Blue-Chip

Watch-Out for These NASDAQ-Listed Stocks – TXN, OBSV

February 09, 2022 | Team Kalkine
Watch-Out for These NASDAQ-Listed Stocks – TXN, OBSV

Texas Instruments Incorporated

Texas Instruments Incorporated (NASDAQ: TXN) creates and sells semiconductors to electronics designers and manufacturers worldwide. It has operations in over 30 countries for design, manufacturing, and sales. Analog and Embedded Processing are the company's two reportable segments, and the results of its remaining business activities are reported in other segments.

Key Highlights:

  • The company reported a sharp uptick of 26.85% in revenues to USD 18.34 billion in FY21 (ended December 31, 2021) compared to USD 14.46 billion in FY20.
  • TXN reported a robust increase in net income to USD 7.77 billion in FY21 from USD 5.60 billion in FY20.
  • The company's EBITDA margin rises to 54.3% in FY21 from 47.8% in FY20. It also reported an increase in Return on Invested Capital (ROIC) to 39.8% in FY21 from 34.1% in FY20.
  • However, the company recorded a cash conversion cycle of 116.8 days in FY21, compared to the industry median of 93.9 days, indicating that its cash converting ability is slightly weaker than the industry benchmark.
  • The stock is currently trading below its critical short-term (50-day) and long-term (200-day) DMA support levels, with the RSI Index at 40.92, indicating a bearish trend.
  • It is leaning towards the lower-band of the 52-week range of USD 161.67 to USD 202.26.
  • The stock price has fallen 9.97% and 9.43% in the past three and six months.

Three-Year Technical Price Chart (as of February 08, 2022; 12:28 PM ET). Analysis by Kalkine Group

Conclusion: Considering the company's robust growth prospects, solid margins, unsteady cash conversion metrics, global chip shortage, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 171.76, up 1.07% as of February 08, 2022, at 12:28 PM ET.

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

 

ObsEva SA

ObsEva SA (NASDAQ: OBSV) is a clinical-stage biopharmaceutical business dedicated to researching and commercializing innovative therapies for critical disorders that jeopardize a woman's reproductive health and pregnancy. OBE2109 is being developed by the company as a novel oral gonadotropin-releasing hormone (GnRH) receptor antagonist to treat pain associated with endometriosis and excessive monthly flow-related uterine fibroids in premenopausal women.

Key Highlights:

  • The company reported an increase in operating income to USD 20.10 million in Q3FY21 (ended September 30, 2021) vs. nil revenues in Q3FY20.
  • OBSV has also made a net profit of USD 0.82 million in Q3FY21 compared to a loss of USD 24.38 million in Q3FY20.
  • OBSV exited the quarter with a cash balance of USD 62.88 million and a total debt of 26.70 million, implying a healthy balance sheet.
  • On February 4, 2022, OBSN reported that, based on ongoing contacts with the European Medicines Agency (EMA), additional questions regarding the marketing authorization application for linzagolix might be expected. The US Food and Drug Administration (FDA) has accepted the New Drug Application for linzagolix for evaluation, with a PDUFA target action date of September 13, 2022.
  • Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) DMA support levels, with the RSI Index at 29.71, indicating a bearish trend.
  • The stock is leaning towards the lower-band of its 52-week range of USD 1.35 to USD 5.55.
  • OBSV stock price has fallen 43.50% and 49.45% in the past three and six months.

Three-Year Technical Price Chart (as of February 08, 2022; 12:40 PM ET). Analysis by Kalkine Group

Conclusion: Considering the growth in topline and bottom line, recent regulatory authorizations, and other technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 1.39, up 1.46%, as of February 08, 2022, at 12:40 PM ET.

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


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