>>> US Research Calls

Research Calls I
  • Upgrades:
    • Celestica (CLS) upgraded to Buy from Neutral at UBS, tgt $430
    • Darden Restaurants (DRI) upgraded to Outperform from Neutral at Baird, tgt $250
    • Janux Therapeutics (JANX) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $23
    • PulteGroup (PHM) upgraded to Outperform from Peer Perform at Wolfe Research, tgt $158
  • Downgrades:
    • Banco Santander Brasil (BSBR) downgraded to Neutral from Buy at UBS
    • Black Rock Coffee Bar (BRCB) downgraded to Neutral from Outperform at Baird, tgt $10
    • Canada Goose (GOOS) downgraded to Underweight from Overweight at Wells Fargo
    • Chipotle Mexican Grill (CMG) downgraded to Neutral from Outperform at Baird, tgt $40
    • Domino's Pizza (DPZ) downgraded to Neutral from Outperform at Baird, tgt $350
    • Klarna (KLAR) downgraded to Neutral from Buy at UBS, tgt $16
  • Others:
    • Aeva Technologies (AEVA) initiated with a Neutral at Goldman Sachs, tgt $20
    • Alvotech (ALVO) initiated with a Buy at BofA Securities, tgt $7
    • ArcelorMittal (MT) initiated with an Overweight at Morgan Stanley, tgt $82
    • Brinker International (EAT) initiated with an Outperform at Baird, tgt $325
    • Clear Secure (YOU) assumed with an Overweight at JPMorgan, tgt $55
    • Cummins (CMI) initiated with an Outperform at CICC, tgt $781
    • EverQuote (EVER) assumed with an Overweight at JPMorgan, tgt $29
    • Fortune Brands Innovations (FBIN) initiated with an Overweight at Wells Fargo, tgt $52
    • Frontdoor (FTDR) assumed with a Neutral at JPMorgan, tgt $95
    • Funko (FNKO) initiated with a Buy at Seaport Research, tgt $8
    • Inhibrx Biosciences (INBX) initiated with a Buy at H.C. Wainwright, tgt $245
    • Insight Molecular Diagnostics (IMDX) initiated with a Buy at Lucid Capital, tgt $8
    • Ionic Digital (IOND) initiated with a Buy at BTIG, tgt $85
    • Ionic Digital (IOND) initiated with a Buy at Jefferies, tgt $85
    • Jersey Mike's Subs (JMKE) initiated with an Outperform at Baird, tgt $27
    • Jersey Mike's Subs (JMKE) initiated with a Market Perform at Bernstein, tgt $26
    • Jersey Mike's Subs (JMKE) initiated with a Buy at BTIG, tgt $28
    • Jersey Mike's Subs (JMKE) initiated with a Buy at Guggenheim, tgt $28
    • Jersey Mike's Subs (JMKE) initiated with a Buy at Jefferies, tgt $29
    • Jersey Mike's Subs (JMKE) initiated with an Overweight at JPMorgan, tgt $26
    • Jersey Mike's Subs (JMKE) initiated with an Outperform at Mizuho, tgt $31
    • Jersey Mike's Subs (JMKE) initiated with an Overweight at Morgan Stanley, tgt $29
    • Jersey Mike's Subs (JMKE) initiated with an Overweight at Piper Sandler
    • Jersey Mike's Subs (JMKE) initiated with an Outperform at Raymond James, tgt $29
    • Jersey Mike's Subs (JMKE) initiated with an Outperform at RBC Capital, tgt $28
    • Jersey Mike's Subs (JMKE) initiated with a Buy at Stifel, tgt $27
    • Jersey Mike's Subs (JMKE) initiated with a Buy at TD Cowen, tgt $26
    • Jersey Mike's Subs (JMKE) initiated with a Buy at Truist, tgt $30
    • Jersey Mike's Subs (JMKE) initiated with a Buy at UBS, tgt $27
    • Jersey Mike's Subs (JMKE) initiated with an Equal Weight at Wells Fargo, tgt $25
    • Jersey Mike's Subs (JMKE) initiated with a Peer Perform at Wolfe Research
    • Match Group (MTCH) assumed with a Neutral at JPMorgan, tgt $43
    • MediaAlpha (MAX) assumed with a Neutral at JPMorgan, tgt $15
    • nCino (NCNO) assumed with an Overweight at Piper Sandler, tgt $25
    • Nuvectis Pharma (NVCT) initiated with an Overweight at Cantor Fitzgerald
    • Q32 Bio (QTTB) initiated with an Overweight at Morgan Stanley, tgt $34
    • Reformation (REF) initiated with an Outperform at Baird, tgt $19
    • Reformation (REF) initiated with a Buy at BTIG, tgt $20
    • Reformation (REF) initiated with a Buy at Citi, tgt $20
    • Reformation (REF) initiated with a Buy at Guggenheim, tgt $20
    • Reformation (REF) initiated with an Overweight at JPMorgan, tgt $21
    • Reformation (REF) initiated with an Equal Weight at Morgan Stanley, tgt $16
    • Reformation (REF) initiated with an Outperform at RBC Capital, tgt $18
    • Reformation (REF) initiated with an Outperform at William Blair
    • Rio Tinto (RIO) initiated with an Underweight at Morgan Stanley, tgt $90
    • Roku (ROKU) assumed with a Neutral at JPMorgan, tgt $160
    • Shattuck Labs (STTK) initiated with a Strong Buy at Raymond James, tgt $18
    • Talen Energy (TLN) initiated with an Outperform at Mizuho, tgt $405
    • Veeva Systems (VEEV) assumed with an Overweight at Piper Sandler, tgt $295
    • Vistra (VST) initiated with an Outperform at Mizuho, tgt $169
    • Whirlpool (WHR) initiated with an Equal Weight at Wells Fargo, tgt $42
    • Xometry (XMTR) assumed with an Overweight at JPMorgan, tgt $120

