Top Research Reports for Meta Platforms, Broadcom & Toyota Motor
Tuesday, December 19, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Meta Platforms, Inc. (META), Broadcom Inc. (AVGO) and Toyota Motor Corp. (TM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Meta Platforms have outperformed the Zacks Internet – Software industry over the past six months (+21.2% vs. +13.4%). The company is benefiting from steady user growth across all regions, particularly Asia Pacific. Increased engagement for its offerings like Instagram, WhatsApp, Messenger and Facebook has been a major growth driver.
Meta Platforms is leveraging AI to recommend Reels content, which is driving traffic on Instagram and Facebook. Its innovative portfolio, which includes Threads, Reels and Llama 2, is likely to aid prospects. Advertising revenues are expected to witness a CAGR of 13% per Zacks model estimate.
However, challenging macroeconomic conditions remain a headwind for Meta’s advertising revenues, along with targeting and measurement headwinds due to Apple’s iOS changes. Slow monetization of Reels, along with mounting operating losses at Reality Labs, are concerns.
(You can read the full research report on Meta Platforms here >>>)
Broadcom’s shares have outperformed the Zacks Electronics – Semiconductors industry over the past six months (+33.6% vs. +20.7%). The company is benefiting from the strong deployment of generative AI. It expects generative AI to contribute more than 25% of semiconductor revenues in fiscal 2024.
Strong demand for Tomahawk 5, Jericho, 10-gigabit PON and DOCSIS 3.1 with embedded Wi-Fi 6 and 6E aids Broadcom’s prospects. Its expanding portfolio with the launch of the second-gen Wi-Fi 7 wireless connectivity chip is a catalyst.
Broadcom expects networking revenues to grow nearly 30% year over year in fiscal 2024. VMware is expected to contribute $12 billion to revenues. Infrastructure software revenues are expected to be $20 billion while semiconductor solutions revenues are expected to increase in the mid to high-single-digit percentage range on a year-over-year basis in fiscal 2024.
(You can read the full research report on Broadcom here >>>)
Shares of Toyota Motor have outperformed the Zacks Automotive – Foreign industry over the past six months (+16.6% vs. +13.7%). The company is one of the world’s leading automakers, with an array of brands, including Toyota, Lexus and Scion, which position it for solid growth.
Continued demand for vehicles and a robust lineup of trucks and sport utility vehicles (SUVs) are set to fuel Toyota’s sales volumes. To capitalize on the accelerated global shift to environment-friendly vehicles, the auto giant is deepening its focus on manufacturing electric and fuel-cell vehicles, which will bolster its product competitiveness.
The Japanese auto giant aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. It plans to invest 4 trillion yen ($35 billion) for a lineup of 30 BEVs by 2030. TM aims to expand global sales of BEVs to 3.5 million units per year by 2030. Thus, we are bullish on the stock.
(You can read the full research report on Toyota Motor here >>>)
Other noteworthy reports we are featuring today include HSBC Holdings plc (HSBC), IBM Corp. (IBM) and Monster Beverage Corp. (MNST).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today’s Must Read
User Growth, Instagram Strength Aids Meta Platforms (META)
Strong Demand for Networking Products Aids Broadcom (AVGO)
Strong Demand and Electrification Push to Aid Toyota (TM)
Featured Reports
Focus in Asia Region, Rates Aid HSBC (HSBC), High Costs Ails
Per the Zacks analyst, focus on expansion in Asia region, business streamlining efforts in less profitable markets and high rates support HSBC amid rising operating expenses and weak revenue growth.
IBM Rides on Strategic Acquisition, Healthy Demand Trends
Per the Zacks analyst, the acquisition of Software AG’s integration platform-as-a-service business will likely boost IBM’s hybrid cloud and AI portfolio and enhance commercial prospects.
Monster Beverage (MNST) Gains From Product Launch & Innovation
Per the Zacks analyst, Monster Beverage is committed to product launches and innovation to boost sales. The company is experiencing continued strength in its energy drinks category for a while now.
Regulated Investment and Debt Management Aid Exelon (EXC)
Per the Zacks analyst, Exelon’s planned $31.3B investment to strengthen transmission and distribution lines and efficient management of outstanding debt are going to boost its performance.
eBay (EBAY) Benefits from Strength in Advertising Business
Per the Zacks analyst, growing momentum across eBay’s first-party advertising products on the back of its strong Promoted Listings, is driving growth in its advertising business.
FDA Nod to Sarepta’s (SRPT) DMD Gene Therapy Fuels Growth
The Zacks Analyst is encouraged by the recent FDA approval to Sarepta’s Elevidys, the first DMD gene therapy. Based on this approval, it has started exploring opportunities in the gene therapy space.
Blue Owl Capital (OBDC) Rides on Investment Income, Buyouts
Per the Zacks analyst, Blue Owl Capital’s revenues are driven by higher investment income, thanks to its improved interest income. Buyouts enhance its capabilities and diversify the business.
New Upgrades
Watts Water (WTS) To Benefit from Strong Product Portfolio
Per the Zacks analyst, Watts Water is gaining from diversified product portfolio, geographic expansion and productivity initiatives. Synergies from acquistions also bode well.
Expansion Efforts & Strategic Initiatives Aid Beacon (BECN)
Per the Zacks analyst, Beacon benefits from Ambition 2025 growth initiatives, strategic investments and acquisitions. Also, emphasis on digital initiatives bode well.
Sunoco Gains From (SUN) Long-Term Distribution Contracts
Per the Zacks analyst, long-term distribution contracts with more than a 90% retention rate generate stable cashflows for Sunoco. Its history of disciplined expense management is also encouraging.
New Downgrades
Pricing Pressure Impacts TransUnion’s (TRU) Bottom Line
Per the Zacks Analyst, widely varying competition across business segments, geographical markets and industry verticals restricts TransUnion’s pricing power and puts a strain on its bottom line.
High Costs, Poor Asset Quality Hurt Credit Acceptance (CACC)
Per the Zacks analyst, elevated expenses due to rise in compensation and marketing costs will hurt Credit Acceptance’s profits. Deteriorating credit quality due to rise in provisions remains a woe.
BioPharma Downturn, Soft Chinese Market Hurt Bio-Rad (BIO)
The Zacks analyst is worried about Bio-Rad’s Life Science business affected by the biopharma challenges and economic issues in China. Soft China market conditions dent Clinical Diagnostics sales.
Zacks Reveals ChatGPT “Sleeper” Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other “must buys.” Plus more.
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Toyota Motor Corporation (TM) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
HSBC Holdings plc (HSBC) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Original: META Feed: Top Research Reports for Meta Platforms, Broadcom & Toyota Motor