In today’s briefing:
- MGM: A Gaming Portfolio Within a Portfolio at an Attractive Entry Point at US$30
- Faraday Future (FFIE) Delays New EV Launch; Says It Needs More Cash
- Downgrading Utilities & Staples to Market Weight; Buy Ideas in Health Care & Trucking
- Jabil Inc.: Initiation of Coverage – Collaborations With SolarEdge, Cardo Systems, & Other Key Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
- Fidelity National Information Services: Initiation of Coverage – Core Processing Business Upside & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- Fidelity National Information Services: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (07/2022)
- Viavi Solutions Inc.: Initiation of Coverage – The NTT DOCOMO Partnership, New Product Launches & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
- Jabil Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (07/2022)
- Viavi Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (07/2022)
MGM: A Gaming Portfolio Within a Portfolio at an Attractive Entry Point at US$30
- With a dominant presence on the Las Vegas strip as recovery revenue ballast, MGM is seeing recovery in its US regional properties, growth in digital and news flow from Asia.
- The company’s BetMGM sports betting partnership with UK giant Entain is thriving. It ambitions to buy out its partner, or its partner’s parent are clear.
- As Macau slowly reopens its long awaited recovery arc will be positive news flow in Q3 and Q4 for MGM due to its two property footprint there.
Faraday Future (FFIE) Delays New EV Launch; Says It Needs More Cash
- Faraday Future (FF) announced that it has delayed the Q3 2022 launch of its first EV and is “continuing to engage” in fundraising talks.
- FF says it needs $325m to last through the year or 47% of its market cap. A PIPE deal could be underway, albeit the 8-K filing was cautiously worded.
- Depending on the agreement, it may pave the way for the recently deposed founder to place a crony on the Board, which could be negative for future funding.
Downgrading Utilities & Staples to Market Weight; Buy Ideas in Health Care & Trucking
- We are starting to see some positive signals that suggest the lows for this bear market may have already been established, or that additional downside is limited from here.
- We need to see downtrend reversals (get above 4030-4040 on SPX, $189 on IWM, and $115 on IWC) and for the NDX(QQQ) to break above $315, to get more constructive.
- Positive signals include, among other things: the Financial Sector (XLF) and Broker-Dealers/Exchanges ETF (IAI) are reversing topside their 4-5-month downtrends.
Jabil Inc.: Initiation of Coverage – Collaborations With SolarEdge, Cardo Systems, & Other Key Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
- This is our first report on diversified manufacturing services and solutions provider, Jabil Inc.
- The company has maintained a strong diversification strategy which has helped it perform despite a difficult supply chain environment and widely reported shutdowns in China.
- During the quarter, the company further collaborated with two companies, SolarEdge and Cardo Systems, to expand its supply chain.
Fidelity National Information Services: Initiation of Coverage – Core Processing Business Upside & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (07/22)
- This is our first report on the leading global technology solutions provider to the banking and finance industry – Fidelity National Information.
- The company’s annual organic growth expectations were all exceeded with a 9% organic top-line growth.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Fidelity National Information Services: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (07/2022)
- Fidelity National Information is a technology solutions provider to the worldwide banking and finance industry.
- The company had a strong start to the year, 2022 far outpacing its projections for revenue and delivering a solid organic top-line growth.
- During the quarter, they launched their Guaranteed Payments solution, making it the only payment processor to provide a fully integrated solution guaranteed to increase e-commerce transaction approval rates and remove chargebacks resulting from fraudulent purchases.
Viavi Solutions Inc.: Initiation of Coverage – The NTT DOCOMO Partnership, New Product Launches & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, Key Risks (07/22)
- This is our first report on Viavi Solutions, a major player within the network test solutions and monitoring space.
- As North American service providers upgraded and expanded their networks with fibre, fibre grew by double-digit percentages from the same time the previous year.
- We initiate coverage on Viavi Solutions with a ‘Hold’ rating with a revised target price.
Jabil Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (07/2022)
- Jabil Inc is a highly diversified manufacturing services and solutions provider across multiple industries.
- The company has maintained a strong diversification strategy which has helped it perform despite a difficult supply chain environment and widely reported shutdowns in China.
- The strong demand within EMS, partially offset by sporadic Covid-19 challenges within DMS, was the primary factor driving their revenues since the start of 2022.
Viavi Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks (07/2022)
- Viavi Solutions is a leading provider of network test solutions, monitoring and assurance solutions to the telecom industry, enterprises, network equipment manufacturers, Governments, and avionics corporations.
- The North American service providers upgraded and expanded their networks with fibre which benefitted the company.
- Its solutions for assurance and products for data centres have been experiencing significant growth.
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