ac investment research

Should I Buy NASDAQ:XTLB Stock? (22% Forecasted Return) | XTLB XTL Biopharmaceuticals Ltd. Stock Forecast



Our liquidity uses include dividends and share repurchases that we expect under a stress scenario. Unlike other potential uses of liquidity, such as debt maturities or maintenance capital spending, we view dividends and share repurchases as more discretionary, although more so for the latter. For this reason, when evaluating a company's liquidity position, we may use a lower estimate of dividends and shareholder repurchases than in our base-case forecast based on our views of management and the company's track record in terms of shareholder returns and maintaining a certain minimum level of liquidity.If, for example, a facility matured in 18 months, we could include the borrowing availability as a source of liquidity in year one, but exclude the amount in year two under the exceptional and strong descriptors (as well as include any drawn portions as debt maturities under uses of liquidity). This is because we do not assume an extension of bank lines--regardless of the company's perceived credit strength or issuer credit rating. For instance, whether the issuer credit rating on the company is speculative grade or investment grade, we do not assume bank lines will be extended beyond the current stated maturity. We estimate XTLB XTL Biopharmaceuticals Ltd. stock forecast parameters by: OCL with Spearman Correlation because If a breakdown of revenues by business line is not available, we apply a 188% risk weight to the highest annual revenue of the past three years (22% Forecasted Return)

NASDAQ:XTLB Stock Forecast (Buy or Sell) as of 22 Jun 2022 for (n+1 year)

Stock: XTLB XTL Biopharmaceuticals Ltd.

Time series to forecast n: 22 Jun 2022 for (n+1 year)

x axis:Likelihood %
y axis:Potential Impact %
z axis:Color (yellow to green) Technical Analysis %

Stock Forecast Criteria and Models for XTLB XTL Biopharmaceuticals Ltd.

  • We apply a multiplier of 1.5 to the regulatory capital requirement figure if it is derived from the Basel standardized approach. This reflects our opinion that the standardized approach is typically more conservative than VaR models regulators approved, particularly with regard to asset diversification.
  • We apply the standard financial institution risk weight to exposures to financial institutions that we consider government-related entities (GREs) under our criteria.
  • We do not make adjustments for the impact of foreign exchange translation gains or losses recorded within equity and included under other comprehensive income under U.S. generally accepted accounting principles (GAAP). These gains or losses are reflected in ACE and TAC.
  • RACF does not adjust related exposures for nonfinancial collateral other than gold. This reflects our concerns about discrepancies among the valuation methodologies institutions may use and that we have already factored typical loan collateralization into our industry benchmarks for corporate exposures.
  • We apply risk weights to the combination of outstanding amounts on a bank's balance sheet and other commitments to derive total RWAs. The criteria use the term "adjusted exposure," as defined in table 1. This builds upon the term "exposure at default" (EAD), stated in the Basel II framework
  • The analysis of specific instruments includes consideration of priorities within an obligor's capital structure and the potential effects of collateral and recovery estimates in the event of the obligor's default. The analysis may apply notching to instruments that rank above or below their obligor's senior, unsecured debt. For example, subordinated debt would generally receive a rating below the senior debt rating. Conversely, secured debt may receive a rating above the unsecured debt rating.
  • Entities that have regulatory-approved internal market risk models but are not domiciled in Basel 2.5 jurisdictions:For banks with value at risk (VaR) models validated for general risk only, we apply a 3.0 multiplier to the regulatory capital requirement figure. This is to align the VaR charge with a one-year horizon and make it consistent with a 99.9% confidence level. The multiplier includes a 50% add-on to account for extreme (fat-tail) events in a hypothetical portfolio consisting of equities, interest rate positions, commodities, and foreign exchange.

Assumptions Underlying The Forecast Model for XTLB XTL Biopharmaceuticals Ltd.

We do not treat repayments of leases as debt maturities (even if International Financial Reporting Standard 16 shows them as such in the cash flow statement) because we already have reduced FFO by such lease cash outflow.

Frequently Asked QuestionsQ: Is XTLB XTL Biopharmaceuticals Ltd. stock buy or sell?
A: Our liquidity uses include dividends and share repurchases that we expect under a stress scenario. Unlike other potential uses of liquidity, such as debt maturities or maintenance capital spending, we view dividends and share repurchases as more discretionary, although more so for the latter. For this reason, when evaluating a company's liquidity position, we may use a lower estimate of dividends and shareholder repurchases than in our base-case forecast based on our views of management and the company's track record in terms of shareholder returns and maintaining a certain minimum level of liquidity.
Q: Is XTLB XTL Biopharmaceuticals Ltd. stock expected to go up?
A: If, for example, a facility matured in 18 months, we could include the borrowing availability as a source of liquidity in year one, but exclude the amount in year two under the exceptional and strong descriptors (as well as include any drawn portions as debt maturities under uses of liquidity). This is because we do not assume an extension of bank lines--regardless of the company's perceived credit strength or issuer credit rating. For instance, whether the issuer credit rating on the company is speculative grade or investment grade, we do not assume bank lines will be extended beyond the current stated maturity.
Q: What is the forecast for XTLB XTL Biopharmaceuticals Ltd. ?
A: We do not treat repayments of leases as debt maturities (even if International Financial Reporting Standard 16 shows them as such in the cash flow statement) because we already have reduced FFO by such lease cash outflow.
Q: What is the consensus rating of XTLB XTL Biopharmaceuticals Ltd. ?
A: The consensus rating for XTLB XTL Biopharmaceuticals Ltd. is 79.
Q: What are the risks of investing XTLB XTL Biopharmaceuticals Ltd. ?
A: We use risk analysis for XTLB XTL Biopharmaceuticals Ltd. because If a breakdown of revenues by business line is not available, we apply a 188% risk weight to the highest annual revenue of the past three years


XTLB XTL Biopharmaceuticals Ltd.
AC Investment Research

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