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • XPEV -3.3%
Other news:
  • AAOI -12.7% (files prospectus supplement; relates to an equity distribution agreement for up to $600 mln of common stock)
  • VRXA -2.6% (lower despite VERAXA Biotech and Secarna Pharmaceuticals Achieve Research Milestone in Antibody Oligonucleotide Conjugate Alliance)
  • BABA -2.1% (prices HK$80 bln Hong Kong share placing at HK$112.70/share)
  • NVT -1.3% (to buy Maverick Power for $1.75 bln plus up to $550 mln earnout)
  • WYFI -1.1% (closes upsized $310 mln 5.00% convertible notes offering due 2032)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • NSSC +17.9%, PDD +3.1%, AIIO +1.4%
Other news:
  • SBMT +9.6% (signs definitive agreement to acquire the Jefferson County metallurgical complex in Montana)
  • BMEA +7.8% (completion of enrollment in COVALENT-211 phase II trial of Icovamenib in insulin-deficient type 2 diabetes)
  • SSEA +6% (enters business combination agreement with SuperiorMed Holdings)
  • SGML +5.4% (resumes full mining, industrial operations after TAC agreement with Minas Gerais)
  • GLUE +4.5% (announces first patient dosed in MODeFIRe-1, a phase 2 study of MRT-2359 in combination with apalutamide in patients with ar mutation-positive metastatic castration-resistant prostate cancer)
  • ACAD +2.5% (says EU approves DAYBU for Rett syndrome)
  • ENTX +1.9% (files for 134,803,910 ordinary share offering by selling shareholders)
  • RGNX +1.7% (says FDA places clinical hold on RGX-121; no near-term BLA resubmission for MPS II program)
  • LODE +1.6% (receives $20 million and closes sale of legacy mining assets to Mackay Precious Metals Inc)
  • AIB +1.4% (COO Eyal Rozen resigns effective immediately -- 8-K filing)
  • OCS +1.3% (treats first patient in PIONEER-1 registrational trial of Privosegtor for optic neuritis; plans IND for acute MS relapses in Q4)
  • UTHR +1.3% (FDA accepts ralinepag NDA for PAH; PDUFA set for June 24, 2027)
  • CTKB +1.2% (says jury backed it on 3 of 4 patent claims; to challenge $56 mln damages on remaining finding)
  • TLSA +1.1% (announces poster presentation on Phase 2a BANYAN clinical trial of intranasal foralumab at ALS Nexus 2026)
  • DTIL +1% (doses first patient in Phase 1/2 FUNCTION-DMD study)

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • SGML +4.8%, NVT +4.5%, ACAD +2.3%, ENTX +1.9%, LODE +1.7%, AIIO +1.4%, AIB +1.3%, EXK +1.1%, DTIL +1.1%, PAGS +0.7%, BAH +0.7%, PDD +0.7%, GILD +0.6%, ORKA +0.5%
  • Gapping down:
    • AAOI -12.4%, CTKB -2.5%, BABA -2.3%, REAX -1.9%, XPEV -1.7%, EQNR -1%, STM -0.9%, GSK -0.9%, OCS -0.7%, WYFI -0.6%

>>> XPENG robotics unit raises over $900 mln at post-money valuation above $6.3

XPENG robotics unit raises over $900 mln at post-money valuation above $6.3 bln
  • XPENG said its robotics business entered share purchase agreements with multiple investors for more than $900 mln in a private round valuing the unit at over $6.3 bln post-money.
  • The company called it the largest single-round private financing in China's embodied AI industry; IDG Capital led the round, with participation from Gaorong Ventures and strategic support from Tencent and Alibaba.
  • XPENG said proceeds will fund humanoid robot mass production and Physical AI model R&D; the robotics business will remain controlled by XPENG and continue to be consolidated in group financials.

