Category: Technology

Virtual Therapeutics Levels Up in Digital Mental Health With $276M Akili Deal

Posted on by slightbourne@noblecapitalmarkets.com

One of the pioneering players in applying video game technology to treating mental health conditions is going all-in on its digital therapeutic ambitions. Virtual Therapeutics announced Monday it has struck a deal to acquire Akili, Inc. in an all-cash transaction valuing the digital therapeutics firm at $276 million.

The acquisition marks a bold consolidation move as Virtual Therapeutics aims to establish itself as a diversified leader in the rapidly evolving digital health landscape. Akili shareholders will receive $0.4340 per share under the terms of the agreement, representing an 85% premium to the stock’s closing price in late April before a strategic review was announced.

Virtual Therapeutics has built a portfolio of virtual reality and immersive game experiences explicitly designed to provide mental health and cognitive fitness solutions. By adding Akili’s clinically-validated mobile software products to its platform, the combined company can offer a multi-modal suite of digital therapeutic offerings across multiple therapeutic areas.

For Akili investors, the all-cash bid comes as a welcome event after a turbulent stretch for the newly-public company. Shares had plunged over 80% from their 2022 IPO price amid slower-than-expected uptake for its flagship ADHD treatment. The $276 million deal price provides Akili shareholders with a rare exit opportunity in the cash-burning digital health space.

Founded in 2011, Boston-based Akili pioneered a new category of medicine it calls “digital therapeutics” – video game-like software programs prescribed by doctors that are clinically validated to treat medical conditions directly through cognitive engagement and video inputs. Its lead product, EndeavorRx, was cleared by the FDA in 2020 as a treatment for children with ADHD.

Take a moment to discover more emerging growth biotechnology companies by taking a look at Noble Capital Markets’ Research Analyst Robert LeBoyer’s coverage list.

Virtual Therapeutics has been taking a different tack, creating visually-rich, immersive game worlds as mental health interventions for conditions like depression, anxiety, PTSD and cognitive decline. The two approaches could prove complementary, with Akili’s mobile experiences providing one delivery mechanism and Virtual Therapeutics’ VR worlds offering an alternative modality.

Combining platforms may allow the merged company to deliver a truly multi-channel digital therapeutic offering spanning mobile, console and virtual reality environments. Cost synergies from eliminating redundancies in technology, R&D and sales infrastructure could also drive improved profitability over time.

For Virtual Therapeutics CEO and co-founder Dan Elenbaas, the Akili merger represents a major milestone in his mission to “bring behavioral health services to as many patients as possible” through engaging, accessible digital experiences. With clinical validation and regulatory clearance already in hand for Akili’s products, the road to scaling distribution and driving adoption may become clearer.

Weighing the deal’s benefits, BTIG analyst Mark Westbrook called the transaction “highly complementary” and stated it positions Virtual Therapeutics as a “clear leader” in delivering validated digital mental health solutions through novel experiential mediums like gaming.

While the digital therapeutics space is still in its infancy, the Virtual Therapeutics-Akili merger creates a formidable platform anchored by real-world clinical data and evidence. Akili gets taken private at a meaningful premium, while Virtual Therapeutics absorbs validated products to accelerate growth in its core mission of delivering modern, scalable solutions to the mental health crisis.

For healthcare investors seeking new frontiers, the combined digital mental health company resulting from this deal could be an enticing way to capitalize on gaming technology being repurposed for medical applications. Virtual reality video games may be just what the doctor ordered.

Tech Sell-Off Hits Broader Stock Market

Posted on by slightbourne@noblecapitalmarkets.com

After a torrid five-week run higher, Wall Street took its foot off the gas this week as investors moved to book some profits. The S&P 500 dropped 1.8% over the last five sessions, ending an impressive stretch that saw the broad index rally over 6% since late April.

At the core of this week’s pullback was a cooldown in red-hot technology stocks benefiting from the artificial intelligence frenzy. Semiconductor giant Nvidia, whose blowout earnings last week turbocharged the AI trade, shed over 9% this week as traders moved to cash in some of those monster gains.

Other mega cap tech leaders like Microsoft, Amazon, and Alphabet also gave back ground, contributing to a 2.4% weekly slide for the Nasdaq Composite. With Big Tech serving as a weight on the market’s shoulders, the venerable Dow Jones Industrial Average wasn’t spared either – the blue-chip index dropped over 2% itself.

