Hello,
Based on recent review of the stocks, we are adding 50bps each to ST, FTV and CVS. The investment thesis of those companies are not broken, and we see opportunity for upside at these levels.
• ST: content growth is still intact, as sensor business is growing above auto market. Portfolio is also evolving away from auto into more secular growth areas
• FTV: the short-cycle slowdown is temporary, we think the evolution of their portfolio from recent acquisitions will provide greater stability
• CVS: Aetna merger is on track, and the PBM business is showing signs of recovery post 1Q. Rebate threat has diminished
Thanks,
Julie
Julie S. Praline
Director, Equity Analyst
Direct: 617.226.0025
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square
Suite 500
Boston, MA 02109