>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • NRDS +24.6% (also authorizes new $25 mln share repurchase program), RDDT +21.5%, ATRC +15.2%, GRMN +11.6%, UIS +11.3%, SNAP +10.2% (also authorizes new $500 mln share repurchase program), EXTR +10.2%, PRO +10.1% (also CEO to retire), SHAK +9.1%, EXEL +8.2%, OMCL +8.2%, JKS +7.6%, MCY +7%, GOOG +6.9%, CAKE +6.2%, EAT +6.1%, EXLS +5.9%, ENVX +5.8% (also signs development agreement with smartphone OEM for mass production in 2025), XPO +5.6%, TW +5.3%, UDMY +5.2%, TTI +5.1%, CWEN +5%, NBIX +5%, VRSK +4.8%, TRTX +4.6%, TECH +4.6%, NVCR +4.4%, FVRR +4.1%, BPMC +4.1%, SLGN +4%, LIVN +3.8%, CMP +3.8%, SW +3.8%, PSN +3.7%, NI +3.7%, SCL +3.5%, TEX +3.4%, NGD +3.1%, SKWD +2.8%, OPRT +2.7% (guidance), ALSN +2.5%, SYK +2.5%, AXTA +2.5%, NAVI +2.4%, SMMT +2.4%, FMC +2.3%, UTHR +2.3%, COCO +2.3%, V +2.1% (also increases dividend), THRM +2%, OSW +2%, NGVT +1.9%, BMEA +1.8%, STAG +1.7%, OMF +1.5%, BSAC +1.5%, HUM +1.3%, AER +1.3%, UNM +1.2%, EA +1.2%, BLCO +1.2%, WPC +1.1%, BIIB +1.1%, EXC +1.1%
Other news:
  • MASI +3.5% (terminates employment of CEO Joe Kiani, reiterates guidance; continues to evaluate strategic alternatives for its consumer segment)
  • MX +3.3% (successful syndication of acquisition financing)
  • DK +3.3% (Ion Asset Mgmt increases passive stake to 5.05%)
  • IMKTA +3.3% (announces post-hurricane improvements)
  • PACS +3.1% (to acquire 12 skilled nursing facilities)
  • NVRO +3% (presents new data)
  • GILT +2% (announces that it has been awarded contracts valued at approximately $5 mln from multiple U.S. based defense organizations)
  • FHN +1.1% (authorizes new $1 bln share repurchase program)
  • VERA +1% (prices offering of 7,142,858 shares of its Class A common stock at $42.00 per share)
Analyst comments:
  • VERI +4.3% (upgraded to Neutral from Sell at UBS)
  • BOOT +1.7% (upgraded to Outperform from Neutral at Robert Baird)
  • CWH +1.6% (upgraded to Outperform from Mkt Perform at Raymond James)
  • SIGI +1.5% (upgraded to Outperform from Market Perform at BMO Capital Markets)
  • LEG +1.3% (upgraded to Neutral from Underweight at Piper Sandler)

SkyNews : Oaktree-backed predator eyes swoop for London-listed Avation

Oaktree-backed predator eyes swoop for London-listed Avation

Azorra, which has been backed by Oaktree since 2021, is interested in a takeover of commercial aircraft lessor Avation, Sky News understands.

An aircraft leasing company backed by Oaktree Capital, the $200bn US investment giant, is plotting a swoop on London-listed rival Avation.

Sky News has learnt that Azorra Aviation Holdings has been drawing up plans to make an offer for Avation.

City sources said a number of other parties in the aircraft leasing sector were also in the process examining bids.

Singapore-based Avation manages a fleet of over 30 aircraft, with customers having included easyJet,
Air Baltic and VietJet Air.

Its London-listed shares have a market capitalisation of just over £120m.


On Wednesday morning, they were trading at around 173.3p, having risen by more than a third during the last year.

Oaktree, which has assets under management of about $205bn, struck a deal to inject $350m into Azorra alongside the company's management team in 2021.

The status of Azorra's takeover interest in Avation was unclear on Wednesday morning.

It's assessment of a bid comes amid a flurry of consolidation elsewhere in the commercial aircraft leasing industry.

