EQUITY RESEARCH MORNING RESEARCH SUMMARY June 13, 2019

What's Inside Focus Items Estimates & PT Revisions Dollar General Corporation (DG) Rupesh Parikh, CFA ↓ AXGT P Axovant Sciences Ltd. The Bull Case Continues to Strengthen for DG; Maintain as a Top DG O ↑ Dollar General Corporation Pick LULU O ↑ Lululemon Athletica Inc. OKTA O ↑ Okta, Inc. HEALTHCARE Michael Wiederhorn Home Health Regs Out Soon: Uncertainty Likely to Remain SYBX O ↑ Synlogic Inc. HEALTHCARE Esther Rajavelu Updates Ophthalmic Innovations Address Unmet Needs AMD P Advanced Micro Devices INTC P Intel Corp. Okta, Inc. (OKTA) Shaul Eyal MPWR O Monolithic Power Systems Investor Meeting Takeaways MXIM P Maxim Integrated Products NVIDIA Corp. (NVDA) Rick Schafer NVDA O NVIDIA Corp. Notes from the Road SAIL O SailPoint Technologies, Inc. INDUSTRIAL/CAPITAL GOODS Noah Kaye Estimates/Ratings/Price Target Updates Landis+Gyr Investor Meetings Takeaways; Thoughts Ahead of Annual Estimates ITRI Investor Day Current FY Next FY Ratings Price Targets

Company Ticker Prev Curr Prev Curr Prev Curr Prev Curr Other Headlines Technical Analysis Ari Wald, CFA, CMT Axovant AXGT (0.97) (4.69) (1.01) (3.69) P P NA NA Color for Fundamental Focus Calls: DG, OKTA, LHCG, ITRI Sciences Ltd.

Dollar General DG 6.40 6.40 7.05 7.15 O O $135.00 $150.00 Synlogic Inc. (SYBX) Mark Breidenbach, Ph.D. Corporation Expanded Collaboration Could Supercharge Synthetic Biotic Lululemon LULU 4.60 4.64 5.45 5.45 O O $225.00 $225.00 Platform Athletica Inc. Okta, Inc. OKTA (0.47) (0.47) (0.15) (0.15) O O $115.00 $130.00 Axovant Sciences Ltd. (AXGT) Jay Olson, CFA Synlogic Inc. SYBX (1.95) (1.90) (2.73) (2.75) O O $15.00 $15.00 Quarterly Update Outlines Pipeline Progress

SailPoint Technologies, Inc. (SAIL) Shaul Eyal Navigate 2019: Displacement Opportunities, Solid Partners & Channels and Predictive Identity Products

Advanced Micro Devices (AMD) Rick Schafer Notes from the Road

Intel Corp. (INTC) Rick Schafer Notes from the Road

Monolithic Power Systems (MPWR) Rick Schafer Notes from the Road

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 - June 13, 2019

Maxim Integrated Products (MXIM) Rick Schafer Notes from the Road

TECHNOLOGY Rick Schafer Daily Chip Clips

Emerging Technologies and Services Andrew Uerkwitz E3 2019 Day 4 Field Notes: CD Projekt/HEAR/Ubisoft/Frontier Developments

Lululemon Athletica Inc. (LULU) Brian Nagel, CFA Quick Read: Another Strong Print from LULU

2 Morning Summary -June 13, 2019

Snap Commentaries - Equities Updates Rupesh Parikh, CFA CONSUMER 212-667-5263 Dollar General Corporation (DG - $135.51) Food, Grocery & Consumer Products

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

O $35,005.3M $150.00 / $135.00 EPS 5.97 6.40 7.15 / 7.05

The Bull Case Continues to Strengthen for DG; Maintain as a Top Pick

Ahead of the OPCO Boston Consumer Conference next week and with DG shares reaching our prior $135 PT, we spent time revisiting our views on shares. DG shares are now up 25% YTD, outperforming a 15% gain in the S&P 500. For us, there are really three key positive surprises to start the year: 1) above-plan Q1 top-line momentum; 2) launch of DG Fresh, which increases our confidence in the company's ability to deliver on ~10% EPS growth; and 3) a much more favorable interest rate backdrop with increased investor interest in defensive names lately. We are lifting our PT to $150 from $135 and maintaining DG as a top pick. We overall expect an upbeat tone from management next week at our conference.