The downshift marked an overdue pause that refreshed for the often overly-exuberant market. After storming nearly 15% off the lows over the previous seven weeks, a little air had to come out of the balloon, even with economic data continuing to hold up.

On the economic front, the core Personal Consumption Expenditures (PCE) reading rose 2.8% year-over-year in April, slightly exceeding estimates. While inflation remains stubbornly high, the lack of a major upside surprise helped soothe fears of the Fed needing to pivot towards an even more aggressive policy stance.

The underlying commodity and service costs feeding into the PCE suggest inflation could start to moderate in the second half of 2023. That aligns with current Fed forecasts projecting two more 25 basis point rate hikes before calling it quits on this tightening cycle.

Assuming the Fed can stick the landing without snuffing out economic growth, conditions could remain conducive for further equity upside. History shows the S&P 500 tends to bottom around six months before the end of a tightening cycle – and rally sharply in the following 12 months.

This week’s dip may have seemed like an ominous turn, but it really just returned the major indexes back in line with the performance of other segments of the market. The Russell 2000 small-cap index and Russell 3000 representing the entire U.S. equity market have been lagging the S&P 500’s advance.

Over the past month, the Russell 3000 is up a more modest 2.8% versus a 5.2% gain for the big-cap dominated S&P 500. Small-caps as represented by the Russell 2000 have fared even worse with a 1.4% advance over that span.

Analysts pointed out small-caps have struggled to sustain upside momentum. Despite bouncing back from October’s lows, the Russell 2000 is still down 6% year-to-date versus a 10% rise for the large-cap Russell 1000.

Higher financing costs, softer economic growth prospects, and the fading benefits of 2022’s rally could continue to weigh on smaller stocks in the second half.

If large-cap tech remains under pressure, it could help narrow the performance gap – with the Russell mega-caps ceding some of their market-leading gains. But for now, most of Wall Street appears comfortable viewing this week’s pullback as simply clearing the way for the next move higher.

After all, some long-overdue profit-taking and consolidation can ultimately be healthy, helping reset overbought conditions and set the stage for sustained upside.

Salesforce Sell-Off Shakes Tech, AI Sectors But Could Spell Opportunity

Posted on by slightbourne@noblecapitalmarkets.com

Salesforce’s shocking earnings miss and subsequent stock plunge sent shockwaves through the technology and artificial intelligence spaces on Thursday. But some investors see the dramatic selloff as a potential chance to buy into the AI growth story on the dip.

Shares of the cloud software giant cratered over 20% in early trading, putting the stock on pace for its worst single-day decline since going public nearly two decades ago. The plunge came after Salesforce reported its first top-line miss since 2006 and provided disappointing guidance, surprising Wall Street and raising concerns about cracks in business spending.

The selloff rapidly spread across the tech sector, with the Nasdaq tumbling over 2% as investors fled growth stocks. AI industry leaders were among the biggest drags on the index amid fears Salesforce’s shortfall could indicate broader economic turbulence.

While the numbers were clearly disappointing, some analysts remain steadfastly optimistic that Salesforce’s fortunes will turn as artificial intelligence proliferates. With $13.5 billion in cash and a portfolio of AI capabilities from its acquisition of startup Anthropic, contrarians are betting the company is well-positioned to monetize generative AI technologies over the long haul.

For small cap and retail traders, Salesforce’s dramatic share price compression could open an attractive entry point. The stock’s forward P/E has plunged below 20, near multi-year lows despite its exposure to the “game-changing AI theme.” With a market cap around $178 billion as of Thursday, some view Salesforce as a relative bargain in the potential AI winners circle.

AI economies of scale could help Salesforce flex its tech muscles again before too long. One firm expects the company to increasingly leverage AI not just for products, but also for improving productivity and driving revenue engine automation. Cost streamlining aided by AI could lift operating margins towards the company’s target over time.

For traders and institutions alike, the frenzied selling appears to be creating an intriguing disconnect between Salesforce’s current valuation and what bulls perceive as enviable AI exposure compared to pricier megacap tech names. If dark economic clouds do part, the recent plunge could mark an opportunistic entry point.

Volatility around AI innovators is likely to remain elevated as the marketplace continues rapidly evolving. However, Salesforce’s cloud presence, entrenched client base, and multi-billion AI investments suggest it’s far too early to throw in the towel on this pioneering tech trailblazer.

