Connect with us

General Other

Analysts Just Published A Bright New Outlook For Seattle Genetics, Inc.’s (NASDAQ:SGEN)

mm

Published

on

dcf

Seattle Genetics, Inc. (NASDAQ:SGEN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Seattle Genetics too, with the stock up 18% to US$175 over the past week. We’ll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the latest consensus from Seattle Genetics’ 19 analysts is for revenues of US$1.4b in 2020, which would reflect a huge 35% improvement in sales compared to the last 12 months. Losses are presumed to reduce, shrinking 11% from last year to US$1.33. Yet before this consensus update, the analysts had been forecasting revenues of US$1.2b and losses of US$2.06 per share in 2020. So there’s been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

See our latest analysis for Seattle Genetics

earnings-and-revenue-growth

There was no major change to the consensus price target of US$184, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Seattle Genetics at US$252 per share, while the most bearish prices it at US$138. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It’s clear from the latest estimates that Seattle Genetics’ rate of growth is expected to accelerate meaningfully, with the forecast 35% revenue growth noticeably faster than its historical growth of 24% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% next year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Seattle Genetics is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Seattle Genetics is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive – assuming these forecasts are met! So Seattle Genetics could be a good candidate for more research.

It’s great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. For more information, you can click through to our free platform to learn more about these forecasts.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

mm

Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

General Other

Microsoft resolves major Monday outage after five hours

mm

Published

on

Microsoft-Results

NEW YORK (AP) — Microsoft took five hours to resolve a major outage of its workplace applications on Monday, but has not clarified what caused the outage.

The company said the outage, which affected users’ ability to log into Office 365 applications, began early evening Monday Eastern time. Microsoft did not reply to questions Tuesday about what caused the outage, but said on its service-status Twitter account that it had identified a “recent change” that appeared to cause problems.

It then rolled back the change and applied other unspecified “mitigation efforts.” The company said five hours later that the problem was resolved.

Internet service outages are not uncommon, and are only rarely the result of hacking or other intentional mischief. A Zoom outage disrupted virtual school for many back in August. On Tuesday morning, the workplace communications service Slack reported issues sending messages for over an hour.

mm

Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

Continue Reading

General Other

Meghan McCain says she and day old baby Liberty will be watching the presidential debate

mm

Published

on

THE VIEW - 3/20/20"The View" taped without a studio audience due to concerns over coronavirus on Wednesday, March 11, 2020 on ABC's "The View." "The View" airs Monday-Friday, 11am-12pm, ET on ABC. VW20(Photo by Lou Rocco/ABC via Getty Images)MEGHAN MCCAIN

Meghan McCain’s baby girl may have just been born, but she’s ready for her first presidential debate. After all, politics are in her genes.

News broke that The View co-host, 35, had given birth to her baby girl — given the name of Liberty Sage McCain Domenech — on Monday night, and her co-hosts on the daytime talk show celebrated the baby’s arrival on Tuesday’s show.

At the top of the episode, Whoopi Goldberg informed viewers, “Stop the presses. There’s a new baby in town… We’re talking about the new baby that arrived for Meghan and her husband Ben [Domenech],” founder of a conservative website. “It’s a little girl… We’ve been waiting and waiting and she’s arrived.”

The new mom pulled herself out of post-delivery euphoria to reshare her colleagues’ congratulations — and thank her fans “from the bottom of my heart for all the wonderful well-wishes and overwhelming kindness.” McCain — who had a “horrendous” miscarriage in 2019 — said she and Domenech are “completely and utterly in love” with Liberty and are feeling “indescribably blessed/blissed out.”

Meghan McCain’s daughter has arrived and she has a very patriotic name. (Photo: Lou Rocco/ABC via Getty Images)MEGHAN MCCAIN

She also promised that Liberty — whose name is obviously a very patriotic one‚ right from the Declaration of Independence (“Life, Liberty and the pursuit of Happiness”) — will “be watching her first debate” tonight — in which President Trump and Democratic nominee Joe Biden face-off — and it will be a family affair. (Biden is a McCain family friend while Trump has publicly criticized McCain’s late father, Sen. John McCain. On Tuesday, it was announced McCain’s mother, Cindy McCain, will join Biden on his transition team as an adviser.)

