Morgan Stanley

Morgan Stanley (NYSE: MS) is a financial services company with segments such as institutional securities, investment management, wealth management, etc.

Investment Highlights – Expensive at USD 100.74

• There is a possibility that the delta variant of Covid-19 could lead to further macroeconomic disruption, which, in turn, could increase the bad debts to the Company.
• The stock is trading near its 52-week high price of USD 102.93, raising doubt about its upside potential from the current level. Hence, a correction in the near term cannot be ruled out.
• On the profitability front, MS has a lower net margin than the industry median of 25.2% in Q2 FY2021.
• On the leverage front, MS has a much higher debt/equity ratio than the industry median of 0.58x since Q2 FY2020.
• On the technical front, the 14-day RSI at about 71.88 is sustaining at the overbought zone, indicating a potential downward movement in the stock price in the near term.

Share Price Chart

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on the impact of potential macroeconomic disruption and the poorer profitability and leverage position of the Company than the industry, we have given an "EXPENSIVE" stance on Morgan Stanley at the closing market price of USD 100.74 (as of 9 August 2021).

Kinder Morgan Inc

Kinder Morgan Inc (NYSE: KMI) is an energy infrastructure company. It has four operating segments: Natural Gas Pipelines, Products Pipelines, Terminals and CO2.

Investment Highlights – Expensive at USD 17.04

• KMI has a loss-making operation as of Q2 FY2021.
• The Company is exposed to litigations arising out of the unprecedented circumstances of the winter storm.
• On the profitability front, KMI has a lower net margin than the industry median of 4.2% in Q2 FY2021.
• On the liquidity front, KMI has a lower current ratio than the industry median of 1.03x since Q2 FY2020.
• On the leverage front, KMI has a higher debt/equity ratio than the industry median of 0.77x since Q2 FY2020.
• The stock is trading near its 52-week high price of USD 19.29. Hence, there is doubt about its upside potential from the current level, indicating a potential correction in the near term.
• On the technical front, the 20-day EMA at about USD 17.54 is sustaining above the stock price, indicating a potential downward movement in the stock price in the near term.

Share Price Chart

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on the loss-making operation and poorer profitability, liquidity and leverage position of the Company than the industry, we have given an “EXPENSIVE” recommendation on Kinder Morgan Inc at the closing market price of USD 17.04 (as of 9 August 2021).

Liveramp Holdings Inc

Liveramp Holdings Inc (NYSE: RAMP) is a technology company that offers enterprise data connectivity platform to the organizations. The platform helps the organizations to connect, control and activate customer data.

Investment Highlights – Watch at USD 46.77

• RAMP still makes losses from its operations as of Q1 FY2022.
• Its cash position declined to USD 541 million in Q1 FY2022 from USD 572.8 million in FY2021.
• On the profitability front, RAMP has a lower ROE than the industry median of 4.1% since Q1 FY2021.
• On the technical front, the 14-day RSI at about 64.31 is moving towards the overbought zone. Hence, there could be a downtrend in the stock price in the near term.

Share Price Chart

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on its loss-making operations and the lower profitability of the Company than the industry, we have given a "WATCH" stance on Liveramp Holdings Inc at the closing market price of USD 46.77 (as of 9 August 2021).

Verrica Pharmaceuticals Inc

Verrica Pharmaceuticals Inc (NASDAQ: VRCA) is a clinical-stage dermatology company based out of the United States. It develops and commercializes pharmaceutical products for the treatment of skin diseases.

Investment Highlights – Watch at USD 10.82

• In Q1 FY2021, VRCA made a net loss of USD 0.94 million.
• On the profitability front, VRCA has a lower net margin than the industry median of 4.9% in Q1 FY2021.
• On the liquidity front, VRCA has a lower current ratio than the industry median of 2.92x in Q1 FY2021.
• On the leverage front, VRCA has a higher debt/equity ratio than the industry median of 0.48x since Q1 FY2020.
• On the technical front, the 20-day EMA at about USD 10.88 is sustaining above the stock price. Hence, there could be a downtrend in the stock price in the near term.

Share Price Chart

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on the net loss in Q1 FY2021 and poorer profitability, liquidity and leverage position of the Company than the industry, we have given a “WATCH” recommendation on Verrica Pharmaceuticals Inc at the closing market price of USD 10.82 (as of 9 August 2021).

Unity Biotechnology Inc

Unity Biotechnology Inc (NASDAQ: UBX) is a clinical stage biotechnology company. It develops and commercializes therapeutics for the treatment of aging.

Investment Highlights – Watch at USD 3.82

• The Company is still a loss-making entity as of Q1 FY2021.
• It depends on external funding to run its operations.
• On the profitability front, UBX has a lower ROE than the industry median of -7.2% since Q1 FY2020.
• On the leverage front, UBX has a higher debt/equity ratio than the industry median of 0.00x since Q3 FY2020.
• On the technical front, the 20-day EMA at about USD 3.89 is above the stock price, indicating a potential downward movement in the stock price in the near term.

Share Price Chart

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on its dependence on external funding and the poorer profitability and leverage position of the Company than the industry, we have given a "WATCH" stance on Unity Biotechnology Inc at the closing market price of USD 3.82 (as of 9 August 2021).

*The reference data in this report has been partly sourced from Refinitiv.

*The dividend yield is subject to change as per the stock price movement.