Release – Conduent Named to Newsweek’s Top 100 Global Most Loved Workplaces for 2024

Posted on by aweinsoff@channelchek.com

Research News and Market Data on CNDT

MAY 30, 2024

Inclusion on Newsweek’s Top 100 Global Most Loved Workplaces list for second straight year reflects commitment to a strong culture

Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, today announced being named a Newsweek’s Top 100 Global Most Loved Workplaces® for 2024.

The recognition is Conduent’s second consecutive appearance on Newsweek’s Top 100 Global Most Loved Workplaces®. The ranking is produced through collaboration with the research and analysis of Best Practice Institute (BPI), a leadership development and benchmark research company.

“Being included once again on Newsweek’s Top 100 Global Most Loved Workplaces is a reflection of our commitment to creating a workplace where our associates can be themselves, grow and gain skills and make a positive difference,” said Cliff Skelton, Conduent President and Chief Executive Officer. “This achievement is especially meaningful because it is based on how our associates feel about Conduent. The analysis also aligns with Conduent’s core values of teamwork, communication and inclusion as we deliver valuable outcomes for our clients.”

“As workplaces continue to shift, it’s clearer than ever that fostering collaboration, embracing a positive outlook, and aligning values are essential. The companies celebrated on the 2024 Global Most Loved Workplaces® list truly embody these principles. They show us that by championing respect and team-oriented outcomes, they’re not just building great workplaces, they’re shaping a brighter future for all,” said Nancy Cooper, Global Editor in Chief of Newsweek.

The results were determined after surveying more than 2 million employees from businesses with workforces varying in size from 30 to more than 10,000. The list recognizes companies that put respect, caring, and appreciation for their employees at the center of their business model and, in doing so, have earned the loyalty and respect of the people who work for them.

For the full Newsweek list of 2024’s Top 100 Global Most Loved Workplaces®, visit https://www.newsweek.com/rankings/global-most-loved-workplaces-2024.

Being named to Newsweek’s Top 100 Global Most Loved Workplaces® for 2024 is the third consecutive year earning a Newsweek Most Loved ranking for Conduent.

About Conduent

Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 59,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at http://www.conduent.com.

Note: To receive RSS news feeds, visit www.news.conduent.com. For open commentary, industry perspectives and views, visit http://twitter.com/Conduent, http://www.linkedin.com/company/conduent or http://www.facebook.com/Conduent.

Trademarks
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

Media Contacts

SEAN COLLINS

Conduent

Sean.Collins2@conduent.com

+1-310-497-9205

GILES GOODBURN

Conduent

ir@conduent.com

+1-203-216-3546

Release – QuoteMedia Powers Berkindale Analytics Market Data Platform

Posted on by aweinsoff@channelchek.com

Research News and Market Data on QMCI

PHOENIX, May 29, 2024 (GLOBE NEWSWIRE) — QuoteMedia, Inc. (OTCQB: QMCI), a leading provider of market data and financial applications, is pleased to introduce Berkindale Analytics, as a new Client and Partner for North American market data and information for their advanced data and analytics platform.

QuoteMedia’s real-time and historical market data feeds provide companies with access to fully consolidated feeds for a total picture of North American market activity which they can use in their advanced analytics platforms for the benefit of their users.

QuoteMedia is delivering a wide range of content, including consolidated enterprise data feeds for United States and Canadian exchanges, through low-latency REST APIs and End-of-Day Data Services. This provides Berkindale Analytics with the data required for their state-of-the-art deep analytics solution.

“Our partnership with QuoteMedia is a continuation of Berkindale’s ambition to deliver a cutting-edge data analytics platform that assists customers in modernizing and enhancing their market data strategies,” said Philippe Girard, Founder and CEO of Berkindale Analytics. “The quality and breadth of QuoteMedia’s data offerings, taken together with their unmatched dedication to ensuring we realize our vision, have made QuoteMedia the perfect choice for Berkindale.”

“We are very pleased to be partnering with Berkindale on their leading-edge research and analytics platform,” said Dave Shworan, CEO of QuoteMedia Ltd. “Berkindale takes genuine pride in providing their clients with the very best data solutions, and has earned a well deserved reputation for excellence. We are very proud to be partnering with them in meeting the needs of their diverse client base.”

