Top Research Reports for Novartis, Amgen & Palo Alto Networks
Wednesday, January 24, 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 Novartis AG (NVS), Amgen Inc. (AMGN) and Palo Alto Networks, Inc. (PANW). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Novartis have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+26.0% vs. +19.8%). The company posted a solid performance in 2023. With the separation of Sandoz, it has become a pure-play pharmaceutical company.
Drugs like Entresto, Kesimpta, Zolgensma, Kisqali and Leqvio continue to fuel growth and offset the impact of generic competition. Pluvicto and Scemblix saw solid launches and the Leqvio launch continues to progress. The acquisition of Chinook Therapeutics has strengthened its renal pipeline.
However, generic competition for key drugs like Gilenya and pipeline setbacks remain concerns. The performance of Cosentyx in the United States was ordinary in 2023.
(You can read the full research report on Novartis here >>>)
Amgen shares have outperformed the Zacks Medical - Biomedical and Genetics industry over the past year (+25.0% vs. -12.6%). The company expects strong sales growth of products like Tezspire, Evenity, Repatha, Prolia and Tavneos to be offset by lower revenues from oncology biosimilars and legacy established products such as Enbrel in the future quarters.
The addition of Horizon Therapeutics has given Amgen a significant rare disease business. Amgen also has some key pipeline assets in obesity and inflammation, which are indications that can have a large market opportunity. Several data readouts are expected in the next 12 months.
However, increased pricing headwinds and competitive pressure are hurting sales of many products, including some biosimilars. Weakness in some key brands like Otezla and Lumakras create potential revenue headwinds.
(You can read the full research report on Amgen here >>>)
Shares of Palo Alto Networks have outperformed the Zacks Internet - Software industry over the past six months (+41.7% vs. +17.7%). The company has been benefiting from continuous deal wins and the increasing adoption of its next-generation security platforms, attributable to the rise in the hybrid work environment and the heightened need for stronger security.
PANW’s strong back-to-back quarterly performances reflect its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy. The normalization of the supply chain is also aiding growth across the Products, Services and Subscription segments.
However, softening IT spending amid macroeconomic headwinds might hurt its near-term prospects. Forex headwinds and higher marketing and sales expenses are likely to continue hurting its profitability. Also, high acquisition-related expenses are denting margins.
(You can read the full research report on Palo Alto Networks here >>>)
Other noteworthy reports we are featuring today include Brown & Brown, Inc. (BRO), PTC Inc. (PTC) and Ericsson (ERIC).
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. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Entresto, New Drugs Fuel Novartis (NVS) Amid Competition
Amgen (AMGN) Well-Poised for Growth on a Solid Pipeline
Palo Alto (PANW) Rides on Product Strength, Marketing Effort
Featured Reports
Improving Commissions and Fees Drive Brown and Brown (BRO)
Per the Zacks analyst, Brown and Brown is set to grow on higher commissions and fees, driven by net new and renewal business that in turn drive top line. Yet, increasing expenses concern.
Strong Portfolio & Acquisitions to Drive PTC's Performance
Per the Zacks analyst, PTC's performance is being driven by robust demand for products like Creo and Windchill and strategic acquisitions. However, stiff competition is a headwind.
Ericsson (ERIC) Rides on Strong 5G Investments, Cost Discipline
Per the Zacks analyst, growing 5G investments in the Middle East and solid demand for Enterprise Wireless Solutions will likely boost Ericsson's margin. Strong focus on cost management is a tailwind.
Favorable Markets Support Lincoln Electric (LECO), Costs Ail
Per the Zacks analyst, continued acceleration in Lincoln Electric's end markets, focus on innovative new products and recent acquisitions will drive growth despite raw material cost inflation.
SYNNEX (SNX) Benefits From Rising Hybrid Working Tool Demand
Per the Zacks Analyst, TD SYNNEX is benefiting from the growing hybrid working trend which is driving demand for offsite-working and learning hardware and software.
Improving Mortgage Rate Aids KB Home (KBH), High Costs Hurt
Per the Zacks analyst, improving housing demand thanks to recent decline in mortgage rates is benefiting KB Home. However, high costs and expenses are denting margins.
Helen of Troy (HELE) Benefits From Strong Leadership Brands
Per the Zacks analyst, Helen of Troy is benefiting from solid investments in its Leadership Brands. Key Leadership brands like Osprey, OXO and Hydro Flask performed well in fiscal third-quarter.
New Upgrades
Product Innovation & Cost Control Efforts Aid Acuity Brands (AYI)
Per the Zacks analyst, Acuity Brands benefits from product innovation and cost-saving initiatives. Also, its emphasis on in-organic moves and intelligent Spaces Group bode well.
SkyWest (SKYW) Benefits From Improving Air-Travel Demand
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding SkyWest's top-line performance.
Strength in Vista & National Pen Units Drive Cimpress (CMPR)
Per the Zacks analyst, strength in Cimpress' Vista and National Pen units, fueled by robust demand for promotional products, apparel and marketing materials, will continue to lend momentum to it.
New Downgrades
Fluctuating Commodity Price, Competition Ail Murphy (MUR)
Per the Zacks analyst Murphy Oil future prospects can be adversely impacted by the fluctuating commodity prices, while competitive industry can affect its profitability.
Price Competition & Reduced Customer Activity Ail RPC (RES)
Per the Zacks analysts, RPC is grappling with challenges in service demand due to decreased investments in the North American land market. Declining customer activity adds to the concern.
Weak Demand Hurts Microchip's (MCHP) Top-Line Prospects
Per the Zacks analystp, Microchip is suffering weakening demand and challenging macroeconomic environment. Persistent inflation and high-interest rates hurt prospects.
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Novartis AG (NVS) : Free Stock Analysis Report
Ericsson (ERIC) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
Brown & Brown, Inc. (BRO) : Free Stock Analysis Report
Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
PTC Inc. (PTC) : Free Stock Analysis Report