Oaktree declined to comment, while Avation has been contacted for comment.

>>> US Research Calls I

Research Calls I
  • Upgrades:
    • Boot Barn Holdings (BOOT) upgraded to Outperform from Neutral at Robert W. Baird; tgt $167
    • Camping World (CWH) upgraded to Outperform from Mkt Perform at Raymond James; tgt $27
    • Civista Bancshares (CIVB) upgraded to Outperform from Market Perform at Hovde Group; tgt $22
    • CTO Realty Growth (CTO) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $24
    • German American Bancorp (GABC) upgraded to Outperform from Market Perform at Hovde Group; tgt raised to $48
    • KE Holdings (BEKE) upgraded to Buy from Neutral at BofA Securities; tgt raised to $28
    • Leggett & Platt (LEG) upgraded to Neutral from Underweight at Piper Sandler; tgt raised to $13
    • Selective Insurance (SIGI) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $105
    • Veritone (VERI) upgraded to Neutral from Sell at UBS; tgt $3.50
  • Downgrades:
    • Agilon Health (AGL) downgraded to Sell from Neutral at Citigroup; tgt lowered to $2.50
    • Barrick (GOLD) downgraded to Neutral from Buy at UBS; tgt lowered to $22
    • BioMarin Pharmaceutical (BMRN) downgraded to Mkt Perform from Outperform at William Blair
    • Boeing (BA) downgraded to Mkt Perform from Outperform at Bernstein
    • Check Point Software (CHKP) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $195
    • Crocs (CROX) downgraded to Mkt Perform from Outperform at Raymond James
    • DT Midstream (DTM) downgraded to Hold from Buy at Stifel; tgt raised to $89
    • Hudson Technologies (HDSN) downgraded to Neutral from Buy at B. Riley Securities; tgt lowered to $8.50
    • Kratos Defense and Security (KTOS) downgraded to Neutral from Buy at B. Riley Securities; tgt raised to $26
    • Lear (LEA) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $120
    • Lloyds Banking (LYG) downgraded to Equal-Weight from Overweight at Morgan Stanley
    • Lyell Immunopharma (LYEL) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $1
    • Masco (MAS) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $80
    • Newmont Corporation (NEM) downgraded to Neutral from Buy at UBS; tgt lowered to $54
    • Qorvo (QRVO) downgraded to Neutral from Outperform at Exane BNP Paribas; tgt $80
    • Qorvo (QRVO) downgraded to Mkt Perform from Outperform at Raymond James
    • Retail Opportunity Investments (ROIC) downgraded to Mkt Perform from Outperform at Raymond James
  • Others:
    • FibroBiologics (FBLG) initiated with a Buy at H.C. Wainwright; tgt $12
    • NANO Nuclear Energy (NNE) initiated with a Buy at H.C. Wainwright; tgt $50

>>> Humana beats by $0.74, beats on revs; guides FY24 EPS below consensus (257.7

Humana beats by $0.74, beats on revs; guides FY24 EPS below consensus (257.77)
  • Reports Q3 (Sep) earnings of $4.16 per share, excluding non-recurring items, $0.74 better than the FactSet Consensus of $3.42; revenues rose 11.3% year/year to $29.4 bln vs the $28.67 bln FactSet Consensus.
    • Benefits expense ratio 89.9% vs 86.6% in yr-ago period; adjusted benefits expense ratio 89.8% versus 86.4% in yr-ago period.
  • Co issues downside guidance for FY24, sees EPS of at least $16.00, excluding non-recurring items, vs. $16.17 FactSet Consensus.
    • Affirms FY 2024 Insurance segment benefit ratio of approximately 90 percent
    • Raises 2024 individual Medicare Advantage annual membership growth by 40,000 to now anticipate annual growth of approximately 265,000, or approximately 5 percent

