(Bloomberg) — Moderna Inc.’s experimental vaccine for Covid-19 could generate sales of more than $5 billion a year, Jefferies analyst Michael Yee said, initiating the stock at a buy.A 220% surge for the stock since the start of the year has split Wall Street as to “what will happen or if the vaccine will even work, and is hugely divided on valuation,” Yee wrote in a note to clients.“We believe the Street will be surprised to the upside if the Covid-19 vaccine works, gets approved by early 2021, and there are multi-billion dollars of purchase orders from USA and around the world,” he said.With a 30,000 person late-stage study set to kick off sometime this month, Moderna’s shot leads the pack in the race to get a vaccine to the world at large as the pandemic continues to spread.Yee predicts mRNA-1273, as the inoculation is known, will get “at least” an emergency use authorization by early next year. There are more than 20 candidates in human testing, while at least another 130 vaccines are in even earlier stages of development, according to the World Health Organization.The analyst assigns the biotechnology company a $90 price target, which is largely in-line with the $88 average price target of analysts tracked by Bloomberg. The Cambridge, Massachusetts-based company has 12 other buys and a single hold rating, while no analyst followed by Bloomberg currently rates it a sell.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Coca-Cola whips up a way to save the soda machine.

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Alibaba Group Holding Ltd.’s (BABA) co-founder Jack Ma has reduced his stake in the Chinese e-commerce giant to 4.8% from 6.2% over the past year.The e-commerce platform’s 20-F annual filing released on Friday, did not provide any further details on the average selling price of the divested stake. Alibaba shares have appreciated about 40% since the company last disclosed its annual filing in June last year.Ma last year stepped down as Alibaba’s chairman to be replaced by CEO Daniel Zhang.In addition, Alibaba Executive Vice Chairman Joseph Tsai cut his stake in the company to 1.6% from 2.2% during the same period.Also on Friday, Alibaba’s Zhang presented an ambitious goal-based plan, which envisages serving more than 1 billion consumers in China and facilitating more than RMB10 trillion of consumption on the company’s platforms in the next five years.Longer-term, Zhang wants Alibaba to serve 2 billion consumers globally, create 100 million jobs and provide the necessary infrastructure to support 10 million small businesses to become profitable on the company’s platforms by 2036.Alibaba revenue soared 35% over the last fiscal year, with net income up 75%. The e-commerce company has already served investors well with its shares surging 23% so far this year as stay-at-home mandates during the outbreak of the coronavirus pandemic forced more and more people to shop online.Oppenheimer analyst Vincent Yu last week initiated the stock’s coverage with a Buy rating and a $275 price target, saying that Alibaba will remain the No.1 player in the e-commerce market as it strengthens efforts to attract customers from lower-tier cities, although competition looms.“We see the company's strengths as crucial competitive barriers to newer market entrants, such as Pinduoduo, who over the past two years has aggressively used subsidies to pursue customers,” Yu wrote in a note to investors. “The company's strategic position in the e-commerce value chain, and deep understanding of China's retail environment are not only competitive strengths in its primary business, but also keys to expanding its presence in adjacent industries such as offline retail, food delivery, and cloud computing.”Turning to other Wall Street analysts, the bulls have it. The Strong Buy consensus boasts 20 Buy ratings versus 1 Hold rating. The $266.90 average price target implies a modest 2.3% upside potential in the shares in the coming 12 months. (See Alibaba stock analysis on TipRanks).Related News: Qualcomm Buys Stake In Reliance’s Jio For $97.1M To Support 5G Rollout In India Alibaba’s CEO Sets Out Ambitious Goals; Sees 2B Customers By 2036 Analog Devices Is Said To Be In Talks To Snap Up Maxim For About $20B More recent articles from Smarter Analyst: * South Korea: 1 in 3 Covid-19 Patients Improved With Gilead’s Remdesivir * Amgen Pours A Further $421M Into China’s BeiGene * Qualcomm Buys Stake In Reliance’s Jio For $97.1M To Support 5G Rollout In India * Analog Devices Is Said To Be In Talks To Snap Up Maxim For About $20B

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Restaurant bankruptcies are starting to pile up.

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When Netflix went public in 2002, its chief talent officer at the time, Patty McCord, helped strip the company of formal time off, travel and expense policies. WSJ caught up with McCord to learn how this unconventional move helped shape Netflix culture.