HEALTHCARE Michael Wiederhorn 954-356-8312

Home Health Regs Out Soon: Uncertainty Likely to Remain

CMS is set to release the important FY2020 Medicare Home Health proposal in the coming weeks. Given its approach to past regs and comments from management, we would not be surprised if CMS were to maintain the 6.4% behavioral adjustment from last year's proposal, despite the unprecedented nature of the approach and the questionable rationale behind it. As a result, the stocks could face potential short-term volatility, as investors become concerned about the at-risk earnings from this cut. Ultimately, however, we remain comfortable that the impact will be manageable as Congress could still take action, CMS could moderate the cut in the final rule and companies could offset the cuts through cost-reduction opportunities or actual benefits from behavioral changes. Furthermore, the large players remain unlevered and could look toward M&A as a way to drive earnings growth. As a result, we would be buyers of AMED/LHCG on any reimbursement-related weakness.

HEALTHCARE Esther Rajavelu 212-667-7248

Ophthalmic Innovations Address Unmet Needs

We hosted an investor call with Dr. Paul Karpecki to review the evolving clinical landscape for ophthalmic indications. Our discussion focused primarily on new launches, including AERI's Rocklatan (intraocular pressure) and KALA's Inveltys (ocular pain/inflammation post surgery), and emerging assets targeting dry eye disease (DED) and myopia. The key takeaways from our view are: 1) Our KOL views Rocklatan as an attractive product and indicates potential for use in ~75% of his patients with unrestricted access; 2) he uses Inveltys broadly across all ocular surgeries and has prescribed it to ~25% of his patients; 3) DED is a complex, chronic condition affecting 30M-50M patients, and he anticipates multiple treatment options based on current pipelines; 4) progressive myopia is a large, under-explored market opportunity with no effective treatment alternatives (we note EYEN initiated Phase 3 trials for this indication). We remain bullish on the ophthalmology segment.

3 Morning Summary -June 13, 2019

Shaul Eyal TECHNOLOGY 212-667-8411 Okta, Inc. (OKTA - $129.61) Infrastructure Software

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

O $14,793.6M $130.00 / $115.00 EPS (0.32) (0.47) (0.15)

Investor Meeting Takeaways

Our key takeaways from a CFO/VP IR meeting (post 5/30's strong F1Q20) include the following: 1) We remain positive on OKTA's move toward higher-end enterprises as well as across many verticals as its solutions encompass customers' cloud migration and hybrid IT strategies. 2) Expanding uses-cases are driving incremental revenue opportunities. 3) We view international expansion opportunities adding to and building upon an ongoing domestic growth opportunity (through direct/ indirect channels and partners). 4) We believe OKTA remains at an early stage of a sizable >$20B TAM expansion, especially with large organizations that are shifting workloads to the cloud and as such remain highly comfortable with its LT outlook (through FY24) of >30% revenue growth per year. Reiterate Outperform and raise PT from $115 to $130.

Rick Schafer TECHNOLOGY 720-554-1119 NVIDIA Corp. (NVDA - $150.75) Semiconductors & Components

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

O $91,806.8M $190.00 EPS 6.64 5.38 8.32

Notes from the Road

We had the chance to sit down with NVDA VP of IR Simona Jankowski on Tuesday. The tone of the meeting was confident, highlighting NVDA's leading position in core DC AI, gaming and autonomous growth verticals. AI accelerator attach remains below 5% today, although we expect this to rise materially in the years ahead as the proliferation of neural networks (roughly doubling annually) continues. We see NVDA's share of the training market at ~100%. We see few challenges to NVDA's training dominance on the horizon. Management highlighted winning the first MLPerf competition, beating TPU and CPU across six benchmark categories. The nascent inference market is dominated by INTC CPU today, but we see NVDA's TensorRT4 quickly gaining share in this rapidly growing market. Inference accounted for several $100 million in sales for NVDA last year, but it now represents ~20% of DC revenues. T4 was launched in 3Q and targets three of the four distinct inference market opportunities. 1) DC; 2) AI at the Edge (edge servers for hospitals, enterprise high-rise, campus, etc.) and 3) Autonomous machines (vehicles, robots, drones, etc.). The fourth inference market is AI at IoT end points where chip solutions are mostly ASIC (low ASP/margin). NVDA is our top large cap growth story. We see topline re-accelerating to 20%-plus growth as hyperscaler spending picks back up. We reiterate our Outperform rating and $190 target.

