Sei sulla pagina 1di 8

Morning Briefing

Strategies and Investment Ideas from CFRA

February 22, 2018

MARKET FOCUS
Futures Flat
• This morning, S&P 500 index futures are pointing to a mixed market opening when
OVERNIGHT UPDATES trading begins today.

• Wednesday, U.S. financial markets saw a decrease in equity indexes during the
Europe lower. Tokyo fell session on Wall Street. Stocks closed lower and the S&P 500 index finished the
1.07%. Hong Kong fell trading day at 2,701.33, declining 0.55 percent.
1.48%. Shanghai rose
2.17%. • CFRA is anticipating that HP Inc (HPQ 21 ****) will report earnings per share of
$0.42 for its fiscal first-quarter. The company reported earnings of $0.36 for last
year's first-quarter. Capital IQ Consensus is looking for earnings of $0.42 per
BONDS: 10-year notes at
share. We expect sales to increase by 4.4% in FY 18 (Oct.), after a 7.9% rise in FY
2.924%, 30-year bonds at
17. We think HPQ's PC and printer end-markets are seeing stable demand, with
3.2%.
growth aided by marketshare gains and focus on growth areas. We see improving
printer supplies revenue, which commands higher margins, and envision HPQ
FOREIGN EXCHANGE: gaining share in both ink and laser. We expect less pronounced PC declines over
Euro at $1.2289, Sterling at time, partly due to an aging infrastructure, marketshare gains and better
$1.3885, Dollar at 107.34 comparables.
yen.
• Integer Holdings Corp (ITGR 45 ****) is due to release fourth-quarter results, with
PRECIOUS METALS: Gold CFRA looking for per-share earnings of $0.77, vs. earnings of $0.25 per share for
at $1,325.10. the same quarter one year ago and Capital IQ Consensus estimates of $0.79.

• CFRA expects that for the first-quarter, The Toro Company (TTC 62 ***) will post
ENERGY: WTI crude at earnings per share of $0.43 vs. $0.41 for the same period last year. Capital IQ
$61.33, London Brent crude Consensus analysts are looking for $0.44 per share. We forecast revenue growth
at $65.10. between 4% and 5% in FY 18, driven by continued strength in the professional
segment and strong demand for recent product introductions, particularly in snow
and ice management. Demand for golf, sports field, and ground equipment remains
strong. International sales grew 5.6% in FY 17, and we anticipate continued growth
in that segment in FY 18. We see growth in both residential and nonresidential
construction helping demand for TTC's products over the next year.

CFRA • CFRA MAINTAINS HOLD OPINION ON SHARES OF FORD MOTOR COMPANY


(F 11 ***): Ford executive vice president and president of its North America
MarketScope Advisor operations, Raj Nair, has left the company due to undisclosed unacceptable
· Investment Research
behavior. While we believe the company has a deep enough management bench
· News & Commentary
to replace Mr. Nair with little disruption, the new leader will face the challenges of
· Insight & Analysis
an industry that will see rapid change in the medium- and long-term, while sales
· Tools & Screeners
volume contracts in the U.S. in 2018. Strategic initiatives for electrification, mobility
and autonomous vehicles are some of the items the new leader will need to
www.marketscope.com
address once selected. /Efraim Levy
1-800-220-0502
1 OF 8
Redistribution or reproduction is prohibited without written permission. Copyright ©2018 CFRA. This document is not intended to provide personal investment advice
@cfraresearch and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report.
Investors should seek independent financial advice regarding the suitability and/or appropriateness of making an investment or implementing the investment
strategies discussed in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from
such investments, if any, may fluctuate and that the value of such investments may rise or fall. Accordingly, investors may receive back less than they originally
invested. Investors should seek advice concerning any impact this investment may have on their personal tax position from their own tax advisor. Please note the
publication date of this document. It may contain specific information that is no longer current and should not be used to make an investment decision. Unless
otherwise indicated, there is no intention to update this document.
EQUITY RESEARCH
Opinion Raised On Shares of Transocean Ltd

