Anthem on Wednesday announced the appointment of Dr. Shantanu Agrawal as its Chief Health Officer, effective Jan. 25. Agrawal will supervise the enterprise health strategy of the health benefits company.
"Agrawal’s extensive experience in both the public and private sectors will further accelerate Anthem’s efforts around ‘whole person care’ in order to improve outcomes and reduce costs for all those we serve,” said Anthem’s (ANTM) CEO Gail K. Boudreaux.
Agrawal most recently served as the CEO of the National Quality Forum (NQF).
ANTM stock has gained close to 3% YTD and is trading at a discount of 8.3% to its 52-week high. (See ANTM stock analysis on TipRanks)
Earlier this week, Leerink Partners analyst Stephen Tanal reiterated a Buy rating on the stock, with a price target of $400, which implies that investors could be reaping a 29% gain over the coming 12 months.
Tanal expects Anthem to post a Q4 EPS of $0.88. The company reported EPS of $0.87 in Q3.
Meanwhile, Piper Sandler analyst Sarah James last month raised ANTM's price target from $330 to $369 and reiterated a Buy rating.
From the Street, the stock scores a Strong Buy analyst consensus based on 10 unanimous Buys. The average price target of $357.67 implies upside potential of 15.3% to current levels.
Related News:
Aspen Group Sinks 7% On Higher 2Q Loss; Street Stays Bullish
Oshkosh Snaps Up Pratt Miller For $115M; Baird Sees Almost 26% Upside
Facebook Accuses Apple of Hurting Small Businesses – Report
Abbott Laboratories has been granted Emergency Use Authorization (EUA) by the US Food and Drug Administration (FDA) for its virtually guided at-home BinaxNow COVID-19 Ag Card rapid test.
Abbott (ABT) said that the $25 test is the cheapest available at-home antigen test. The portable test, which provides results in 15 minutes, does not require any equipment for processing samples. The FDA authorized the test for prescription use at home with self-collected nasal swab samples from individuals ages 15 years or older who are suspected of having COVID-19 by their healthcare provider within the first seven days of symptom onset.
Additionally, Abbott has teamed up with telehealth service eMed and expects to deliver and administer 30 million BinaxNOW at-home tests in the first quarter of 2021, with an additional 90 million planned for the second quarter. Once a BinaxNOW at-home test kit is available at home, the user logs into the eMed portal for a guided testing procedure and can expect results in about 20 minutes.
"As the pandemic has evolved, the need for rapid testing has only grown. Unfortunately, we're still hearing that many people can't access testing as quickly as they need it," said Abbott’s CEO Robert B. Ford. "That's why Abbott is bringing our rapid BinaxNOW test and NAVICA platform into homes through this partnership with eMed, which allows us to maintain the integrity of the testing process, get even closer to people who need testing and help provide the confidence we need to help get back to living with a bit more normalcy."
Abbott disclosed that since launching BinaxNOW in August, the drugmaker has ramped up capacity to 50 million tests a month at its US facilities that are currently being distributed through the federal government.
Meanwhile, Raymond James analyst Jayson Bedford this week reiterated a Buy rating on the stock following a call with Abbott’s management.
“The 'third wave' of COVID-19 has raised the near-term uncertainty level (for the group), but ABT remains well positioned given its diversified portfolio, and the COVID-19 testing tailwind, which lessens the near-term risk profile,” Bedford wrote in a note to investors. “Management is executing well, and enters 2021 with momentum.” (See Abbott stock analysis on TipRanks)
The rest of the Street firmly shares Bedford’s bullish outlook. The Strong Buy analyst consensus breaks down into 9 Buys versus 2 Holds. With shares up 24% this year, the average price target of $120.44 now implies another 12% upside potential over the coming year.
Related News:
Novartis Snaps Up Cadent For Up To $770M; Street Sees 19% Upside
Vroom Nabs CarStory For $120M; Shares Climb 5%
Oshkosh Snaps Up Pratt Miller For $115M; Baird Sees Almost 26% Upside
Leading biotechnology firm Amgen (AMGN) announced a 10% hike in its quarterly dividend per share to $1.76. Shares were marginally up in the extended trading session on Wednesday following the announcement.
The new dividend will be paid on March 8, 2021, to all shareholders of record as of the close of business on February 15, 2021. Currently, Amgen’s dividend yield stands at 2.81%. The dividend hike comes on the heels of the company’s better-than-anticipated 3Q results despite the impact of the current health crisis. Amgen’s 3Q revenue increased 12% to $6.4 billion on higher volumes, and adjusted EPS grew 19% to $4.37.
