-AOCI of 13.7% are currently more attractively valued than MET... "