In today’s briefing:
- Mastercard Partnership with Binance: BNB Will Benefit from Network Effect
- Booking Holdings: Collaboration With Citigroup & Other Drivers
- Advanced Micro Devices: The New Ryzen Embedded R-Series Launch & Other Drivers
- Chevron Corp: The REG Acquisition & Other Developments
- Procter & Gamble Company: Financial Forecasts
- Caterpillar Inc: Cat MineStar Developments & Other Drivers
- Verizon Communications Inc: Navigating Through A Challenging Business Environment
- Conagra Brands Inc: New Product Launches & Other Drivers
- PayPal Holdings Inc: Venmo & Other Innovations
Mastercard Partnership with Binance: BNB Will Benefit from Network Effect
- The new Mastercard Binance debit card allows users to make purchases with selected cryptocurrencies in their Binance wallet and will first be rolled out in Argentina.
- BNB, the Binance native token, will benefit from network effect as adoption for the crypto card grows.
- Binance is expanding its payment strategy as a tool to drive user adoption and expand its ecosystem.
Booking Holdings: Collaboration With Citigroup & Other Drivers
- For the first time since the Covid-19 pandemic, Booking Holdings managed to exceed the levels for room nights in the last quarter which is a significant milestone in its recovery.
- Nearly 0.25 billion room nights were reserved by the company’s clients in Q2, a slight increase from the first quarter’s 9% fall and a rise of 16% compared to Q2 2019.
- The near-term macroeconomic climate is unpredictable which is why we maintain our ‘Hold’ rating on Booking Holdings with a revised target price.
Advanced Micro Devices: The New Ryzen Embedded R-Series Launch & Other Drivers
- Advanced Micro Devices continued its strong execution across the board and delivered an all-around beat in the recent result driven by its premier product line, and diverse business strategy.
- The management also observed a significant year-over-year rise for their networking and FPGA solutions, which are the best in the business, with cloud and financial customers.
- During the quarter, they also launched Ryzen Embedded R-Series system-on-chips processors in order to broaden their product line and target emerging markets.
Chevron Corp: The REG Acquisition & Other Developments
- Chevron continued its restructuring efforts which included $200 million in asset sale gains and a $600 million charge to cancel an extended LNG regas contract at Sabine Pass.
- Chevron’s results were encouraging as it managed to deliver an all-around beat with superior yields and reduced carbon in the Permian.
- With the remaining project operations mostly concentrated on systems completion, commissioning, and start-up, Chevron anticipates finishing construction by year’s end.
Procter & Gamble Company: Financial Forecasts
- Procter and Gamble delivered a decent top-line growth in the last quarter surpassing Wall Street expectations and continued its strong cash productivity which enables its high dividend payouts.
- Feminine care, fabric care, and Personal health care were up by double digits, whereas personal care, skin and hair care, and oral and home care all grew low-single digit.
- We provide the stock of Procter and Gamble Company with a ‘Hold’ rating with a revision in the target price.
Caterpillar Inc: Cat MineStar Developments & Other Drivers
- Despite persistent supply chain difficulties, Caterpillar delivered another strong quarter with a double-digit top line growth though it did fail to meet Wall Street expectations on the revenue front.
- Most of its end markets are experiencing strong demand and its strong margin profile did help deliver an earnings beat.
- The management achieved stronger services revenue and better-than-anticipated price revenue, which were offset by lower-than-anticipated user sales.
Verizon Communications Inc: Navigating Through A Challenging Business Environment
- Verizon Communications had a below par performance in the quarter as the inflationary pressure has been impacting consumer behavior resulting in the company failing to match earnings expectations and just about beating revenue expectations of Wall Street.
- The company updated its financial guidance by lowering its expectations of other revenue and service.
- The company launched its plan Welcome Unlimited for consumers wireless which will meet the requirements of budget-conscious consumers without offering device subsidies.
Conagra Brands Inc: New Product Launches & Other Drivers
- Conagra Brands’ strong result was driven by the excellent performance of its snacks business and it managed to deliver an all-around beat.
- With the joint venture, Ardent Mills, the company had a strong quarter performance that recently managed through the latest instability in the wheat markets as well as proved to be an effective windbreak against inflation.
- Conagra brands are planning to deliver $1 billion in cost savings in the upcoming three years as it updates and renovates its supply chain.
PayPal Holdings Inc: Venmo & Other Innovations
- PayPal has seen some level of recovery after the stock nosedived and stayed low in the period from May to July 2022.
- Also, it has reinvigorated its organizational operating model and has been recruiting world-class talent in its product, technology, and engineering functions.
- We see a further recovery in the stock of PayPal Holdings and we give it a ‘Buy’ rating with a revision in the target price.
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