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The Zacks Analyst Blog Highlights: Novartis, Equinix, Newmont, Enterprise Products Partners and Franco-Nevada

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For Immediate Release

Chicago, IL – July 7, 2020 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Novartis (NVS - Free Report) , Equinix (EQIX - Free Report) , Newmont (NEM - Free Report) , Enterprise Products Partners (EPD - Free Report) and Franco-Nevada (FNV - Free Report) .

Here are highlights from Monday’s Analyst Blog:

Top Analyst Reports for Novartis, Equinix and Newmont Mining

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 Novartis, Equinix and Newmont. 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 >>>

Novartis shares have lagged the Zacks Large-Cap Pharmaceuticals industry over the past year (-3.5% vs. +6.9%), but the Zacks analyst believes that solid performance of key drugs like Cosentyx and Entresto, and contributions from Kisqali and gene therapy, Zolgensma, have improved the company's long-term prospects.

Moreover, the company maintained its annual outlook even amid uncertainties related to the coronavirus pandemic. While the impact of forward purchasing will be reversed as the year progresses, these drugs and new launches like Piqray, Mayzent and Beovu should further boost sales.

The biosimilar portfolio also gains traction with new key approvals. However, price erosion in the United States has adversely impacted the generics business. Moreover, pipeline setbacks and generic competition are concerning. 

Shares of Equinix have gained +23.5% over the past six months against the Zacks Retail REIT industry’s fall of -23.3%. The need to work remotely amid the pandemic is driving the demand for interconnected data-center space. The Zacks analyst believes that Equinix, with its interconnectivity-focused global data-center portfolio, is well-positioned to benefit from the tailwind.

Equinix added its 9th IBX data center in the Dallas Infomart Data Center campus in June. The $142-million data center expands its footprint in the Dallas metro area. The company also closed a public offering of four series of senior notes, with $2.6 billion in principal amount.

Also, acceleration in cloud adoption is driving growth for its interconnected ecosystems. Equinix has delivered 69 consecutive quarter revenue growth. Yet, capital-intensive activities amid rising debts are concerning. Also, stiff competition may impact pricing power.

Newmont’s shares have gained +22% over the past three months against the Zacks Mining - Miscellaneous industry’s rise of +30.3%. The Zacks analyst believes that the company is likely to gain from a number of projects including the Tanami expansion, Subika Underground and Ahafo mill expansion.

Moreover, the merger with Goldcorp is expected to be value-accretive to its cash flow and generate significant synergies. Higher gold prices are also expected to continue boosting earnings amid market volatility and economic uncertainties. Newmont is also progressing well on its efficiency improvement programs and remains committed to boost shareholders’ value. However, it faces headwinds from higher production costs.

Expected decline in gold production in the second quarter and 2020 is also likely to hurt the company’s margins. It also faces challenges in the copper market. Lower demand in China and stretched valuation are other concerns.  

Other noteworthy reports we are featuring today include Enterprise Products Partners and Franco-Nevada.

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