Thursday, February 16, 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 Tesla, Inc. (TSLA), Eli Lilly and Company (LLY) and Bank of America Corporation (BAC). 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 Tesla have declined -30.4% over the past year against the Zacks Automotive - Domestic industry’s decline of -37.7%. The company is facing inflation and macroeconomic concerns which could pose near-term challenge. However, the company's long-term prospects remain solid. The electric vehicle (EV) king is set to benefit from the soaring popularity of its Models 3 and Y.

The Zacks analyst expect deliveries to see an annualized growth of around 33% in 2023. Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth.

Additionally, Tesla’s energy generation and storage revenues outlook is promising. Falling debt levels is another positive. We expect Tesla to deliver outsized returns in the long run on the back of output ramp-up and introduction of new models.

(You can read the full research report on Tesla here >>>)

Shares of Eli Lilly have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+36.4% vs. +9.6%). The company boasts a solid portfolio of core drugs in diabetes, autoimmune diseases and cancer. Its revenue growth is being driven by higher demand for drugs like Trulicity, Taltz and others.

It is regularly adding promising new pipeline assets through business development deals. Lilly expects to launch four new medicines by 2023 end with Mounjaro for type II diabetes already launched and cancer drug Jaypirca already approved. Mounjaro is off to a solid start.

However, the CRL for donanemab will probably delay the potential launch of the candidate. Generic competition for several drugs, rising pricing pressure in the United States and some international markets are some top-line headwinds.

(You can read the full research report on Eli Lilly here >>>)

Bank of America’s shares have underperformed the Zacks Banks - Major Regional industry over the past year (-25.5% vs. -17.2%). The company’s over-dependence on trading revenues for fee income is concerning. The volatile nature of the capital markets will adversely impact non-interest income performance. Our estimates for the same show a 4.1% fall for 2023. A tough operating backdrop will lead to increase in provisions, with we projecting a substantial jump in the metric this year.

However, higher interest rates and decent loan demand are expected to keep aiding the company’s net interest income (NII). Our estimates for NII reflect a CAGR of 10.1% by 2025.

Likewise, the company’s net interest yield will continue expanding in the near-term. Also, opening of new financial centers, enhancement in digital capabilities and prudent cost management efforts are expected to keep aiding its financials.

(You can read the full research report on Bank of America here >>>)

Other noteworthy reports we are featuring today include QUALCOMM Incorporated (QCOM), Gilead Sciences, Inc. (GILD) and ABB Ltd (ABB).

Director of Research

Sheraz Mian

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>>>