Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Intel Corporation (INTC), Bristol Myers Squibb Co. (BMY): Three Noteworthy Upgrades Worth a Look

Page 1 of 2
Intel Corporation (NASDAQ:INTC) traded higher after last weekend’s feature story in Barron’s. The firm upped its outlook, saying it expects Intel Corporation (NASDAQ:INTC) to double over the next five years due to market share gains in tablets and smartphones.

Moreover, Barron’s feature columnist Jack Hough anticipates big demand for lucrative server chips and a stabilization in the PC market. Hough also expects the company to cut its capital spending spree and capitalize on more high-end contracts (such as Apple & Samsung).

Intel Corporation (NASDAQ:INTC)

It is very difficult to imagine Intel Corporation (NASDAQ:INTC) doubling in price, trading over $50. The stock has produced gains of just 20% over the last decade, and has pretty much hovered around $25 during this period. With that said, Hough’s reasons are sensible, and Intel Corporation (NASDAQ:INTC) is a cheap stock that does pay a 3.70% dividend yield. Therefore, I think the call is possible, although I still view Intel Corporation (NASDAQ:INTC) as a safe high-yield holding; not a high-flying momentum stock.

“Paradigm Changing” call after ASCO

Bristol Myers Squibb Co. (NYSE:BMY) has seen gains of 47% in 2013, and was up 3.5% on Monday, as the market responded to the upside of its PD-1 drug nivolumab; both alone and in combination with Yervoy. Nivolumab stole the show at ASCO, and Goldman Sachs has issued a Conviction Buy on the stock.

Goldman calls Bristol Myers Squibb Co. (NYSE:BMY)’ immune-oncology program “paradigm changing” and raised its price target to $55 from $48. The firm also notes that the market is likely to be massive and that Bristol Myers Squibb Co. (NYSE:BMY) is well-positioned to capitalize on the opportunity.

As an investor, I agree with everything in Goldman’s note. Bristol Myers Squibb Co. (NYSE:BMY)’ anti PD-1 drug is showing effectiveness at successfully treating various diseases – and is the most advanced product in this new class of drugs. Right now, it is looking as if nivolumab will enter the market next year, while Merck & Co., Inc. (NYSE:MRK)’s anti PD-1 will be two years behind.

Currently, analysts project sales for the anti PD-1 market to be up to $10 billion annually. Thus, you can see why the market is responding so well to Bristol Myers Squibb Co. (NYSE:BMY). Personally, I am buying the stock. It still has a 3% yield and with $16 billion in annual sales, the addition of this new drug could increase total sales by 40% over five years. The opportunity simply appears too great to ignore.

It’s not a fad!

Sodastream International Ltd (NASDAQ:SODA) traded higher by almost 9% after Barclays raised its price target from $55 to $100. The firm notes that its channel checks indicate more than 20% top-line growth. The firm also notes that it could see the stock peaking at $150, and that its products are “not a fad.”
Page 1 of 2