EQUITY RESEARCH MORNING RESEARCH SUMMARY January 24, 2020

What's Inside Focus Items Initiation SLM Corp. (SLM) Dominick Gabriele, CFA MSG O Madison Square Garden Company This Party Was So Fun We're Leaving; Downgrade to Perform

Rating Change Generac Holdings Inc. (GNRC) Christopher Glynn GNRC O ↑ Generac Holdings Inc. Upgrading to Outperform SLM P ↓ SLM Corp. Mueller Water Products, Inc. (MWA) Bryan F. Blair, CFA Estimates & PT Revisions Improving Resi Backdrop Bodes Well for MWA; Increasing Price BIIB O ↑ Inc. Target to $14 CMCSA O ↓ Xylem, Inc. (XYL) Bryan F. Blair, CFA ↓ DFS P Discover Financial Services Updating Estimates for Continued Short-Cycle Headwinds; Long- HASI O ↑ Hannon Armstrong Sustainable Term Thesis Remains Intact Infrastructure Capital, Inc. INTC P ↑ Corp. Hannon Armstrong Sustainable Noah Kaye ISRG P ↑ Infrastructure Capital, Inc. (HASI) MWA O ↑ Mueller Water Products, Inc. Management Meetings Underscore Sustainable Growth Opportunity: Raising PT to $40 SWKS P ↑ , Inc. TEAM O ↑ Corporation Plc Madison Square Garden Company Ian Zaffino, CFA XYL O ↑ Xylem, Inc. (MSG) Full-court Press on Value Recognition; Initiate at Outperform Estimates/Ratings/Price Target Updates Annual Estimates

Current FY Next FY Ratings Price Targets Other Headlines Technical Analysis Ari Wald, CFA, CMT Company Ticker Prev Curr Prev Curr Prev Curr Prev Curr Color for Fundamental Focus Calls: MRVL, HASI, MWA, XYL

Intuitive Surgical (ISRG) Suraj Kalia, CFA Atlassian TEAM 1.00 1.06 1.26 1.39 O O $155.00 $155.00 EPS Beat Helped by Tax Rate; China Pull-Forward, Fewer Trade- Corporation Plc Ins, Rising Benign Mix, and Competition Worth Watching Biogen Inc. BIIB 33.07 33.16 27.27 29.31 O O $338.00 $338.00 Comcast CMCSA 3.30 3.26 -- 3.50 O O $50.00 $50.00 Biogen Inc. (BIIB) Jay Olson, CFA Discover DFS 9.47 9.03 -- 9.68 P P NA NA Key Considerations Ahead of 4Q19 Results Financial Services CLOUD AND COMMUNICATIONS Timothy Horan, CFA Generac GNRC 4.92 4.92 4.95 5.10 P O NA $125.00 Holdings Inc. Datatimes, Jan. 24, 2020: Cable's Broadband Domination

Hannon HASI 1.38 1.38 1.44 1.44 O O $35.00 $40.00 Continues Armstrong Sustainable Comcast (CMCSA) Timothy Horan, CFA Infrastructure Capital, Inc. CMCSA 4Q19 Follow-up: Investing for Growth in 2021, Lowering

Intel Corp. INTC 4.85 4.99 4.55 5.24 P P NA NA Ests, Broadband Dominance Persists

Intuitive ISRG 10.90 11.05 11.98 11.99 P P NA NA Surgical Atlassian Corporation Plc (TEAM) Ittai Kidron

Mueller Water MWA 0.63 0.64 0.70 0.70 O O $13.00 $14.00 Strong Activity Across the Board Products, Inc. For analyst certification and important disclosures, see the Disclosure Appendix.