On December 15, Goldman Sachs analyst Terence Flynn reiterated a Buy rating on Amgen with a price target of $290, but removed the stock from the firm's Conviction Buy list. Flynn noted that the company’s late-stage pipeline catalysts that were a component of his bullish thesis have largely played out over the course of 2020.
The analyst believes that in 2021, the focus for Amgen will be more on commercial execution. (See AMGN stock analysis on TipRanks)
Meanwhile, the Street’s cautiously optimistic Moderate Buy analyst consensus breaks down into 11 Buys and 11 Holds. With shares down 5.2% year-to-date, the average price target of $261.05 indicates an upside potential of 14.3% in the months ahead.
Related News:
Tilray Pops 19% On Aphria Cannabis Deal; Analyst Says “Sensible” Deal
Quest Lifts 2020 Sales, Profit Guidance As Covid-19 Testing Picks Up
Eli Lilly To Buy Prevail In $1B Gene Therapy Deal; Shares Jump 6%
The healthcare technology company, Cerner Corp., announced the acquisition of Kantar Group's health division for $375 million.
Cerner (CERN), which expects the deal to close in the first half of 2021, said the transaction is not likely to impact its 2021 earnings. With this acquisition, the company “plans to harness data to improve the safety, efficiency and efficacy of clinical research across life sciences, pharmaceuticals and health care at large.”
The company said, “The combination of Cerner and Kantar Health is expected to enable a two-sided collaboration between providers and the pharmaceutical industry, where researchers can generate insights and use differentiated real-world data assets and expertise to address the most complex clinical research questions.” (See CERN stock analysis on TipRanks)
On Oct. 30, Piper Sandler analyst Sean Wieland raised the stock’s price target to $84 (8.5% upside potential) from $81 and maintained a Buy rating. Wieland expects continued improvement in Cerner’s profitability, thanks to its cost structure that supports margin expansion.
Like Wieland, most of the Street shares a bullish outlook on the stock. The Strong Buy analyst consensus is based on 7 unanimous Buys. The average price target stands at $81.29 and implies upside potential of about 5% to current levels. Shares have advanced 5.5% on a year-to-date basis.
Related News:
Cerner Ramps Up Dividend By 22%; Street Says Buy
Tilray Pops 19% On Aphria Cannabis Deal; Analyst Says “Sensible” Deal
Roku Gains 4.5% On HBO Max Streaming Deal; Stock Up 143% YTD
Adidas will continue to invest in brick-and-mortar stores, despite booming e-commerce sales during the coronavirus pandemic, the company's CEO Kasper Rorsted told CNBC.
“I actually think if you asked most people, there’s a big social element about going out and shopping and just seeing and feeling the products again,” Rorsted told CNBC in an interview.
“So, we’ll continue to build stores. We’ll announce that in March of next year, where we’re going to build and create a great store experience,” Rorsted added.
The German designer and manufacturer of shoes, clothing, and accessories saw its online sales surge 93% and 51% in Q2 and Q3, respectively, according to the CNBC report. Adidas (ADDYY) expects online sales of 4 billion euros ($4.9 billion) in FY20 compared to 1 billion euros four years ago, Rorsted said.
The stock price has gained 7.1% YTD and is trading close to its 52-week high. (See ADDYY stock analysis on TipRanks)
Last month, RBC Capital analyst Piral Dadhania downgraded the stock's rating to Hold from Buy, citing a "less compelling" valuation.
From the rest of the Street, the stock scores a cautiously optimistic Moderate Buy analyst consensus based on 1 Buy and 2 Holds. The average price target of $340.66 implies upside potential of 92.4% to current levels.
Related News:
Wednesday’s Market Snapshot: Here’s What You Need To Know Right Now
Frustrated Exxon Shareholders Seek to Overthrow Board – Report
Twitter To Use Amazon’s Cloud Platform For Tweets; Shares Rise 4.3%
Alaska Air Group said that cash burn in November was higher than in October as renewed restrictions imposed by many state and local governments took a toll on air travel demand.
In a filing with Securities and Exchange Commission (SEC) Alaska Air (ALK) reported that its cash burn increased to $140 million in November from $97 million in October. In November, the airline carried 1.27 million passengers, down from 1.40 million in October.