About QuoteMedia

QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides industry leading market data solutions and financial services for companies such as the Nasdaq Stock Exchange, TMX Group (TSX Stock Exchange), Canadian Securities Exchange (CSE), London Stock Exchange Group, FIS, IEX Data Services LLC, U.S. Bank, Bank of Montreal (BMO), Broadridge Financial Systems, JPMorgan Chase, Scotiabank, CI Financial, Canaccord Genuity Corp., Hilltop Securities, Avantax, Zacks Investment Research, S&P Global Market Intelligence Inc., Business Wire, Cision (PR Newswire, CNW Group), The Goldman Sachs Group, TheStreet.com, Motley Fool, Regal Securities, ChoiceTrade, Cetera Financial Group, Dynamic Trend, Inc., Aviso Financial Inc., iA Private Wealth, Ally Invest, Inc., Leede Jones Gable, Firstrade Securities, Charles Schwab, Lightspeed Financial Services Group LLC, Equisolve, Stock-Trak and others. Quotestream®, QMod™ and Quotestream Connect™ are trademarks of QuoteMedia. For more information, please visit www.quotemedia.com .

About Berkindale Analytics

Berkindale Analytics offers a sophisticated B2B cloud-based solution providing Level 2 granular market data, financial news, social media, and packaged analytics as distinct products to customers through direct download, API, and dashboards accessed from a web portal. The Berkindale platform uses machine learning technologies, data mining trends, and sentiment analysis with natural language processing which enables firms to maximize the value of the data and to deliver timely, actionable insights to our clients.

For additional information, please visit www.berkindale.com and stay in touch with us by signing up for our newsletter.

We invite you to speak with a representative for your data analytics needs.

QuoteMedia Investor Relations

Brendan Hopkins
Email: investors@quotemedia.com
Call: (407) 645-5295

Primary Logo

News Provided by GlobeNewswire via QuoteMedia

Release – QuantaSing to Report Third Fiscal Quarter Financial Results on June 6, 2024

Posted on by aweinsoff@channelchek.com

Research News and Market Data on QSG

May 29, 2024

PDF Version

BEIJING, May 29, 2024 (GLOBE NEWSWIRE) — QuantaSing Group Limited (NASDAQ: QSG) (“QuantaSing” or the “Company”), a leading online learning service provider in China, today announced that it plans to release its unaudited financial results for the quarter ended March 31, 2024, before the U.S. market opens on Thursday, June 6, 2024.

The Company’s management will hold an earnings conference call at 07:00 A.M. Eastern Time on Thursday, June 6, 2024 (07:00 P.M. Beijing Time on the same day) to discuss the financial results.

Listeners may access the call by dialing the following numbers:
International:
United States Toll Free:
Mainland China Toll Free: 
Hong Kong Toll Free:
Conference ID:		1-412-902-4272
1-888-346-8982
4001-201203
800-905945
QuantaSing Group Limited
  
The replay will be accessible through June 13, 2024 by dialing the following numbers:
International:
United States Toll Free:
Replay Access Code:		1-412-317-0088
1-877-344-7529
7529094
  

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.quantasing.com.

About QuantaSing Group Limited
QuantaSing is a leading online service provider in China dedicated to improving people’s quality of life and well-being by providing lifelong personal learning and development opportunities. The Company is the largest service provider in China’s online adult learning market and China’s adult personal interest learning market in terms of revenue, according to a report by Frost & Sullivan based on data from 2022. By leveraging its proprietary tools and technology, QuantaSing offers easy-to-understand, affordable, and accessible online courses to adult learners under a variety of brands, including QiNiu, JiangZhen, and QianChi, empowering users to pursue personal development. Leveraging its extensive experience in individual online learning services, the Company has also expanded its services to corporate clients including, among others, marketing services and enterprise talent management services.

For more information, please visit: https://ir.quantasing.com.