Oppenheimer & Co Inc. 85 Broad Street, New York, NY 10004 Tel: 212-667-7990 Morning Summary - January 24, 2020

SLM Corp. SLM 1.36 1.90 -- 2.03 O P $11.00 INTERNET Bo Pei Skyworks SWKS 6.27 6.47 7.42 7.54 P P NA NA Short Video: Next Generation Content Creation & Consumption Solutions, Inc. Xylem, Inc. XYL 2.88 2.88 3.03 3.02 O O $86.00 $88.00 Intel Corp. (INTC) Rick Schafer Cloud Spend Offsets Share Attrition

Skyworks Solutions, Inc. (SWKS) Rick Schafer 5G Early Innings; Awaiting Handset Volumes

TECHNOLOGY Rick Schafer Daily Chip Clips

Discover Financial Services (DFS) Dominick Gabriele, CFA Incremental CECL Provision Growth and Investment Spend Pressure 2020/2021 EPS Growth

2 Morning Summary -January 24, 2020

Snap Commentaries - Equities Updates Dominick Gabriele, CFA FINANCIAL INSTITUTIONS 212-667-7217 SLM Corp. (SLM - $11.75) Specialty Finance

Rating / Prior Market Cap Price Target Earnings Type 2019A / Prior 2020E / Prior 2021E / Prior

P / O $3,837.5M EPS 1.27 / 1.23 1.90 / 1.36 2.03 / --

This Party Was So Fun We're Leaving; Downgrade to Perform

4Q19 "Core" EPS of $0.33 vs. our/consensus estimates of $0.29/$0.30. Big news is about 3-year strategic initiatives. SLM stopped originating personal loans, which have higher overall losses than student loans, selling ~$3.0B of student loans per year; instilled a mega $600M 2020 and $1.4B 3-year buyback using loan sale gains; and freed up capital. As SLM switches essentially from loan growth to buybacks, the net effect of run-rate EPS excl. gains from portfolio sales is fairly similar to 2021 previous expectations, but it likely chases away shorts. Given post earnings run of ~29% and SLM now trading at ~ 7.5x our new ex-gains 2021 EPS, above or in vs. ADS/ALLY/SC/SYF, and passed our PT, we think it's time to step aside and take long-fought-for profits. We are downgrading SLM to Perform from Outperform.

Christopher Glynn INDUSTRIAL/CAPITAL GOODS 617-556-3711 Generac Holdings Inc. (GNRC - $102.99) Industrial Multi-Industry

Rating / Prior Market Cap Price Target / Prior Earnings Type 2018A 2019E 2020E / Prior

O / P $6,441.2M $125.00 / NA EPS 4.70 4.92 5.10 / 4.95

Upgrading to Outperform

We are upgrading GNRC to Outperform (from Perform) and establishing a $125 PT based on 22x our raised '21E EPS of $5.75 ($5.40 prior), above the current 20x our '20E EPS of $5.10 (raised from $4.95), reflecting solid prospects for revenue upside and improving visibility to long-term scaling. The sustained strength in core standby demand fundamentals, coupled with emergence of the California market and launch into "clean energy" (combined energy storage/monitoring and HEMS (home energy management system) offerings), supports our estimated 11% 2020 residential growth. Considering GNRC's expectation for long-term organic adoption ramp (including clean energy platform approximating core standby in size within 5–10 years), we anticipate investment into the operating cost structure and model slightly down 2020 OM.

3 Morning Summary -January 24, 2020

Bryan F. Blair, CFA INDUSTRIAL/CAPITAL GOODS 212-667-7112 Mueller Water Products, Inc. (MWA - $12.20) Industrial Machinery & Flow Control

Rating Market Cap Price Target / Prior Earnings Type 2019A 2020E / Prior 2021E / Prior

O $1,925.7M $14.00 / $13.00 EBITDA ($/mil) 198.0 214.0 / 212.0 228.0 / 227.0

Improving Resi Backdrop Bodes Well for MWA; Increasing Price Target to $14

We remain confident in solid F1Q20 results and stable/positive muni demand trends, wtih recent residential indicators supporting upside vs. FY20 expectations. Although we acknowledge that MWA's ongoing facility modernization program restricts run rate FCF, we anticipate strong/accelerating returns on these investments (margin capture, shorter cycle times) over the coming years accompanied by a return to ~100% FCF conversion. Combining our incrementally positive near-term outlook, realistic prospects for intermediate-term earnings/cash flow inflection, and MWA's materially discounted valuation (EV/EBITDA >4 turns below water sector comps), we remain positive on shares and reiterate our Outperform rating.

