Top Analyst Reports for Danaher, Morgan Stanley & Pfizer
Thursday, July 11, 2024
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Danaher Corporation (DHR), Morgan Stanley (MS) and Pfizer Inc. (PFE), as well as two micro-cap stocks, Elite Pharmaceuticals, Inc. (ELTP) and Oil-Dri Corporation of America (ODC). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Danaher shares have underperformed the Zacks Diversified Operations industry over the past year (+1.7% vs. +8.4%). The Zacks analyst believes that Danaher is plagued by weakness in the biotechnology unit due to decreased demand in the bioprocessing business. The company’s global presence also exposes it to forex woes.
Yet, business has been good in the life sciences segment and the Abcam acquisition have bolstered the company’s growth. Also, through Danaher’s DBS initiatives, it has been able to reduce the impact of supply-chain constraints and inflationary pressures.
(You can read the full research report on Danaher here >>>)
Morgan Stanley’s shares have underperformed the Zacks Financial – Investment Bank industry over the past year (+20.6% vs. +31.8%). The Zacks analyst believes that uncertainty about the performance of the capital markets is a woe for the company and will likely hurt its Institutional Securities segment’s prospects. Rising costs are also likely to hurt its profitability.
However, resurgence of its investment banking business and a solid pipeline will aid financials. The new strategic alliance with Mitsubishi UFJ will bolster the company’s presence in Japan. Efforts to become less dependent on capital-markets-driven revenues, inorganic expansion and high rates will also benefit the company.
(You can read the full research report on Morgan Stanley here >>>)
Shares of Pfizer have underperformed the Zacks Large Cap Pharmaceuticals industry over the last six months (-1.2% vs. +16.6%). Per the Zacks analyst, the company’s top line is declining due to a steep drop in revenues from its COVID-19 products. Concerns remain about its long-term growth drivers.
Yet, pipeline products like Vyndaqel and Prevnar, new launches like Abrysvo, Velsipity, Penbraya and newly acquired products, including those acquired from Seagen, are expected to drive the company’s growth in the near future.
(You can read the full research report on Pfizer here >>>)
Elite Pharmaceuticals’ shares have outperformed the Zacks Medical – Drugs industry over the past two years (+302.3% vs. -16.8%). The Zacks analyst believes that the successful commercial launch of the company’s Elite label product line, efficient cost management, robust product pipeline (including methotrexate), strategic partnerships, and financial prudence position it for sustained growth.
However, high inventory, DEA quota challenges, market competition and dependency on key products pose risks.
(You can read the full research report on Elite Pharmaceuticals here >>>)
Oil-Dri’s shares have outperformed the Zacks Chemical – Diversified industry over the past two years (+91.0% vs. +3.0%). The Zacks analyst believes that the acquisition of Ultra Pet Company and product launches like Cat’s Pride Antibacterial Clumping Litter have benefited the company’s performance.
However, ODC's heavy reliance on Walmart for a significant portion of its sales makes its revenues vulnerable to volatility. Also, sales of agricultural and animal health products have been falling.
(You can read the full research report on Oil-Dri here >>>)
Other noteworthy reports we are featuring today include Sony Group Corporation (SONY), Intercontinental Exchange, Inc. (ICE) and Republic Services, Inc. (RSG).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports.
Today's Must Read
Strong Life Sciences Unit Aids Danaher (DHR), High Debt Ails
Morgan Stanley's (MS) Strategic Buyouts Aid Amid High Costs
Pfizer's (PFE) New Products Can Drive Long Term Sales Growth
Featured Reports
Cost Management & Regulated investment Aid Exelon (EXC)
Per the Zacks analyst Exelon's cost management initiatives will have positive impact on margins and its planned $34.5B investments through 2027 will strengthen its operation.
CNG Vehicles Aid Republic Services (RSG) Amid Low Liquidity
Per the Zacks analyst, Republic Services is focused on increasing its operational efficiency by shifting to compressed natural gas (CNG) collection vehicles. Low liquidity remains a concern.
TechnipFMC (FTI) to Gain from Strong Subsea Orders
The Zacks analyst believes that TechnipFMC's innovative technologies catering to both emerging and established offshore basins are the key to its strong order book.
Strength in I&SS Segment Aid SONY Amid G&NS Segment Weakness
Per the Zacks analyst, robust sales in the Music, Pictures and Imaging & Sensing Solutions (I&SS) segments are driving Sony's results. Softness in the Games & Network (G&NS) segment is concerning.
Focus on Cost Savings to Bolster McCormick's (MKC) Margins
Per the Zacks analyst, McCormick's focus on cost-saving plans will continue to enhance its margins. The company expects its fiscal 2024 gross margin to increase by 50 to 100 basis points.
Campbell Soup (CPB) Well-Placed on Resilient Snacks Unit
Per the Zacks analyst, Campbell Soup's Snacks division is well-placed for growth, driven by the strength of its power brands, prudent optimization initiatives and resilience amid economic downturns.
Buyouts & Solid Balance Sheet Aid Intercontinental (ICE)
Per the Zacks analyst, Intercontinental Exchange is set to grow on a number of acquisitions and cost synergies. Moreover, a solid balance sheet provides financial flexibility.
New Upgrades
Intellia (NTLA) Banks on Genome Editing Pipeline Candidates
Per the Zacks analyst, Intellia's lead genome-editing candidate, NTLA-2001 being developed to treat transthyretin amyloidosis, holds promise. Studies on other pipelines are also progressing well.
Cost Reduction Effort & Growing EV Line-Up to Aid Honda (HMC)
Per the Zacks analyst, Honda's plan to establish a comprehensive, vertically integrated EV supply chain is likely to reduce battery costs in North America. Expanding EV line-up also augurs well.
Patient-Centric Care Model, Strength in IKC Aid DaVita (DVA)
The Zacks analyst is upbeat about DaVita's patient-centric business model that leverages its kidney care services platform. Continued strength in Integrated Kidney Care or IKC unit is an added plus.
New Downgrades
AMD's Prospects Suffer from Stiff Competition in AI Space
Per the Zacks analyst, AMD's prospects are suffering from stiff competition from NVIDIA in the AI chip race. Weakness in Embedded and Gaming businesses is a concern.
Lower Volume & High Costs Ail Leggett's (LEG) Performance
Per the Zacks analyst, weak demand in Bedding Products and Furniture, Flooring & Textile Products segments have been hurting Leggett. Also, high costs and other margin-related owes are added concerns.
Macerich (MAC) Hurt by Tenant Bankruptcies & High Rates
Per the Zacks Analyst, Macerich's performance is likely to be affected by tenant bankruptcy, a continued inflationary environment and high interest rates despite a focus on omni-channel retailing.
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Morgan Stanley (MS) : Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
Sony Corporation (SONY) : Free Stock Analysis Report
