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Gapping down
In reaction to earnings/guidance:
JWN -11.8%, KC -8.6%, URBN -4.5%, LMNR -3.2% (guides JulQ EPS and revenue below consensus), HEI -0.8%
Other news:SAVA -23% (citizens petition filed; co responds to allegations, believes claims are misleading)
HUGE -12.2% (to terminate its Phase 2 clinical trial of FSD-201)
RIOT -2.6% (files for 11.8 mln share offering by selling shareholder)
SAIA -2.5% (to join S&P MidCap 400)
PRPL -2% (CFO stepping down)Analyst comments:
SAM -3.4% (downgraded to Underperform from Market Perform at Cowen)
CAE -2.2% (downgraded to Underperform from Neutral at BofA Securities)
CPB -1.1% (downgraded to Neutral from Overweight at Piper Sandler)Upgrades
Berenberg upgraded Univar Solutions (UNVR) to Buy from Hold with a price target of $28, up from $25. The firm notes that shares are down almost 20% from their 2021 highs, which offers investors a compelling entry point into a transformed business. The firm believes, compared to European peer Brenntag, the shares have underperformed by 30% since the June highs, with no good reason aside from being caught up in the unwind of the broader reflation trade. The firm’s ‘reasonable bull case’ implies 60% upside from current levels.
Deutsche Bank (ADDYY) upgraded Adidas to Buy from Hold. The firm initiated coverage on the European apparel sector with a preference for growth companies which have adapted to changing consumer habits. The firm prefers online versus offline, marketplace versus mono-brand retail and believes platform monetization is key for profit growth. The firm notes an advantage for Adidas and fellow sportswear makers is that a shift toward greater online sales isn’t only good for margins, it is also possible without cannibalizing physical retail sales.
Raymond James upgraded Kite Realty Group (KRG) to Strong Buy from Outperform with a $25 price target. The firm notes its 2022 FFO estimate now stands at $1.60, 13%, as the Street’s estimates have not been updated to include the expected merger accretion. As the Street starts to update numbers more in line with the firm’s estimate, the firm would expect shares to move higher.
Downgrades
Piper Sandler downgraded Campbell Soup (CPB) to Neutral from Overweight with a price target of $43, down from $51. The firm notes broad exposure to rising commodity prices, especially steel, is becoming a significant risk to Campbell’s fiscal 2022 outlook. The firm says Campbell typically has annual calendar contracts for steel and that the firm has little visibility where 2022 will land. The firm believes the rise in the commodity’s price over the past few months adds uncertainty to its outlook.
Morgan Stanley downgraded Theravance Biopharma (TBPH) to Underweight from Overweight with a price target of $14, down from $27. The firm notes that the company’s Izencitinib failed to differentiate relative to the placebo across any dose level in the Phase 2b study in Ulcerative Colitis, and with JAK platform optionality diminished, the firm sees no major near-term pipeline catalysts on the horizon. The firm adds that while there is more fundamental value embedded within the stock than the market currently assigns, there is also significant risk of this value being realized until the management outlines a capital allocation strategy.
JPMorgan downgraded Nordstrom (JWN) to Underweight from Neutral with a price target of $34, down from $39. The firm believes the company’s absolute and relative performance remains underwhelming with full price revenues 900 basis points below department store peers. The firm adds that the current backdrop is potentially as good as it gets for both Nordstrom’s core customer and on the pricing/promotional front.
Argus downgraded Beyond Meat (BYND) to Hold from Buy, citing the company’s below-consensus Q3 revenue guidance announced earlier this month. The firm notes that the weakness is being driven by labor shortages and slowing sales to foodservice companies, while also citing the firm’s concerns that the Delta variant will have a negative impact on Foodservice sales. The firm adds that Beyond Meat is investing for long-term growth but warns that as capacity is added with the aim of improving operating leverage over time, the near-term margins will be negatively impacted.
Canaccord initiated coverage of Rani Therapeutics (RANI) with a Buy rating and $29 price target. The firm says Rani shares offer investors an opportunity to gain exposure to a clinical-stage company developing a “broad platform technology poised to disrupt the field of pain-free, oral biologics delivery.” The firm believes RaniPill is a reasonably-sized robotic pill device that is swallowed and activated in the small intestine, where there are no sharp pain receptors and is differentiated from competitive oral delivery technologies by the high bioavailability achieved.
Barclays initiated coverage of Victoria’s Secret (VSCO) with an Overweight rating and $100 price target. The firm believes the company has multiple levers available to reposition and grow, supported by an attractive risk/reward with a compelling valuation. The firm says Victoria’s Secret is benefiting from clean inventory and closure of unprofitable stores, with ample room for upside from revitalizing the brand.
FBN Securities initiated coverage of Tenable Holdings (TENB) with an Outperform rating and $60 price target. The firm notes the company is currently the leading vendor in the vulnerability management market with a materially higher number of customers than its peers. The firm estimates that the vulnerability management market is a $6B market.
