Technology
Feedback from channel contacts on the company's core PAM solution continues to be strong, while CYBR is also the standout beneficiary of the MGM breach. Pipeline generation is healthy. Sales Pulse has heard examples of reps “sitting on deals” to push into the next quarter… always a good sign. Some resellers they talked to shared that CYBR encouraged them to get their SE’s trained and certified on the new CYBR Workforce and Identity offerings, but so far these resellers, have not seen much professional services business based on this investment. Elsewhere, CrowdStrike, Palo Alto, Zscaler and Okta all look solid, while Fortinet and Tenable have the softest channel sentiment.
Edition: 171
- 13 October, 2023
Consumer Discretionary
The biggest player in the best market - Todd Jordon thinks the Las Vegas Strip has huge potential over the next 12 months+ and MGM is in pole position to harness the positive market forces. Outperforming RevPAR, stable gaming and stickier margins create a very compelling setup. He argues that Street estimates are not bullish enough, and regardless of framework the stock is cheap on an absolute and relative basis. Todd sees MGM’s stock north of ~$60+ in the NTM (45% upside).
Todd presented his bull thesis at IRF’s recent Consumer Equity Conference. Click here to access the audio / slides.
Edition: 156
- 17 March, 2023
Consumer Idea Forum
MYST’s group of Consumer specialists offered a diverse set of ideas ranging from M&A beneficiaries, capital return stories, “Value” bellwethers and potential overearners. Three of the most compelling ideas presented included…
Amazon (AMZN) - Self-help story with renewed focus on costs. AWS growth slowdown is temporary. Trades below tough valuation. TP $4970 (100%+ upside).
Jack in the Box (JACK) - Capital light with high margins and minimal cyclicality. Mispriced at 12x P/E (vs. peers at 20x+). TP $250 (200%+ upside).
MGM Resorts (MGM) - GGR growth to stall and margins contract even without a recession. With no fat left to cut, a 1% decline in GGR could wipe out FCF entirely. Selling real estate portfolio was “insane” given the permanently escalating rent MGM must now pay. TP $20 (40% downside).
Edition: 135
- 13 May, 2022