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Top Analyst Reports for Royal Dutch Shell, Mastercard & Itau Unibanco

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Wednesday, March 8, 2018

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 Royal Dutch Shell (RDS.A), Mastercard (MA) and Itau Unibanco Banco (ITUB). 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 >>>

Royal Dutch Shell 's shares have gained 23.5% over the last one year, outperforming the Zacks Integrated Oil industry, which has gained 8.3% over the same period. Such performance was primarily supported by the company's impressive earnings surprise history, having surpassed expectations in three of the trailing four quarters.

The company finished 2017 on a solid note with the integrated behemoth's fourth-quarter upstream unit profit soaring from the year-ago period thanks to steady commodity price recovery. Importantly, the Anglo-Dutch company generated healthy cash flows yet again, allowing it to cut debt and cover its cash dividend. However, with production volumes going down, Shell's near-to-medium term revenue outlook remains cloudy.

(You can read the full research report on Royal Dutch Shell here >>> ).

Shares of Mastercard have increased 61.8% over the last one year, significantly outperforming the Zacks Financial Transaction Services industry's gain of 36.6% during the same period. The company is well positioned for growth, given its solid market position, ongoing expansion and digital initiatives, and significant opportunities from the secular shift toward electronic payments.

The acquisitions of VocaLink and NuData Security complement the company's efforts to participate in new payment flows and enhance its safety and security offerings. The stock has seen the Zacks Consensus Estimate for current-year earnings being revised 10% upward over the last 60 days.

However, the company continues to face increasing costs. Moreover, higher incentives and rewards will put pressure on the bottom line.

(You can read the full research report on Mastercard here >>> ).

Itau Unibanco Banco 's shares have outperformed the Zacks Foreign Banks industry over the past six months, gaining 16.1% vs 4.7%. The company remains focused on building strategies to expand inorganically. In December 2016, it completed the acquisition of 40% equity stake in Itau BMG Consignado.

Further, it has been diversifying its loan composition with focus on origination of products with lower risks and more guarantees. However, rising operational risk, with management's expectation of non-interest expenses to grow in the range of 0.5-3.5% in 2018, remains a concern.

(You can read the full research report on Itau Unibanco Banco here >>> ).

Other noteworthy reports we are featuring today include Fresenius Medical Care (FMS), Suncor Energy (SU) and Incyte (INCY).

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Mark Vickery

Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trendsand Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Shell (RDS.A) Buoyed by BG Synergies Amid Output Headwind

Acquisitions, Investments in Technology Aid Mastercard (MA)

Global Expansion to Aid Itau Unibanco (ITUB), High Cost Ails

Featured Reports

Incyte (INCY) Jakafi Drives Growth, Overdependence Concerns

Per the Zacks analyst, strong Jakafi sales and resubmission of application for Olumiant bode well for Incyte. However, Incyte's dependence on only Jakafi, for growth is concerning.

Noble Energy (NBL) Gains from its U.S., Mediterranean Assets

The Zacks analyst believes strong production from Noble's domestic DJ Basin, Eagle Ford and the Delaware area will drive long term growth.

Fiber Deployment Boosts Altice USA (ATUS) Amid Pay-TV Losses

The Zacks Analyst likes Altice USA's fiber network deployment and data services' roll out. Broadband customer gain is a positive. Subscriber losses in the Pay-TV segment continue to hurt.

HDPE Project, A. Schulman Buyout Drive LyondellBasell (LYB)

The Zacks analyst thinks that LyondellBasell's HDPE project will boost its annual production capacity and improve margins. The acquisition of A. Schulman will also create significant cost synergies.

Strong Lithium Business Aids Albemarle (ALB) Amid Tax Woes

Per the Zacks analyst, Albemarle is well placed to leverage strong growth in the battery-grade lithium market amid headwind from higher effective tax rate in FY18.

Kellogg (K) Well Poised on Project K, ZBB Cost Saving Plans

Per the Zacks analyst, Kellogg's cost savings from its Project K and zero-based budgeting (ZBB) plans have been supporting innovation, brand support and margins.

Autodesk (ADSK) Rides on Strong Product Subscription Growth

Per the Zacks analyst, Autodesk's investments in digital infrastructure like e-store is driving product subscriptions for the company.

New Upgrades

Prospects in Health Care Services Unit Aid Fresenius (FMS)

The Zacks analyst is bullish on Fresenius' strong performance in the Health Care Services segment. The segment will gain from the company's Dialysis Services and the Care-Coordination unit.

Abercrombie's (ANF) DTC Business Reflects Core Strength

Per the Zacks analyst, Abercrombie's investments in mobile, omni-channel and fulfillment have aided growth of direct-to-consumer business, which contributed 34% to sales in fourth-quarter fiscal 2017.

Strong Traction in Engine Products Drives Donaldson (DCI)

Per the Zacks analyst, Donaldson is benefiting from robust momentum in its Engine Products unit. Strong industrial filtration solutions and aftermarket sales are also expected to contribute to growth.

New Downgrades

Suncor Energy (SU) Hurt by Syncrude Operational Challenges

The Zacks analyst is concerned about operational challenges and unplanned outages at Syncrude oil sands project, which accounts for more than 20% of the company's total output.

Ambarella (AMBA) Hurt by Weak Drone Market, GoPro Revenues

Weakness in the drone market, declining revenue contribution from its biggest customer, GoPro, and increasing threat from QUALCOMM dampen Ambarella's growth prospects, per the Zacks analyst.

Soft Revenues Remain a Headwind for Avon Products (AVP)

Per the Zacks analyst, Avon's revenue trend remains soft due to fall in both Active and Ending Representatives. Avon expects this softness to persist due to a tough macro and competitive environment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Suncor Energy Inc. (SU): Free Stock Analysis Report

Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report

Mastercard Incorporated (MA): Free Stock Analysis Report

Itau Unibanco Banco Holding SA (ITUB): Free Stock Analysis Report

Incyte Corporation (INCY): Free Stock Analysis Report

Fresenius Medical Care (FMS): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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