Google has suspended business activity involving the transfer of hardware, software and key technical services with Huawei. Analysts say that could be a big blow to the...Technologyread more
Huawei Technologies will immediately lose access to updates to the Android operating system, a source close the matter told Reuters.Technologyread more
Huawei claims it has developed its own operating system for smartphones and laptops for "extenuating circumstances."Technologyread more
Current geopolitical tensions are making it harder and harder for oil-producing nations to make decisions that will help stabilize crude prices, Russian Energy Minister...Oilread more
Oil prices jumped on Monday after Saudi Energy Minister Khalid al-Falih indicated there was a consensus among OPEC and allied oil producers to continue limiting supply.Energyread more
Bank, property and healthcare stocks jumped, pushing Australian markets to a 11-year high, as Scott Morrison and the Liberal-led conservation government are poised for a...World Marketsread more
Trump's threat, posted on Twitter, comes amid rising international tensions in the Middle East as the U.S. has dispatched a carrier strike group and bomber task force to the...Politicsread more
Prime Minister Narendra Modi and his Bharatiya Janata Party are set to form the new government again, exit polls from India's month-long parliamentary elections show. But past...Electionsread more
The latest crisis in the uneasy French-German relationship was accelerated by Trump's decision to stop Germany's comfortable and decades-old free-riding on trade and security...Europe Politicsread more
While some fans of the long-running "Game of Thrones" felt satisfied by the show's final bow, others were quick to express their displeasure with how events unfolded.Entertainmentread more
Stocks in Asia were mostly higher on Monday amid rising tensions between the U.S. and China.Asia Marketsread 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... "