Top Research Reports for Novartis, BP & Biogen

Thursday, February 8, 2018

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Novartis (NVS), BP (BP) and Biogen (BIIB). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Novartis’ shares have underperformed the Zacks Large-Cap Pharmaceuticals industry (+0.8% vs. +3.2%), over the last six months. Novartis’ fourth-quarter results beat both earnings and sales estimates on strong performance of Cosentyx and Entresto. The generic division, Sandoz also combatted pricing pressure strongly buoyed by biosimilar launches of Rixathin and Erelzi.

Novartis has a strong oncology portfolio of drugs like Afinitor, Exjade, Jakavi, Zykadia, Tasigna, Jadenu and Kisqali. The approval of Kymriah for acute lymphoblastic leukemia is a major boost given the potential in the CAR-T therapy space.

Meanwhile, the strategic decision on Alcon to retain the business or separation via capital market transactions such as a spin-off or an initial public offering has been postponed for 2019. However, the loss of patent protection for some of the key drugs in Novartis’ portfolio is a cause of concern. Moreover, Kisqali’s uptake has been slow.

(You can read the full research report on Novartis here >>>).

Shares of BP are up +16.1% over the last one year, outperforming the Zacks International Integrated Oil industry (up +7.2%). During 2017, the leading integrated energy firm brought online seven key upstream projects. BP is also expected to bring online five more developments in 2018.

All these projects along with the developments placed online during 2016 will likely help the energy giant add 800,000 barrels of oil equivalent per day to net production capacity by 2020. The firms’ fourth-quarter 2017 earnings skyrocketed year over year, courtesy of record oil and gas production and higher commodity price realizations.

However, the bottom line missed expectations, thanks to a surge in exploration expenses. Moreover, the oil spill incident of 2010 in the BP-operated Macondo Prospect continues to affect the company. BP anticipates cash out flow related to the incident of $3 billion through 2018 against the prior projection of slightly more than $2 billion.

(You can read the full research report on BP here >>>).

Biogen’s shares have outperformed the Zacks Biomedical and Genetics industry over the last year (+20.9% vs. +0.8%). Biogen had a mixed fourth quarter as it beat estimates for earnings but missed the same for sales. However, Biogen issued an upbeat outlook for 2018.

Biogen has a strong position in the MS market with a wide range of products including Avonex, Tysabri, Tecfidera & Plegridy. The Zacks analyst likes its efforts to diversify beyond MS to other areas like Alzheimer’s, Parkinson's and stroke, among others. Meanwhile, its newest drug Spinraza has witnessed strong patient uptake in the U.S. and internationally.

However, weakening MS trends is a concern. Tecfidera is witnessing slight decline in U.S. patient demand due to increasing competition from oral medicines and a slowdown in the overall MS market. Meanwhile, the launch of Ocrevus by Roche is beginning to have a negative impact on MS franchise sales in the U.S., mainly on Tysabri.

(You can read the full research report on Biogen here >>>).

Other noteworthy reports we are featuring today include Emerson Electric (EMR), eBay (EBAY) and Cognizant (CTSH).

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Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Novartis (NVS) Cosentyx Offset Impact of Generic Competition

BP Plc (BP) Banks on Upstream Projects Amid Oil Spill Woes

Portfolio Diversification, Spinraza Boost Biogen (BIIB)

Featured Reports

Domain Expertise, Accretive Buyouts Steer Cognizant (CTSH)

Per the Zacks analyst, Cognizant is benefiting from domain expertise as well as its ability to harness the ongoing digital transition.

Project Investments, Cost Cuts to Drive Air Products (APD)

Per the Zacks analyst, Air Products will gain from strong project backlog and strategic investments in high-return projects.

Exploration Progress, Debt Reduction to Aid Freeport (FCX)

Per the Zacks analyst, Freeport should gain from its progress in exploration activities to expand production capacity and efforts to deleverage balance sheet amid rising cash costs in North America.

eBay (EBAY) Rides On Marketplace Growth; Competition Ails

The Zacks analyst believes that strong growth in company's core marketplace business, StubHub and mobile strategy remain positives. However competition in the e-commerce market remains a concern.

Consumer International to Drive Church & Dwight (CHD) Sales

Per the Zacks analyst, Church & Dwight remains focused on investing in the Consumer International unit, which has been posting organic sales growth for over a year and remains a major growth driver.

Franklin (BEN) Rides on Cost Control, Solid Capital Base

Per the Zacks analyst, Franklin's efforts to drive operational efficiency remain encouraging.

Global Expansion to Aid Michael Kors (KORS) Top Line

Per the Zacks analyst, Michael Kors' buyout of Jimmy Choo will help diversify portfolio and tap global markets.

New Upgrades

Unit Revenue Growth, Dividends & Buybacks Boost Delta (DAL)

The Zacks analyst likes Delta's performance with respect to unit revenues. Efforts to reward shareholders also raise optimism in the stock. The new tax law is another positive for the company.

Strong HVAC Demand & Buyouts Catalysts for Emerson (EMR)

Per the analyst, Emerson is enjoying robust demand in global HVAC & refrigeration markets. Also, optimistic order trends and the recent Cooper-Atkins buyout will lend further momentum to the company.

AmerisourceBergen (ABC) Gains Ground on World Courier Unit

The Zacks analyst believes that AmerisourceBergen's solid performance in the World Courier business holds promise. The unit recently obtained global Good Distribution Practices (GDP) designation.

New Downgrades

High Apartment Supply to Impact AvalonBay's (AVB) Growth

Per the Zacks analyst, AvalonBay's growth tempo is likely to slow down amid rising supply of rental units. Further, there is high concession activity which remains a concern.

Higher Operating Expenses Weigh On Calgon Carbon (CCC)

The Zacks analyst thinks that Calgon Carbon faces headwinds from higher operating and other expenses which may continue to hurt its earnings in the final quarter of 2017.

SBA Communications (SBAC) Hurt by Wireless Consolidation

The Zacks analyst believes high customer concentration and consolidation in the wireless industry are likely to affect SBA Communications' top line.

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Novartis AG (NVS) : Free Stock Analysis Report
 
Emerson Electric Company (EMR) : Free Stock Analysis Report
 
eBay Inc. (EBAY) : Free Stock Analysis Report
 
Cognizant Technology Solutions Corporation (CTSH) : Free Stock Analysis Report
 
BP p.l.c. (BP) : Free Stock Analysis Report
 
Biogen Inc. (BIIB) : Free Stock Analysis Report
 
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