(Bloomberg) -- American Airlines Group Inc. received a big blow from Wall Street on Friday as Evercore ISI analyst Duane Pfennigwerth slashed his price target on the Fort Worth, Texas-based carrier to $1 from $10.That would imply a 92% rout in the stock, which closed at $12.01 on Thursday.The airline, which entered the coronavirus-fueled crisis with the weakest balance sheet in the group, may not see “meaningful” recovery in its share price, the analyst said. As American, and the entire industry, tries to raise additional liquidity, Evercore estimates its net debt will far exceed revenue by the end of this year.American’s total debt stood at a little more than $34 billion as of March 31.Pfennigwerth expects American’s net debt to Ebitdar ratio to stand at about 9.8 times on reduced 2021 estimates. The analyst now expects a 2020 loss per share of $13.90, compared to a prior estimate of a $6.90/share...
(Bloomberg) -- A Gilead Sciences Inc. analyst advised investors to take their profits on the company’s $26.5 billion surge amid uncertainty on how the drugmaker could generate revenue from its Covid-19 drug candidate, remdesivir.The biopharmaceutical company’s plan to make the drug “affordable” and give away free doses for the time being clouds expectations of how it can use the medicine to turn a profit, SunTrust analyst Robyn Karnauskas warned clients in a note, downgrading the stock to sell from hold.“While we commend Gilead and do believe during this pandemic the company is doing the right thing, fundamentally we find the current valuation too high and investor realization of lack of growth will return the stock back to fundamentals,” she wrote.Shares of the Foster City, California-based company fell 5.9% at 9:38 a.m. in New York after reporting quarterly results Thursday evening. The drugmaker had gained 34% from a Jan. 21 low through...
(Bloomberg) -- Rich Americans are taking advantage of an unprecedented opportunity, made possible by the coronavirus pandemic, to transfer money to their children and grandchildren tax-free.Thanks to the 2017 Republican tax overhaul, it was already easier than ever to avoid the U.S. estate and gift tax, a 40% levy on the biggest fortunes. Now, plunging interest rates and volatile equity markets are creating a once-in-a-lifetime chance that’s keeping wealth advisers busy even as they work from home.“Our phone is kind of ringing off the hook,” said Jordan Waxman, managing partner of Nucleus Advisors. “There really hasn’t been a better time to plan.”Key interest rates set by the Internal Revenue Service for estate-planning purposes have never been as low as they are starting this month. For example, the so-called Section 7520 rate, determined each month based on a formula, fell to 0.8% in May from 1.2% in April. It had been well...
Inovio Pharmaceuticals (NASDAQ:INO) is heating up, as investors continue to flock to certain stocks for the novel coronavirus. Shares of INO stock have rallied 140% from the April 15 low to the high on April 27.Source: Ascannio / Shutterstock.com Can that momentum continue?I am all for combing over the fundamentals and looking for high-quality companies. I love companies with a powerful balance sheet -- like Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) or Facebook (NASDAQ:FB) -- and ones that generate powerful cash flow. But I'm also keen on the technicals.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhen a company has just one or the other, investors need to respect which one is in control. In other words, take a closer look at companies with improving and solid fundamentals, yet a poor stock chart. On the flip side, companies with poor fundamentals and strong price action should not be a no-brainer short. As the...