Bryan F. Blair, CFA INDUSTRIAL/CAPITAL GOODS 212-667-7112 Xylem, Inc. (XYL - $82.36) Industrial Machinery & Flow Control

Rating Market Cap Price Target / Prior Earnings Type 2018E 2019E / Prior

O $14,831.3M $88.00 / $86.00 EPS -- 2.88 3.02 / 3.03

Updating Estimates for Continued Short-Cycle Headwinds; Long-Term Thesis Remains Intact

Following weaker than anticipated 2019 performance (marked by three consecutive guidance reductions and the pushback of 2020 margin goals), we expect XYL to provide a reasonable/beatable 2020 outlook alongside 4Q19 results and broadly achievable intermediate-term financial targets at its March 31st Investor Day. Although this implies a lower near-term earnings trajectory, we believe it aligns with investor expectations and should help (in conjunction with improving segment fundamentals, particularly MCS) to reset confidence in XYL's execution story and beat & raise prospects going forward. Combined with solid/ sustainable core growth (in our view, +L/MSD through-the-cycle) and steadily rebuilding dry powder ($2B-plus NTM capacity), we expect XYL's differentiated compounder thesis (unique leverage to secular demand drivers, +double-digit long-term EPS growth) to regain momentum over 2020–21.

4 Morning Summary -January 24, 2020

Noah Kaye INDUSTRIAL/CAPITAL GOODS 212-667-7936 Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI - $34.37) Sustainable Growth and Resource Optimization

Rating Market Cap Price Target / Prior Earnings Type 2018A 2019E 2020E

O $2,231.5M $40.00 / $35.00 EPS 1.38 1.38 1.44

Management Meetings Underscore Sustainable Growth Opportunity: Raising PT to $40

We recently hosted HASI CFO Jeff Lipson and VP of IR/ESG Chad Reed for investor meetings in the Mid-Atlantic. HASI’s balance sheet portfolio yield (+130bps year/year in 3Q19), capital strategy, and asset class focus continue to evolve. We view this as a feature of a nimble business model that can achieve a 10% ROE by unlocking emerging opportunities to provide capital for climate change-positive investments. We also see HASI shares benefiting from a broadening pool of capital focusing on sustainability and ESG metrics, which we view as core to the business. We raise our price target to $40 from $35 and maintain our Outperform rating.

Ian Zaffino, CFA SPECIAL SITUATIONS 212-667-7413 Madison Square Garden Company (MSG - $300.12) Special Situations

Rating Market Cap Price Target / Prior Earnings Type 2019A / Prior 2020E / Prior 2021E / Prior

O $7,167.7M $365.00 / EBITDA ($/mil) 169.8 / -- 123.0 / -- 161.9 / --

Full-court Press on Value Recognition; Initiate at Outperform

With the impending spin-off of MSG Entertainment, we believe Madison Square Garden Company (MSG) represents an interesting investment opportunity. MSG Sports holds two of the nation’s most recognizable sports franchises (the Knicks and Rangers) and will be one of the only pure-play ways for public investors to own a set of American sports franchises. MSG Entertainment is a leader in live entertainment events, which the company hosts at its world-renowned venues, including the MSG arena, the LA Forum and the Chicago Theatre. MSG Entertainment also has meaningful growth opportunities, including the opening of its planned Spheres, which are expected to deliver an innovative and immersive entertainment experience. We initiate coverage with an Outperform rating and $365 PT.

TECHNICAL ANALYSIS Ari Wald, CFA, CMT 212-667-5279

Color for Fundamental Focus Calls: MRVL, HASI, MWA, XYL

5 Morning Summary -January 24, 2020

Suraj Kalia, CFA HEALTHCARE 212-667-5387 Intuitive Surgical (ISRG - $615.00) Medical Devices

Rating Market Cap Price Target Earnings Type 2019A / Prior 2020E / Prior 2021E / Prior

P $71,077.7M NA EPS 11.52 / 11.35 11.05 / 10.90 11.99 / 11.98

EPS Beat Helped by Tax Rate; China Pull-Forward, Fewer Trade-Ins, Rising Benign Mix, and Competition Worth Watching

Following its 1/9 pre-release, ISRG reported 4Q19 GAAP EPS of $2.99, ahead of our $2.82 estimate, largely on a lower tax rate (16.0% vs. our 20.0% estimate). The company also introduced full 2020 guide and gave color on placements and procedures. Notable to us were the bolus of placements into China from the planned (but cancelled) tariffs, which will create a drag on 1Q, and an expected decline in trade-in mix, which we believe could pressure overall system placements. While Intuitive is the undisputed leader in robotic surgery, we continue to track competitive entrants, which the company acknowledged can delay deals and may pressure pricing.