Contact
Investor Relations
Leah Guo
QuantaSing Group Limited
Email: ir@quantasing.com
Tel: +86 (10) 6493-7857

Robin Yang, Partner
ICR, LLC
Email: QuantaSing.IR@icrinc.com
Phone: +1 (212) 537-0429

Public Relations
Brad Burgess, Senior Vice President
ICR, LLC
Email: Brad.Burgess@icrinc.com

Bitcoin Mining Showdown: Riot Platforms’ Power Play for Bitfarms

Posted on by slightbourne@noblecapitalmarkets.com

In a bold move that could significantly reshape the cryptocurrency mining industry, Riot Platforms Inc. has made an unsolicited offer to acquire rival Bitcoin miner Bitfarms Ltd. for $950 million. This acquisition bid, which includes both cash and stock, values Bitfarms at $2.30 per share, a 20% premium over its pre-offer trading price. Riot’s aggressive strategy is driven by recent industry dynamics and Bitfarms’ internal challenges, and it has the potential to profoundly impact the Bitcoin mining landscape.

Riot Platforms, already a major player in the Bitcoin mining sector, has taken a 9.25% stake in Bitfarms, making it the largest shareholder. This move follows Bitfarms’ management turmoil, including the firing of interim CEO Geoffrey Morphy, who is now suing the company for $27 million in damages. Riot’s initial offer, made on April 22, was rejected by Bitfarms’ board without substantive dialogue. Undeterred, Riot plans to call a shareholder meeting to appoint new independent directors, signaling a clear intention to influence Bitfarms’ strategic direction.

The proposed acquisition highlights a significant trend in the Bitcoin mining sector: consolidation. This trend has been accelerated by the recent Bitcoin “halving,” an event that occurs approximately every four years and cuts the rewards miners receive for validating transactions by 50%. This reduction in rewards tightens margins and pushes miners to either scale operations or seek consolidation to maintain profitability.

For Riot, absorbing Bitfarms would create the largest Bitcoin miner globally, based on projected computing power growth. This expansion would significantly enhance Riot’s Bitcoin production capabilities, positioning it alongside industry giants like Marathon Digital Holdings Inc. and CleanSpark Inc. The increased scale and capacity would provide Riot with greater negotiating power, more efficient operations, and improved resilience against market fluctuations and rising energy costs.

Riot’s pursuit of Bitfarms sends a clear message to other players in the Bitcoin mining space: scale is essential for survival and success in the post-halving era. Smaller miners, already struggling with reduced revenues and limited access to capital, may find it increasingly challenging to compete against larger, resource-rich companies. This could trigger a wave of mergers and acquisitions as miners seek to consolidate resources, optimize operations, and leverage economies of scale.

For instance, Bitcoin miner Stronghold Digital Mining Inc. is already exploring strategic alternatives, including a potential sale. As the industry adapts to the new economic realities imposed by the halving, more companies might follow suit, either by seeking mergers or becoming acquisition targets themselves.

The consolidation trend among Bitcoin miners has broader implications for the cryptocurrency industry. Firstly, it could lead to increased centralization of mining power, potentially raising concerns about the decentralization ethos of Bitcoin. However, it could also result in more efficient and stable mining operations, reducing the risk of disruptions and enhancing the overall security and reliability of the Bitcoin network.

Moreover, large-scale miners like Riot, with significant resources and capacity, are better positioned to adopt sustainable practices and negotiate favorable energy contracts, potentially addressing some of the environmental criticisms faced by the industry.

Riot Platforms’ bid to acquire Bitfarms marks a pivotal moment in the evolution of Bitcoin mining. This strategic move underscores the importance of scale in navigating the post-halving landscape and sets the stage for further consolidation in the industry. For investors and stakeholders in the cryptocurrency space, this development highlights the dynamic and competitive nature of Bitcoin mining, where agility, resources, and strategic vision are key to thriving in an ever-evolving market. As the industry continues to mature, the actions of major players like Riot will undoubtedly shape the future of cryptocurrency mining and its role within the broader financial ecosystem.

Take a moment to take a look at Bit Digital, a large-scale bitcoin mining business with operations across the U.S. and Canada.

Nvidia’s $2.5 Trillion Stunner – The Chip That Conquered Wall Street

Posted on by slightbourne@noblecapitalmarkets.com

Nvidia’s explosive earnings sent shockwaves through the markets this week, with the chip giant’s stock skyrocketing over 9% to new all-time highs above $1,000 per share. The stunning results highlighted accelerating demand for Nvidia’s AI chips and platforms, particularly for applications like generative AI. Nvidia now boasts a staggering $2.5 trillion market cap as faith in the company’s AI leadership grows.

