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Recommendation for Autoliv (Ticker: ALV) Analyst: Raheel Hirji

Recommendation for Autoliv (Ticker: ALV) Analyst: Raheel Hirji. Recommendation: HOLD (Estimated Fair Value: $57 - $78) ALV Core Products: Seatbelts, Airbags, Steering Wheels Autoliv is well positioned to take advantage of global growth prospects - Global LVP expected to increase

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Recommendation for Autoliv (Ticker: ALV) Analyst: Raheel Hirji

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  1. Recommendation for Autoliv (Ticker: ALV) Analyst: Raheel Hirji • Recommendation: HOLD (Estimated Fair Value: $57 - $78) • ALV Core Products: Seatbelts, Airbags, Steering Wheels • Autoliv is well positioned to take advantage of global growth prospects • - Global LVP expected to increase • - Stricter safety standards and govt. regulation being implemented • - Active safety systems experiencing considerable demand • Autoliv commands 35% market share in passive safety systems • - Autoliv is a supplier to all major car manufacturers • - Operational facilities in all major car manufacturing countries • Auto parts and equipment sub industry outlook is bullish • Autoliv is seeking to expand in fast-growing economies • - Developing plant expansions in China, India, Brazil, Poland, Thailand • Ongoing antitrust investigation by DOJ and European Commission • - Result of investigation expected to be material

  2. Recommendation for Freeport McMoRan Copper & Gold Incorporation (Ticker: FCX) Analyst: Thomas Trujillo • Recommendation: BUY (Estimated Fair Market Value: $43–$63 Per Share) • FCX Core Metals Mined: Copper, Gold and Molybdenum • FCX Fair Market Valuation Analysis • - Current Market Price Suggests FCX is Undervalued • Fundamental Analysis • - Sizeable Market Share • Substantial Mine Reserves • Strong Financials • Outlook For Industrial Commodities • Demand in Developing Regions • Industrialization Phase of BRIC (Brazil, Russia, India and China) • Commodity Markets • - FCX Growth Fueled By 10-Year Commodity Bull-Market Trend

  3. Recommendation for Intel Corporation (INTC) Analyst: Thomas Taylor • Recommendation: HOLD (Estimated Fair Value: $13 - $23) • Operating Segments • PC Client Group • Microprocessors & chipsets for notebook, netbook & desktop • Data Center Group • Product incorporated into servers, data storage, workstations • Other Intel Architecture Segment • Ultra mobile and other consumer electronics • Intel’s Future • New Markets • Tablets, mobile phones and emerging markets

  4. Recommendation for Intel Corporation (INTC) Analyst: Thomas Taylor • PC Emerging Markets • China, Eastern Europe, Latin America • - Computing becoming more affordable abroad • - Increase in PC Client Group revenues • - Slows decrease in U.S. consumer interest in PC’s • Large Growth in Emerging Markets • Due to lag between the EM’s and the U.S., large growth expected not only within revenue but manufacturing as well • HP Sticks with PC Market • Intel’s largest customer • - HP accounted for 21% of Intel’s PC Client Group revenue (2010) • - Intel still looking to Emerging Markets for large PC growth

  5. Recommendation for Intel Corporation (INTC) Analyst: Thomas Taylor • Intel Acquisition • Acquisition of McAfee • - Compete to offer “pre-packaged” processors with security • - Accelerate & enhance combination of hardware and software/security • - Assistance of entrance into mobile and other consumer electronic markets • Record Revenues for 2010 • Primary Reasons • - Lower manufacturing costs and factory underutilization • - Higher average selling prices and overall unit sales

  6. Recommendation for JPMorgan Chase (Ticker: JPM) Analyst: Wesley Kress (HOLD) Fair Value: $60-$80 • Retail Financial Services 30%, Investment Bank 25%, Card Services 16% • Top Reasons • Key acquisitions and a strong capital position • JPMorgan’s presence in over 60 countries and their continued ability to acquire new market share globally. • Focused strategy on growing revenue outside the United States particularly in emerging markets • A strong management team, which Jamie Dimon assures the bank is in great hands. JPMorgan’s management has shown to not only be able to remain profitable and stable in what may be the worst years the industry has faced through the financial crisis of 2008. • Reserve Ratios

  7. Recommendation for JPMorgan Chase (Ticker: JPM) Analyst: Wesley Kress (HOLD) Fair Value: $60-$80 • JPMorgan has continued to position itself away from its main competitors by creating one of the strongest investment banking operations both domestically and globally, which will give the company a solid foundation for future growth. • Opportunities: Excellent Capital to take advantage of weak banks domestically and globally through acquisitions. Aggressively expand into Emerging Markets. • Headwinds: increased tightening of credit standards, increased regulation (Dodd-Frank Act), increased regulatory capital standards (Basel III), high unemployment (9.1%), litigation/lawsuits and the housing market. • JPMorgan is continuing to grow and recently overtook Bank of America for the largest bank in the United States in terms of assets.