Jay Olson, CFA HEALTHCARE 212-667-8126 Biogen Inc. (BIIB - $284.21) Biotechnology

Rating Market Cap Price Target Earnings Type 2018A 2019E / Prior 2020E / Prior

O $51,283.4M $338.00 EPS 26.20 33.16 / 33.07 29.31 / 27.27

Key Considerations Ahead of 4Q19 Results

BIIB recently presented a business update highlighting 2019 milestones and detailing its outlook for 2020. We review several key considerations ahead of 4Q19 results (1/30/20), including: 1) financial results for FY19 and our long-term forecast; 2) MS franchise positioning with Tecfidera IPR decision expected in early Feb-2020; 3) SMA market dynamics; 4) Alzheimer's opportunity with aducanumab filing anticipated in 1Q20 followed by likely FDA AdComm in mid-2020; and 5) capital allocation and BD opportunities. We remain confident in the cash-generating strength of BIIB's foundational businesses, including MS and SMA, where we estimate combined product sales of $10.4B in 2019 gradually declining to $2.8B in 2030. We update our model with script data, and maintain our Outperform rating with $338 PT. Details in the full report, dated 1/23.

CLOUD AND COMMUNICATIONS Timothy Horan, CFA 212-667-8137

Datatimes, Jan. 24, 2020: Cable's Broadband Domination Continues

■ Comcast Continues Solid Broadband Results; Weak Guidance ■ Cloud Infrastructure Conference Takeaways: Overall Datacenter/Fiber/Satellite Builds Are at Peak Levels, Hyperscale Capex Spend Shifting ■ EGHT/VG: Attractive Valuations vs RNG, But Both Need to Accelerate Revenue Growth ■ Major news p. 2, Blockchain updates p. 4, price box p. 7

6 Morning Summary -January 24, 2020

Timothy Horan, CFA CLOUD AND COMMUNICATIONS 212-667-8137 Comcast (CMCSA - $45.65) Cloud and Communications

Rating Market Cap Price Target Earnings Type 2019A 2020E / Prior 2021E / Prior

O $207,673.3M $50.00 EPS 3.13 3.26 / 3.30 3.50 / --

CMCSA 4Q19 Follow-up: Investing for Growth in 2021, Lowering Ests, Broadband Dominance Persists

FCF generation will likely be flat in 2020 vs. 2019 on accelerated investments (Sky Broadband, Peacock, Theme Parks, etc.) but should drive LT growth. The company is still generating over $16 billion of FCF and these investments should enable deleveraging and a 10% increase in dividends. Upfront investments along with a difficult comps on NBC will make results 2H loaded this year. Positively, Comcast continues to show its dominance in Broadband, adding 442K HSI subs vs our 370K estimate in 4Q19, helped by improved speeds and new products (FLEX, Wireless). Broadband ARPU grew 3.6%, and we see another ~24 months of positive pricing in the industry until competition intensifies from wireless.

Ittai Kidron TECHNOLOGY 212-667-6292 Atlassian Corporation Plc (TEAM - $132.64) Analytics, Collaboration, and Infrastructure

Rating Market Cap Price Target Earnings Type 2019A 2020E / Prior 2021E / Prior

O $33,169.4M $155.00 EPS 0.86 1.06 / 1.00 1.39 / 1.26

Strong Activity Across the Board

Atlassian reported strong 2Q20 (Dec) revenue, margins, and EPS well ahead of expectations. While some pulled-forward renewal activity (reacting to recent price changes) contributed to the upside, strong new customer activity, ongoing cloud adoption, and new use case traction (across DevOps and team collaboration) suggest the company's building sustainable momentum as it grows its product breadth. We remain bullish on Atlassian's execution and opportunity, seeing substantial room for expansion with large enterprises as Atlassian's user base grows and new use cases are adopted (Opsgenie, Align, Service Desk...). Maintain Outperform seeing room for more sales upside from new product traction and steady overall execution (new users, new markets, new products, cloud shift, optimized pricing).