The Santa Clara-based company reported blowout Q1 numbers, with revenue rocketing 262% year-over-year to $26 billion. Adjusted earnings per share of $6.12 crushed expectations of $5.65. Nvidia’s Data Center segment, now 86% of total revenue, saw explosive 427% growth as hyperscalers and enterprises doubled down on AI computation. Even gaming revenue grew a robust 37% amid the AI buzz.

Perhaps most impressively, Nvidia projected Q2 revenue guidance of $28 billion, topping analyst estimates by over $1 billion. This guidance implies around 50% sequential growth, highlighting rapidly escalating demand as AI goes mainstream across industries. CEO Jensen Huang cited “strong and accelerating demand” from cloud providers, consumer tech giants, enterprises, automotive, and healthcare customers.

Nvidia’s results and sunny outlook supercharged the stock to new records above $1,040 per share in early trading on Thursday. At these levels, the chip titan’s valuation has more than tripled from just six months ago. While skeptics point to Nvidia’s nosebleed valuation over 50x forward earnings, the market is betting big on sustained hyper growth from AI proliferation.

The AI leader’s stratospheric rise propelled the entire semiconductor sector, with rivals like AMD and Intel notching solid gains. However, Nvidia’s influence now extends far beyond semis, with its breakneck AI momentum driving the entire tech market higher. The Nasdaq 100 jumped nearly 2% on Thursday, hitting new highs.

But Nvidia’s impact has transcended just tech, lifting the broad S&P 500 index to fresh all-time records above 4,600. As the S&P’s largest stock with a whopping 8% weighting, Nvidia’s 10% rally single-handedly lifted the index by nearly 1%. The AI juggernaut has been the prime catalyst carrying markets to new peaks in 2024 as economic concerns have faded.

Beyond the immediate stock surge, Nvidia also announced several shareholder-friendly moves that could sustain positive sentiment. The company unveiled a 10-for-1 stock split effective in June, potentially paving the way for entry into the elite, price-weighted Dow Jones Industrial Average. Nvidia also raised its quarterly dividend by over 20% following a growing trend among tech giants.

While Nvidia’s dizzy ascent has inevitably sparked bubble fears, the company’s execution and AI sector potential look undeniable for now. With a formidable head start over rivals and a rapidly expanding multi-trillion dollar opportunity, Nvidia may just be getting started. The AI revolution is here, and Nvidia is its indisputable leader – strong enough to keep lifting the entire market higher.


Register for Noble Capital Markets Emerging Growth Consumer, Communications, Media & Technology Virtual Equity Conference – June 26th – 27th, 2024

Conduent Inc. (CNDT) – Attractive Appreciation Potential Based on Divestiture Activity

Posted on by cpereira@noblefcm.com


Thursday, May 23, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Divestiture strategy coming to fruition. During 2024, the company made significant progress in an organizational transformation long in the making. After its spinoff from Xerox in 2017, the company had plans to become a more streamlined business. But, it is the current management team that has successfully executed several key divestitures. In our view, the company is on track to become more efficient, with a healthier balance sheet, and with attractive revenue and cash flow growth.

Meeting proceeds target. On May 2, 2024, the company announced that is has agreed to sell its Casualty Claims Solutions business (related to workers’ comp) to MedRisk for $240 million in cash. Notably, we believe the company has now announced the bulk of its divestitures and is in line to achieve its goal of $600-$800 million of net divestiture proceeds. On a gross basis, the company is expecting roughly $900 million in proceeds. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Comtech Telecommunications (CMTL) – Continuing NG911 Services in Massachusetts

Posted on by cpereira@noblefcm.com


Wednesday, May 22, 2024

Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Contract Resigned. Yesterday, Comtech announced that the Commonwealth of Massachusetts approved the execution of a contract with Comtech to continue operations and maintenance of its Next Generation 911 system within the state. The contract follows the renewal of the Washington contract earlier in the year.

Some Needed Good News. Given the recent negative news, the renewal of the Massachusetts contract is some welcomed good news. Significantly, the Massachusetts announcement, combined with the earlier Washington announcement, indicates clients are continuing to work with Comtech even given the turmoil. We view this positively.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

The Rise of Generative AI: Unlocking New Investment Frontiers

Posted on by slightbourne@noblecapitalmarkets.com

As the S&P 500 continues its remarkable ascent, hitting fresh record highs, investors are actively seeking the next frontier of growth opportunities. And according to experts, the answer may lie in the rapidly evolving realm of generative artificial intelligence (AI).