  8. Recommendation for JPMorgan Chase (Ticker: JPM) Analyst: Wesley Kress (HOLD) Fair Value: $60-$80 • Hold a Bank!? • Among The Best (A Star in a weak industry) • Business diversification • Strong earnings power • Dividend increases • Share repurchases • Diversified operations • JPMorgan ranks in the top three in every line of business and is able to take advantage of scale and volumes due to being the largest bank in the United States. • **The European financial crisis if it materializes leaves 15 billion of exposure for JPMorgan, which is believed to be manageable and at worst case scenario cause 2 to 3 billion in losses.

  9. Microsoft Corporation (MSFT) Analyst: Jean Nobile • Recommendation: Hold (Estimated Fair Value: $30-$41) • MSFT core divisions: Windows and Windows Live, Microsoft Business, Entertainment and Devices, Server and Tools, Online Services • Management’s Expected Revenue Sources • Business Market • Cloud Computing • Office Suite • Operating Systems • Windows Phone • Operating Systems and Office Suite Among PC users • Concerns: • Tablet demand invading the Business Market • Cash Holding • Windows Phone

  10. Microsoft Corporation (MSFT) Analyst: Jean Nobile • Smartphones • Applications • AppStore: 425,000 • Android Market: 250,000 • Windows Marketplace: 30,000 • What the Future Brings for the Industry • Tablets • Smartphones • Business Needs • Possible acquisition of Yahoo!

  11. Recommendation for PepsiCo (PEP)Analyst: Trent Marshall • Stock Recommendation: Hold • Fair Value: $58.00-$77.00 • Current Value: $64.28 Company Segments (% of Revenues): • Frito-Lay North America: 23%; Quaker Foods North America: 3%; Latin America Foods: 11%; PepsiCo Americas Beverage: 35%; Europe: 16%; Asia, Middle East & Africa: 11% Qualitative aspects • PepsiCo’s strongest asset is their snack portfolio. PepsiCo is the world’s largest snack food company • Makes up 40% of US market, 30% of non-US market • Acquisition of North American bottlers

  12. Recommendation for PepsiCo (PEP)Analyst: Trent Marshall Qualitative aspects continued… • Strong 2nd in the worldwide beverage industry • However, in the US PepsiCo has slightly higher market share (22%-20%) • PepsiCo continues expansion into more markets throughout the world • China, India, Brazil Industry Trends/Concerns • Volatility in commodity prices • Agriculture, Energy • Healthy products • Non-traditional marketing techniques

  13. Recommendation for NASDAQ OMX (NDAQ)Analyst: Trent Marshall • Stock Recommendation: Hold • Fair Value: $25.00-$38.00 • Current Value: $25.90 Company Segments (% of Revenues) • Market Services: 67%; Issuer Services: 23%; Market Technology: 10% Qualitative aspects • NASDAQ has diversified their business over a number of different segments • Trading, clearing, electronic exchange technology, listing services, and market data • Continued expansion of its service into Europe will continue to increase revenues for NASDAQ • NASDAQ Baltic and NASDAQ Nordic

  14. Recommendation for NASDAQ OMX (NDAQ)Analyst: Trent Marshall Qualitative aspects continued… • NASDAQ has a strong electronic trading platform that they have implemented in their different markets Industry Trends/Concerns • Rapid consolidation in the industry • M&A deals are making the competition even stronger • Cyclical nature of this industry • Majority of NASDAQ’s revenues come from executing trades • Over regulation of the industry

  15. Recommendation for PepsiCo (PEP)Analyst: Trent Marshall • Stock Recommendation: Hold • Fair Value: $58.00-$77.00 • Current Value: $64.28 Company Segments (% of Revenues): • Frito-Lay North America: 23%; Quaker Foods North America: 3%; Latin America Foods: 11%; PepsiCo Americas Beverage: 35%; Europe: 16%; Asia, Middle East & Africa: 11% Qualitative aspects • PepsiCo’s strongest asset is their snack portfolio. PepsiCo is the world’s largest snack food company • Makes up 40% of US market, 30% of non-US market • Acquisition of North American bottlers

  16. Recommendation for PepsiCo (PEP)Analyst: Trent Marshall Qualitative aspects continued… • Strong 2nd in the worldwide beverage industry • However, in the US PepsiCo has slightly higher market share (22%-20%) • PepsiCo continues expansion into more markets throughout the world • China, India, Brazil Industry Trends/Concerns • Volatility in commodity prices • Agriculture, Energy • Healthy products • Non-traditional marketing techniques