INTERNET Bo Pei 212-667-7291

Short Video: Next Generation Content Creation & Consumption

Short-form videos, or short video, is now one of the fastest-growing Internet verticals. With over 750M and 340M global MAUs, respectively, TikTok (Douyin) and Kuaishou are the biggest short video platforms in the world. Short video platforms promote users' creativity, resulting in high-quality content and an engaging user base. Leveraging this, short video platforms will further penetrate into online advertising, live streaming (virtual gifts), eCommerce, games, music and possibly even education, making these platforms powerful competitors to established Internet companies such as , , and Facebook. In terms of monetization, TikTok and Douyin combined generated over $11B revenue in 2019, up 280% y/y, with the majority from

7 Morning Summary -January 24, 2020

advertising and live streaming, according to LatePost. Kuaishou is expected to generate over $6B in revenue in 2019, almost doubled from 2018, according to QuestMobile and Caixin.

Rick Schafer TECHNOLOGY 720-554-1119 Intel Corp. (INTC - $63.32) Semiconductors & Components

Rating Market Cap Price Target Earnings Type 2019A / Prior 2020E / Prior 2021E / Prior

P $275,442.0M NA EPS 4.87 / 4.60 4.99 / 4.85 5.24 / 4.55

Cloud Spend Offsets Share Attrition

4Q sales/EPS of $20.2B/$1.52 were above Street's $19.2B/$1.25E, and INTC guided 1Q20 sales/EPS to $19.0B/$1.30, easily topping consensus $17.2B/$1.04E. Strong DCG recovery drove most of $1B upside as hyperscaler spend pushed segment +19% Y/Y despite share loss to AMD. DCG is expected strong in 1H before fading in 2H on anticipated hyperscaler digestion. PC strength is also expected to moderate in 2H as Win10-related boost ebbs. Mgmt pushed out expected 10nm Ice Lake (server) production launch to 4Q, with 7nm production now set for late 2021. Yields/increased investment conspire to pressure GM through 2021 (expected trough ~57% in CY21 from 61%E in 1Q20). LSD (%) rev growth, opex control, reduced share count offset, allowing modest EPS growth. We see better growth/capital return opportunities elsewhere in group and maintain Perform.

Rick Schafer TECHNOLOGY 720-554-1119 Skyworks Solutions, Inc. (SWKS - $128.19) Semiconductors & Components

Rating Market Cap Price Target Earnings Type 2019A 2020E / Prior 2021E / Prior

P $21,840.4M NA EPS 6.17 6.47 / 6.27 7.54 / 7.42

5G Early Innings; Awaiting Handset Volumes

Skyworks posted beat/raise results Thursday. F1Q (Dec.) sales/EPS of $896.1M/$1.68 bested consensus $880.6M/ $1.65E. F2Q (Mar.) guidance for $810M/$1.46 also topped Street’s $786.6M/$1.41E, led by ramping sales into Chinese 5G smartphones. F1Q revenue declines decelerated to -8% Y/Y (from -18% Y/Y in F4Q) and F2Q guide implies flat Y/Y (up mid- teens Y/Y ex-Huawei). GM declined 20bps Q/Q and down 84bps Y/Y to 50.1%, but expected up Q/Q in F2Q. Mgmt expects infrastructure to pick up in 2H, which bolsters mix/margin toward SWKS' long-term 53% target. We believe AVGO's RF asset is still for sale and view SWKS (along with QCOM/AAPL) as a natural/strategic acquirer. Mgmt execution remain top-notch, but heavy exposure (~70%) to a late 4G smartphone market, and early 5G cycle with limited volumes keep us sidelined for now.