[size=5][color=green][b]Dow 35,405.50 39.24 0.11%
S&P 500 4,496.19 9.96 0.22%
Nasdaq 15,041.86 22.06 0.15%
GlobalDow 4,051.21 18.76 0.47%
Gold 1,791.90 -16.60 -0.92%
Oil 68.04 0.50 0.74%[/b][/color][/size][size=4][i]WOW — while Bambi & me couldn’t be more BEARISH given Delta + Afghan + inflation
it’s amazing stocks are 10,000 points than they should be in midst of COVID & real economyParty on WALL STREET like it’s 1929 – as GREAT CORRECTION may soon arrive 😉 :woohoo:
and greatest disco song all time … more bass + drums + cowbell please – lol 8)[/i][/size]
Market Updates
S&P Futures vs Fair Value: -5.0
10 yr Note: 1.351%USD/JPY: 110.15 +0.13
EUR/USD: 1.1760 -0.0010Europe: FTSE: -0.5% DAX: -0.6% CAC: -0.4%
Asia: Hang Seng: -1.1% Shanghai: -1.1% Nikkei: +0.1%
Gold (1785.90 -5.10) Silver (23.67 -0.111) Crude (67.53 -0.83)World markets have a restless night of trading
The global equity markets are under modest pressure. S&P Futures have eased back and are trading about six points lower to around the 4487 area. The activity level picked up slightly with a 14 point range that saw a high of 4494.25 and a low of 4480.25.
In Asia, China dropped over 1% while Japan closed up 0.1%. The Shanghai traded in a flat and narrow range for the first part of the day but succumbed to selling pressure late. This led to the index closing at the session low. In Japan, the Nikkei closed a choppy day slightly higher. Travel-related names were among the best performing groups. Air carriers such as ANA Holdings and Japan Airlines soared 2-3%. Rail stocks also saw solid advances with Central Japan Rail and East Japan Railway rising 1-2%.
In Europe, the major bourses are in negative territory. Sentiment took a shift for the worse across the region after the German GfK Consumer Climate came in weaker than expectations while notching a three month low. Diversified services group, Bouygues, is up over 1% and bucking the overall trend after reporting better than expected first half results and raising the full year outlook.
Gapping up
In reaction to earnings/guidance:WSM +14.2% (also increased quarterly dividend and approved new $1.25 bln stock repurchase authorization), PSTG +13.6%, ZUO +11.4%, ULTA +5.5%, TITN +5.2%, SNOW +4.3%, NTAP +3.9%, COTY +3.8%, SPLK +3.2%, CRM +2.8%, ESTC +1.9% (also agreed to acquire Cmd), LANC +1.7%, TD +1.2%
Other news:
GSMG +41.3% (enters into subscription agreement for sale of up to 2.86 mln shares)
NRXP +21.5% (to work with Cardinal Health (CAH) to ensure efficient distribution of potential therapies)
RDHL +10.7% (Opaganib demonstrates strong inhibition of COVID-19 delta variant)
RIDE +9.1% (appoints Daniel Ninivaggi as Chief Executive Officer)
AMRX +6.8% (reported top-line results from Phase 3 RISE-PD trial)
BYSI +5% (BeyondSpring and Jiangsu Hengrui Pharmaceuticals announce an exclusive commercialization and co-development agreement in Greater China for BeyondSpring’s investigational drug candidate plinabulin)
ABM +2.7% (agreed to acquire Able Services)
ADI +1.5% (increased share repurchase authorization to approx. $10 bln)
HEXO +1.2% (received shareholder approval for Redecan transaction)
AZN +1% (reports ALXN1840 FoCus Phase III trial in Wilson disease met primary endpoint; receives approval of Forxiga in Japan)Analyst comments:
VEON +5.4% (upgraded to Buy from Underperform at BofA Securities)
ZM +3.5% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
WELL +1.1% (upgraded to Outperform from Market Perform at BMO Capital Markets)Gapping down
In reaction to earnings/guidance:
SLQT -29.3%, LCI -13%, FLWS -7.9%, ADSK -7.3%, MBUU -7.1%, BURL -6.2%, DLTR -4.6%, GES -4.3% (also increased share buyback authorization to $200 mln), DG -3.4%, MOMO -2.6%, SJM -2.6%, BOX -2.5%, HAIN -2.5%, XPEV -1.4%, FRO -1.2%, RAVN -0.7%
Other news:
SMED -4.7% (prices offering of 1.8 mln shares of common stock at $8.65 per share)
RMBL -1.8% (announces the pricing of its previously announced underwritten public offering)Analyst comments:
DOCS -5.2% (downgraded to Neutral from Overweight at JP Morgan)
DK -4.9% (downgraded to Sell from Neutral at Citigroup)
PNR -3.5% (downgraded to Underweight from Overweight at JP Morgan)
JWN -2.8% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
CVI -1.3% (downgraded to Neutral from Buy at Citigroup)
LX -1% (downgraded to Hold from Buy at DBS Bank)
PSX -0.9% (downgraded to Neutral from Buy at Citigroup)Ohhh the humanity — Wait until Joe’s infrastructure bill kicks in – lol 😉 :woohoo: :woohoo: :woohoo:
https://www.youtube.com/watch?v=c3YJZsc2Iz4
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