U.S.
02/21/2018

• CFRA LIFTS OPINION ON SHARES OF TRANSOCEAN LTD. (RIG 9 ***) TO HOLD FROM
SELL: We raise our target by $2 to $10, an implied forward EV/EBITDA of 7.1X our '18
EBITDA estimate, in line with RIG's historical forward average. We narrow our '18 loss per
share estimate by $0.31 to $0.65, and initiate '19's estimate at a loss per share of $0.75. RIG
posts a Q4 loss per share of $0.24, vs. EPS of $0.63, $0.04 above consensus. While the
previously high day rate 'Transocean Leader' re-negotiation was disappointing, RIG has since
announced several new contract awards, lifting backlog, and notes in increase in offshore
activity by the super majors. /Paige Marcus

Europe
02/22/2018

• CFRA RAISES OPINION ON SHARES OF HOCHTIEF (HOT GY, EUR134.40 ****) TO BUY
FROM HOLD: We keep our 12-month target price for Hochtief (HOT) at EUR165, reflecting a
2018 P/E of 22.3x, in line with its 3-year average forward P/E of 21.5x. We keep our 2018
normalized EPS forecast of EUR7.4 and introduce 2019 EPS of EUR8.0. HOT reported 2017
result that was ahead of expectation, with its operational EPS of EUR7.04 beating consensus
estimate of EUR6.82. Operational net profit (EUR452 million) up 25%, reflecting the strong
contribution from all of its division. There was also quality in the performance as FCF from
operations (EUR1.1 billion) rose 14% year-on-year, resulting in a strengthened balance sheet
(net cash up 80% to EUR1.3 billion). HOT also proposed to increase its dividend by 30% to
EUR3.38 per share. Its recent share price weakness, due to the scrutiny over its proposed
acquisition of Abertis, is overdone in our view. Hence, we move HOT to Buy as this is an
MORNING BRIEFING

opportunity to buy into a stock with quality earnings and good growth prospects. /F. Ibrahim
MORNING BRIEFING

Equity research is available on the Research Notes page on MarketScope Advisor at


http://advisor.marketscope.com.

INVESTMENT POLICY
Economic and Stock Market Outlooks
02/21/2018

• Stock prices appear to be buoyed by upward adjustments to economic growth and EPS
estimates, despite an increase in inflationary expectations and interest rate assumptions.
FEBRUARY 22, 2018

Action Economics (AE) recently made upward revisions to its year-over-year Q4 Core CPI
FEBRUARY 22, 2018

growth rate to 2.0% from the 1.9% estimated earlier. In addition, expectations now call for the
yield on the 10-year note to average 3.00% by the final quarter of the year, versus AE’s
previous 2.85% year-end forecast and 2.45% level seen at the end of 2017. While the Fed is
still likely to raise rates three times this year, AE’s Q4 projection for the FRB U.S. dollar index
is a further erosion toward the 85.5 average by the end of the year versus the 88.9 terminal
reading at the end of 2017. However, the greatest revision came from S&P Capital IQ’s

2 OF 8
consensus estimate for the S&P 500’s 2018 EPS: $156 currently from $145 at the end of last
year.

This is an excerpt of the story, for the rest please visit the Investment Strategy page on
MarketScope Advisor at http://advisor.marketscope.com.