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • NRDS +29.6%, RDDT +23.8%, NVRO +13.3%, SNAP +12.9%, ATRC +12.2%, UIS +11.3%, ENVX +10.9%, PRO +8.4%, TTI +8.1%, EXEL +7.9%, CWEN +7.7%, MCY +7.3%, GOOG +5.9%, CAKE +5.9%, EXLS +5.9%, FVRR +5.4%, EAT +5.1%, LFVN +4.9%, TRTX +4.6%, BMEA +4.2%, FMC +4%, CMP +3.8%, MX +3.3%, DK +3.3%, IMKTA +3.3%, PACS +3.1%, SKWD +2.8%, ALSN +2.5%, UDMY +2.5%, AXTA +2.4%, NAVI +2.4%, THRM +2%, NGVT +1.9%, SYK +1.9%, STAG +1.8%, V +1.8%, EA +1.4%, NGD +1.4%, BIIB +1.3%, UNM +1.2%, OPRT +1.2%, WPC +1.1%, TT +1.1%, OKE +1%, PODD +0.9%, UMC +0.9%
  • Gapping down:
    • HMST -31.8%, QRVO -18%, OI -16.4%, THRY -12.8%, SAGE -8.4%, AMD -8.3%, FSLR -7.8%, CMG -7.8%, TXG -7.6%, DVA -6.5%, CZR -5%, GSK -4.1%, VRNS -3.9%, WERN -3.4%, OTIS -3.3%, GPI -3%, PRVA -2.6%, CLW -2.4%, TEL -2.4%, BXC -2.3%, CHE -2.3%, PRCT -2.1%, MASI -1.7%, AMH -1.7%, MIR -1.4%, ATGE -1.4%, CHWY -1.3%, EYPT -1.2%, CBRL -1.1%, PFS -1%, UBS -1%, BAC -0.9%

FT : Hundreds of cosmetic goods contain toxic substances, says EU agency

Hundreds of cosmetic goods contain toxic substances, says EU agency
Many retail goods contained ‘forever chemicals’ that are harmful to humans and the environment, according to report

Hundreds of everyday cosmetics products sold in the EU contain toxic substances, the European Chemicals Agency has found, increasing scrutiny of the use of harmful substances in make-up, lotions and hair products.

The agency said on Wednesday that it checked 4,686 products available from 345 companies in 13 European countries as part of an effort to ensure that the bloc’s chemicals rules are being properly enforced.

It found that six per cent of the products, among them widely used suncreams and lip-liners, contained chemicals that are restricted in the EU due to their harmful impact on human health and the environment.

The agency said many of the products contained perfluoroalkyl and polyfluoroalkyl substances, known as PFAS, some of which are banned under EU rules.

The substances have been linked to health issues ranging from reduced fertility to an increased risk of cancer and hormone disruption. PFAS are also referred to as “forever chemicals” — they are difficult to break down and are used in products including packaging, batteries, non-stick cookware and waterproof clothes.

Over the course of this year, the EU’s alert system for dangerous products identified PFAS in goods including lipliners by Italian beauty brand Diego Dalla Palma, hair products by US group L’Anza and eyeliners by Swedish cruelty-free make up brand LH Cosmetics.

Trade group Cosmetics Europe said the results of the survey were “disappointing”.

“As the report recognises, the lesson for the industry is that we need to raise awareness of the broader range of restrictions which can apply to cosmetic products,” the group said.

Linda Hellqvist, chief executive of LH Cosmetics, said the company had reworked its ingredients for crayon eyeliners and that the product line no longer included any PFAS substances.

“We have consistently acted on the current known legislation and restrictions for the industry and would never knowingly put our customers or the environment at risk,” she added.

The European Chemicals Agency (ECHA) is working on a proposal from five EU member states to introduce a mass restriction on the 10,000-plus group of PFAS under the bloc’s wide-reaching Reach chemicals regulation.

But the process will take months and has been heavily contested by businesses, which argue that it could have severe consequences on industries that rely on them for production of critical technologies such as semiconductors.

Thirteen national enforcement agencies took part in the project, often discovering the presence of the banned substances by checking ingredients lists or the information available about the product online.

ECHA said recent developments in EU chemicals legislation should be “followed carefully” by the industry and recommended that the European Commission set up a “European Testing Facility” that could analyse products for PFAS.

The agency told the Financial Times that enforcement of chemical rules “is rarely done before products are placed on the market”.

