Morgan Stanley: 2 Strong Value Stocks to Buy Now
Volatility is back on Wall Street. Following a meteoric rise, fears that valuations have grown too high have put pressure on stocks. With the upcoming presidential election, ongoing pandemic and flaring U.S.-China tensions only adding fuel to the fire, investors are trying to gauge where the market goes from here. Even though many economists believe the Fed’s low interest rate policy fueled the market’s historic five-month rally, Morgan Stanley’s chief cross-asset strategist Andrew Sheets is singing a different tune.Sheets argues that the market’s charge forward wasn’t necessarily driven by the Fed’s actions. Rather, the run-up came as a result of better-than-expected economic data. “As much as the steady rise of markets seems disconnected from the conditions in the real economy, I’d argue that actually they’re more closely related. And going forward, that is a double-edged sword,” he explained. “This improvement, rather than any new policy that central banks have been enacting, might be the real story of this summer’s strength.”In other words, should the data slow, stocks might sink even if interest rates stay low. That said, if the trend continues to improve, stocks could continue climbing higher.Taking this outlook into consideration, we used TipRanks’ database to take a closer look at two names identified by Morgan Stanley as strong value stocks. The firm’s analysts noting that each could gain more than 40% in the year ahead.Freeline Therapeutics (FRLN)Using AAV technology, Freeline Therapeutics develops gene therapies to deliver safe and effective gene replacement to the liver to produce sustained therapeutic protein expression for diseases like hemophilia B and Fabry disease. Based on its cutting-edge pipeline, Morgan Stanley is pounding the table. Representing the firm, 5-star analyst Matthew Harrison points out that its “broad platform provides significant gene therapy opportunity, which can drive $1 billion-plus in unadjusted peak sales.” Highlighting its lead candidate, FLT180a, its gene therapy for hemophilia B (a disease that is characterized by decreased clotting and uncontrolled bleeding), the analyst believes it has major potential.The current standard of care for hemophilia B involves regular infusions of Factor IX (FIX) protein into the blood, but the FIX activity typically doesn’t remain stable. “FLT180a has the potential to deliver a single-dose cure for patients by achieving FIX levels in the ‘normal’ range of 50-150%. Although active clinical programs for hemophilia B include Spark/Pfizer and uniQure, they have been unable to achieve a mean expression level in the normal range. We thus believe that FLT180a has the potential to be a best-in-class product with $500 million-plus in peak sales potential,” Harrison commented.With the Phase 1/2 data already de-risking the asset, the implications go even further, in Harrison’s opinion. Along with the hemophilia B program, FRLN has another therapy, FLT190, targeting Fabry disease, a lysosomal storage disorder. While only one patient has been dosed, the analyst argues “the Freeline platform sets up this program for success.”Expounding on this, Harrison stated, “Given the data in hemophilia B, Freeline’s platform has high potency which can provide high protein expression levels at low doses, and Freeline’s prophylactic immune management regimen appears to prevent immune reactions, which could affect the durability of those high protein expression levels. Because FLT190 is using the same capsid and promoter and the same immune regimen as used for hemophilia B, we believe that, although still at an early stage, FLT190 is primed for success.”Adding to the good news, the company has early stage programs for hemophilia A, a multi-billion market, according to Morgan Stanley, and Gaucher disease, another lysosomal storage disorder. “While both programs are early, we believe the platform supports their potential,” Harrison mentioned.It should come as no surprise, then, that Harrison stayed with the bulls. To this end, he kept an Overweight (i.e. Buy) rating and $28 price target on the stock, implying 65% upside potential. (To watch Harrison’s track record, click here)What does the rest of the Street have to say? Only Buy ratings, 4 in fact, have been issued in the last three months, so the consensus rating is a Strong Buy. In addition, the $28.75 average price target suggests 69% upside potential. (See FRLN stock analysis on TipRanks)Cloudera Inc. (CLDR)Switching gears now, we come across Cloudera, which delivers an enterprise data cloud for any data, anywhere, from the Edge to AI. Even with ARR ramping up, Morgan Stanley believes this tech company is undervalued.Firm analyst Sanjit Singh points to CLDR’s Q2 performance as reaffirming