For advisors interested in subscription and pricing information to MarketScope Advisor,


http://advisor.marketscope.com, or for retail investors interested in The Outlook,
https://www.cfraoutlook.com, please contact the sales team at 1(800) 220-0502 or
cservices@cfraresearch.com.
MORNING BRIEFING
MORNING BRIEFING
FEBRUARY 22, 2018

FEBRUARY 22, 2018

3 OF 8
analyst judgment, and the extent to which some types of data
Glossary is disclosed by companies.
STARS
Since January 1, 1987, CFRA Equity and Fund Research 12-Month Target Price
Services, and its predecessor S&P Capital IQ Equity Research The equity analyst's projection of the market price a given
has ranked a universe of U.S. common stocks, ADRs security will command 12 months hence, based on a
(American Depositary Receipts), and ADSs (American combination of intrinsic, relative, and private market
Depositary Shares) based on a given equity's potential for valuation metrics, including Fair Value.
future performance. Similarly, we have ranked Asian and
European equities since June 30, 2002. Under proprietary CFRA Equity Research
STARS (STock Appreciation Ranking System), equity CFRA Equity Research is produced and distributed by
analysts rank equities according to their individual forecast of Accounting Research & Analytics, LLC d/b/a CFRA ("CFRA
an equity's future total return potential versus the expected US"). Certain research is distributed by CFRA UK Limited
total return of a relevant benchmark (e.g., a regional index (together with CFRA US, "CFRA"). Certain research is
(S&P Asia 50 Index, S&P Europe 350® Index or S&P 500® produced by Standard & Poor's Malaysia Sdn. Bhd ("CFRA
Index)), based on a 12-month time horizon. STARS was Malaysia") under contract to CFRA US.
designed to meet the needs of investors looking to put their
investment decisions in perspective. Data used to assist in Abbreviations Used in Equity Research Reports
determining the STARS ranking may be the result of the CAGR - Compound Annual Growth Rate
analyst's own models as well as internal proprietary models CAPEX - Capital Expenditures
resulting from dynamic data inputs. CY - Calendar Year
DCF - Discounted Cash Flow
S&P Global Market Intelligence's Quality Rank DDM - Dividend Discount Model
(also known as S&P Capital IQ Earnings & Dividend EBIT - Earnings Before Interest and Taxes
Rankings) - Growth and stability of earnings and dividends EBITDA - Earnings Before Interest, Taxes, Depreciation and
are deemed key elements in establishing S&P Global Market Amortization
Intelligence's earnings and dividend rankings for common EPS - Earnings Per Share
stocks, which are designed to capsulize the nature of this EV - Enterprise Value
record in a single symbol. It should be noted, however, that FCF - Free Cash Flow
the process also takes into consideration certain adjustments FFO - Funds From Operations
and modifications deemed desirable in establishing such FY - Fiscal Year
rankings. The final score for each stock is measured against a P/E - Price/Earnings
scoring matrix determined by analysis of the scores of a large P/NAV - Price to Net Asset Value PEG Ratio - P/E-to-
and representative sample of stocks. The range of scores in Growth Ratio PV - Present Value
the array of this sample has been aligned with the following R&D - Research & Development ROCE - Return on Capital
MORNING BRIEFING

ladder of rankings: Employed ROE - Return on Equity


MORNING BRIEFING

A+ Highest B Below Average ROI - Return on Investment


A High B- Lower ROIC - Return on Invested Capital
A- Above Average C Lowest ROA - Return on Assets
B+ Average D In Reorganization SG&A - Selling, General & Administrative Expenses
NR Not Ranked SOTP - Sum-of-The-Parts
WACC - Weighted Average Cost of Capital
EPS Estimates
CFRA’s earnings per share (EPS) estimates reflect analyst Dividends on American Depository Receipts (ADRs) and
projections of future EPS from continuing operations, and American Depository Shares (ADSs) are net of taxes (paid
generally exclude various items that are viewed as special, in the country of origin).
non-recurring, or extraordinary. Also, EPS estimates reflect
either forecasts of equity analysts; or, the consensus (average) Qualitative Risk Assessment
EPS estimate, which are independently compiled by S&P Reflects an equity analyst's view of a given company's
Global Market Intelligence, a data provider to CFRA. Among operational risk, or the risk of a firm's ability to continue as an
the items typically excluded from EPS estimates are asset sale ongoing concern. The Qualitative Risk Assessment is a
FEBRUARY 22, 2018

gains; impairment, restructuring or merger-related charges;


