Yahoo Finance Top Analyst Reports for Tesla, Eli Lilly & Bank of America
Thursday, February 16, 2023
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 Tesla, Inc. (TSLA), Eli Lilly and Company (LLY) and Bank of America Corporation (BAC). 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 >>>
Shares of Tesla have declined -30.4% over the past year against the Zacks Automotive - Domestic industry’s decline of -37.7%. The company is facing inflation and macroeconomic concerns which could pose near-term challenge. However, the company's long-term prospects remain solid. The electric vehicle (EV) king is set to benefit from the soaring popularity of its Models 3 and Y.
The Zacks analyst expect deliveries to see an annualized growth of around 33% in 2023. Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth.
Additionally, Tesla’s energy generation and storage revenues outlook is promising. Falling debt levels is another positive. We expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and introduction of new models.
(You can read the full research report on Tesla here >>>)
Shares of Eli Lilly have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+36.4% vs. +9.6%). The company boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others.
It is regularly adding promising new pipeline assets through business development deals. Lilly expects to launch four new medicines by 2023 end with Mounjaro for type II diabetes already launched and cancer drug Jaypirca already approved. Mounjaro is off to a solid start.
However, the CRL for donanemab will probably delay the potential launch of the candidate. Generic competition for several drugs, rising pricing pressure in the United States and some international markets are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Bank of America’s shares have underperformed the Zacks Banks - Major Regional industry over the past year (-25.5% vs. -17.2%). The company’s over-dependence on trading revenues for fee income is concerning. The volatile nature of the capital markets will adversely impact non-interest income performance. Our estimates for the same show a 4.1% fall for 2023. A tough operating backdrop will lead to increase in provisions, with we projecting a substantial jump in the metric this year.
However, higher interest rates and decent loan demand are expected to keep aiding the company’s net interest income (NII). Our estimates for NII reflect a CAGR of 10.1% by 2025.
Likewise, the company’s net interest yield will continue expanding in the near-term. Also, opening of new financial centers, enhancement in digital capabilities and prudent cost management efforts are expected to keep aiding its financials.
(You can read the full research report on Bank of America here >>>)
Other noteworthy reports we are featuring today include QUALCOMM Incorporated (QCOM), Gilead Sciences, Inc. (GILD) and ABB Ltd (ABB).
Director of Research
Sheraz Mian
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
Tesla (TSLA) Rides High on Robust Model 3/Y Deliveries
Lilly (LLY) Potential New Products Key to Growth
Higher Rates, Loans Support BofA (BAC) Amid Fee Income Woes
Featured Reports
Qualcomm (QCOM) Rides on Solid Automotive, 5G Traction
Per the Zacks analyst, Qualcomm is well-positioned to benefit from solid 5G traction and a healthy growth in the automotive business with greater visibility and a diversified revenue stream.
Biktarvy, Oncology Fuel Gilead (GILD) Amid Competition
Per the Zacks analyst, strong performance from flagship HIV therapy Biktarvy and contribution from the oncology franchise boost Gilead as some other drugs face generic competition and slowdown.
Wireless & Cable User Growth Aids Rogers Communications (RCI)
Per the Zacks analyst, steady postpaid subscriber gain in the wireless segment and increasing Internet user count in the Cable segment is benefiting Rogers Communications.
J.B. Hunt (JBHT) Rides on Dividends & Buyback, Expenses Ail
The Zacks analyst likes the shareholder-friendly measures adopted by J.B. Hunt. However, rising operating expenses are concerning as they are likely to keep the bottom line under pressure.
Recurring Revenues & Technology Growth Aid Envestnet (ENV)
Per the Zacks analyst, Envestnet's business model ensures solid asset-based and subscription-based recurring revenue generation capacity. Also, focus on technology development is a tailwind.
Signet's (SIG) Omni-Channel Capabilities Appear Impressive
Per Zacks analyst, Signet is integrating its physical stores with advanced virtual experiences via data-driven in-store consultations and services like buy online pickup in-store and curbside options.
E-Commerce Strength Aids Prestige Consumer Healthcare (PBH).
Per the Zacks analyst, Prestige Consumer Healthcare's revenue is benefiting from growing e-commerce operations. The company's e-commerce sales reached 15% of sales as of the end of the third quarter.
New Upgrades
ABB Rides on Stable Demand Environment & Pricing Actions
Per the Zacks analyst, steady demand environment across most customer segments within the Electrification unit bodes well for ABB. Pricing actions are supporting its margin performance.
FUJIFILM (FUJIY) To Benefit From Strong Product Portfolio
Per the Zacks analyst, FUJIFILM's performance benefitted from strong revenue growth across all business segments. Also, frequent product launches bode well.
Nabors (NBR) to Benefit from High-Quality Rig Fleet
The Zacks analyst believes that Nabors Industries is well positioned with a sound mix of high-performance rigs and new rigs working in the key shale plays like Bakken and Permian.
New Downgrades
Low Volume, High Cost to Hurt Avery Dennison's (AVY) Results
Per the Zacks analyst, apparel inventory reductions and supply constraints are impacting Avery Dennison's volume across all businesses. High costs add to the concerns.
Lower IT Spending to Hurt Gen Digital's (GEN) Prospects
Per the Zacks Analyst, Gen Digital's prospects hurt by soft IT spending as consumers and enterprises are postponing their IT investment plans amid inflationary pressure and macroeconomic headwinds.
Fidelity's (FIS) Rising Expenses and High Debt Burden Hurt
Per the Zacks analyst, increasing operating costs will dampen Fidelity National's profit margins. Moreover, its high debt burden remains a concern.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report
ABB Ltd (ABB) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