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(Bloomberg) — Saudi Oil Minister Prince Abdulaziz bin Salman likes the idea of OPEC+ acting as the central bank of oil. And he expresses admiration for Alan Greenspan, former chairman of the U.S. Federal Reserve.The challenge now confronting the oil producers’ club is one that’s all too familiar to the Fed: how to avoid a “taper tantrum,” the market panic that ensued when the institution proposed tightening monetary policy in 2013.Having successfully doubled crude prices over the past few months through unprecedented output cuts, the OPEC+ alliance led by the Saudis and Russia is poised to begin unwinding these stimulus measures. As fuel demand recovers with the lifting of coronavirus lockdowns, the producers are about to open the taps a little.But as Greenspan’s successors discovered seven years ago, taking away the punch bowl carries its own risks.A second wave of the pandemic threatens another slump in oil consumption, while the billion-barrel mountain of inventories that piled up during the first outbreak still looms. If OPEC+ increases supply just as the market falters then prices could crash once again.“When they look at prices over the quarter, when they look at green shoots of demand pick-up, I think they feel good,” said Helima Croft, head of commodity strategy at RBC Capital Markets LLC. “I do think they are cognizant though of some of the potential clouds on the horizon.”It’s a balancing act that Prince Abdulaziz and his counterparts must weigh on July 15, when they hold an online meeting of the Joint Ministerial Monitoring Committee, the panel that reviews OPEC+’s progress.Easing the CutsThe JMMC will consider whether the 23-nation alliance should keep 9.6 million barrels of daily output off the market for another month, or restore some supplies as originally planned, tapering the cutback to 7.7 million barrels.As the demand recovery gains traction, members are leaning toward the latter option, according to several national delegates who asked not to be identified. Shipping schedules for August are already being set, so the course is more or less locked in, one said.In Russia, the most influential non-OPEC member of the alliance, major oil companies are preparing to increase production next month in the absence of other guidance from the Energy Ministry, according to two people from the industry who spoke on condition of anonymity.Russian Energy Minister Alexander Novak said on July 2 that no position on an extension had been taken yet, but stressed that it’s better if OPEC+ sticks to its previous decisions.OPEC+ can go ahead with the designated increase without inundating the market, said Bob McNally, founder of consultant Rapidan Energy Group and a former White House official. Global demand will rebound by 18% this quarter to 95.7 million barrels a day as economic activity resumes, he predicts. That will whittle away inventories at a brisk clip of 5.6 million barrels a day.“Our balances show hefty deficits in the third and fourth quarters, even with a tapering,” McNally said. “I think the market will handle it pretty well.”Fragile MarketYet the strategy is not without risks.While oil prices in London have more than doubled from a two-decade low of $15.98 in late April, trading near $43 a barrel on Monday, sentiment in the market remains fragile. The acceleration of the pandemic in the U.S., where infections hit a record last week, and its re-emergence in Asia is “casting a shadow over the outlook,” the International Energy Agency warned in a report on Friday. The Paris-based agency advises major economies on energy policy.There’s also still a price discount on prompt crude futures — known as a contango — in the U.S. and Europe, suggesting the wider market hasn’t yet tightened. Crude inventories in the U.S. and China are near record levels, government and satellite data show.“The kind of recovery that people would have expected maybe by now has not materialized,” said Mohammad Darwazah, an analyst at Medley Global Advisors. “There’s no doubt the consensus is we will get a tightening of the market, we’re just not quite there yet.”As a result, Riyadh is expected to insist that if output is restored, countries abide by their mandated limits — and that exporters who haven’t yet made their share of the cutbacks atone for it.Falling in LineIraq, Nigeria, Kazakhstan and Angola are among laggards who have promised “compensation cuts” over the next few months to make up for cheating in May, which equate to about 420,000 barrels a day each month. That should offset some of the group’s scheduled 2 million-barrel surge, and the JMMC could impose further reparations for overproduction in June.How far the likes of Baghdad and Lagos, which have a poor track record of adhering to OPEC+ agreements, go in their atonement is debatable, but Prince Abdulaziz has scored a victory in pressing them to deliver a surprisingly strong performance last month. He is unlikely to relax his vigilance when the producers gather on Wednesday.“While relieved and satisfied so far, ministers realize they are not out of the woods yet,” Rapidan’s McNally said. “Compliance is the No. 1 priority.”(Updates oil prices in 15th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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According to health authorities in South Korea, one third of seriously ill Covid-19 patients showed an improvement in their condition after being treated with Gilead’s (GILD) remdesivir drug, Reuters reports.However, additional research is still required to see if the improvement was connected to something other than the antiviral drug, for instance patients’ immunity or other therapies, the authorities said.The Korea Centers for Disease Control and Prevention (KCDC) deputy director Kwon Jun-wook was reporting results from an initial group of 27 patients in different hospitals.Out of the 27 patients given remdesivir, 9 saw their condition improved, 15 stayed in the same condition, and 3 patients deteriorated Kwon Jun-wook said. He added that the results had not been compared with a control group so further work was needed.Nonetheless, South Korea has already required a supply of 5,000 remdesivir treatments from Gilead in case of a second coronavirus outbreak. The company has already recorded almost 13,500 cases with 289 deaths.Meanwhile Australia’s Therapeutic Goods Administration (TGA) has just granted provisional approval to remdesivir (“Veklury”) as the first treatment option for Covid-19.“Remdesivir is the most promising treatment option so far to reduce hospitalisation time for those suffering from severe coronavirus infections” the Australian health administration stated, adding that remdesivir offers the potential to reduce the strain on Australia’s health care system. By reducing recovery times patients will be able to leave hospital earlier, freeing beds for those in need.Shares in Gilead rose 2% to $76.32 at the close of trading on July 10 taking the year-to-date advance to about 18%. The $80 average price target implies 5% upside potential in the shares in the coming 12 months. (See Gilead stock analysis on TipRanks).“We believe that even in the likely case they are able to derive revenue from remdesivir, it would likely be only for the very near term, and the much more important potential value driver remains GILD’s ability to maintain their HIV leadership and revenue durability long-term” comments RBC Capital analyst Brian Abrahams. He has a buy rating on Gilead and $89 price target.Related News: Australia Provisionally Approves Gilead’s Covid-19 Treatment Gilead Reveals Covid-19 Treatment Remdesivir Reduces Mortality Risk Moderna Inks Deal With Rovi To Supply Potential Covid-19 Vaccine Outside US More recent articles from Smarter Analyst: * Amgen Pours A Further $421M Into China’s BeiGene * Qualcomm Buys Stake In Reliance’s Jio For $97.1M To Support 5G Rollout In India * Analog Devices Is Said To Be In Talks To Snap Up Maxim For About $20B * Tesla Sets Date For “Battery Day”, Analyst Says It Could Be 'Game-Changing'