FEBRUARY 22, 2018

relative ranking to the U.S. STARS universe, and should be


legal and insurance settlements; in process research and reflective of risk factors related to a company's operations, as
development expenses; gains or losses on the extinguishment opposed to risk and volatility measures associated with share
of debt; the cumulative effect of accounting changes; and prices. For an ETF this reflects on a capitalization-weighted
earnings related to operations that have been classified by the basis, the average qualitative risk assessment assigned to
company as discontinued. The inclusion of some items, such holdings of the fund.
as stock option expense and recurring types of other charges,
may vary, and depend on such factors as industry practice,

4 OF 8
STARS Ranking system and definition:
★★★★★ 5-STARS (Strong Buy):
Total return is expected to outperform the total return of a
relevant benchmark, by a wide margin over the coming 12
months, with shares rising in price on an absolute basis.
★★★★★ 4-STARS (Buy):
Total return is expected to outperform the total return of a
relevant benchmark over the coming 12 months, with shares
rising in price on an absolute basis.
★★★★★ 3-STARS (Hold):
Total return is expected to closely approximate the total
return of a relevant benchmark over the coming 12 months,
with shares generally rising in price on an absolute basis.
★★★★★ 2-STARS (Sell):
Total return is expected to underperform the total return of a
relevant benchmark over the coming 12 months, and the share
price not anticipated to show a gain.
★★★★★ 1-STAR (Strong Sell):
Total return is expected to underperform the total return of a
relevant benchmark by a wide margin over the coming 12
months, with shares falling in price on an absolute basis.

Relevant benchmarks:
In North America, the relevant benchmark is the S&P 500
Index, in Europe and in Asia, the relevant benchmarks are
the S&P Europe 350 Index and the S&P Asia 50 Index,
respectively.
MORNING BRIEFING
MORNING BRIEFING
FEBRUARY 22, 2018

FEBRUARY 22, 2018

5 OF 8
Disclosures About CFRA Equity Research's Distributors:
S&P GLOBAL™ is used under license. The owner of this This Research Report is published and originally distributed
trademark is S&P Global Inc. or its affiliate, which are not by Accounting Research & Analytics, LLC d/b/a CFRA
affiliated with CFRA Research or the author of this content. (“CFRA US”), with the following exceptions: In the
UK/EU/EEA, it is published and originally distributed by
Stocks are ranked in accordance with the following ranking CFRA UK Limited, which is regulated by the Financial
methodologies: Conduct Authority (No. 775151), and in Malaysia by
Standard & Poor’s Malaysia Sdn. Bhd., which is regulated by
STARS Stock Reports: Securities Commission Malaysia, (No. CMSL/A0181/2007)
Qualitative STARS recommendations are determined and under license from CFRA US. These parties and their
assigned by equity analysts. For reports containing STARS subsidiaries maintain no responsibility for reports
recommendations refer to the Glossary section of the report redistributed by third parties such as brokers or financial
for detailed methodology and the definition of STARS advisors.
rankings.
General Disclosure
Quantitative Stock Reports:
Quantitative recommendations are determined by ranking a Notice to all jurisdictions:
universe of common stocks based on 5 measures or model
categories: Valuation, Quality, Growth, Street Sentiment, and Where Research Reports are made available in a language
Price Momentum. In the U.S., a sixth sub-category for other than English and in the case of inconsistencies
Financial Health will also be displayed. Percentile scores are between the English and translated versions of a Research
used to compare each company to all other companies in the Report, the English version will control and supersede any
same universe for each model category. The five (six) model ambiguities associated with any part or section of a
category scores are then weighted and rolled up into a single Research Report that has been issued in a foreign
percentile ranking for that company. For reports containing language. Neither CFRA nor its affiliates guarantee the
quantitative recommendations refer to the Glossary section of accuracy of the translation. The content of this report and the
the report for detailed methodology and the definition of opinions expressed herein are those of CFRA based upon
Quantitative rankings. publicly-available information that CFRA believes to be
reliable and the opinions are subject to change without notice.
STARS Stock Reports and Quantitative Stock Reports: This analysis has not been submitted to, nor received approval
The methodologies used in STARS Stock Reports and from, the United States Securities and Exchange Commission
Quantitative Stock Reports (collectively, the "Research or any other regulatory body. While CFRA exercised due care
Reports") reflect different criteria, assumptions and analytical in compiling this analysis, CFRA AND ALL RELATED
methods and may have differing recommendations. The ENTITIES SPECIFICALLY DISCLAIM ALL
MORNING BRIEFING