During the recent CNBC Financial Advisor Summit, industry leaders shed light on the transformative potential of generative AI and its impact on the investment landscape. Savita Subramanian, head of U.S. equity strategy and U.S. quantitative strategy at Bank of America, boldly proclaimed, “Generative AI is a game-changer.”

The implications of this disruptive technology are far-reaching, with Subramanian predicting that within the next decade, S&P 500 companies will become increasingly efficient and labor-light as they harness the power of generative AI tools. Industries ranging from call centers and financial services to legal services and Hollywood are poised to experience profound changes, opening up new avenues for investment.

But the key lies in identifying the companies and management teams that are best equipped to capitalize on this technological revolution. “What you want to do is figure out which management teams are going to harness the strength and the power of a lot of these new tools and do it first and do it well,” Subramanian advises.

The anticipation surrounding the generative AI revolution is further amplified by the upcoming earnings release from Nvidia, a leading player in the AI space. As a prominent provider of chips for AI applications, Nvidia’s performance and guidance will serve as a bellwether for the entire sector.

Investors eagerly await Nvidia’s report, seeking insights into the demand and growth prospects for AI technologies, as well as the company’s strategies and investments in the generative AI domain. A positive earnings surprise or optimistic outlook from Nvidia could catalyze a surge of investor interest in the AI sector, potentially driving valuations higher for companies at the forefront of this technological wave.

While the Magnificent Seven companies – Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta Platforms – are expected to continue dominating growth, experts like Tim Seymour, founder and chief investment officer at Seymour Asset Management, highlight the opportunities in sectors such as healthcare, industrials, energy, and utilities. Subramanian further emphasizes the importance of a “stock picker’s market,” where investors must carefully evaluate individual companies’ strengths and potential growth drivers.

In this rapidly evolving landscape, diversification and thorough research into individual companies’ AI strategies and capabilities will be crucial for investors seeking to capitalize on the generative AI revolution. As the world stands on the cusp of a technological transformation, those who can identify the trailblazers and early adopters of generative AI may unlock a new frontier of investment opportunities.

The convergence of record market highs, the rise of generative AI, and the imminent earnings release from Nvidia has created a perfect storm for investors to reassess their portfolios and position themselves for the next wave of growth. As the saying goes, “The future belongs to those who prepare for it today.”

AI Supremacy: Nvidia Reigns as ChatGPT 4.0 Intensifies the Chip Wars

Posted on by slightbourne@noblecapitalmarkets.com

The release of ChatGPT 4.0 by Anthropic has sent shockwaves through the tech world, with the AI model boasting unprecedented “human-level performance” across professional exams like the bar exam, SAT reading, and SAT math tests. As generative AI pioneers like OpenAI double down, one company has emerged as the indispensable force – Nvidia.

Nvidia’s cutting-edge GPUs provided the colossal computing power to train ChatGPT 4.0, which OpenAI hails as a seminal leap showcasing “more reliable, creative” intelligence than prior versions. The startup, backed by billions from Microsoft, turned to Microsoft Azure’s Nvidia-accelerated infrastructure to create what it calls the “largest” language model yet.

This scaling up of ever-larger foundational models at staggering financial costs is widely seen as key to recent AI breakthroughs. And Nvidia has established itself as the premier supplier of the high-performance parallelized hardware and software stack underpinning this generative AI revolution.

Major tech titans like Google, Microsoft, Meta, and Amazon are all tapping Nvidia’s specialized AI acceleration capabilities. At Google’s latest conference, CEO Sundar Pichai highlighted their “longstanding Nvidia partnership”, with Google Cloud adopting Nvidia’s forthcoming Blackwell GPUs in 2025. Microsoft is expected to unveil Nvidia-powered AI advancements at its Build event this week.

The AI chip wars are white-hot as legacy CPU makers desperately try dislodging Nvidia’s pole position. However, the chipmaker’s first-mover innovations like its ubiquitous CUDA platform have cemented its technological lead. Nvidia’s co-founder and CEO Jensen Huang encapsulated this preeminence, proudly declaring Nvidia brought “the most advanced” chips for OpenAI’s milestone AI demo.

With the AI accelerator market projected to swell into the hundreds of billions, Nvidia is squarely at the center of an infrastructure arms race. Hyperscalers are spending billions building out global AI-optimized data centers, with Meta alone deploying 350,000 Nvidia GPUs. Each breakthrough like GPT-4.0’s human-level exam performance reinforces Nvidia’s mission-critical role.

