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BOSTON (CBS) – Countless Americans have been forced to put surgeries on hold during the coronavirus crisis. Overwhelmed hospitals are struggling to take care of patients and are dealing with a critical shortage of protective gear. In some areas, including Massachusetts, hospitals have stopped doing many elective surgeries.
Red Sox starter Chris Sale had Tommy John surgery on his left elbow on Monday, his 31st birthday, waiting 11 days after doctors said he needed the operation because of difficulty in scheduling during the coronavirus pandemic. Red Sox chief baseball officer Chaim Bloom said the team worked with doctors to make sure the procedure didn’t burden an already-stressed healthcare system.
It has been a rollercoaster month for investors of beleaguered airline Boeing (BA). To recap: the stock dropped during the first three weeks of March all the way down to $95 per share, an amazing loss of 66%. However, last week’s relief rally saw the share price reclaiming 70% of its value. Will the volatility continue? Possibly, as there are currently a wide variable of unknowns concerning the A&D giant’s future.Nevertheless, Credit Suisse’s Robert Spingarn slashed his price target on Boeing shares to $187 (from $367), which still implies about 23% upside from current levels. Despite the profit potential, the analyst can't quite see his way clear to actually recommending "buying" BA stock, assigning the shares only a "neutral" rating. (To watch Spingarn’s track record, click here)Questions have been raised concerning Boeing’s financial health, following a request for $60 billion in federal aid to assist its ailing ecosystem. Last week’s developments, along with the dividend cut and the firm’s latest modeling, leave the 5-star analyst “reasonably confident in BA’s ability to contain near term liquidity/dilution risks.”The larger concern for Spingarn remains the “highly uncertain landscape for the OE recovery in ‘21+.”The analyst notes that revenue passenger kilometer (RPK) recovery in H1’21 could be impacted by further COVID-19 mitigation actions. Looking further ahead to H2’21 and beyond, along with a possible reduced demand for business travel due to the rising popularity of video conferencing, the financial impact of the coronavirus on consumers’ leisure spending power could further impact RPK recovery.And although lower fuel prices could translate into lower ticket prices, offering a counter relief to the aforementioned issues, Spingarn reminds investors that there are further complications. “Low oil improves the unit economics of operating older aircraft, disincentivizing the purchase of new tails. At the same time, MAX delays offer some airlines a contractual escape to cancel orders—a bad combo for BA. And while demand for new aircraft could be challenged for years, the near term nevertheless promises a boost for supply as MAX returns to service. BCA’s end-market could therefore be facing a dual supply/demand shock which may result in an extended period of indigestion and “lower for longer” production rates,” the analyst said.Among other Street analysts, Boeing currently holds a Moderate Buy consensus rating based on 6 Buys, 13 Holds and 1 Sell. At $211, the average price target promises returns in the shape of 39%, should the figure be met in the months ahead. (See Boeing stock analysis on TipRanks) More recent articles from Smarter Analyst: * When Will Apple’s 5G-Enabled iPhone 12 Launch? Analyst Weighs In * Don’t Buy Roku Stock, Says Analyst; The 'Coming Recession' Is a Risk * Cytosorbents's Blood Purification Technology Could Play Important Role in Fighting COVID-19; Analyst Says 'Buy' * 2 "Strong Buy" Stocks with Solid Long-Term Upside
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At present, it seems everything is moving at an accelerated speed. Whether concerning the daily escalation of coronavirus cases, the programs being put into place to combat the economic effect, or the global race to find a vaccine/treatment to halt the pandemic.If you’re a watcher of the comings and goings on Wall Street, then you can add the speed at which companies are currently reevaluated to the list, too. Which brings us to Roku (ROKU).The present situation has caused a rethink at investment firm Wedbush on its model for the streaming player. The updated outlook is a subtle one, but includes an important shift in tone – the lowering of estimates due to a “coming recession.”Wedbush's Michael Pachter lowered estimates for Roku’s ARPU (average revenue per user) from 30% to 21% year-over-year growth in Q1, while for Q2 the figure is bought down from 40% to 26%. Year-over-year growth for FY20 is bought down to 20% from 24%. All, according to the analyst, are based on lower advertising demand in the face of a recession. “This reduces our Q1 estimates to the low-end of guidance with the FY:20 now below the low-end of guidance. We will revisit our estimates when the duration of the pandemic’s economic impact is more clear,” said Pachter.As a result, estimated revenue comes down to $1.57 billion from $1.62 billion and adjusted EBITDA from -$11 million to -$12 million. Additionally, EPS is