Tapestry, Inc. (TPR:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.6x Uniform P/E, implying expectations for profitability to fall to historically low levels, which, even despite management’s concerns in the near-term about integration of Kate Spade and headwinds in China, appears unwarranted given improving analyst expectations and recent tactical M&A activity...
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December 18, 2018– No Traded CDS, Base Case iCDS 106bps–Negative Case iCDS 162bps, 2023 9.250% Bond YTW of 7.974%, iYTW of 4.664%– Ba3 Moody’s Rating, XO (equivalent to Baa3) Rating from Valens– High Refinancing Need Read MoreDecember 17, 2018
Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals. This week, we focus on Laboratory Corporation of America Holdings (LH), AECOM (ACM), Commvault Systems, Inc. (CVLT)...
Read MoreDecember 14, 2018This week the Valens Research team highlights our most interesting equity insight from across our tools and our analysis. Management’s smart strategic decisions, low market expectations, and sustained confidence about the business builds the case for equity upside...
Read MoreDecember 13, 2018Highlighted Top Ideas GME – GameStop Corp. LEN – Lennar Corporation MGM – MGM Resorts International Other Recent Analyses AXL – American Axle & Manufacturing Holdings, Inc. WYND – Wyndham Destinations, Inc....
Read MoreDecember 12, 2018Each week the Valens Securities team highlights our most interesting insights from across our tools and our analysis, including individual company industry and macro insights Top Highlight: The Estee Lauder Companies Inc. Other Highlights: AMT, D, MCD Other Recent Analyses: AMGN, AN, ATVI, CSX, CTSH, HUM, MGM, MPC, MRK, MSFT, NSC, PSX, UNP, UTX, VOW3:DEU, X...
Read MoreDecember 12, 2018The Coca-Cola Company (KO:USA) is currently trading above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 23.5x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their recent acquisitions and investments, scaling new brands, and the challenging currency environment...
Read MoreDecember 11, 2018Caterpillar Inc. (CAT:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with an 18.6x Uniform P/E. However, even at these levels, the market has bullish expectations for the firm, while management may have concerns about their profitability and growth levels, RI and E&T margin volatility, and their order rates and backlog...
Read MoreDecember 10, 2018Each week, Valens focuses on several companies that were analyzed in the prior week, where material distortions caused by as-reported GAAP accounting need to be corrected to understand a company’s economic fundamentals. This week, we focus on Medtronic plc (MDT), Broadcom Inc. (AVGO), Insperity, Inc. (NSP)...
Read MoreDecember 10, 2018McDonald’s Corporation (MCD:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Earnings, with a 28.4x Uniform P/E, implying bullish expectations for the firm. Moreover, management is confident about average check, transformation in their U.S. system, and shareholder returns...
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