Tuesday, September 6, 2016

Today's must-read reports are for Micron Technology (MU), Bristol-Myers Squibb (BMY) and Delta Air Lines (DAL).

Micron Technology shares are moving up strongly lately on the back of strong momentum for its key products – DRAM and NAND chips. The improving price outlook for DRAM and NAND, largely a function of better than expected PC demand, should continue to help Micron's bottom-line. Many in the industry believe that the favorable supply-demand imbalance will likely linger for a while, further benefiting this buy-rated company's earnings picture. The company’s strategy of enhancing capabilities through acquisitions may also have a positive impact on its top-line performance. (You can read the full research report on Micron Technology here>>)  

Bristol-Myers shares have lagged the market lately, as have those of other drug makers, primarily reflecting political risks related to drug pricing issues. Moreover, stiff competition in the immuno-oncology space and HCV franchise are also hurting the company performance. However, the analyst likes Bristol-Myers’ efforts to develop its pipeline. It has been working on strengthening its product portfolio as well as its pipeline through acquisitions and deals. Also, strong trends across the business, primarily Opdivo and Eliquis led the company raise its guidance for 2016 earnings recently. (You can read the full research report on Bristol-Myers here>>)

Delta Air Lines shares had been laggards even prior to last month's power outage that effectively crippled its fleet, but the lost revenue (August passenger revenue per available seat mile was down 9.5%) and reputational damage hasn't helped matters either. With about 30% of its revenue coming from international destinations, Delta's business is directly exposed to global macroeconomic and geopolitical headwinds. The recent U.S. DOT decision granting eight carriers including Delta to initiate commercial flights to Havana should be a long-term positive for the carrier as well as the broader industry. But the coast may not be fully clear for Delta. In the near-by research report, the analyst discusses the pros & cons of investing in Delta shares at this stage. (You can read the full research report on Delta Air Lines here>>)  

Other noteworthy reports we are featuring today include State Street (STT), Analog Devices (ADI) and Macerich (MAC).  

You can find all of today's stock research reports here >>

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Sheraz Mian

Director of Research