TECHNOLOGY Rick Schafer 720-554-1119

Daily Chip Clips

■ Apple, Huawei Use TSMC, But Their 7nm SoCs Are Different (EE Times)

8 Morning Summary -January 24, 2020

■ Xbox Series X Pics & SSD Specs Appear: Here's What We Know (Tom's Hardware)

Dominick Gabriele, CFA FINANCIAL INSTITUTIONS 212-667-7217 Discover Financial Services (DFS - $85.85) Specialty Finance

Rating Market Cap Price Target Earnings Type 2019A / Prior 2020E / Prior 2021E / Prior

P $26,911.3M NA EPS 9.07 / 9.08 9.03 / 9.47 9.68 / --

Incremental CECL Provision Growth and Investment Spend Pressure 2020/2021 EPS Growth

DFS reported 4Q19 EPS of $2.25 vs. our/consensus' $2.26/$2.24E. 2020FY guidance reflects YoY likely slowing loan growth, NIM stabilization, with significant investment in marketing and tech spend with credit expectations a bit worse than we were expecting. In our May downgrade we thought operating expense expectations were likely too low and that asset sensitivity could have 2020's starting point lower than expected. Put these together and we think it's very likely DFS shows negative operating leverage in 2020 with efficiency staying at a higher level beyond. DFS is trying to invest in its product awareness and ability to drive down acquisition costs. Loan growth could accelerate in 2021 yet also with continued pressure on efficiency. Tangible book value per share (TBVPS) could take a ~20% CECL impact in 1Q20.

Oppenheimer Marketing Events Mar 17-18, 2020 30th Annual Healthcare Conference New York, NY May 5-6, 2020 15th Annual Industrial Growth Conference New York, NY May 10, 2020 21st Annual Israeli Conference Tel Aviv, Israel May 12, 2020 5th Annual Emerging Growth Conference New York, NY May 27, 2020 Oppenheimer MedTech Day San Francisco, CA May 28, 2020 Biotech Summit featuring Northwestern's Chemistry of Life Processes Institute Chicago, IL Jun 16-17, 2020 20th Annual Consumer Conference Boston, MA Jun 18, 2020 Biotech Emerging Science Summit ft. Stanford University's SPARK Program Stanford, CA July 8-10, 2020 Montauk Summit for Emerging Life Sciences Montauk, NY Aug 11-12, 2020 23rd Annual Technology, Internet & Communications Conference Boston, MA Sept 21-22, 2020 Fall Summit focused on Specialty Pharma, Rare Disease and Gene Therapy New York, NY Oct 15, 2020 Houston Oncology Summit at MD Anderson Cancer Center Houston, TX

9 Morning Summary -January 24, 2020

Disclosure Appendix Oppenheimer & Co. Inc. does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

The published date of the recommendations contained in this report can be found by accessing disclosures (https:// opco2.bluematrix.com/sellside/MAR.action). This report was produced at January 24, 2020 07:09 EST and disseminated at January 24, 2020 07:09 EST.

Other companies mentioned in this report: 2330-TW AAPL ADI AKAM AMD AMT AMZN AVGO BABA BATRA BIDU BIIB CCI CCOI CHDN CHTR CMCSA COR CTL DFS DISCA DOX E EGHT EQIX EVD.DE FB FIVN FSLY FWONA GET GOOG GTT HASI HUYA INTC INXN ISRG LLNW LYV MANU MCHP MRVL MSFT MSG MWA MXIM MYL NFLX NKE NOKIA-FI NVDA NVS NXPI PFE QCOM QRVO QTS RNG ROG S SBAC SNAP SQ STM SWKS T TCEHY TEAM TEUM TME TMUS TWLO TWTR TXN VG VIAC VZ WIFI WORK WWE XLNX XYL ZAYO ZM

Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered by Oppenheimer & Co. Inc.: Stock Prices as of January 24, 2020 Apple Inc. (AAPL - , 319.23, PERFORM) (ADI - NASDAQ, 120.86, OUTPERFORM) (AKAM - NASDAQ, 96.44, OUTPERFORM) (AMD - NYSE, 51.71, PERFORM) American Tower Corp. (AMT - NYSE, 237.83, PERFORM) .Com, Inc. (AMZN - NASDAQ, 1,884.58, OUTPERFORM) Broadcom Ltd. (AVGO - NYSE, 319.65, OUTPERFORM) Holding Ltd. (BABA - NYSE, 219.13, OUTPERFORM) Baidu.com, Inc. (BIDU - NASDAQ, 134.20, OUTPERFORM) Biogen Inc. (BIIB - NASDAQ, 284.21, OUTPERFORM) Crown Castle International (CCI - NYSE, 149.78, PERFORM) Cogent Communications (CCOI - NASDAQ, 72.94, PERFORM) , Inc. (CHTR - NASDAQ, 513.14, PERFORM) Comcast (CMCSA - NASDAQ, 45.65, OUTPERFORM) CenturyLink (CTL - NYSE, 14.85, OUTPERFORM) Discover Financial Services (DFS - NYSE, 85.85, PERFORM) Amdocs Ltd. (DOX - NYSE, 74.85, OUTPERFORM) 8x8 Inc. (EGHT - NYSE, 20.01, OUTPERFORM) Equinix Inc. (EQIX - NASDAQ, 596.01, OUTPERFORM) Facebook, Inc. (FB - NASDAQ, 219.76, OUTPERFORM) Fastly, Inc. (FSLY - NYSE, 25.18, OUTPERFORM) Alphabet Inc. (GOOG - NASDAQ, 1,486.65, OUTPERFORM) GTT Communications, Inc. (GTT - NYSE, 13.01, OUTPERFORM) Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI - NYSE, 34.37, OUTPERFORM) Intel Corp. (INTC - NASDAQ, 63.32, PERFORM) InterXion Holding N.V. (INXN - NYSE, 90.56, NOT RATED) Intuitive Surgical (ISRG - NASDAQ, 615.00, PERFORM) Limelight Networks (LLNW - NASDAQ, 5.45, OUTPERFORM) Marvell Technology Group (MRVL - NASDAQ, 28.02, OUTPERFORM) Corporation (MSFT - NASDAQ, 166.72, OUTPERFORM)

10 Morning Summary -January 24, 2020

Madison Square Garden Company (MSG - NYSE, 296.10, OUTPERFORM) Mueller Water Products, Inc. (MWA - NYSE, 12.20, OUTPERFORM) Products (MXIM - NASDAQ, 63.59, PERFORM) , Inc. (NFLX - NASDAQ, 349.60, OUTPERFORM) Nike, Inc. (NKE - NYSE, 103.02, OUTPERFORM) Corp. (NVDA - NASDAQ, 252.86, OUTPERFORM) NXP Semiconductors NV (NXPI - NASDAQ, 136.41, PERFORM) Incorporated (QCOM - NASDAQ, 92.00, PERFORM) Qorvo, Inc. (QRVO - NASDAQ, 118.68, PERFORM) RingCentral (RNG - NYSE, 197.65, OUTPERFORM) Sprint (S - NYSE, 5.04, NOT RATED) Snap Inc. (SNAP - NYSE, 19.25, PERFORM) Square Inc. (SQ - NYSE, 69.29, PERFORM) Skyworks Solutions, Inc. (SWKS - NASDAQ, 128.19, PERFORM) AT&T, Inc. (T - NYSE, 38.63, OUTPERFORM) Tencent Holdings Ltd. (TCEHY - OTC PK, 49.85, OUTPERFORM) Atlassian Corporation Plc (TEAM - NASDAQ, 132.64, OUTPERFORM) Pareteum (TEUM - NASDAQ, 0.77, PERFORM) Tencent Music Entertainment Group (TME - NYSE, 13.21, OUTPERFORM) T-Mobile (TMUS - NASDAQ, 82.18, PERFORM) Twilio, Inc. (TWLO - NYSE, 120.80, OUTPERFORM) , Inc. (TWTR - NYSE, 33.89, OUTPERFORM) (TXN - NYSE, 134.25, OUTPERFORM) Vonage Holdings Corp. (VG - NYSE, 8.82, OUTPERFORM) Verizon (VZ - NYSE, 60.51, OUTPERFORM) Boingo Wireless, Inc. (WIFI - NASDAQ, 12.21, OUTPERFORM) Technologies, Inc. (WORK - NYSE, 21.22, PERFORM) Xylem, Inc. (XYL - NYSE, 82.36, OUTPERFORM) Zayo Group (ZAYO - NYSE, 34.80, NOT RATED) Zoom Video Communications (ZM - NASDAQ, 74.47, PERFORM)