  17. Recommendation for NASDAQ OMX (NDAQ)Analyst: Trent Marshall • Stock Recommendation: Hold • Fair Value: $25.00-$38.00 • Current Value: $25.90 Company Segments (% of Revenues) • Market Services: 67%; Issuer Services: 23%; Market Technology: 10% Qualitative aspects • NASDAQ has diversified their business over a number of different segments • Trading, clearing, electronic exchange technology, listing services, and market data • Continued expansion of its service into Europe will continue to increase revenues for NASDAQ • NASDAQ Baltic and NASDAQ Nordic

  18. Recommendation for NASDAQ OMX (NDAQ)Analyst: Trent Marshall Qualitative aspects continued… • NASDAQ has a strong electronic trading platform that they have implemented in their different markets Industry Trends/Concerns • Rapid consolidation in the industry • M&A deals are making the competition even stronger • Cyclical nature of this industry • Majority of NASDAQ’s revenues come from executing trades • Over regulation of the industry

  19. Recommendation for PepsiCo (PEP)Analyst: Trent Marshall • Stock Recommendation: Hold • Fair Value: $58.00-$77.00 • Current Value: $64.28 Company Segments (% of Revenues): • Frito-Lay North America: 23%; Quaker Foods North America: 3%; Latin America Foods: 11%; PepsiCo Americas Beverage: 35%; Europe: 16%; Asia, Middle East & Africa: 11% Qualitative aspects • PepsiCo’s strongest asset is their snack portfolio. PepsiCo is the world’s largest snack food company • Makes up 40% of US market, 30% of non-US market • Acquisition of North American bottlers

  20. Recommendation for PepsiCo (PEP)Analyst: Trent Marshall Qualitative aspects continued… • Strong 2nd in the worldwide beverage industry • However, in the US PepsiCo has slightly higher market share (22%-20%) • PepsiCo continues expansion into more markets throughout the world • China, India, Brazil Industry Trends/Concerns • Volatility in commodity prices • Agriculture, Energy • Healthy products • Non-traditional marketing techniques

  21. Recommendation for NASDAQ OMX (NDAQ)Analyst: Trent Marshall • Stock Recommendation: Hold • Fair Value: $25.00-$38.00 • Current Value: $25.90 Company Segments (% of Revenues) • Market Services: 67%; Issuer Services: 23%; Market Technology: 10% Qualitative aspects • NASDAQ has diversified their business over a number of different segments • Trading, clearing, electronic exchange technology, listing services, and market data • Continued expansion of its service into Europe will continue to increase revenues for NASDAQ • NASDAQ Baltic and NASDAQ Nordic

  22. Recommendation for NASDAQ OMX (NDAQ)Analyst: Trent Marshall Qualitative aspects continued… • NASDAQ has a strong electronic trading platform that they have implemented in their different markets Industry Trends/Concerns • Rapid consolidation in the industry • M&A deals are making the competition even stronger • Cyclical nature of this industry • Majority of NASDAQ’s revenues come from executing trades • Over regulation of the industry

  23. Recommendation for Wells Fargo Ticker: WFC (HOLD) Analyst: Wesley Kress Fair Value: $33-$40 • Community Banking 60% • Wholesale Banking 26%, Wealth, Brokerage, & Retirement 14% • Top Reasons • Ability to Implement relationship based banking through one of the most extensive financial services distributions systems in North America • Cross selling • Key acquisition Wachovia • Diverse geographic reach and business mix will continue to facilitate new client inflows, cost synergies, continued diversification, and increased market share. • Project compass to help boost efficiency, staff, technology, loan resolution, loss mitigation, automating certain processes, and exiting certain business segments

  24. Recommendation for Wells Fargo Ticker: WFC (HOLD) Analyst: Wesley Kress Fair Value: $33-$40 • Effectively manage risk by being in 84 different financial businesses • Headwinds: increased tightening of credit standards, increased regulation (Dodd-Frank Act), increased regulatory capital standards (Basel III), high unemployment (9.1%), litigation/lawsuits, (GSIBs) and the housing market. • Basel III - 35 basis point above the Tier 1 common equity to total-risk weighted assets anticipated under Basel III. • Opportunities: Excellent Capital to take advantage of weak banks domestically and globally through acquisitions.

  25. Recommendation for Wells Fargo Ticker: WFC (HOLD) Analyst: Wesley Kress Fair Value: $33-$40 • Hold a Bank!? • Wells Fargo loan portfolio is among the industry’s best • Lowest delinquency and foreclosure rate by more than 300 basis points in these categories compared to the industry average. • Wells Fargo’s high exposure to the 1-4 family mortgages with over 40% of their overall loan portfolio (both primary and secondary mortgages). • Management has shown success in risk management • Deposit Growth Strong growth in terms of deposits, growing over 40 billion, which is among the highest on record for the company in the 3rd quarter of 2011

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