Friday, September 16, 2016

Today's Research Daily features new research reports on 16 major stocks, including Tesla (TSLA), Telefonica (TEF) and BlackRock (BLK).

Tesla shares continue to languish (the stock is down more than 18% in the year-to-date period) on persistent skepticism about Model 3 production plans and issues related to the SolarCity purchase. Laudatory news flow in recent days about GM's Chevy Bolt has not been helpful either, with many seeing the development as proof that Tesla may not have the space to itself for long. In today's research report, the Zacks analyst acknowledges these issues, but also refers explains many positives in the Tesla story like the new Master Plan, rapid international expansion, increasing production volume and continued investment in infrastructure development. The recent deal to supply 20 MW of battery storage to a California utility is also a big positive. (You can read the full research report on Tesla here>>)

Spain's Telefonica has been under pressure this year on uncertainties related to its home market, growing competitive pressures and debt-laden balance sheet that has put the spotlight on its cash flows (and dividend). But the Spanish telecom giant appears to be getting a handle on its problems through restructuring initiatives like the IPO of its infrastructure business and the sale or IPO of its O2 stake. The analyst explains in the updated research report issued today that the successful completion of these measures will notably bring down the company's debt burden. (You can read the full research report on Telefonica here>>)

BlackRock has emerged as a standout operator in the broader Finance space (the stock is up about 6% year to date), with market participants appreciating the company's strong ETF franchise. But while ETFs continue to be the company's most visible growth business, BlackRock has a fairly diversified business mix - ranging from one of the largest fixed income platforms to significant present in equities, alternative assets and cash products. Opportunities in the international markets offer visible growth opportunities. On the negative side, costs have been going up lately and the stock is heavily correlated with the performance of the market, as are the stocks of all asset managers (You can read the full research report on BlackRock here>>)

Other noteworthy reports today include Nike (NKE), Goodyear (GT) and Constellation Brands (STZ). Constellation has been upgraded to Zacks Rank #2 (Buy).

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

Sheraz Mian

Director of Research

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