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Global Equities

Buy Biogen as stock looks ‘too good to ignore,’ Wells Fargo says

Biogen (NASDAQ:BIIB) is trading higher  Monday after Well Fargo upgraded the Alzheimer’s drug developer to Overweight from Equal Weight, citing its underappreciated royalty revenue. The price target raised to $265 from $235 per share implies a premium of ~25% to the last close.

After valuing the biotech on discounted cash flow and sum-of-the-parts techniques, the analysts led by Mohit Bansal argued that the company’s base business alone might be worth more than the Street estimates.
“This is because investors are not valuing royalty streams coming to BIIB properly, which makes for 15% of current revenues and 40% of the valuation, by our math,” the team added.
The DCF-based price target follows an assumption of a 50% probability for BAN-2401 data expected in the second half of the year for the experimental Alzheimer’s therapy. 


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Raymond James upgrades AMD

Advanced Micro Devices (NASDAQ:AMD) shares rose in premarket trading on Monday after investment firm Raymond James upgraded the semiconductor maker, citing several reasons, including an attractive valuation.

Raymnd James analysts  upgraded the stock to strong buy from outperform but kept the $160 price target unchanged, noting that AMD is exposed to several secular growth areas, has a more "muted" cyclical exposure than other semiconductor stocks and has an attractive valuation.

"We have strong confidence regarding AMD’s position and share gains in the datacenter market," analysts wrote in a note to clients, adding that the technology gap between AMD and Intel (NASDAQ:INTC) is likely to widen when AMD releases its Genoa line of chips in the fourth-quarter. It's likely that AMD maintains an advantange "at least through 2024," analysts stated, with customers realizing that Intel's (INTC) roadmap has "more risk" due to its "challenging process roadmap" and capacity constraints causing customers to commit to AMD now.

Concerning AMD's (AMD) exposure to PCs, market is likely to become a "sustained duopoly over time," assuming Intel (INTC) executes flawlessly. Nonetheless, there is some consumer weakness going on in the space, which may be impacting shares.

AMD's (AMD) acquisition of Xilinx may also be a concern for investors, given Caso's worries over it growing revenue 35% year-over-year.

"But we do expect XLNX to be mildly accretive, and we note that just 1% of client share gain would offset a 5% decline in the overall market, demonstrating that share is a much more important lever for AMD than market growth," Raymond James added. 


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Elon Musk offers to buy Twitter for $43 billion

Elon Musk offered to buy Twitter for $54.20 a share in a filing published Thursday, saying the social media company needs to be transformed privately, a little over a week after revealing a 9.1% stake in the company. Musk’s offer values Twitter at about $43 billion.

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote in a letter sent to Twitter Chairman Bret Taylor and disclosed in a securities filing. “As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced,” he wrote. “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.” Musk tapped Morgan Stanley as a financial advisor, according to the filing.


“This is not a way to sort of make money... it’s just that I think my strong, intuitive sense is that having a public platform that is maximally trusted and broadly inclusive, is extremely important to the future of civilization,” Musk said at TED2022. “But yeah, I don’t care about the economics at all.” He also said during the talk that he would try to retain as many shareholders as possible for a private company. Musk first disclosed his stake in the social media giant on April 4. He later landed a seat on the company’s board of directors before reversing those plans. W1 04 14 2022 2121

The Tesla CEO has previously criticized the social media giant publicly, polling people on Twitter last month about whether the company abides by free speech principles. He also said he was considering building a new social media platform. 


Citigroup upgraded the rating on, from Neutral to Buy

In a report published Tuesday, Citigroup upgraded the rating on, Inc. (NASDAQ: AMZN) from Neutral to Buy, and raised the price target from $325.00 to $354.00.

In the report, Citigroup noted, “We are upgrading Amazon to Buy for three main reasons: 1) We believe Amazon's valuation represents a good risk/reward as we see valuation support near $300 and upside to at least $354 without assuming multiple expansion; 2) When looked at on a gross profit basis, top-line growth has remained strong (e.g., retail segment GP +25% in CY14), and Q4 online holiday datapoints seem to bode well for 4Q14 results; and, 3) We believe margins can reverse the recent trend and rise in CY15 as we do not expect the multiple factors that came into play in 2014 to worsen in 2015. Despite adjusting estimates for FX, our target increases to $354 as a result of shifting the calendar forward.” D1 04 20 2022 1716

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Crowdstrike Holdings upgraded by Goldman Sachs

Crowdstrike Holdings Inc (NASDAQ:CRWD) stock jumped in early Tuesday trading after Goldman Sachs analysts upgraded the company from Neutral to Buy. The analyst told investors in a note that the stock has "rerated lower over the past seven months, along with the rest of the high-growth software universe," but fundamentals continue to improve with "strong execution against a backdrop of unprecedented demand."

"Considering valuation at more compelling levels, strengthening secular demand trends, and an outlook that continues to improve on the back of beat and raise results, we are upgrading CRWD," Goldman says. D1 04 12 2022 2046



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