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Home Depot 09-23 04:48 GMT  
(Report with Analyst's Data Sheet) 
You can't pick up a newspaper these days without reading about how high mortgage rates are causing people to stay in their homes instead of buying new ones...
Love It Or List It by Carol Levenson, CFA
Tempur Sealy International 09-23 04:41 GMT  
(Report with Analyst's Data Sheet) 
Tempur Sealy International (TPX) is facing difficult comparisons as consumers, especially those with deflated pocketbooks, are buying...
Consumer Health by Kim Noland
Pulp Makers 09-23 04:23 GMT  
(Report with Analyst's Data Sheet) 
As we approach the end of the third quarter, market data indicate that 3Q22 will be another good quarter for pulp makers under our coverage, namely Suzano SA...
A Well Shielded Sector by Alexandre Dray
Cleveland-Cliffs Inc. 09-22 05:45 GMT  
(Report with Analyst's Data Sheet) 
Cleveland-Cliffs' (CLF) second quarter results fell short of the consensus forecast on higher input costs and an extended maintenance outage...
Continued Debt Reduction by Evan Mann, CFA
Verizon Communications 09-22 05:24 GMT  
(Report with Analyst's Data Sheet) 
Verizon has traditionally been viewed as the leader in the wireless industry. That has held true for various metrics including the number of...
Losing Its Leadership  by Dave Novosel, CFA
Ecopetrol S.A. 09-22 04:27 GMT  
(Report with Analyst's Data Sheet) 
The high energy prices and solid local demand for oil products have provided a strong support to Ecopetrol S.A. (ECOPET), as we had expected earlier this...
Reaping The Benefits  by Cedric Rimaud, CFA
Kohl's 09-21 19:11 GMT
(Comment)
The major rating agencies have been caught flatfooted by negative developments at Kohl's. Last week S&P...
Ratings Action by Carol Levenson, CFA
The major rating agencies have been caught flatfooted by negative developments at Kohl's. Last week S&P abruptly downgraded its ratings to junk (BB+) without a negative review, and yesterday Moody's announced it was reviewing the company's 'Baa2' rating for a downgrade, giving no indication of the potential severity of a downgrade (as there is no commercial paper rating, there is no clue to be gleaned from this as to severity, as there would ordinarily be). The reasons cited were those covered in our reports, most recently the one after second quarter earnings, dated August 23. The agencies have noticed that operating performance and visibility have worsened, and inventory is excessive, while margins and leverage have deteriorated, as well as more aggressive shareholder enhancement actions as the stock has suffered and the chance of a suitor have dissipated. Department stores in general are suffering in this environment, but Kohl's is underperforming its peers. We have long expressed our belief that Kohl's is no longer an investment grade credit, and the bond market downgraded it long ago. Counterintuitively, because the bonds have a modest coupon stepup for a downgrade to junk, bonds appear to be trading a bit better today. Kohl's was on our Bottom Ten and we reiterate our "underperform" (2031 notes at T+560).
CVS Health 09-06 17:22 GMT
(Comment)
As rumored in the financial press, today CVS announced it is acquiring home health provider Signify...
Acquisition by Carol Levenson, CFA
As rumored in the financial press, today CVS announced it is acquiring home health provider Signify Health. The enterprise value is $8 billion, and the purchase is expected to be accretive. The acquisition fits squarely into CVS's healthcare strategy and fills an important slot in this strategy. In fact, we discussed just such a possibility in the same price range in our most recent report. It will be pricey, however, at about double the unaffected market price (such is often the case when one buys a firm from private equity). The company intends to use cash on hand and "available resources" to finance the purchase. At the end of June, balance sheet cash exceeded $12 billion, with $5.8 billion at the parent and unrestricted subsidiaries. Importantly, CVS stated it is committed to maintaining its current ratings. We view the acquisition as neutral to the company's credit profile, with the increase in net debt offset by Signify's fast-growing EBITDA contribution and enhanced diversification. We will have more in an upcoming full report.
Emerging Markets New Industry Report, Pulp Makers.

Ford Motor Credit 09-08 
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