methodologies and data used to generate the different types of WARRANTIES, EXPRESS OR IMPLIED, to the full extent
MORNING BRIEFING

Research Reports are believed by the author and distributor permitted by law, regarding the accuracy, completeness, or
reasonable and appropriate. Generally, CFRA does not usefulness of this information and assumes no liability with
generate reports with different ranking methodologies for the respect to the consequences of relying on this information for
same issuer. However, in the event that different investment or other purposes. No content (including ratings,
methodologies or data are used on the analysis of an issuer, credit-related analyses and data, valuations, model, software
the methodologies may lead to different views or or other application or output therefrom) or any part thereof
recommendations on the issuer, which may at times result in (Content) may be modified, reverse engineered, reproduced or
contradicting assessments of an issuer. CFRA reserves the distributed in any form by any means, or stored in a database
right to alter, replace or vary models, methodologies or or retrieval system, without the prior written permission of
assumptions from time to time and without notice to clients. CFRA. The Content shall not be used for any unlawful or
unauthorized purposes. CFRA and any third-party providers,
Analyst Certification as well as their directors, officers, shareholders, employees or
agents do not guarantee the accuracy, completeness,
STARS Stock Reports are prepared by the equity timeliness or availability of the Content.
research analysts of CFRA and its affiliates and
FEBRUARY 22, 2018

subsidiaries. All of the views expressed in STARS Stock


FEBRUARY 22, 2018

Past performance is not necessarily indicative of future


Reports accurately reflect the research analyst's personal results.
views regarding any and all of the subject securities or
issuers. Analysts generally update stock reports at least This document may contain forward-looking statements or
four times each year. No part of analyst, CFRA, or its forecasts; such forecasts are not a reliable indicator of future
affiliates or subsidiaries compensation was, is, or will be performance.
directly or indirectly related to the specific
recommendations or views expressed in a STARS Stock This report is not intended to, and does not, constitute an offer
Report. or solicitation to buy and sell securities or engage in any