his confidence. “Q2 results highlight what has been true now for several quarters – CLDR is now a much more stable business.”Digging into the details of the print, ARR accelerated to 12% year-over-year, beating the consensus estimate. Subscription revenue growth came in at 17%, also besting the Street’s 14.5% call. The outperformance continued when it came to operating margins and cash flow, which landed at 13.9% and $32 million, respectively. “Resilience within the customer base underscored by improvement in churn rates combined with sharp operational execution helped management raise its FY21 subscription revenue outlook to $755-$765 million (13-15%) from $745-$755 million prior,” Singh noted.Following the strong print, there is one question on investors’ minds. As both the CDP Public Cloud and CDP Private Cloud have now been officially launched, will the CDP platform become a key revenue driver?Addressing this question, Singh commented, “The early signs are encouraging with customer count and bookings doubling in the quarter. Management expects revenue traction in FY22 and we are cautiously optimistic that CDP can enable modest improvement in growth particularly as the spending environment recovers.”Some investors were taken aback by CLDR’s Q3 subscription revenue guidance, which implies a minor quarter-over-quarter decline, but Singh offers an explanation. “This reflects the impact of becoming a pure open source model which results in less up-front revenue recognition vs. Last year when Cloudera was operating a part proprietary/open source model,” he stated.Summing it all up, Singh said, “Recent results highlight management’s ability to meet investor expectations while delivering on key product milestones, most notably CDP, which better positions the company in the data management market. We see the launch of CDP sustaining growth by improving retention rates and securing new customers as the spending environment recovers. Furthermore, a growing focus on larger enterprises should provide leverage going forward given their more attractive unit economics. With low expectations, achievable ARR estimates and a new product cycle, we see shares attractively valued.”All of the positives prompted Singh to leave his bullish call and $16 price target unchanged. This target conveys Singh’s confidence in CLDR’s ability to climb 46% higher in the next year. (To watch Singh’s track record, click here)Looking at the consensus breakdown, 4 Buys, 6 Holds and 1 Sell have been published in the last three months. Therefore, CLDR gets a Moderate Buy consensus rating. Based on the $14.50 average price target, shares could rise 32% in the next year. (See CLDR 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.
Trump supporters staged a rally at a Virginia polling center during early voting, intimidating voters, election officials say
Trump supporters waving flags and chanting slogans staged a rally near a polling center in Fairfax, Virginia, Saturday on the second day of early voting in the state, filmed footage shows.
“Some voters, and elections staff, did feel intimidated by the crowd and we did provide escorts past the group,” said Gary Scott, the general registrar of Fairfax County.
But a local Republican official, Steve Rastatter, denied that protesters had been seeking to intimidate voters and said they had complied with officials’ requests to move away.
President Trump has spread groundless accusations that Democrats are seeking to steal the election, and has called on supporters to act as poll monitors.
Attempts at voter intimidation are illegal in Virginia and other US states.
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Supporters of President Donald Trump staged a rally during early voting at a polling station in Virginia on Saturday, in a stunt that an election official said had intimidated voters and disrupted voting.
According to footage of the incident posted online by filmmaker Anthony Tilghman, a group of supporters holding up pro-Trump banners staged the protest near the polling station entrance in Fairfax, on the second day of early voting in the state.
A county election official, Gary Scott, said that the protest was about 100 feet from the building entrance where voters cast their ballot early.
Contrary to some initial reports, the protesters had not blocked access to the polling station, he said.
“Citizens coming into and leaving the building did have to go by them,” Gary Scott, the general registrar of Fairfax County, said in a statement to The New York Times. “Those voters who were in line outside of the building were moved inside and we continued operations. Some voters, and elections staff, did feel intimidated by the crowd and we did provide escorts past the group. One of the escorts was the county executive.”
