Novartis Acquisition; LULU’s Global Growth; RENT to Rise; Ford’s EV Sales
By: Visible Alpha Research & Innovation Lab
In our weekly round-up of the top charts and market-moving analyst insights: Novartis (NYSE: NVS) agrees to acquire Chinook Therapeutics (NASDAQ: KDNY); Lululemon Athletica (NASDAQ: LULU) projected to see significant international revenue growth; Rent the Runway (NASDAQ: RENT) subscribers and revenue expected to rise; Ford Motor’s (NYSE: F) Model e division (electric vehicles) to expand.
Novartis Agrees to Acquire Chinook Therapeutics and its Renal Pipeline
Novartis (NYSE: NVS) has agreed to acquire Chinook Therapeutics (NASDAQ: KDNY) for $3.2B up front, driven by Chinook’s innovative rare and severe kidney disease pipeline that will add to Novartis’ existing kidney disease focus. The acquisition is driven by Chinook’s lead program, atrasentan (currently in Phase 3 studies), a selective endothelin A receptor antagonist for IgA nephropathy. Visible Alpha consensus estimates show atrasentan ramping up to $1.25B in global revenue in 2032 ($932M on a risk-adjusted basis). Analysts peg the probability of regulatory approval at a consensus of 67.9%.
Analysts Anticipate Strong International Revenue Growth for Lululemon Athletica, Outpacing U.S. and Canada
Apparel retailer Lululemon Athletica (NASDAQ: LULU) is projected to see significant revenue growth in markets outside of the U.S. and Canada (UCAN). The company currently operates in UCAN, Europe, Asia, and Australasia. According to Visible Alpha consensus, the proportion of revenue generated internationally (excluding UCAN) is expected to increase from 15% in 2022 to 29% by 2027. Revenue outside of UCAN is expected to grow at a CAGR of 33% between 2022-27, and projected to reach $3.9 billion by 2027. Lululemon plans major expansion in its international markets, particularly in China. Analysts project Lululemon will add 49 new stores outside of UCAN in 2023, many of which will be in Asia.
Soaring Subscribers and Revenue to Propel Growth for Rent the Runway
Analysts are expecting strong subscriber growth for Rent the Runway (NASDAQ: RENT), a fashion rental service provider with 129K average active subscribers expected in 2023, according to Visible Alpha consensus. The company claims demand for workwear has been surging as more people return to the office. Analysts expect subscription and reserve rental revenue to grow by 45% in 2023 to $269 million, with projections reaching $404 million by 2026.
Ford’s Revised Business Segments Highlight EV Sales Growth
Ford Motor’s (NYSE: F) revised business segment classification — Ford Blue (gas and hybrid vehicles), Ford Model e (electric vehicles), and Ford Pro (commercial products and services) — has highlighted analysts’ projections for significant growth in revenue and units sold, specifically in the EV segment. Analysts project 63% revenue expansion for Ford’s Model e division in 2023, far surpassing the projected 3% growth for Ford Blue. Ford Model e units sold are projected to rise substantially from 96K units in 2022 to around 795K units by 2026.
Three Key Questions About Netflix Inc. (NASDAQ: NFLX) Earnings in April 2023
By: Melissa Otto, CFA
Netflix Inc. (NASDAQ: NFLX) reported Q1 2023 results on Tuesday, April 18, 2023. What happened in Q1, what is the outlook for Q2, and what are the new questions to focus on?
Overall, Q1 was in line and Q2 guidance came in a bit below consensus. The stock initially traded down more than -10% in after-hours trading post-release, but then rebounded to around flat. As of the following trading day, the stock continued to be weighed down. The discussion in the earnings interview emphasized the paid sharing program and the potential for advertising.
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Winnebago Slowing Down; CRISPR’s Gene Editing Therapy; Alibaba’s New Organizational Structure
By: Visible Alpha Research & Innovation Lab
In our weekly round-up of the top charts and market-moving analyst insights: CRISPR’s (CRSP) new gene-editing therapy is expected to be evaluated by the FDA; franchise sales are expected to drive growth for Xponential Fitness (XPOF); Alibaba (BABA) announces a new organizational structure; Winnebago (WGO) is poised to sell fewer units but at higher prices this year; and analysts continue to cut forecasts for deposits at Schwab (SCHW) Bank.
Royal Caribbean’s Record Bookings; Nvidia and AI Hype; Manchester United Media Sales
By: Visible Alpha Research & Innovation Lab
In our weekly round-up of the top charts and market-moving analyst insights: automotive semiconductors are expected to drive sales growth at GlobalFoundries; On is estimated to double running shoe sales by 2025; NVIDIA’s AI hype is not convincing analysts to raise data center revenue estimates; Royal Caribbean Cruises is poised to operate at >100% occupancy; and media sales is expected to drive Manchester United’s revenue growth.
Pfizer Moves to Acquire Seagen; Apple TV+ Revenue Poised to Jump; Netflix Subscription Fees
By: Visible Alpha Research & Innovation Lab
In our weekly round-up of the top charts and market-moving analyst insights: Seagen is expected to show sharp sales growth as Pfizer moves to acquire the biotech innovator; Apple TV+ revenue is estimated to double by 2024; Netflix is expected to collect more than $20/month in subscriber revenue per U.S. and Canadian subscriber by 2027; and Softbank’s Arm may grow sales more than 70% as Softbank explores an IPO for the chip designer.
Ted Lasso’s AFC Richmond and Erik ten Hag’s Manchester United Challenge for Fan Dominance
By: Visible Alpha Research & Innovation Lab
With its recent promotion back into the Premier League, all eyes are on AFC Richmond and their singular coach, Theodore “Ted” Lasso, as they faced their season opener this week. But, while football pundits and oddsmakers debate Richmond’s chances on the pitch, Visible Alpha’s data suggests that equity analysts are expecting remarkable performance off of it.
Model 3 and Model Y to Continue Dominating Tesla Sales; Carvana Sales Estimates Crash
By: Visible Alpha Research & Innovation Lab
In our weekly round-up of the top charts and market-moving analyst insights: Tesla’s Model 3 and Model Y are expected to continue contributing the most to Tesla’s overall sales; Carvana’s used car sales are projected to move even lower; Coinbase is not expected to recover lost revenue any time soon; and Nerdwallet’s credit cards segment is poised to help drive sales growth.
Generac’s Generator Headwinds; Alibaba’s Cloud Growth; Boeing & Airbus Sell Larger Planes
By: Visible Alpha Research & Innovation Lab
In our weekly round-up of the top charts and market-moving analyst insights, Generac’s generators are facing a potentially steep drop in residential sales, Alibaba’s computing and infrastructure sales appear poised to double, and wide-body aircraft deliveries from both Boeing and Airbus are expected to take-off.
Paramount Subscribers; New Drugs for Macular Degeneration; Sportradar Eyes U.S.
By: Visible Alpha Research & Innovation Lab
In our weekly round-up of the top charts and market-moving analyst insights, Paramount’s streaming subscribers are projected to grow, new drugs for age-related macular degeneration are projected to challenge market leaders, and Sportradar’s U.S. business is expected to drive growth.
Amazon’s Ads Flourish; Newcrest Mines More Gold; Tractor Supply Co. Chicken Demand Rises
By: Visible Alpha Research & Innovation Lab
In our weekly round-up of our top charts and market-moving analyst insights, Amazon’s digital ads are outperforming peers, Newcrest Mining’s gold production should resume growth next year, and Tractor Supply Company is selling a lot of live chickens.