INDUSTRIAL/CAPITAL GOODS Noah Kaye 212-667-7936

Landis+Gyr Investor Meetings Takeaways; Thoughts Ahead of ITRI Investor Day

We recently hosted Landis+Gyr CEO Richard Mora and VP of IR Stan March for investor meetings in Canada. Landis+Gyr is ITRI’s primary competitor in the global smart metering industry. LAND management's commentary on macro trends was largely consistent with our takeaways from our ITRI May 23 investor meetings; both companies are positioning to benefit from growth

4 Morning Summary -June 13, 2019

in higher-margin communications and services businesses that support utilities’ evolving distribution network needs. We see ITRI’s restructuring efforts as positioning the company for some catch-up on LAND's EBITDA margins over our investment horizon. We believe ITRI's Investor Day on June 27 could help illuminate favorable mix/margin/FCF improvement trends and serve as a catalyst for the shares.

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

Color for Fundamental Focus Calls: DG, OKTA, LHCG, ITRI

Mark Breidenbach, Ph.D. HEALTHCARE 212-667-7251 Synlogic Inc. (SYBX - $7.85) Biotechnology

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

O $199.3M $15.00 EPS (2.03) (1.90) / (1.95) (2.75) / (2.73)

Expanded Collaboration Could Supercharge Synthetic Biotic Platform

Wednesday, Synlogic announced an expanded collaboration agreement with Ginkgo Bioworks for developing next-generation synthetic biotics. The collaboration is based on the success of a pilot program showing that Ginkgo’s high-throughput combinatorial capabilities can improve the performance of Synlogic’s products. Per the agreement, Ginkgo made an ~ $80M equity investment in Synlogic, and Synlogic paid Ginkgo $30M in exchange for access to Ginkgo’s strain optimization technology. We believe the collaboration could increase the potency of Synlogic’s synthetic biotics, translating to superior efficacy at reduced dosage and manufacturing cost. We estimate the equity investment from Ginkgo extends Synlogic’s operational runway into 2021, well beyond multiple near-term catalysts. We reiterate our Outperform rating and $15 PT.

Jay Olson, CFA HEALTHCARE 212-667-8126 Axovant Sciences Ltd. (AXGT - $3.94) Biotechnology

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

P $89.8M NA EPS (8.02) / (1.18) (4.69) / (0.97) (3.69) / (1.01)

Quarterly Update Outlines Pipeline Progress

AXGT reported FY4Q19 financial results along with a business update outlining pipeline progress. AXGT has transformed its pipeline from small molecule development to a gene therapy platform during FY2019. AXGT's recent R&D day focused on development of AXO-Lenti-PD for Parkinson's Disease (PD) and AXO-AAV-GM1/GM2 for GM1/GM2 gangliosidosis, Tay- Sachs, and Sandhoff disease. We are encouraged by recent progress including: 1) six-month follow up data from first cohort in Ph2 SUNRISE-PD study of AXO-Lenti-PD; 2) initial safety/tolerability data from AXO-AAV-GM2 in Tay-Sachs; and 3) first dosing of AXO-AAV-GM1 in GM1 gangliosidosis patients with initial data expected in 2H19. Cash balance was $107M as of

5 Morning Summary -June 13, 2019

March 31. We maintain Perform and update our model to reflect lower expected operating expenses due to recent pipeline changes. Details in the full report, dated 6/12.

Shaul Eyal TECHNOLOGY 212-667-8411 SailPoint Technologies, Inc. (SAIL - $17.61) Infrastructure Software

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

O $1,561.6M $28.00 EPS 0.37 0.13 0.23

Navigate 2019: Displacement Opportunities, Solid Partners & Channels and Predictive Identity Products

We attended SAIL's Navigate 2019 and reiterate our view that the recent FY19 lowered guidance was more self inflicted in nature rather than changing market dynamics and/or drivers. We believe the following should drive SAIL back on track toward improved execution levels: 1) Displacement opportunities of legacy providers such as Oracle and CA, which we estimate to be in the thousands of customers. 2) New Predictive Identity Products augmenting AI/ML technology on top of IAM. 3) Solid Partnerships with large consulting firms, VARs and System Integrators. 4) International expansion opportunities as well as strengthening the channels. SAIL's current valuation of 4.5x FY21E revenue reflects a discount to the group (~7x), which could start to narrow in 2H19 as execution improves. Reiterate Outperform rating and price target of $28.

