"We are bearish on PBMs and expect 70% of prescriptions to ultimately move online. And we are initiating on CVS at Outperform with a PT of $76 . We believe the current price doesn't reflect Aetna's solid MCO business and the LT value of a care delivery strategy at retail. We think the current valuation already reflects potential shock to PBM margins and future deterioration in the retail business...
"We upgrade CCL shares to Buy from Neutral given: 1) accelerating net unit growth from ~2.5% over the past five years to 5% over the next three years should propel fundamentals; 2) Europe concerns appear overblown as even -3% net yields in the region would only drive a 1% difference in global net yield on our estimates, or 5% impact to EPS; and 3) CCL has set guidance well-below the 5-year average net yields providing a lower hurdle for beats and raises throughout 2019.
"Investor questions and conversation around Tesla have increased again following the company's recent product announcements , updated guidance for 1H19 quarterly earnings expectations, and 10-K filing, among other newsflow...
"We downgrade CSG from OW to Neutral post strong YTD performance... We rate mgm't under CEO Tidjane Thiam highly as they have continuously grown private banking and Swiss retail businesses while over-delivering on cost targets, generating positive operating leverage, but we continue to question the ongoing underperforming IB strategy. In 2019E, IB-related businesses consume 36% of group capital and generate 22% of group PBT – IB remains a drag on valuation...
"Following significantly better-than-expected results so far this year, we believe the sell-off in AOBC shares has been overdone especially given the opportunity for the company to manufacture growth in FY20 independent of a major rebound in demand...