Cowen Research Identifies Themes That Will Define Industries and Drive Investment Performance in 2022 | 2021-12-06 | Press Releases
NEW YORK, December 06, 2021 (GLOBE NEWSWIRE) – Cowen Inc. (NASDAQ: COWN) (âCowenâ or the âCompanyâ), today announced the release of Themes 2022. This annual manual identifies topics in which Cowen ‘s industry knowledge and collaborative approach provide a comprehensive overview of the trends, policies and advancements that are defining or redefining industries. As in previous years, Themes 2022 builds on Cowen’s flagship Ahead Of The Curve ‘Â® Series, the premier policy and equity research product for institutional investors and business decision-makers. Themes 2022 is accessible here.
Robert Fagin, Cowen ‘research director said: âIn Themes 2022, we once again present areas of interest to investors where Cowen’s expertise in the field has been at the heart of the discussion and of the debate. Either way, Cowen Research has offered its collaborative branding approach to help inform our perspectives, working with industry teams to provide valuable perspective. â Each highlighted topic is accompanied by a list of relevant Cowen reports and events.
Bill Bird, Cowen’s Thematic Content Manager, ‘said, âThe fundamental perspectives presented in Themes 2022 are reinforced by insights from our Washington Research Group. This has become critical in an environment in which guessing the outcome of major political debates has become increasingly crucial for forecasting financial markets. Plus, we overlay a unique perspective on ESG and sustainability. This year, Cowen became the first major company on Wall Street to place company-specific ESG scores on the cover of its research reports; we have added a dedicated ESG policy analyst to our Washington Research Group; and builds Wall Street’s strongest coverage for mobility and energy transition. â
The table below summarizes the 14 intervention areas addressed in the 2022 Themes.
|THEME||COWEN’S PREVIEW SUMMARY|
|Mobility||The automotive industry is going through multiple transitions. We believe transportation electrification will occur sooner than the market predicted, triggering new cycles of innovation. The $ 7 trillion transportation industry is ripe for disruption. Next-generation mobility will introduce new business models and disrupt many other sectors of the economy.|
|Energetic transition||We are at a crossroads in the transition to a low carbon economy. We believe that many different segments of the energy transition will benefit from unprecedented levels of new investment. No quick fix will solve the global energy crisis. We see room for several technologies to succeed.|
|Cryptocurrencies and digital assets||We believe crypto will be regulated in the same way as the non-crypto product it is trying to replace. This includes consumer protection, taxation and money laundering. The regulatory framework for crypto will take time to develop.|
|China||The Biden administration and Congress have ambitious plans to challenge China diplomatically, economically, technologically, and militarily. The competition / decoupling between the US and China will be a strategic competition that will last for decades.|
|Innovation in healthcare||Biotechnology and pharmaceutical innovation is accelerating, including cell and gene (C>) therapies and associated tools, a reinvigorated focus on certain infectious diseases, psychedelics, potentially modifying therapies for Alzheimer’s disease and targeted oncology. Precision medicine is in its infancy, ushering in a new wave of innovators, significant investments from incumbent operators and targeting very large markets, including cancer treatment, a worldwide therapeutic pharmaceutical category of 166 billions of dollars.|
|ESG||ESG is important not only from a consumer perspective, but also from a capital market perspective. The flow of dollars in search of ESG investments is important. This is important for asset managers and for companies looking to raise capital. A survey by Cowen found that 80% of 18-34 year olds see sustainability as âa bit & CloseCurlyDoubleQuote; or “very” important in their buying decisions. This will increase fund managers’ focus on sustainability.|
|The post-COVID consumer||Several consumer behaviors and preferences shifted during the pandemic. Next-generation consumers are growing in importance and gaining influence. The social impact and consumers of a brand ‘perception of sustainability will increasingly influence purchasing decisions.|
|Sustainable food and healthy lifestyle||Driven by new generation consumers, a shift towards more environmentally friendly and healthier products is underway. We believe we are on the cusp of one of the most dramatic changes in packaged foods in recent memory. For example, our proprietary work indicates a 10-fold increase in the global oat-based segment to $ 19 billion by 2026.|
|Cannabis||Cannabis has continued to become widespread and we have steadily increased our total estimate of the addressable market. There remains an important opportunity for transition to a large illicit market. We have maintained more measured expectations on the timing of federal action, but we continue to believe that legalization is a matter of “when & CloseCurlyDoubleQuote;” not “if.”|
|Transformation of the healthcare business model||The innovation of payment models, the transformation of the delivery of care at the point of care and the digital data revolution are three mega-trends to invest in. We believe that a migration to value-based care is an additional $ 1 trillion market opportunity over the next decade. COVID has considerably accelerated the passage to the healthcare site.|
|Software innovation||The COVID pandemic has dramatically accelerated innovation and adoption of enterprise software, ushering in a new wave of IT frameworks and applications that will pave the way for growth and innovation for years to come. We believe that software companies will continue to evolve at an unprecedented rate, driven by several factors including faster cycles from the cloud, new routes to market such as self-service and âfreemiumâ , & CloseCurlyDoubleQuote; and better visibility into revenue streams from subscription models.|
|Cybersecurity||Cyber ââattacks continued to escalate. The average cost of the data breach in 2021 was $ 4.2 million. Attacks have increased fourfold in the past two years. Cybersecurity solutions are moving from “nice-to-have & CloseCurlyDoubleQuote;” to âmustâ, âespecially since enforcement actions create pressure to implement cybercrime protections and compliance. We believe the $ 147 billion information security and risk management market can grow to 9% over the next five years.|
|Robotics and automation||The robotics industry is expected to benefit from growing demand for e-commerce logistics, labor shortages, the aging US workforce, and defense technology modernization policies. We are also seeing a significant increase in penetration in surgical robotics. Our proprietary end-user survey shows a dramatic increase in spending plans for robotics.|
|Market structure||We estimate that only 30% of the volume of US stocks that reaches the Band is made up of a single, accessible, non-HFT (High Frequency Trading) stock. âUnreachable Liquidity & CloseCurlyDoubleQuote; introduces a new factor to be integrated into decision-making processes and trading algorithms.|
For more information and to read the Cowen 2022 Thematic Report, please click on here.
About Cowen Research
Cowen’s research department has 60 senior analysts spanning 965 stocks across multiple industries including industry, consumer, energy, healthcare, technology, media and telecommunications and cross-assets, as well as ‘a Washington policy team.
About Cowen Inc.
Cowen Inc. (âCowen & CloseCurlyDoubleQuote; or theâ Company & CloseCurlyDoubleQuote; â) is a diversified financial services company that operates through two lines of business: a brokerage and an investment management division. The Company’s brokers and brokers division provides investment banking, equity research, sales and trading, blue chip brokerage, global clearing and commission management services. Cowen’s investment management division builds on Cowen’s foundational knowledge by developing differentiated and actively managed investment strategies that seek to meet the dynamic needs of our clients. Founded in 1918, the company is headquartered in New York City and has offices around the world. Learn more about Cowen.com.
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