Rick Schafer TECHNOLOGY 720-554-1119 Advanced Micro Devices (AMD - $32.41) Semiconductors & Components

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

P $35,054.7M NA EPS 0.44 0.72 0.93

Notes from the Road

We had the opportunity to meet with Forrest Norrod, SVP of AMD's Datacenter group Tuesday. The tone of the meeting was bullish as AMD is poised to launch its new 7nm CPU line-up for server (Rome) and PC (Ryzen), as well as new 7nm Vega (GPU). Mr. Norrod reiterated the company’s commitment to delivering on its 5-year product roadmap set ~2 years ago. AMD's first gen Epyc CPU, code-named Naples, re-introduced AMD to the server market. Epyc2, based on Zen 2 architecture and launching in 3Q, takes a notable leap forward, expanding AMD's opportunities in HPC, Cloud and virtualization workloads. Boasting 2x the performance (and 2x improved TCO) of first gen Epyc, we see Epyc2 positioning AMD for accelerated server share gains and forecast 7% or better share by end of year (from ~3% ending 2018) and 10% share by mid-2020. AMD is executing on its product roadmap, and share gains are real. INTC's continued struggles at 10nm give an added boost to outlook. ■ Mgmt sees its move to a coherent CPU/GPU interconnect as another key DC differentiater, evidenced by the AMD's recent Cray win using coherent fabric to share one addressable space. This simplifies software development and accelerates data movement within HPC systems. Over time, mgmt sees additional benefits in workloads such as machine learning. Epyc has been adopted by several DC/Cloud players including AWS, Azure, Tencent and Oracle. Mgmt expects server CPU share at 10% by mid-2020.

6 Morning Summary -June 13, 2019

Rick Schafer TECHNOLOGY 720-554-1119 Intel Corp. (INTC - $46.32) Semiconductors & Components

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

P $207,374.6M NA EPS 4.58 4.20 4.70

Notes from the Road

We had the opportunity to sit down with SVP & GM of Intel’s IoT Group Tom Lantzsch on Tuesday. The tone of the meeting was bullish as Mr. Lantzsch detailed myriad growth opportunities for INTC in business-related IoT applications. He sees a growing trend where compute workloads from the cloud are transitioning to the edge, where content is created. This trend is driving specialized chip solutions. IoT is a highly fragmented market within the semiconductor industry with diverse products and competitors. IoT markets include retail, industrial, smart infrastructures and cities. Revenues for the IoT group were $2.1B in 2014 and grew at a ~15% CAGR to $3.5B in 2018. Operating profit grew 51% Y/Y in 2018 to 28%. Management highlighted a common misconception that INTC IoT ASPs and GMs are low. Given INTC's business focus, IoT group ASPs are $100+ split between Atom, Xeon and Core processors. Areas of technology focus in IoT include aggregation at the edge, video inference and high performance compute. Inference is tiny today, but Mr. Lantzsch sees the market for inference at the edge ultimately much larger than in DC. Intel is connectivity agnostic, working with LoRa, CatM, NB-IoT. We think it's unlikely management would choose to bring connectivity in-house. We recognize the growing trend of increased workloads at the edge and see a bright growth picture of the IoT group. At ~5% of sales, the group remains relatively small and an unlikely offset to headwinds in other areas of INTC's business, most notably growing share loss to AMD in PC and server CPU related to long-standing 10nm delays and CPU shortages. We see better structural growth and capital allocation opportunities elsewhere in the group and maintain our Perform rating.

Rick Schafer TECHNOLOGY 720-554-1119 Monolithic Power Systems (MPWR - $127.55) Semiconductors & Components

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

O $5,491.9M $160.00 EPS 3.74 3.84 5.00

Notes from the Road

We had the opportunity to sit down with MPWR CEO Michael Hsing and CFO Bernie Blegen on Tuesday. Management's tone remains bullish long term as management highlighted diverse greenfield growth opportunities in multiple vectors including automotive, industrial, DC/Cloud and 5G. Geopolitical uncertainty continues to impact near term visibility and order patterns for MPS and the group. Channel inventory ended 1Q above management targets but should exit 2Q within range. As our top growth/GM story, we see MPS leading as the macro demand environment improves, led near term by server and auto and by eCommerce 1-2 years forward. Server has increased from effectively zero a couple of years ago, to more than 10% of sales today as management leverages its configurable/dynamic power solution. Purely server content is $50, jumping to $70 in 2H20 with Whitley. Auto was up 50% in 2018 to $80M, and we see growth of ~50%/year (normalized) for the next 3-5 years base on current design wins. Management pegs MPS auto TAM at $7B. Infotainment, lighting and body control lead auto growth today for MPS, with BMS and ADAS contributing beginning late next year. We believe two large Tier-1 suppliers signed w/MPS over the past month, opening MPS up to bid on all those suppliers' projects vs. the ~10% available prior. Management remains on track with MPS BCD6 (300nm/55nm) transition. We see growth reaccelerating in 2H and ~20% in 2020 as MPS sales track to

7 Morning Summary -June 13, 2019

$1B organically by 2021. In spite of macro uncertainty, MPS remains poised for sustained long term growth/upside. We remain long term buyers here.