McCain also reshared a sweet message from her mom Cindy calling Liberty “a darling baby girl,” and saying that her late husband was “looking down” on the happy milestone.

McCain also responded to Rep. Tulsi Gabbard’s tweet congratulating her by saying that she can’t wait for her to meet the baby.

McCain and Domenech have been staying in Virginia, outside Washington, D.C., amid the coronavirus pandemic, with the conservative co-host appearing virtually on her talk show. McCain is expected to take a three-week maternity leave, returning before the presidential election.

Read more from Yahoo Entertainment:

mm

Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

Continue Reading

General Other

Buy or Sell Micron Before Earnings?

mm

Published

on

Yahoo Finance

TipRanks

2 “Strong Buy” Space Stocks That Are Ready for Takeoff

Space, the final frontier. Throughout history, the expanse that exists beyond Earth has captivated people all over the world, with space exploration continuing to take giant leaps forward since Apollo 11 first landed on the moon.Now, outer space has peaked Wall Street’s interest. Given the high levels of private funding and advances in technology, the pros argue there could be major implications should space become more accessible and less expensive to reach. To this end, new markets such as satellite broadband, high-speed product delivery, reusable rockets and human space travel are emerging.Speaking to the potential opportunity, according to a recent KPMG report, by 2030, the global space industry could reach $600 billion, with it currently worth $350 billion. Bearing this in mind, we used TipRanks’ database to zero in on two space stocks reaching for the stars, so says the Street. Boasting the analyst community’s full support, both tickers have received a “Strong Buy” consensus rating. Virgin Galactic Holdings (SPCE)By offering high-speed point-to-point travel, Virgin Galactic wants to commercialize space travel and revolutionize commercial flight. Given the significant backlog of demand for commercial spaceflight, several members of the Street have high hopes for this space stock.Representing Cowen, analyst Oliver Chen sees SPCE as “uniquely positioned to benefit from the growing consumer interest toward luxury experiences, especially among high-net-worth individuals.” He added, “We believe a substantial growth opportunity lies ahead with the commercial spaceflight business, which already has ~600 reservations, and the development of high-speed point-to-point travel.”Looking at the market opportunity, Chen estimates that this part of the business could push SPCE’s top-line to $1 billion-plus by 2030, growing at a 60%-plus CAGR (2021-2030), with an EBITDA margin of 46%. According to the analyst, there’s a total addressable market (TAM) for commercial spaceflight (suborbital) of roughly 2.4 million individuals with a net worth of $5 million-plus globally.On top of this, SPCE could use its technology to develop additional revenue streams such as high-speed P2P commercial air travel. The development of hypersonic aircrafts would make 85% of the global network pairs accessible in a one-day trip. In addition, the analyst thinks the high-speed P2P opportunity could yield a TAM of $985 billion by 2050, and SPCE’s market share could clock in at 20%. “P2P is in very early innings but we believe the company has the resources, capital, and experience to pursue this business line,” Chen noted.Given that the company’s leadership team brings expertise from NASA and Disney to the table, Chen argues SPCE is capable of capitalizing on the opportunity, with solid execution potentially solidifying its status as an experiential luxury brand.The positioning of its commercial space flight offering as a luxury airline experience, which is what consumers are more used to, is likely to give SPCE the first-mover advantage over others like Blue Origin. “Given the high fixed cost of operating a space tourism operation, first-mover advantage looks critical to success; and VG appears better positioned than BO to get it,” Chen mentioned.What else could give SPCE the first-mover advantage? Chen points to SPCE’s 10-plus years of technology developed with $1 billion of investment made to-date and the vertically integrated aerospace development capabilities. What’s more, SPCE has “created competitive moats in a high-barrier-to-entry industry and benefits