In the report, ECHA said consumers should check cosmetics closely for perfluorononyl dimethicone and cyclopentasiloxane, the two most common banned substances found in the study.

Sandra Jen, lead on health and chemicals at the Health and Environment Alliance NGO, said: “Consumers must have the guarantee that products on the EU market are safe and comply with regulations.”

Tatiana Santos, head of chemicals policy at the European Environmental Bureau, said it was a “profound failure of corporate responsibility and regulatory action that chemicals, deemed too dangerous for EU approval, persist in products consumers trust every day”.

The EU ombudsman last week said EU officials had broken the bloc’s rules by failing to meet deadlines for decisions on whether to ban dangerous chemicals.

“​​These delays represent a threat to human health and the environment as companies are able to continue using the chemical substances, which may be carcinogenic, mutagenic, toxic for reproduction, or have endocrine disrupting properties, during the authorisation process,” the ombudsman said.

The European Commission said that proper enforcement of the rules, for which EU governments are responsible, was “instrumental” in order to protect consumers.

>>> Europe : Brokers Upgrades & Downgrades - 30th of October 2024 V2(+)

>>> Up
* Admiral Raised to Buy at HSBC; PT 3,300 pence
* Alphabet PT Raised to $205 from $190 at Morgan Stanley
* Burberry Raised to Outperform at Bernstein (+)
* CT Private Equity Trust Raised to Buy at Stifel (+)
* Detection Tech Oy Raised to Accumulate at Inderes; PT 19 euros
* Goodtech Raised to Buy at Norne Securities; PT 12 kroner
* Hunting Raised to Buy at Kepler Cheuvreux (+)
* ITM Power Raised to Equal-Weight at Morgan Stanley; PT 40 pence
* Nurminen Logistics Raised to Buy at Inderes; PT 1.05 euros
* Orion Raised to Buy at Nordea; PT 52 euros
* Sagax Raised to Hold at DNB Markets; PT 260 kronor (+)
* Wartsila Raised to Accumulate at Inderes; PT 19.50 euros

>>> Down
* AMD Cut to Hold at Punto Casa de Bolsa; PT $170.22
* Bechtle Cut to Hold at Berenberg
* Boeing Cut to Market Perform at Bernstein; PT $169
* Bpost Cut to Hold at KBC Securities (+)
* Bridgepoint Cut to Neutral at Citi; PT 350 pence
* Corbion Cut to Hold at Berenberg
* Cool Cut to Hold at Pareto Securities; PT 110 kroner
* Eurofins Scientific PT Cut to 42 euros at Jefferies
* Finnair Cut to Reduce at Inderes; PT 2.50 euros
* Jyske Cut to Hold at Nordea
* Lloyds Cut to Equal-Weight at Morgan Stanley; PT 65 pence
* Nel Cut to Underweight at Morgan Stanley; PT 3.50 kroner
* Nvidia Cut to Sell at Punto Casa de Bolsa; PT $126.70
* Orkla Cut to Hold at SEB Equities; PT 111 kroner
* Palfinger Cut to Sell at Hauck & Aufhaeuser; PT 18.50 euros (+)
* Piaggio Cut to Underperform at BNPP Exane (+)
* REC Silicon Cut to Sell at SpareBank; PT 6.50 kroner