For investors, Nvidia’s lofty valuation and triple-digit stock gains are underpinned by blistering financial performance riding the generative AI wave. With transformative, open-domain AI models like GPT-4.0 being commercialized, Nvidia’s high-margin GPU cycles will remain in insatiable demand at the vanguard of the AI big bang.

Competitive headwinds will persist, but Nvidia has executed flawlessly to become the catalyzing force powering the most remarkable AI achievements today. As GPT-4.0 showcases tantalizing human-level abilities, Nvidia’s unbridled prowess in the AI chip arena shows no signs of waning.

Want small cap opportunities delivered straight to your inbox?

Channelchek’s free newsletter will give you exclusive access to our expert research, news, and insights to help you make informed investment decisions.

Get Instant Access

Release – SEPTA Launches 3D Fare Gates Pilot Program with Conduent Transportation to Detect and Deter Fare Evasion

Posted on by aweinsoff@channelchek.com

Research News and Market Data on CNDT  

MAY 16, 2024

TRANSPORTATION

SEPTA pilots Conduent’s solution with plans to expand the number of fare gates in the future

Conduent’s 3D Fare Gate Solution is designed to detect, deter and quantify fare evasion, benefiting both agencies and riders

FLORHAM PARK, N.J. — Conduent Transportation, a global provider of smart mobility technology solutions and business unit of Conduent Incorporated (Nasdaq: CNDT), today announced a pilot program by the Southeastern Pennsylvania Transportation Authority (SEPTA) using Conduent’s 3D Fare Gate Solution at a Philadelphia area transit station. The pilot aims to track and curb incidents of fare evasion, which costs SEPTA an estimated $30 million to $40 million annually.

“We’re excited to be part of this important pilot for SEPTA to help detect, deter and quantify fare evasion, while simultaneously offering both the agency and riders increased security and convenience”

SEPTA selected the 69th Street station in Upper Darby as its test location for riders traveling on the Market-Frankford and Norristown High Speed lines. The gates, each measuring 7 feet, 8 inches tall, began operating in April. Following the three-month pilot program, the agency plans to expand the fare gates’ availability to other stations, including those with high reported incidents of fare evasion.

“We’re excited to be part of this important pilot for SEPTA to help detect, deter and quantify fare evasion, while simultaneously offering both the agency and riders increased security and convenience,” said Adam Appleby, President, Transportation Solutions at Conduent. “As transit agencies across the country and around the world grapple with how to curb fare evasion, Conduent is poised and ready to deliver our solution, which has shown to deliver meaningful results and helps ensure riders pay their fares.”

Conduent’s 3D Fare Gate Solution uses innovative 3D detection optical sensors, allowing travelers fast and convenient access while detecting and deterring ticketing fraud. The gates also provide transit authorities quick access to reporting and analytics, aiding in enforcement decisions by identifying precisely when and where fare evasion occurs.

The gates, which were also implemented in Paris by Transilien SNCF in 2019, are designed to detect the most common types of fare evasion using advanced, sensor-based feedback mechanisms. The solution, which is ADA-compliant and adaptable to meet agency needs, improves equity in transportation by improving accessibility for all riders as well as helping to ensure passengers pay their share.

SEPTA is one of the largest transit systems in the country, serving five counties in the Greater Philadelphia area and connecting to Delaware and New Jersey transit systems. It operates across six transportation modes and has 2,800 vehicles in service, 285 subway and rail stations, plus 13,000 bus and trolley stops.

Conduent Transportation is a leading provider of streamlined, high-volume mobility services and solutions, spanning road usage charging and advanced transit systems, that enhance the services provided by transportation agencies to benefit the citizens who use them. For over 50 years, the company has helped clients advance transportation solutions in more than 20 countries.

About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 59,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at www.conduent.com.

Note: To receive RSS news feeds, visit www.news.conduent.com. For open commentary, industry perspectives and views, visit http://twitter.com/Conduent, http://www.linkedin.com/company/conduent or http://www.facebook.com/Conduent.

Trademarks
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

Media Contacts

NEIL FRANZ

Conduent

neil.franz@conduent.com

+1-240-687-0127

GILES GOODBURN

Conduent

ir@conduent.com

+1-203-216-3546