Fairfax County Democrats Chair Bryan Graham accused local Republicans of seeking to intimidate voters.
“The Republicans are straight-up attempting to intimidate voters at the Government Center. Circling the parking lots with their Trump flags and horns blaring,” he tweeted.
But Fairfax County Republican Committee Vice-Chair Sean Rastatter, who was at the protest, told the Times that they not been seeking to intimidate voters.
He said that he didn’t think “there was any way to need or feel intimidated in any form” and that protesters had complied with a request from election officials to “back away from the curb” and voters waiting to cast their ballot.
The incident reflects the febrile climate around this year’s election, with Trump having repeatedly spread disinformation that mail-in votes are exposed to fraud, and Democrats are plotting to steal the election.
The president at rallies has called on supporters to act as“poll watchers” to guard against election fraud. Democrats say that the president seeks to delegitimize thousands of mail-in votes to cling to power illegally should he lose in November.
Thousands more Americans are expected to cast their ballot by mail this year amid the coronavirus pandemic, with polls showing Democratic nominee Joe Biden holding the lead over Trump.
Already some observers say that the escalating tensions could spill over into election day violence.
Russ Travers, who served as acting director of the National Counter-Terrorism Centre until March, told ABC News last week: “I fear there are a lot of people out there with very warped views of reality and a lot of guns who could willingly take up their weapons in defense of what they believe is the President and the constitution.
“That, I think, is a worrisome possibility that is growing as the political rhetoric gets more and more severe.”
In a statement Saturday, Fairfax County Commonwealth’s Attorney Steve Descano said that those seeking to intimidate voters would be prosecuted.
“I am instructing my office to pursue cases of voter intimidation that may occur,” Descano tweeted.
Read the original article on Business Insider
Lady Gaga says she used to have suicidal thoughts ‘every day’: ‘I hated being famous’
Lady Gaga is one of the biggest superstars on the planet — but says her fame left her feeling “exhausted and used up,” paving the way for suicidal thoughts.
“I just totally gave up on myself,” Gaga (real name: Stefani Germanotta) tells CBS Sunday Morning in a frank new interview. “I hated being famous. I hated being a star. I felt exhausted and used up.”
The Oscar winner, who also recently opened up to Billboard about her mental health, says she began to resent her pop star identity and public profile.
“This is the piano I’ve had for so many years. I’ve written so many songs on this piano,” she tells CBS’s Lee Cowan in the interview. “I don’t know how to explain it. But I went from looking at this piano, and thinking, ‘You ruined my life.’ During that time, I was like, ‘You made me Lady Gaga. My biggest enemy is Lady Gaga.’
“That’s what I was thinking: ‘My biggest enemy is her. What did you do? You can’t go to the grocery store now. If you go to dinner with your family, somebody comes to the table, you can’t have a dinner with your family without it being about you. It’s always about you. All the time it’s about you. And your outfits. Look at your outfits!’
“‘Why you gotta be like that?’” she’d ask her piano.
Though the last few years have seen her headline the Super Bowl Halftime Show, win an Oscar for Best Song and receive another nomination for Best Actress for her role in A Star is Born, and release the albums Joanne and 2020’s Chromatica, Gaga says her outward success masked the turmoil within.
“It’s not always easy, if you have mental issues, to let other people see,” she says. “I used to show. I used to self-harm. I used to say, ‘Look. I cut myself. See, I’m hurt,’ ’cause I didn’t think anyone could see. ‘Cause mental health, it’s invisible.
“The people around me, they lifted me up, and they said, ‘You think you’re drowning, but you’re not. You’re still amazing.’ And I used to go, ‘I’m not amazing. I’m over.'”
When asked by Cowan if she’d contemplated death by suicide during that dark time, she says, “Oh, yeah. Every day.”
