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Research Daily

Friday, September 2, 2016

Today's must-read reports are for Amgen (AMGN), HSBC (HSBC) and Broadcom (AVGO).

Amgen shares have lagged the market lately, as have those of other drug makers, primarily reflecting political risks related to drug pricing issues. This macro cloud notwithstanding, the analyst likes the large number of blockbuster drugs in Amgen’s portfolio which bodes well for its future growth. Moreover, contribution from new products should be meaningful this year. Additionally, Amgen’s restructuring plan should make it leaner and more cost-efficient. (You can read the full research report on Amgen here>>)

Zacks # 2 (Buy) rated Broadcom shares have been strong performers this year (up more than 20% year-to-date) on greater appreciation for the chipmaker's robust organic growth outlook. The analyst likes the synergistic benefits gained from the merger with Avago. Such gains are likely to increase future profitability through economies of scale and mutual sharing of manufacturing expertise and R&D costs. Additionally, Broadcom maintains an efficient global supply chain with a variable, low-cost operating model. (You can read the full research report on Broadcom here>>)

HSBC Holdings is one of the largest European banks, but it's primarily an Asian operator, with a majority of its recent earnings coming from that region. European banks have been laggards lately and HSBC is no different, though it has been doing better lately on the back of better execution of its restructuring plan that essentially involves reducing the bank's footprint in some regions in order to focus more on its core Asian franchise. The recent sale of its Brazilian operations and using the sale procedes for share buybacks are part of that strategy. Management's committment to maintain and raise the dividend (currently yielding a juicy 5.5%) and cost saving initiatives are some of the positives in the HSBC story. (You can read the full research report on HSBC here>>)

Other noteworthy reports we are featuring today include NVIDIA (NVDA), Infosys (INFY), and Campbell Soup (CPB).  

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

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Sheraz Mian

Director of Research

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