from strong consumer demand, which should support a premium pricing structure.”Based on all of the above, Chen puts an Outperform (i.e. Buy) rating and $22 price target on the stock. (To watch Chen’s track record, click here)Are other analysts in agreement? They are. Only Buy ratings, 7 to be exact, have been issued in the last three months. Therefore, the message is clear: SPCE is a Strong Buy. With a $25.43 average price target, shares could rise 22% in the next year. (See Virgin Galactic stock analysis on TipRanks)Aerojet Rocketdyne Holdings (AJRD)Serving customers that include the U.S. Department of Defense (DoD), NASA and other agencies and companies, Aerojet Rocketdyne develops and manufactures advanced propulsion and energetics systems. Given its recent contract awards, multiple analysts believe this company’s long-term growth prospects are strong.5-star analyst Ken Herbert, of Canaccord Genuity, recently met with AJRD’s new CFO, coming away from the discussion with his bullish thesis very much intact. The company expects the space business, which makes up 40% of sales, to be flat to up slightly, due to the recent SLS RS-25 engine order, with the core defense business (60% of sales) set to see steady growth.“While near-term margin upside is limited, we believe the revenue visibility, strong balance sheet and incremental opportunities in both space and defense contribute to a scarcity value for AJRD not reflected in the stock,” Herbert commented.That said, new programs are an essential piece of the puzzle here. Earlier in September, AJRD announced that it will build two elements of the new ground based strategic deterrent (GBSD) nuclear missiles for Northrop Grumman, which received a $13.3 billion, 8.5-year EMD contract to initiate early production of the “Minuteman IV” platform. AJRD is responsible for manufacturing a large solid rocket motor for the missile’s upper stage and the post-boost propulsion system needed to guide the nuclear warheads to their targets through apogee (the highest point of their parabolic flight arc). Weighing in on the deal, Herbert commented, “The program is expected to be substantial to both Aerojet and Northrop, with 400 active and 242 spare ICBMs expected to occupy the existing launch sites in the American West. It has been estimated that the GBSD program will be worth $63 billion during its first 20 years of life, which is likely to be extended given the longevity of the current Minuteman III deterrent.”Adding to the good news, AJRD’s backlog has increased to a record high of $6.8 billion as of Q2 2020, a 48% gain from the prior-year quarter. According to Herbert, a key driver of this growth has been the $1.8 billion NASA contract to construct 18 new RS-25 engines to support at least five additional Artemis lunar missions beyond the three currently planned. “As such, visibility into Aerojet’s business with NASA continues to look promising through 2030. Aerojet has also continued to see backlog growth on THAAD, hypersonics, Standard Missile and GMLRS,” the analyst stated. If that wasn’t enough, Herbert believes missile defense and classified hypersonics programs are likely to see solid backlog growth in the near-term.On top of this, in August, the U.S. Air Force awarded two contracts for the National Security Space Launch (NSSL) program to ULA (a Boeing and Lockheed joint venture) and SpaceX. The implication? “Aerojet Rocketdyne is seen as a winner of the contact outcome, which ensured that the company will continue to provide content on a majority of U.S. military and intelligence launches. AJRD will see its upper stage engine content double on the new ULA Vulcan rocket under this contract, which utilizes a new Centaur upper stage (the Centaur V) powered by two RL10 engines, as opposed to one RL10 on the legacy Atlas V rocket,” Herbert explained.Everything that AJRD has going for it convinced Herbert to reiterate his Buy rating. Along with the call, he maintained a $54 price target, suggesting 34% upside potential. (To watch Herbert’s track record, click here)All in all, other analysts are on the same page. AJRD’s Strong Buy consensus rating breaks down into 3 Buys and no Holds or Sells. Meanwhile, the $56 average price target brings the upside potential to 39%. (See AJRD stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

mm

Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

Continue Reading

Trending