She adds, “I lived in this house while people watched me for a couple years, to make sure that I was safe.”
Of those impulses, she says, “I didn’t really understand why I should live other than to be there for my family. That was an actual real thought and feeling: ‘Why should I stick around?’“
Gaga says she’s in a better place these days, but that mental anguish, coupled with fibromyalgia and PTSD from being sexually assaulted at age 19, continues to take a toll. In fact, her new single Chromatica includes the lyric “pop a 911” — which she calls a “reference to the medication that I have to take when I used to panic, because I’m Lady Gaga.”
“Most of the time it is triggered by objectification,” she says of the “total panic, full body pain” she experiences. “If I’m at the grocery store, and somebody comes up very close to me and puts a cellphone right in my face, and just starts taking pictures … I’m braced because I’m so afraid. It’s like I’m an object, I’m not a person.”
The singer is hoping her candidness will help others struggling in difficult times; she’s also releasing Channel Kindness, a collection of stories from young adults on the importance of kindness during the darkest moments.
On a more personal level, she’s also determined to push through her own torment and embrace self-love again.
“It’s that cheesy thing that you say, like, ‘Oh, I’m glad I went through it because it made me stronger?’ OK. I coulda done without the last two-and-a-half years of my life!” she says. “ I coulda done without that. But you know what? It happened …
“I don’t hate Lady Gaga anymore,” she adds. “I found a way to love myself again, even when I thought that was never gonna happen. Now, I look at this piano and I go, ‘Oh, my God. My piano! My piano that I love so much! My piano that lets me speak. My piano that lets me make poetry. My piano, that’s mine!’”
If you or someone you know is having suicidal thoughts, don’t hesitate to reach out for help. The National Suicide Prevention Lifeline is open 24 hours a day at 800-273-8255.
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US Steel Up 5% As 3Q Outlook Reflects Improved Business
Analysts Say These 3 Stocks Are Their Top Picks for 2020 and Beyond
Every smart investor knows that he doesn’t know everything – and there is no shame in turning to the experts for advice. International investment firm Credit Suisse regularly publishes the information that investors need to make informed decisions. According to TipRanks, Credit Suisse ranks number 5 among the top 50 investment firms, with a sustained long-term success rate of 60% out of more than 12,000 stock recommendations made.This makes Credit Suisse a natural place to look for stock picks. With the year winding down, and the fourth quarter just around the corner, the bank is starting to publish its analysts 1 picks to round out 2020 – and to get a strong start on 2021. We’ve pulled up three of these picks; stocks that Credit Suisse analysts see gaining 20% or more in the year ahead.Using TipRanks’ Stock Comparison tool, we were able to evaluate these 3 picks alongside each other to get a sense of what the analyst community has to say.Concho Resources (CXO)First on the list, Concho Resources, is a major hydrocarbon exploration and exploitation company in the Permian Basin of West Texas. The company has exploration rights on 800,000 acres of ground in the region, and extracts both oil and natural gas. Concho is a one of the area’s largest unconventional shale producers, and has proven reserves in excess of 1 billion barrels of oil equivalent. The proven reserves are split, 2 to 1, between crude oil and natural gas.Concho has shown great resilience during the corona crisis. While earnings fell by a third in the Q1, they quickly returned to normal levels in Q2. The second quarter results, reported in July, showed a top line of $474 million in revenues, and EPS of $1.13. That EPS result was 242% above expectations. Furthermore, Concho generated $689 million in cash from operations last quarter, well above the forecast – and of that total, $238 million was considered free cash flow, giving the company sound liquidity.Credit Suisse’s Bill Janela explains why this stock is a top pick: “We believe concerns around federal acreage exposure are overblown for CXO and have been more than taken out of its stock price given recent relative underperformance. CXO’s asset quality and depth would allow it to easily reallocate activity; we estimate loss of well permits on Fed acreage would only reduce its NAV by <5%.”To this end, Janela rates this stock an Outperform (i.e. Buy), and his $48.03 price target suggests an impressive 45% upside potential for the coming year. (To watch Janela’s track record, click here)Overall, Concho gets a Strong Buy analyst consensus rating, based on 17 reviews of which 16 are Buys and only 1 is a Hold. Shares are selling for $48.18, and the $72.44 average price target implies a 50% one-year upside for the stock. (See CXO stock analysis on TipRanks)Ares Management (ARES)The second Credit Suisse pick for today is Ares Management, an alternative investment manager with global reach operations across the private equity, real estate, and credit segments. The company brought in $1.77 billion in total revenues last year, and boasts $165 billion in assets under management.Size and competence have stood Ares well during the health and economic crises of 1H20. In discussing its earnings during the period, it’s important to note that the 4Q19 EPS was unusually high – and so the earnings fall in Q1 brought the result back in-line with historical values. Q2 showed a further dip, to 39 cents per share, which was 5% above the forecast.At the top line, revenues collapsed in the first quarter of the year, but roared back in the second. Q2 total revenues hit $602 million. Solid revenues and positive earnings allowed Ares to keep up its dividend payment, which the company has been increasing for the past three years. At 40 cents per common share, this dividend annualizes to $1.20 and gives a yield of 4%, well above the average found among peer companies.Craig Seigenthaler wrote the Credit Suisse review for Ares, saying, “ARES is our Top Outperform due to the high visibility into its Stock Total Return (including Divs) strong fee-related earnings trajectory coupled with its defensive qualities (distressed investing capabilities, credit mix, long-duration AuM base, high composition of fees generated on fixed committed capital)… Over the next two to three years we expect ARES will earn ~$350M in incremental mgmt. fees without raising any additional capital…”Seigenthaler supports his Outperform (i.e. Buy) rating with a $49 price target, suggesting a 23% upside potential going forward. (To watch Seigenthaler’s track record, click here)Overall, shares in ARES are trading for $39.47, and the $44 average price target implies they have room for 11% upside growth this year. The stock’s Strong Buy analyst consensus rating is based on 6 Buys and 2 Holds set in recent weeks. (See ARES stock analysis on TipRanks)Carlisle Companies (CSL)Last on our list of Credit Suisse picks is Carlisle Companies, a highly diversified global manufacturer. Carlisle has its hands in many pots, with four major divisions: construction materials, interconnections technologies, industrial fluids, and brake and friction technology. The company is best known, however for its roofing materials, in the construction segment. This is another company weathered the corona crisis and remained in good shape. Earnings per share had been declining through the latter half of 2019, and so the dip in Q1 of this year only continued that trend. EPS turned back upwards for Q2, and at $1.61 it beat the forecast by a wide margin. The outlook for Q3 is even higher, at $1.73. Revenues in 1Q20 were stable, at just over $1 billion in each quarter.Fiscal health has not translated into share appreciation, however, as CSL shares are still down 21% from February’s pre-market collapse peak. The stock has underperformed in recent months, but Credit Suisse’s Adam Baumgarten sees it with an ace in the hole for future growth.”~75% of Carlisle’s profits come from commercial roofing, and ~75% of that is for roof replacements. Given the non-discretionary nature of roofs (if your roof leaks, you fix it), roofing is one of the most downturn resistant product categories in our coverage universe… Given that roof replacements are never lost, just delayed, we expect the stock to outperform when the backlog of roof replacements is cleared,” In other words, Baumgarten believes that the economic downturn simply pushed some of Carlisle’s base business into next year at the latest. Based on this belief, the analyst rates the stock an Outperform (i.e. Buy), and his $150 price target implies an upside of 22% in the next year. (To watch Baumgarten’s track record, click here)Carlisle has earned a unanimous Strong Buy consensus rating, with 5 Buy reviews in the past two months. Shares are priced at $122.42 and the $150 average price target matches Baumgarten’s. (See CSL 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.
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