In today’s briefing:
- Japan Eyewear Holdings (5889 JP): Amid China Fear There Are Reasons to Still Stay Bullish
- The “What’s Left In India” Screen: 80 Stocks with High ROEs and Relatively Lower PEs
- SPX Testing Resistance as Rate Cut Cycle Begins; SPX 5670-5783 Is Resistance, 2007 Analog on Track
- Edwards Lifesciences is in the Spotlight as a Takeover Target: What Value Can It Attract?
- MIRA: Quick Phase I Design Completion Bodes Well
Japan Eyewear Holdings (5889 JP): Amid China Fear There Are Reasons to Still Stay Bullish
- Japan Eyewear Holdings (5889 JP) reported 30% YoY revenue growth in H1FY25. Profit margins also remained high, with operating profit margin exceeding 33% and operating profit reaching ¥2.7B, 1.5x YoY.
- The company has left FY25 guidance unchanged. The company’s cautious stance, yen appreciation, and darkening outlook of China amid weak economic data are the major downside risks.
- We think reactions are overdone. Limited downside is expected from here. Encouraging SSS growth through continuous increases in unit price and accelerated store expansion will remain the key growth drivers.
The “What’s Left In India” Screen: 80 Stocks with High ROEs and Relatively Lower PEs
- India has become one of the most expensive markets globally, trading at a PE of close to 28. Quality stocks now trade consistently around 50-90x PEs.
- We have screened 80 names (market cap agnostic) that trade at PEs between 5 and 45, with an average PE of 20 and an average ROEs of 26%.
- We treat this only as a filter and aim to do due diligence on all these stocks over the next few months.
SPX Testing Resistance as Rate Cut Cycle Begins; SPX 5670-5783 Is Resistance, 2007 Analog on Track
- The S&P 500 (SPX) is back to test YTD highs and important resistance in the 5670-5783 range. This is an important target/resistance area we have discussed for weeks.
- Using the 2007 SPX topping analog suggests a 2% or less move above the prior all-time high set in July at 5670 before topping, which gives the 5783 number.
- As long as SPX does not have a weekly close above 5783 we continue to recommend reducing risk and shifting to defensives,and this is the ideal time to do so.
Edwards Lifesciences is in the Spotlight as a Takeover Target: What Value Can It Attract?
- In reviewing the latest results from Edwards Lifesciences, notable elements of growth and development paired with challenges shed light on the company’s financial and operational trajectory during the second quarter of 2024.
- With total company sales reaching $1.6 billion, this marked an 8% increase on a constant currency basis compared to the same period last year.
- While Transcatheter Aortic Valve Replacement (TAVR) growth was not as robust as expected, increasing by 6% globally, the Transcatheter Mitral and Tricuspid Therapies (TMTT) segment demonstrated impressive growth, with a 75% increase in sales.
MIRA: Quick Phase I Design Completion Bodes Well
- MIRA Pharmaceuticals(MIRA) Company Sponsored Research Report
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