Diversity of operations cushions results.
The Federal Open Market Committee maintains rates at zero and our current rate forecasts within our bank models remain.
We lower our fair value estimate for the company as it awaits its MAX re-entry and a better environment.
We're likely to raise our fair value estimate for the asset manager.
We have added the firm's vaccine candidate to our model with a 60% probability of success.
We are modestly raising our forecasts for this year, but retain our $54 fair value estimate and wide moat rating.
We see several ways that the company is positioned to take market share.
The firm closed out the June quarter with a record $1.22 trillion in managed assets.
After reviewing wide-moat-rated 3M’s latest second-quarter 2020 results, we slightly lower our fair value estimate by about 2% to $166 per share (from $170 previously).
We remain comfortable with our full-year projections for Visa, and will maintain our $166 fair value estimate and wide moat rating.
Despite industry uncertainty, we are maintaining our fair value estimate for the wide-moat company.
We don’t expect any significant fair value estimate changes for this wide-moat company based on the minor outperformance.
We don’t expect these actions by President Trump to significantly affect our fair value estimates or moat ratings due to limited details, challenging implementation, and only minor impacts.
We don’t anticipate making a material change to our $49.50 fair value estimate for the narrow-moat company.
Overall, Verizon is performing broadly in line with our expectations, and we don’t plan to change our $59 fair value estimate or narrow moat rating.
We are maintaining our $70 fair value estimate, as stronger near-term results and lower capital expenditure assumptions for 2020 are offset by lower long-term PC and data center CPU estimates (due to Apple shifting to internal chips for its Mac PCs and greater competition from AMD).
We are reducing our fair value estimate to $14.50 per share from $15, and we remind investors we think that American Airlines' considerable financial leverage widens the dispersion of potential equity values relative to peer airlines.
The no-moat firm was ravaged by coronavirus in the second quarter.
We don't expect to make a change to our fair value estimate for the narrow-moat company.
Tesla reported profitable second-quarter GAAP results, and adjusted diluted EPS of $2.18 rose significantly from the prior year’s quarterly loss of $1.12.
While SMB generally remains weak, Azure remains strong, and gaming revenues surged as the global lockdowns continued throughout the quarter. Importantly, commercial bookings and RPO, two forward looking metrics, both grew in excess of revenues for the quarter. We remain impressed with Microsoft's ability to drive revenue and margins at this scale and we believe there is more to come on both the revenue and margin fronts. We raise our fair value estimate to $228 from $196 per share.
We maintain United's no-moat rating and fair value estimate despite second quarter performance.
TD Ameritrade reported strong fiscal third-quarter results, as high trading volumes are offsetting a decline in interest rate-related revenue.
No one expected a stellar second quarter, but the beverage giant can overcome short-term weakness.
Despite encouraging updates from AstraZeneca and BioNTech/Pfizer, we maintain our fair value estimates.
Chevron announces acquisition of Noble Energy, but this won't change its fair value estimate or moat rating.
We expect to increase our fair value estimate for the wide-moat firm.
We are raising our FVE to $200 from $160 to account for the revenue impact of the larger subscriber base and slightly faster margin expansion than previously expected.
After incorporating these results into our forecast, and after incorporating a 50% probability of Joe Biden being elected and instituting his proposed tax hike, we are lowering our fair value estimate to $28 from $30.
We think the shares are undervalued.
The company's drug group helps offset COVID-19 pressure on device sales.
We are not making any changes to our 2020 outlook and fair value estimate for the narrow-moat company.
As we’ve long pointed out, JPMorgan remains arguably one of the strongest and highest quality franchises under our coverage, and this showed in second quarter results.
No-moat-rated Delta reported a difficult second quarter, and our fair value estimate for the stock is $42.50 per share.
While results aren’t pretty, they remain better than some peers, and most importantly, Citi’s capital levels are holding up as the common equity Tier 1 ratio improved to 11.5%.
The pain continued for Wells Fargo in the second quarter, as the bank reported a net loss of $2.4 billion, or $0.66 per share.
Sales came in at $15.9 billion for the quarter, a 3% year-over-year decline, for the wide-moat company.
We expect no-moat BioNTech and wide-moat Pfizer to move one of the test candidates into the next phase, planned to start as early as this month.
Shares of narrow-moat company are up over 70% since mid-March lows as we suspect the market is anticipating a 5G super-cycle for the firm’s upcoming iPhone.
We think the deal could strengthen the firm's network effect moat source.
We are lowering our fair value estimate for the firm, but our narrow-moat rating remains unchanged.
We do not expect to change our fair value estimate for the firm after its acquisition of Dominion Energy's gas operations.
A long road lies ahead as the trial continues, but we are maintaining our fair value estimates for the two healthcare firms.
We view shares as undervalued for the no-moat company after a massive loss in the first quarter from the COVID-19 pandemic.
We are raising our fair value estimate for the wide-moat firm after their pricing announcement.
Our fair value estimate has not changed for the social media company.
We do not think the pandemic will have any impact on the power of the brand, the source of our wide moat rating, and think it highlights its e-commerce, which jumped 75% in the quarter.
Our key takeaway from the annual Federal Reserve test is that the banking system appears to be well-capitalized.
While the costs will deplete capital, we don’t expect the settlement to create a major drag on the firm’s wide moat.
We are maintaining our fair value estimates for these two technology firms.