All price targets displayed in the chart above are for a 12- to- 18-month period. Prior to March 30, 2004, Oppenheimer & Co. Inc. used 6-, 12-, 12- to 18-, and 12- to 24-month price targets and ranges. For more information about target price histories, please write to Oppenheimer & Co. Inc., 85 Broad Street, New York, NY 10004, Attention: Equity Research Department, Business Manager.

Oppenheimer & Co. Inc. Rating System as of January 14th, 2008: Outperform(O) - Stock expected to outperform the S&P 500 within the next 12-18 months. Perform (P) - Stock expected to perform in line with the S&P 500 within the next 12-18 months. Underperform (U) - Stock expected to underperform the S&P 500 within the next 12-18 months. Not Rated (NR) - Oppenheimer & Co. Inc. does not maintain coverage of the stock or is restricted from doing so due to a potential conflict of interest. Oppenheimer & Co. Inc. Rating System prior to January 14th, 2008: Buy - anticipates appreciation of 10% or more within the next 12 months, and/or a total return of 10% including dividend payments, and/or the ability of the shares to perform better than the leading stock market averages or stocks within its particular industry sector.

11 Morning Summary -January 24, 2020

Neutral - anticipates that the shares will trade at or near their current price and generally in line with the leading market averages due to a perceived absence of strong dynamics that would cause volatility either to the upside or downside, and/or will perform less well than higher rated companies within its peer group. Our readers should be aware that when a rating change occurs to Neutral from Buy, aggressive trading accounts might decide to liquidate their positions to employ the funds elsewhere. Sell - anticipates that the shares will depreciate 10% or more in price within the next 12 months, due to fundamental weakness perceived in the company or for valuation reasons, or are expected to perform significantly worse than equities within the peer group.

Distribution of Ratings/IB Services Oppenheimer & Co. Inc.

IB Serv./Past 12 Mos.

Rating Count Percent Count Percent BUY [O/B/OP] 400 62.99 187 46.75 HOLD [N/P/SP] 233 36.69 84 36.05 SELL [UP/S/U] 2 0.31 0 0.00

Although the investment recommendations within the three-tiered, relative stock rating system utilized by Oppenheimer & Co. Inc. do not correlate to buy, hold and sell recommendations, for the purposes of complying with FINRA rules, Oppenheimer & Co. Inc. has assigned buy ratings to securities rated Outperform, hold ratings to securities rated Perform, and sell ratings to securities rated Underperform. Note: Stocks trading under $5 can be considered speculative and appropriate for risk tolerant investors.

Oppenheimer & Co. Inc. makes a market in the securities of BIIB, CMCSA, TEAM, SWKS, INTC, AAPL, AKAM, BIDU, CCOI, EQIX, LLNW, MANU, MRVL, MSFT, MXIM, NFLX, NVDA, QCOM, QRVO, SBAC, T, TCEHY, TMUS and VIAC.

The Oppenheimer & Co. Inc. analyst/associate who covers BIIB has a long position in iShares NASDAQ Biotechnology Index (IBB), an exchange traded fund that holds securities of this company and whose performance may be impacted by the performance of BIIB and the other stocks under coverage by this analyst/associate(s).

In the past 12 months Oppenheimer & Co. Inc. has received compensation for investment banking services from HASI, BABA, CHTR, EGHT, FSLY, HUYA, TEUM and ZM.

In the past 12 months Oppenheimer & Co. Inc. has provided investment banking services for BABA, CHTR, EGHT, FSLY, TEUM and ZM.

Oppenheimer & Co. Inc. expects to receive or intends to seek compensation for investment banking services in the next 3 months from BABA, EGHT, FB, GET, INXN, MYL, QTS, RNG, SNAP, WIFI and ZAYO.

In the past 12 months Oppenheimer & Co. Inc. has managed or co-managed a public offering of securities for FSLY.

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