Author: Cornelio Ash

Cornelio Ash is a senior equity analyst and member of the U.S. Focus List and the Global Focus List Committees, which approves all equity recommendations for developed, emerging, and frontier markets. He is also a lead for the Technology sector and specializes in the Americas region. Cornelio joined the firm in 2005 and received his B.A. in Finance from California State University, Northridge. He holds a Series 65 securities license.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Eldorado Gold Corp (EGO), Woodward (WWD), Lyft (LYFT), Travel + Leisure (TNL), Post Holdings (POST), Globe Life (GL), WEX (WEX), Bausch Health Companies (BHC), Guess (GES), M K S Instruments (MKSI), Altice USA (ATUS), Take-Two Interactive Software (TTWO), Spotify Technology (SPOT), Kirby Corp (KEX).

 

Developed: Oji Holdings (OJIH.JP; 3861 JP), Smiths Group (SMIN.GB; SMIN LN), Jtekt (OE@N.JP, 6473 JP), China Literature (CHLT.HK; 772 HK), Star Entertainment (SGR.AU; SGR AU), China Resource Beer ( CHRE.HK; 291 HK), Kose (OSEC.JP; 4922 JP), Suncor Energy (SU.CA; SU CN), Commerzbank (CBKX.DE; CBK GR), Vifor Pharma (VIFN.CH; VIFN SW), Wetherspoon (JDW.GB; JDW LN), Ericsson (SL@G.SE; ERICB SS), Embracer Group (THQ.SE; EMBRACB SS), Deutsche Lufthansa (LHAX.DE; LHA GR), East Japan Railway (EAJR.JP; 9020 JP).

 

Emerging: Klabin Units (KLU.BR; KLBN11 BZ), Sk Innovation (SBG.KR; 096770 KS), Abdullah Al Othaim Markets (AOM.SA; AOTHAIM AB).

Autodesk

Posted on by Cornelio Ash

Key points from this report:

 

  • Next catalyst: Q2 FY22 results expected on August 25. Investor day event on September 1.
  • The stock is breaking out of a 28-week consolidation; add to positions here (pivot: $321). Support is at the 10-DMA.
  • Improving environment, management expects revenue acceleration going forward. On Q1 earnings call, the company commented that Autodesk is through the revenue growth trough and expects acceleration going forward. Recent positive read-through from peer Dassault Systemes’ Q2 results (company reported a beat-and-raise Q2) affirms a strong demand environment.
  • Strong key metrics: Remaining Performance Obligation (RPO) and billings underpin consistent performance. In Q1 FY22, total RPO increased 22% y/y to $4.2B and billings increased 10% y/y to $974M.
  • Market leader in a larger TAM. Autodesk has a 35% global share in the BIM-based AEC industry. The company’s TAM will expand to $69B by 2025, a five-year CAGR of 7%. Autodesk has penetrated only 5% of this TAM but continues to grow much faster than the market; in FY21, revenue grew 16% y/y to $3.8B. Management is targeting a 16-18% revenue CAGR in FY20-23.

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Huntsman (HUN), Trinity Industries (TRN), World Wrestling Entertainment (WWE), Viacom CBS (VIAC), Wolverine World Wide (WWW), Huazhu (HTHT), Clorox (CLX), TPI Composites (TPIC), Old National Bancorp (ONB), Healthcare Services (HCSG), US Food (USFD), Interdigital (IDCC), Take-Two Interactive (TTWO), Copa (CPA).

 

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Eldorado Gold Corp (EGO), Frontdoor (FTDR), Gentex Corp (GNTX), Grand Canyon Education (LOPE), Bright Horizons Family Solutions (BFAM), Veoneer (VNE), MSG Entertainment (MSGE), UTZ Brands (UTZ), New Fortress Energy (NFE), Global Payments (GPN), Amedisys (AMED), Casey’s General Stores (CASY), Echostar Corp (SATS), Cognizant (CTSH), Anaplan (PLAN), Skywest (SKYW).

 

Developed: Orica (ORI.AU; ORI AU), Alumina (AWC.AU; AWC AU), Sekisui Chemical (EK@N.JP; 4204 JP), Teijin (TJ@N.JP; 3401 JP), Wilmar International (EZYH.SG; WIL SP), Ping An Insurance (PING.HK; 2318 HK), Fisher & Paykel Healthcare (FPHZ.NZ; FPH NZ), Yaoko (YAOK.JP; 8279 JP), Anritsu (AU@N.JP; 6754 JP), GMO Internet (TERQ.JP; 9449 JP).

 

Emerging: Gruma (GRM.MX; GRUMAB MM), Abdullah Al Othaim Markets (AOM.SA; AOTHAIM AB), Rumo On (P3M.BR; RAIL3 BZ).

 

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.: Newmarket (NEU), Harmony Gold Mining Adr (HMY), Kennametal Inc (KMT), Gentex (GNTX), MSG Sport (MSGS), Brown Forman (BFB), Fiserv (FISV), Amedisys (AMED), CMC Materials (CCMP), Paylocity (PCTY), Air Transport Services Group (ATSG).

 

Developed: Incitec Pivot (IPL.AU; IPL AU), Mitsubishi Materials (LM@N.JP; 5711 JP), Galaxy Entertainment Group (PIPE.HK; 27 HK), Flight Centre Travel (FLT.AU; FLT AU), Kao (KA@N.JP; 4452 JP), Wilmar International (EZYH.SG; WIL SP), SBM Offshore (SBMO.NL; SBMO NA), Baloise Holding (BALN.CH; BALN SW), Hansoh Pharma (HANP.HK; 3692 HK), Fast Retailing (RETA.JP; 9983 JP), TDK Corp. (TD@N.JP; 6762 JP), China Telecom (CTC.HK; 728 HK), Square Enix (ENIX.JP; 9684 JP).

 

Emerging: Suzano (SUZ.BR; SUZB3 BZ), Ace Hardware Indonesia (ACE.ID; ACES IJ).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

 

U.S.:  Anglogold Ashanti (AU), Trinet Group (TNET), Grand Canyon Education (LOPE), VF Corp (VFC), Brown Forman (BFB), Canadian Solar (CSIQ), Brookfield Renewable ClA (BEPC), Cannae Holdings (CNNE), 1Life Healthcare (ONEM), I P G Photonics Corp (IPGP), Avalara (AVLR).

 

Developed: Svenska Cellulosa Aktiebolaget Sca (SW@G.SE; SCAB SS), IWG (IWG.GB; IWG LN), Wynn Macau (WYNN.HK; 1128 HK), Ping An Insurance ‘H’ (PING.HK; 2318 HK), Hansoh Pharma (HANP.HK; 3692 HK), Fast Retailing (RETA.JP; 9983 JP), STMicroelectronics (STM.IT; STM IM), Softbank Group (SFTB.JP; 9984 JP), Square Enix (ENIX.JP; 9684 JP).

 

Emerging: Gruma (GRM.MX; GRUMAB MM), Almeera Consumer Goods (MER.QA; MERS QD), Advantech (ADV.TW; 2395 TT).