Rick Schafer TECHNOLOGY 720-554-1119 Maxim Integrated Products (MXIM - $57.18) Semiconductors & Components

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

P $15,577.3M NA EPS 1.64 2.18 2.36

Notes from the Road

We had the opportunity to sit down with VP of Automotive Sales and Marketing Kent Robinett and IR Director Mike Chu on Tuesday. Tone was constructive as management highlighted automotive growth opportunities. MXIM's auto segment has grown from 10% of revenues in 2014 to 25% today. Growth has historically been led by infotainment, but BMS and ADAS now lead. Management sees BMS/ADAS growing 20%+/year. Longer term, auto is expected to grow low DD (%) normalized. Management sees $65-$100 of potential MXIM semi content in vehicles today, increasing to $120-$160 in L2/3. BMS content opportunity depends on size of the battery. It can range from $10 on a plugin hybrid to as much as $100 on an electric bus. Typical BMS content is $30-$50. Minimal ADAS (lane keep assist, collision warning) content ranges $15-$30, while more advanced ADAS can expand into $50-$60 per vehicle. The auto channel appears in line, and management sees shipments in line with consumption. Orders appear stable. In industrial, management believes MXIM continues to under-ship demand. We believes this is setting the stage for a classic channel restock once geopolitical uncertainties abate. MXIM is executing well, although near-term macro headwinds and lack of visibility keep us sidelined. ■ Industrial (28%) decreased 18% Y/Y in F3Q on broad-based weakness. Secular growth drivers remain intact with more factories being automated. Distribution channel has improved, down 10% at 64 days, just four days above target. Visibility into customer inventory levels remains limited. MXIM's industrial business is diverse by customer/end market, with the company's largest customer (Siemens) at only ~1% of revenues. Management sees industrial normalized growth in high single digit (%). Under-shipping demand today creates the opportunity for a classic restock-driven snapback, although the timing of any uptick remains tough to call.

TECHNOLOGY Rick Schafer 720-554-1119

Daily Chip Clips

■ Cheaper sensors could speed more self-driving cars to market by 2022 (Reuters) ■ SSD penetration rate expected to reach over 60% in 2019 (Digitimes) ■ AMD reveals new PC platform for gamers at E3 2019 (Digitimes) ■ Intel to acquire Barefoot Networks (Digitimes) ■ Report: Apple still eyes Intel's modem business (EE Times)

8 Morning Summary -June 13, 2019

TECHNOLOGY Andrew Uerkwitz 212-667-5316

E3 2019 Day 4 Field Notes: CD Projekt/HEAR/Ubisoft/Frontier Developments

On our last day at E3 2019, we sat down with management from CD Projekt, Turtle Beach, Ubisoft, and Frontier Developments. Our conversations cover a wider range of topics than meetings earlier this week. That said, all companies share the same belief that cloud game streaming is a great tailwind for the industry by bringing down barriers to entry for gamers to high quality games. The same sentiment is reverberating around all of our E3 meetings and has become the de facto consensus view for the industry. Timing of streaming has been the debate. What could be 2020's biggest title, we attended Cyberpunk 2077 gameplay demo behind closed doors. The 50-minute demo took a few steps further from last year's demo to showcase the deep character customization options and their impact on gameplay, player choice and potential consequences. 2020 is shaping up to be a stronger year than 2018.

Brian Nagel, CFA CONSUMER 212-667-8381 Lululemon Athletica Inc. (LULU - $170.89) Consumer Growth & eCommerce

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

O $22,262.8M $225.00 EPS 3.84 4.64 / 4.60 5.45

Quick Read: Another Strong Print from LULU

We look very favorably upon the better than expected Q1 (April) results and now more optimistic fiscal 2019 (January 2020) guidance that Outperform-rated Lululemon (LULU) outlined after the market close yesterday (June 12th). For a while, we have highlighted LULU as a key market share grabber and innovator within athleisure and one of the most compelling growth stories in all of consumer. Last night’s report from LULU goes a long way in helping to support our positive thesis on the company and its shares. In coming quarters, we expect continued sales strength, coupled with an improved earnings flowthrough, as the pace of strategic investment at the company moderates somewhat.