Its available seat miles (ASM), which measures an airline’s passenger carrying capacity, fell 41% year-over-year in November, while revenues plunges 61% from the year-ago month. (See ALK stock analysis on TipRanks)
For December, Alaska Air expects cash burn between $125 million and $150 million assuming the demand remains soft as renewed restrictions are anticipated to continue through year end. The company projects December ASM to decline 40% on a year-over-year basis and revenue is likely to shrink in the range of 65%-70%.
In the SEC filing, Alaska Air said, “The public health and economic crises resulting from the outbreak of COVID-19 has had an unprecedented impact on our business. We are uncertain what shape the recovery will take, and we are continuously monitoring trends in demand to determine our capacity decisions as the situation unfolds. At this time we expect fourth quarter capacity will be down approximately 40%.”
On Dec. 11, Deutsche Bank analyst Michael Linenberg downgraded the stock to Hold from Buy saying that airline stocks are fairly valued based on 2022 valuations and investors have already paid for two years of earnings growth. Meanwhile, Linenberg raised the stock’s price target to $56 (12.6% upside potential) from $45.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 6 Buys and 3 Holds. The average price target stands at $55 and implies upside potential of about 10.6% to current levels. Shares have declined 26.6% year-to-date.
Related News:
Alaska Airlines Launches Hawaii Pre-Clearance Program; Street Sees 10% Upside
United Airlines Seeks Rights Issue To Guard Tax Assets; Street Sees 11% Downside
American Airlines Expects 4Q Daily Cash Burn At ‘High End’; Shares Rise
Shares of ABM Industries fell 4.1% in Wednesday’s extended market trading after the integrated facility solution provider reported lower-than-expected 4Q earnings. The company’s adjusted EPS of $0.69 fell short of the Street's estimates of $0.70 but improved 4.5% year-on-year.
ABM’s (ABM) 4Q revenue declined 9.9% to $1.48 billion year-over-year, reflecting the negative impact of the COVID-19 pandemic on the overall operating environment. However, the top-line surpassed analysts’ expectations of $1.43 billion.
The company noted that, “Revenue declines were primarily driven by pandemic-related client disruptions, such as facility closures and service scope changes, particularly within the Company's Aviation and Technical Solutions segments. Higher demand for COVID-19 related work orders continued, particularly in the Business & Industry and Technology & Manufacturing segments, which partially offset the overall revenue decline.”
For the first quarter of fiscal 2021, the company anticipates adjusted EPS of between $0.60 and $0.65. (See ABM stock analysis on TipRanks)
ABM also announced that its board of directors raised quarterly cash dividend by 2.7% to $0.19 per share. At yesterday’s closing price of $40.34, the hike reflects an annualized dividend yield of 1.9%.
Ahead of its earnings, C.L. King analyst David C Silver reiterated his Buy rating on the stock and the price target of $45 (11.6% upside potential). Silver pointed out that the strong adoption of ABM’s EnhancedClean disinfection program is driving higher-margin growth.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys and 1 Hold. The average price target stands at $48 and implies upside potential of about 19% to current levels. Shares have increased about 7% year-to-date.
Related News:
Quest Lifts 2020 Sales, Profit Guidance As Covid-19 Testing Picks Up
Aspen Group Sinks 7% On Higher 2Q Loss; Street Stays Bullish
Dixons Pops 15% As Online Sales Go Through The Roof; Street Sees 10% Downside
Shares of Tilray soared 18.6% on Wednesday after the company confirmed that it has entered into an agreement to merge with its Canadian cannabis peer Aphria. Earlier, on Dec. 15, Bloomberg had reported that the two companies are in advanced merger talks.
Per the deal, Aphria shareholders will receive 0.8381 shares of Tilray (TLRY) for each Aphria common share. Meanwhile, Tilray shareholders will continue to hold their shares with no adjustment. Post completion of the deal, Aphria shareholders will own about 62% of Tilray’s outstanding shares.
Tilray stated the merger will “create the world’s largest global cannabis company” with a combined equity value of about C$5 billion ($3.9 billion). The combined company is anticipated to have revenue of C$874 million ($685 million) and generate about C$100 million in cost synergies within two years of deal completion. The transaction is anticipated to be completed during the second quarter of 2021.