>>> Initiation
* ACS Rated New Buy at UBS (+)
* Aurubis Rated New Buy at GBC AG; PT 90 euros
* Brunello Cucinelli Rated New Buy at Berenberg; PT 110 euros
* Clarkson Rated New Buy at Investec; PT 5,076 pence
* Hermes Rated New Buy at Berenberg; PT 2,330 euros
* IAG Rated New Buy at Jefferies; PT 270 pence
* EasyJet Rated New Buy at Jefferies; PT 680 pence
* Fielmann Rated New Buy at GBC AG; PT 75 euros
* Fraport Rated New Buy at GBC AG; PT 67 euros
* Heidelberger Druck Rated New Buy at GBC AG; PT 2.10 euros
* Hornbach Holding Rated New Buy at GBC AG; PT 107.50 euros
* Hypoport Rated New Buy at GBC AG; PT 350 euros
* Indus Holding Rated New Buy at GBC AG; PT 35.70 euros
* Inficon Rated New Hold at Stifel; PT 1,100 Swiss francs
* Kering Rated New Hold at Berenberg; PT 230 euros
* KWS Saat Rated New Buy at GBC AG; PT 80 euros
* Lufthansa Rated New Hold at Jefferies; PT 6.40 euros
* LVMH Rated New Buy at Berenberg
* Moncler Rated New Hold at Berenberg; PT 57 euros
* PVA TePla Rated New Buy at GBC AG; PT 25 euros
* Rational Rated New Buy at GBC AG; PT 1,050 euros
* Renk Group Rated New Buy at GBC AG; PT 33.15 euros
* Richemont Rated New Hold at Berenberg
* Ryanair Rated New Hold at Jefferies; PT 17.10 euros
* StarragTornos Group AG Rated New Add at Baader Helvea
* Swatch Rated New Sell at Berenberg; PT 165 Swiss francs
* United Internet Rated New Buy at GBC AG; PT 32.50 euros
* Wizz Air Rated New Underperform at Jefferies; PT 1,020 pence

>>> Call
* Goldman Says European Small-Cap Stocks Struggle to Outperform
* Lloyds Cut at Morgan Stanley as Motor Ruling to Hit Buybacks (+)

>>> Stoxx 600 Pre-Market Indications

  • ASM Intl (AVS TH) +6.9%
    • ASM Orders Beat Estimates on Artificial Intelligence Boom
  • Kion (KGX TH) +3.1%
    • Kion Narrows FY Adjusted Ebit Forecast, Beats Estimates
  • SKF (SKFB TH) +2.5%
    • SKF 3Q Adjusted Operating Profit Beats; Cuts FY24 Forecast
  • Santander (BSD2 TH) +2.3%
  • HSBC (HBC1 TH) +2.1%
  • GSK (GS71 TH) +1%
    • GSK 3Q Adjusted EPS Beats Estimates
  • BASF (BAS TH) +0.9%
    • BASF Earnings Edge Up as Chemicals Maker Cuts Costs
  • Telenor (TEQ TH) +0.8%
    • Telenor 3Q Ebitda Margin Beats Estimates
  • Adyen (1N8 TH) -1.2%
  • Porsche SE (PAH3 TH) -1.5%
  • STMicroelectronics (SGM TH) -1.9%
    • Melexis 4Q Sales Outlook’s 20% Miss Spells Woes for Peers: React
  • Schneider Electric (SND TH) -2%
    • Schneider Electric 3Q Organic Revenue Beats Estimates
  • Moncler (MOV TH) -2.2%
  • Bechtle (BC8 TH) -2.3%
    • Bechtle Cut to Hold at Berenberg
  • Metso (M6Q TH) -2.7%
    • Metso Corporatio: Metso extends its digital portfolio with CathodeSense+ system for accurate cathode quality control 2024-10
  • VW (VOW3 TH) -3.3%
    • VW 3Q Operating Profit Misses Estimates
  • Capgemini (CGM TH) -5.1%
    • Capgemini Cuts FY Revenue in Constant Currency Forecast
  • Campari (58H TH) -7.2%
    • Campari Results Miss, Outlook Below Consensus: Street Wrap

>>> TradeGate Pre-Market Indications

DAX:
  • BASF (BAS TH) +1.5%
    • BASF Earnings Edge Up as Chemicals Maker Cuts Costs
  • Daimler Truck (DTG TH) -1%
    • Daimler Truck Books EU180m 3Q Charge Amid Talks on China Ops
  • Porsche SE (PAH3 TH) -1.6%
  • VW (VOW3 TH) -2.2%
    • Volkswagen Posts Its Lowest Profit Margin Since Pandemic Times
MDAX:
  • Kion (KGX TH) +3.1%
    • Kion Narrows FY Adjusted Ebit Forecast, Beats Estimates
  • Bechtle (BC8 TH) -2.4%
    • Bechtle Cut to Hold at Berenberg
SDAX:
  • Grenke (GLJ TH) -18%
    • Grenke Cuts FY Net Income Forecast (1)