Oppenheimer Marketing Events June 18-19, 2019 – 19th Annual Consumer Growth & E-Commerce Conference – Boston—next Tuesday and Wednesday June 25, 2019 – Stanford Biotech Emerging Science Summit – Stanford, CA June 27-28, 2019 – Summit for Emerging Biotechnology – Montauk, NY August 6-7, 2019 – 22nd Annual Technology, Internet & Communications Conference – Boston

9 Morning Summary -June 13, 2019

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 June 13, 2019 07:00 EDT and disseminated at June 13, 2019 07:00 EDT.

Other companies mentioned in this report: AAPL AERI AMD AMZN AXGT AZUR BNTC CRAY CYBR DG EYEN F FDEV-LON GM GOOG HEAR IFX-DE INTC ITRI KALA LHCG LULU MPWR MSFT MXIM NVDA OKTA ORCL OTGLF SAIL SIE-DE SYBX TCEHY UBI-FR XLNX

Important Disclosure Footnotes for Companies Mentioned in this Report that Are Covered by Oppenheimer & Co. Inc.: Stock Prices as of June 13, 2019 Apple Inc. (AAPL - NASDAQ, 194.19, PERFORM) Aerie Pharmaceuticals, Inc. (AERI - NASDAQ, 32.26, OUTPERFORM) Advanced Micro Devices (AMD - NYSE, 32.18, PERFORM) Amazon.Com, Inc. (AMZN - NASDAQ, 1,855.32, OUTPERFORM) Axovant Sciences Ltd. (AXGT - NASDAQ, 4.18, PERFORM) CyberArk Software Ltd. (CYBR - NASDAQ, 132.49, OUTPERFORM) Dollar General Corporation (DG - NYSE, 135.51, OUTPERFORM) Eyenovia, Inc. (EYEN - NASDAQ, 4.76, OUTPERFORM) Alphabet Inc. (GOOG - NASDAQ, 1,077.03, OUTPERFORM) Turtle Beach Corporation (HEAR - NASDAQ, 10.19, OUTPERFORM) Intel Corp. (INTC - NASDAQ, 46.32, PERFORM) Itron, Inc. (ITRI - NASDAQ, 59.89, OUTPERFORM) Kala Pharmaceuticals, Inc. (KALA - NASDAQ, 4.93, OUTPERFORM) LHC Group, Inc. (LHCG - NASDAQ, 115.92, OUTPERFORM) Lululemon Athletica Inc. (LULU - NASDAQ, 170.89, OUTPERFORM) Monolithic Power Systems (MPWR - NASDAQ, 127.55, OUTPERFORM) Microsoft Corporation (MSFT - NASDAQ, 131.49, OUTPERFORM) Maxim Integrated Products (MXIM - NASDAQ, 57.18, PERFORM) NVIDIA Corp. (NVDA - NASDAQ, 146.20, OUTPERFORM) Okta, Inc. (OKTA - NASDAQ, 129.61, OUTPERFORM) Oracle Corporation (ORCL - NASDAQ, 53.62, PERFORM) SailPoint Technologies, Inc. (SAIL - NYSE, 17.61, OUTPERFORM) Synlogic Inc. (SYBX - NASDAQ, 7.85, OUTPERFORM) Tencent Holdings Ltd. (TCEHY - OTC PK, 42.78, OUTPERFORM)

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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.

10 Morning Summary -June 13, 2019

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. 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] 379 65.01 176 46.44 HOLD [N/P/SP] 203 34.82 69 33.99 SELL [UP/S/U] 1 0.17 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 NVDA, MPWR, INTC, MXIM, LULU, AAPL, AMZN, CRAY, GM, GOOG, ITRI, LHCG, MSFT, ORCL and TCEHY.

In the past 12 months Oppenheimer & Co. Inc. has provided investment banking services for AMD, SAIL and KALA.

In the past 12 months Oppenheimer & Co. Inc. has received compensation for investment banking services from AMD, SAIL and KALA.

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

Oppenheimer & Co. Inc. expects to receive or intends to seek compensation for investment banking services in the next 3 months from LULU, AZUR, CYBR, HEAR and LHCG.

Analyst Certification - The author certifies that this research report accurately states his/her personal views about the subject securities, which are reflected in the ratings as well as in the substance of this report. The author certifies that no part of his/her

11 Morning Summary -June 13, 2019

compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report.

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