Following deal closure, the new company will retain Tilray as its corporate name. Tilray further disclosed that Aphria’s current CEO Irwin Simon would be appointed as CEO of the combined company. (See TLRY stock analysis on TipRanks)
Roth Capital analyst Scott Fortune called the merger deal a “sensible combination” between a low-cost production company with a top global brands and distribution facilities. Fortune expects over C$100 in cost synergies following the deal closure. Meanwhile, the analyst reiterated a Hold rating on the stock.
Overall, the Street is sidelined on the stock. The Hold analyst consensus is based on 6 Holds, 1 Buy and 2 Sells. Shares have dropped by 45.5% year-to-date and the average price target stands of $9.01 implies an additional downside potential of about 3.4% to current levels.
Related News:
Vroom Nabs CarStory For $120M; Shares Climb 5%
Oshkosh Snaps Up Pratt Miller For $115M; Baird Sees Almost 26% Upside
BP Snaps Up Majority Stake In Finite Carbon; Street Sees 36% Upside
Shares of Roku gained about 4.5% in Wednesday’s market extended trading as the video streaming platform reached a deal with AT&T’s Warner Media to bring HBO Max Service on its devices, starting from Dec. 17.
Roku (ROKU) said that from Dec. 17 its users “will be able to download HBO Max from the Roku channel store and subscribe directly on their Roku device to access all of HBO Max, which includes 10,000 hours of curated premium storytelling from the iconic brands of HBO, Warner Bros., DC, Adult Swim and much more.”
The company’s deal with HBO Max comes just a week ahead of the highly anticipated superhero movie ‘Wonder Woman 1984’, which will debut simultaneously in theaters and on HBO Max on Dec. 25. Therefore, HBO Max subscribers can directly watch the movie on their Roku devices at no additional cost. (See ROKU stock analysis on TipRanks)
Scott Rosenberg, the senior vice president of Roku’s platform business said, “We believe that all entertainment will be streamed and we are thrilled to partner with HBO Max to bring their incredible library of iconic entertainment brands and blockbuster slate of direct to streaming theatrical releases to the Roku households with more than 100 million people that have made Roku the No. 1 TV streaming platform in America.”
On Dec. 11, Merrill Lynch analyst Ruplu Bhattacharya maintained a Buy rating on the stock and lifted the price target to $360 (10.5% upside potential) from $310. The analyst believes that Roku stock has an attractive valuation and is executing well against its strategy of delivering increased scale, engagement and ad monetization. He noted, “First time advertiser clients more than doubled y/y in 3Q driven by performance marketers using the OneView platform, as well as advertisers focused on new products like incremental reach guarantees.”
Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 12 Buys, 6 Holds and 1 Sell. Following this year's stock rally of 143.3%, he average price target stands at $260.68 and implies downside potential of about 20% to current levels.
Related News:
Quest Lifts 2020 Sales, Profit Guidance As Covid-19 Testing Picks Up
Aspen Group Sinks 7% On Higher 2Q Loss; Street Stays Bullish
Dixons Pops 15% As Online Sales Go Through The Roof; Street Sees 10% Downside
Shares of Lennar Corp. popped 3.8% in Wednesday’s extended trading after the homebuilder reported better-than-expected 4Q results, driven by strong housing demand.
Lennar (LEN) reported 4Q earnings of $2.82 per share, which increased 32.4% year-over-year and topped the Street’s estimates of $2.37 per share. The company’s 4Q sales of $6.83 billion also exceeded the consensus estimates of $6.65 billion, but declined 2% year-on-year.
Lennar’s executive chairman Stuart Miller said that during the fourth quarter, “The confluence of Millennials starting families and creating households of their own, along with the pro-housing effects of the COVID-19 pandemic, has materially strengthened demand. This surge in demand for housing, combined with the market's inability to produce sufficient homes to meet this demand, has exacerbated the already well-documented undersupply of new and existing homes for sale.” (See LEN stock analysis on TipRanks)
On Dec. 8, UBS analyst Nishu Sood initiated coverage on Lennar stock with a Hold rating and a price target of $77 (3.7% upside potential). The analyst said that companies dealing with new home construction and remodeling will “fade sharply”, while commercial construction companies will return to normal rates.
Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 3 Buys and 3 Holds. The average price target stands at $89.60 and implies upside potential of about 20.6% to current levels. Shares have gained 33.2% year-to-date.
Related News:
Quest Lifts 2020 Sales, Profit Guidance As Covid-19 Testing Picks Up
Aspen Group Sinks 7% On Higher 2Q Loss; Street Stays Bullish
Dixons Pops 15% As Online Sales Go Through The Roof; Street Sees 10% Downside