lowered from -$1.35 to -$1.54.Comparing Roku’s current situation to another heavy hitter, Pachter noted, “Since we recently adjusted our model, Twitter withdrew its guidance as reflective of an increasingly volatile macroeconomic environment and uncertain advertising outlook. Specifically, higher impressions growth associated with pandemic news may not translate to previously expected revenue growth, due to CPM and advertising demand headwinds that are currently difficult to quantify. It is likely that ROKU will follow the same pattern as Twitter, where higher AVOD impressions are burdened by lower advertiser demand in the face of a looming recession.”All in all, Pachter maintains a Neutral rating and $86 price target for Roku, implying the stock has a slight downside of 4% (To watch Pachter’s track record, click here)Similar to Pachter, Wall Street isn’t completely sold on Roku. TipRanks analysis of 10 analysts shows a consensus Moderate Buy rating, with 5 analysts recommending Buy, 3 saying Hold and 2 suggesting Sell. The average 12-month price target on the stock is $136.60, representing nearly 52% increase from its current price. (See TipRanks’ Analysts’ Top Stocks) More recent articles from Smarter Analyst: * Challenging Times Ahead for Boeing Stock; 5-Star Analyst Slashes Price Target * When Will Apple’s 5G-Enabled iPhone 12 Launch? Analyst Weighs In * Cytosorbents's Blood Purification Technology Could Play Important Role in Fighting COVID-19; Analyst Says 'Buy' * 2 "Strong Buy" Stocks with Solid Long-Term Upside
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It has been a rollercoaster month for investors of beleaguered airline Boeing (BA). To recap: the stock dropped during the first three weeks of March all the way down to $95 per share, an amazing loss of 66%. However, last week’s relief rally saw the share price reclaiming 70% of its value. Will the volatility continue? Possibly, as there are currently a wide variable of unknowns concerning the A&D giant’s future.Nevertheless, Credit Suisse’s Robert Spingarn slashed his price target on Boeing shares to $187 (from $367), which still implies about 23% upside from current levels. Despite the profit potential, the analyst can't quite see his way clear to actually recommending "buying" BA stock, assigning the shares only a "neutral" rating. (To watch Spingarn’s track record, click here)Questions have been raised concerning Boeing’s financial health, following a request for $60 billion in federal aid to assist its ailing ecosystem. Last week’s developments, along with the dividend cut and the firm’s latest modeling, leave the 5-star analyst “reasonably confident in BA’s ability to contain near term liquidity/dilution risks.”The larger concern for Spingarn remains the “highly uncertain landscape for the OE recovery in ‘21+.”The analyst notes that revenue passenger kilometer (RPK) recovery in H1’21 could be impacted by further COVID-19 mitigation actions. Looking further ahead to H2’21 and beyond, along with a possible reduced demand for business travel due to the rising popularity of video conferencing, the financial impact of the coronavirus on consumers’ leisure spending power could further impact RPK recovery.And although lower fuel prices could translate into lower ticket prices, offering a counter relief to the aforementioned issues, Spingarn reminds investors that there are further complications. “Low oil improves the unit economics of operating older aircraft, disincentivizing the purchase of new tails. At the same time, MAX delays offer some airlines a contractual escape to cancel orders—a bad combo for BA. And while demand for new aircraft could be challenged for years, the near term nevertheless promises a boost for supply as MAX returns to service. BCA’s end-market could therefore be facing a dual supply/demand shock which may result in an extended period of indigestion and “lower for longer” production rates,” the analyst said.Among other Street analysts, Boeing currently holds a Moderate Buy consensus rating based on 6 Buys, 13 Holds and 1 Sell. At $211, the average price target promises returns in the shape of 39%, should the figure be met in the months ahead. (See Boeing stock analysis on TipRanks) More recent articles from Smarter Analyst: * When Will Apple’s 5G-Enabled iPhone 12 Launch? Analyst Weighs In * Don’t Buy Roku Stock, Says Analyst; The 'Coming Recession' Is a Risk * Cytosorbents's Blood Purification Technology Could Play Important Role in Fighting COVID-19; Analyst Says 'Buy' * 2 "Strong Buy" Stocks with Solid Long-Term Upside
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Red Sox starter Chris Sale had Tommy John surgery on his left elbow on Monday, his 31st birthday, waiting 11 days after doctors said he needed the operation because of difficulty in scheduling during the coronavirus pandemic. Red Sox chief baseball officer Chaim Bloom said the team worked with doctors to make sure the procedure didn't burden an already-stressed healthcare system. "Under normal circumstances we might have been able to have it happen a little bit sooner," Bloom said on a conference call with reporters.
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