Johnson & Johnson
- Tests show that a 2nd jab of COVID offers 94% efficacy. This is extremely high.
- Johnson & Johnson will proceed with a $5bn settlement payment for its part in a $26bn total settlement for the opioid epidemic. This will help to draw a line under the issue.
- Shares still have an encouraging yield of 2.4% and remain a strong candidate for an income portfolio.
Cisco
- Cisco has set a new target for a compound annual growth rate of revenue at 5% to 7% over the next five years. FY2022e revenue is forecast to be c. 6%.
- Morgan Stanley has downgraded the shares to “Equalweight” from “Overweight”, noting that future appreciation will have to come from earnings upside. The broker does remain positive on the story though.
- Announced on Tuesday 7th September enhancements to its Webex Calling (cloud calling service).
- Seeking Alpha website believes that Cisco has a balance sheet primed for M&A activity. Strong dividend growth and acquisitions make the stock attractive.
- Bank of America has reiterated a Buy recommendation (price target $64.00), Credit Suisse has upgraded its price target to ($56.00 from $45.00)
Comcast
- Speaking at an investor conference on 14th Sep, Comcast CEO Cavanagh revealed that Comcast is looking to "trend in line for third-quarter net adds with historical averages for the third quarter, but ... be behind the third quarter 2019, which was a record third quarter." This is seen as a mild negative near term for the shares.
- Acquisition of Masergy at an opportune moment, analysts expect “prolonged growth”.
- Analysts believe that Comcast’s high growing internet user base, solid demand for Xfinity X1 and Flex services, and the Peacock streaming service are the key catalysts for growth.
RELX
- Interim results (announced 29th July) delivered a strong first half of the year, with segments returning to early 2020 trajectory levels.
- Board expects full-year growth and earnings to be slightly above historical trends
SAP
- Cloud revenue of €8.1bn (c. 30% of the group) grew by 18% in 2020 and is expected to grow by another 15% in 2021.
- The ambition is to grow cloud revenue to over €22bn by 2025.