6 OF 8
investment activity. This report is for informational purposes (negligent or otherwise), regardless of the cause, or for the
only. Recommendations in this report are not made with results obtained from the use of such information or content.
respect to any particular investor or type of investor. S&P GLOBAL AND ITS THIRD PARTY CONTENT
Securities, financial instruments or strategies mentioned PROVIDERS GIVE NO EXPRESS OR IMPLIED
herein may not be suitable for all investors and this material is WARRANTIES, INCLUDING, BUT NOT LIMITED TO,
not intended for any specific investor and does not take into ANY WARRANTIES OF MERCHANTABILITY OR
account an investor's particular investment objectives, FITNESS FOR A PARTICULAR PURPOSE OR USE AND
financial situations or needs. Before acting on any ALL S&P INFORMATION IS PROVIDED ON AN AS-IS
recommendation in this material, you should consider whether BASIS. S&P GLOBAL AND ITS THIRD PARTY
it is suitable for your particular circumstances and, if CONTENT PROVIDERS SHALL NOT BE LIABLE FOR
necessary, seek professional advice. ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY,
COMPENSATORY, PUNITIVE, SPECIAL OR
CFRA may license certain intellectual property or provide CONSEQUENTIAL DAMAGES, COSTS, EXPENSES,
services to, or otherwise have a business relationship with, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME
certain issuers of securities that are the subject of CFRA OR PROFITS AND OPPORTUNITY COSTS OR LOSSES
research reports, including exchange-traded investments CAUSED BY NEGLIGENCE) IN CONNECTION WITH
whose investment objective is to substantially replicate the ANY USE OF THEIR INFORMATION OR CONTENT,
returns of a proprietary index of CFRA. In cases where CFRA INCLUDING RATINGS. Credit ratings are statements of
is paid fees that are tied to the amount of assets invested in a opinions and are not statements of fact or recommendations to
fund or the volume of trading activity in a fund, investment in purchase, hold or sell securities. They do not address the
the fund may result in CFRA receiving compensation in suitability of securities or the suitability of securities for
addition to the subscription fees or other compensation for investment purposes, and should not be relied on as
services rendered by CFRA, however, no part of CFRA’s investment advice.”
compensation for services is tied to any recommendation or
rating. Additional information on a subject company may be Certain information in this report may be provided by
available upon request. Securities Evaluations, Inc. (“SE”), a wholly owned
subsidiary of Intercontinental Exchange. SE is a registered
CFRA's financial data provider is S&P Global Market investment adviser with the United States Securities and
Intelligence. THIS DOCUMENT CONTAINS Exchange Commission (SEC). SE’s advisory services include
COPYRIGHTED AND TRADE SECRET MATERIAL evaluated pricing and model valuation of fixed income
DISTRIBUTED UNDER LICENSE FROM S&P GLOBAL securities, derivative valuations and Odd-Lot Pricing that
MARKET INTELLIGENCE. FOR RECIPIENT'S consists of bid- and ask-side evaluated prices for U.S.
INTERNAL USE ONLY. Municipal and U.S. Corporate Securities (together called
valuation services). Such information is subject to the
The Global Industry Classification Standard (GICS®) was following disclaimers and notices: “No content (including
MORNING BRIEFING

developed by and/or is the exclusive property of MSCI, Inc. credit-related analyses and data, valuations, model, software
MORNING BRIEFING

and S&P Global Market Intelligence. GICS is a service mark or other application or output therefrom) or any part thereof
of MSCI and S&P Global Market Intelligence and has been (Content) may be modified, reverse engineered, reproduced or
licensed for use by CFRA. distributed in any form by any means, or stored in a database
or retrieval system, without the prior written permission of
Other Disclaimers and Notices SE. The Content shall not be used for any unlawful or
Certain information in this report is provided by S&P Global, unauthorized purposes. SE and any third-party providers, as
Inc. and/or its affiliates and subsidiaries (collectively “S&P well as their directors, officers, shareholders, employees or
Global”). Such information is subject to the following agents (collectively SE Parties) do not guarantee the accuracy,
disclaimers and notices: “Copyright © 2018, S&P Global completeness, timeliness or availability of the Content. SE
Market Intelligence (and its affiliates as applicable). All rights Parties are not responsible for any errors or omissions
reserved. Nothing contained herein is investment advice and a (negligent or otherwise), regardless of the cause, for the
reference to a particular investment or security, a credit rating results obtained from the use of the Content, or for the
or any observation concerning a security or investment security or maintenance of any data input by the user. The
provided by S&P Global is not a recommendation to buy, sell Content is provided on an “as is” basis. SE PARTIES
or hold such investment or security or make any other DISCLAIM ANY AND ALL EXPRESS OR IMPLIED
FEBRUARY 22, 2018