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(Bloomberg) — PepsiCo Inc. reported stronger-than-expected sales and earnings in the second quarter as consumers kept stocking up on snack foods during the Covid-19 pandemic, sending the shares higher.The owner of the Mountain Dew and Doritos brands reported revenue of $16 billion in the three months ended June 13. Analysts’ average estimate was $15.4 billion. Earnings per share beat the highest estimate.As one of the first big packaged-food companies reporting results for the spring months, PepsiCo is being closely watched by investors for a look at how consumers are responding to 2020’s upheaval. The company is well-positioned because of its high global share of the market for snack foods, according to Bloomberg Intelligence.PepsiCo shares rose as much as 3.3% in early U.S. trading. The stock was little changed this year through Friday.Organic sales, a closely watched indicator that strips out variables like currency volatility, fell 0.3%, though PepsiCo said the performance gradually improved during the quarter.The company said it still won’t make an outlook for 2020.(Updates with share move in first paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Tesla Inc. (TSLA) has set September 22 for its “Battery Day” event which is expected to unveil improvements to the batteries powering the automaker’s electric car technology. The event was originally scheduled for earlier in the year however it was postponed because of the pandemic. To address concerns of social distancing, the Tesla plans to live-stream the event while also offer in-person attendance to select shareholders and investors. The main focus of “Battery Day” will be for the unveiling of a new cell to power the company’s vehicles. On May 14, Reuters reported that Tesla and China’s Contemporary Amperex Technology Ltd. were working on a joint development project to create what is being called the “million-mile” battery. It is expected to be cheaper to produce and provide longer-lasting battery life. The average life for a current Tesla vehicle battery is less than half of that amount. Most importantly, the new battery could bring the price of Tesla’s electric vehicles down to a price-point that is comparable to gasoline-powered automobiles.The forum will address questions while also providing shareholders with the opportunity to vote and make decisions on matters such as the expansion of Tesla’s marketing strategy to advertisements. On May 28, Tesla highlighted a statement by San Diego-based shareholder James M. Danforth which said, “Advertising can increase brand value, product awareness, and interest.” He added, “Tesla ads can help mitigate and dilute substantial FUD (‘Fear, Uncertainty, Doubt’) and misinformation campaigns sponsored by competitors and detractors worldwide and steer the narrative more favorably.”Danforth’s proposal calls for at least $50 per produced vehicle to be allocated toward advertising to boost brand awareness and interest. His plan will be voted on by shareholders before the event’s product reveal.Wedbush analyst David Ives highlighted “Battery Day” on July 2 saying that Telsa has “some potentially game-changing battery developments on the horizon and Tesla's stock likely has room to run further.” He reiterated a Buy rating on the shares and a price target of $1,250, which suggests 19% downside potential.Tesla’s stock has rallied 270% year-to-date with a Hold analyst consensus that breaks down into 7 Buy ratings versus 10 Hold ratings and 9 Sell ratings. The $816.35 average price target implies 47% downside potential for the shares in the coming 12 months. (See Tesla's stock analysis on TipRanks).Related News: Tesla’s Elon Musk Overtakes Buffett On Billionaires Rich List Tesla Slashes Model Y Crossover Price By $3,000 Tesla Up 8% As Quarterly Deliveries Surprise; Wedbush Says Stock Rally Isn’t Over More recent articles from Smarter Analyst: * Analog Devices Is Said To Be In Talks To Snap Up Maxim For About $20B * Carnival Spikes 11% On Demand Optimism; Analyst Warns Risk Remains * Tesla’s Elon Musk Overtakes Buffett On Billionaires Rich List * Gilat Strongly Rejects Comtech’s New Merger Complaint; Seeks Remedies

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