ON Semiconductor, Ferrari, Common Motors and Moderna in Focus
Tuesday (Could 4)
IN THE SPOTLIGHT: FERRARI
Ferrari, an Italian luxurious sports activities automobile producer, is anticipated to report its first-quarter earnings of $1.26 per share, which represents year-over-year progress of over 27% from $0.99 per share seen in the identical quarter a yr in the past.
The corporate which is understood for its prancing horse emblem would put up income progress of greater than 24% to round $1.27 billion
“We discover the long-term stability of Ferrari’s income, addressable market progress, expansive revenue margin, and stable returns on invested capital all through financial cycles to be compelling causes to speculate on the proper worth,” famous Richard Hilgert, senior fairness analyst at Morningstar.
“Due to its unique clientele of high-net-worth people, we imagine the corporate will present resiliency during times of financial uncertainty, such is at the moment the case with the coronavirus pandemic. Whereas we aren’t completely averse to paying up for shares like Ferrari that possess a large financial moat and secure financial earnings by enterprise cycles, we predict Ferrari inventory will frequently commerce at wealthy, luxurious items valuation multiples.”
Wednesday (Could 5)
IN THE SPOTLIGHT: GENERAL MOTORS
The auto producer is anticipated to report its first-quarter earnings of $1.02 per share, which represents year-over-year progress of over 64% from $0.62 per share seen in the identical quarter a yr in the past. The Detroit, Michigan-based firm would put up income progress of about 2% to round $33.3 billion.
“We’re Obese primarily based on GM’s diversified portfolio, with a number of methods for GM to reinforce shareholder worth, by: EVs, ICE and Autonomy. GM additionally has main North American margins, generates sturdy money movement, and has a sturdy steadiness sheet,” famous Adam Jonas, fairness analyst at Morgan Stanley.
“We imagine that the market is underestimating the SOTP of the GM enterprise through: 1) Legacy ICE, 2) GM EV, 3) GM’s Ultium Battery enterprise, 4) China JVs, 5) GM Finco, 6) GM Cruise, 7) hidden franchise worth in manufacturers corresponding to Corvette and eight) GM Related Providers. GM administration has a confirmed observe file to allocate capital away from structurally challenged areas in direction of re-positioning the enterprise mannequin.”
Thursday (Could 6)
IN THE SPOTLIGHT: MODERNA
Moderna Inc, an American biotech firm centered on drug discovery, is anticipated to report its first-quarter earnings of $2.36 per share, up about 700% from the identical quarter a yr in the past. The Massachusetts-based biotechnology firm’s income would surge to $1.97 billion.
“We’re Equal-weight Moderna. Whereas we imagine there may be long-term upside for Moderna, we imagine the numerous valuation improve related to the success of the COVID-19 vaccine limits the near-term upside,” famous Matthew Harrison, fairness analyst at Morgan Stanley.
“The corporate has taken an industrialized strategy to creating mRNA-based therapeutics and has quickly generated a broad pipeline of 21 applications, 11 of which have entered scientific improvement. We imagine Moderna’s mRNA drug improvement platform is extra diversified and scalable in contrast with rivals and is validated by broad partnerships with Merck and AstraZeneca. We see vaccines and uncommon illnesses as the important thing valuation drivers of the corporate.”
Friday (Could 7)