FEBRUARY 22, 2018

investment decisions. This may contain information obtained WARRANTIES, INCLUDING, BUT NOT LIMITED TO,
from third parties, including ratings from credit ratings ANY WARRANTIES OF MERCHANTABILITY OR
agencies. Reproduction and distribution of S&P Global’s FITNESS FOR A PARTICULAR PURPOSE OR USE,
information and third party content in any form is prohibited FREEDOM FROM BUGS, SOFTWARE ERRORS OR
except with the prior written permission of S&P Global or the DEFECTS, THAT THE CONTENT’S FUNCTIONING
related third party, as applicable. Neither S&P Global nor its WILL BE UNINTERRUPTED OR THAT THE CONTENT
third party providers guarantee the accuracy, completeness, WILL OPERATE WITH ANY SOFTWARE OR
timeliness or availability of any information, including HARDWARE CONFIGURATION. In no event shall SE
ratings, and are not responsible for any errors or omissions Parties be liable to any party for any direct, indirect,

7 OF 8
incidental, exemplary, compensatory, punitive, special or Titchfield House, 69-85 Tabernacle Street, London, EC2A
consequential damages, costs, expenses, legal fees, or losses 4RR, United Kingdom). CFRA UK Limited is regulated by
(including, without limitation, lost income or lost profits and the UK Financial Conduct Authority (No. 775151).
opportunity costs or losses caused by negligence) in
connection with any use of the Content even if advised of the For residents of Malaysia:
possibility of such damages. Credit-related and other analyses Research reports are originally produced and distributed by
and statements in the Content are statements of opinion as of Standard & Poor’s Malaysia Sdn. Bhd., under license from
the date they are expressed and not statements of fact or CFRA US. Standard & Poor’s Malaysia Sdn. Bhd. is
recommendations to purchase, hold, or sell any securities or regulated by Securities Commission Malaysia (License No.
to make any investment decisions. SE assumes no obligation CMSL/A0181/2007).
to update the Content following publication in any form or
format. The Content should not be relied on and is not a For residents of all other countries:
substitute for the skill, judgment and experience of the user,
its management, employees, advisors and/or clients when Research reports are originally distributed Accounting
making investment and other business decisions. SE’s Research & Analytics, LLC d/b/a CFRA.
opinions and analyses do not address the suitability of any
security. SE does not act as a fiduciary or an investment Copyright © 2018 CFRA. All rights reserved. CFRA and
advisor. While SE has obtained information from sources it STARS are registered trademarks of CFRA.
believes to be reliable, SE does not perform an audit and
undertakes no duty of due diligence or independent
verification of any information it receives. Valuations services
are opinions and not statements of fact or recommendations to
purchase, hold or sell any security or instrument, or to make
any investment decisions. The information provided as part of
valuations services should not be intended as an offer,
promotion or solicitation for the purchase or sale of any
security or other financial instrument nor should it be
considered investment advice. Valuations services do not
address the suitability of any security or instrument, and
securities, financial instruments or strategies mentioned by SE
may not be suitable for all investors. SE does not provide
legal, accounting or tax advice, and clients and potential
clients of valuation services should consult with an attorney
and/or a tax or accounting professional regarding any specific
legal, tax or accounting provision(s) applicable to their
MORNING BRIEFING

particular situations and in the countries and jurisdictions


MORNING BRIEFING

where they do business. SE has redistribution relationships


that reflect evaluated pricing, derivative valuation and/or
equity pricing services of other unaffiliated firms with which
SE has contracted to distribute to its client base. Pricing and
data provided by these third-party firms are the
responsibilities of those firms, and not SE, and are produced
under those firms' methodologies, policies and procedures.
Valuations services provided by SE and products containing
valuations services may not be available in all countries or
jurisdictions. Copyright © 2018 by Intercontinental Exchange
Inc. All rights reserved.”

Any portions of the fund information contained in this report


supplied by Lipper, A Thomson Reuters Company, are
subject to the following: “Copyright 2018 © Thomson
FEBRUARY 22, 2018
FEBRUARY 22, 2018

Reuters. All rights reserved. Lipper shall not be liable for any
errors or delays in the content, or for any actions taken in
reliance thereon.”

For residents of the European Union/European Economic


Area:
Research reports are originally distributed by CFRA UK
Limited (company number 08456139 registered in England &
Wales with its registered office address at PO Box 698,

8 OF 8