NYT : Dr. Dre and Jimmy Iovine Think A.I. Is Good for Music The hit-making duo t

Dr. Dre and Jimmy Iovine Think A.I. Is Good for Music
The hit-making duo turned tech moguls also have thoughts about why corporate America isn’t collaborative enough.

Jimmy Iovine and Dr. Dre had already spoken three times on the phone by the time I showed up on a recent morning to interview them at Mr. Iovine’s art and memorabilia-filled mansion in Los Angeles.

Mr. Iovine, a record producer from New York, and Dr. Dre, a hip-hop star from California, have been an influential creative force since the 1990s. Mr. Iovine’s Interscope label backed Dr. Dre’s seminal solo albums, and the two later spotted and signed artists like Eminem. Their creative chemistry also hatched Beats by Dre headphones and helped build Apple’s streaming music service after the tech giant acquired their company.

Mr. Iovine’s mind seems to move a mile a minute, bouncing from one idea to the next. Dr. Dre, who joined midway through the interview, comes across as more measured, generally allowing Mr. Iovine to speak first before jumping in.

At one point, Mr. Iovine, 73, tried to describe his relationship with Dr. Dre, 61, using an extended metaphor about the parts of a car. Dr. Dre added his own touch: “Sometimes I’m the gas pedal, sometimes I’m the brakes.”

The taste-making pair’s advice is highly regarded in the industry from their take on trends in culture and technology, as well as the secrets of their long and fruitful partnership.

They have tried to instill some of their lessons with a venture to encourage the next generation of creative entrepreneurs. In 2013, they donated $70 million to the University of Southern California to create a degree program for students that spans technology, design and business. About 800 students have completed the program.

The idea came from Mr. Iovine’s later-in-life executive career, where he saw the fragmented way that corporate America works. The USC Iovine and Young Academy takes a wide-ranging approach, with classes like “Disruptive Innovation” and “Hacker Imagination: From Ancient Greece to Cupertino.” ”

The curriculum aims “to find where design crosses engineering, where business crosses design, and how creativity meshes with all of those,” said Erica Muhl, the inaugural dean of the academy.

More than 100 students graduated from the academy this spring. Companies like Snapchat, Crocs and Duolingo offer students feedback on products and prototypes. Recently, the program has been adapted for high schools.

This expansive approach to thinking has become essential as artificial intelligence upends the workplace, according to Mr. Iovine. “This is the type of learning that advanced companies today need,” he said.

This interview has been edited and condensed.

The Iovine and Young Academy is all about breaking down silos. But corporate America can be rigid. So how effective can the school be?

Iovine: Corporate America is going to have to change.

How?

Iovine: Hire kids from our school. That’s the truth.

But you only graduate about 100 people each year.

Iovine: I don’t think it’s going to transform education in my lifetime, but we’re planting the seeds. We’re speaking to schools as much as we’re speaking to employees. We’re not opening an employment agency.

One of your biggest breakthroughs was creating Beats by Dre, which Apple acquired for $3 billion. What did you learn from that?

Iovine: Marketing is empathy. You have to understand who you’re trying to sell to. Beats was the precursor to the school. What we learned at Beats is we have to be a complete thought.

A lot of companies are engineering societies. Engineers are incredible, but a lot of them need a broader palette to work from.

How does a company do that?

Iovine: It starts at the top, if the leader is the right leader. What we’re trying to do is much more fundamental. We’re trying to change the seeds. We’re trying to change the basics of education, so when people walk into that ground-level job, they already have this instinct and this gift.

It’s the collaboration of different disciplines working together. What technologist doesn’t need to understand culture if they’re really trying to do something? Or design for that matter. These things all work together, but in most companies they’re siloed.

So how do you encourage creativity within a corporate structure?

Iovine: Well, unfortunately, you’re starting out where there’s a lack of communication between design and engineering. They’re not collaborating. You can smell it. It’s all the companies. I don’t see one of them doing it. The closest is Apple. Apple is a great company because Steve’s D.N.A. is still in there.

When someone comes to you with an idea, how do you know if it’s worth pursuing?

Iovine: The first thing I do is not judge the idea. I look at the person. Can this person execute this? I’ve seen a lot of good ideas go in the toilet. Does this person have the drive, discipline, fortitude and character to deliver this all the way?

It’s instinctual. We meet a lot of talented people, like Robert Brunner, who designed the first Beats headphones. I never worked with a designer before. The minute I met him, I knew he was the right guy. How do I know that? I don’t know. I just know he was the right guy — and boy was he.

Do you consider yourself a good manager?

Iovine: No, I see myself as spotting somebody who’s great and working with them until they are as great as they can be.

You lived through the disruption that Napster caused to the music business. Do you see A.I. as a similar threat?

Iovine: I’m very pro-A.I. in music creation. I don’t see the downside at all. There will be some crappy music. There’s crappy music now.

In the studio, when gifted people have A.I., they’re going to make better records.

The A.I. companies have the worst public relations in the history of the world. I don’t know the history of the world, but let’s just put it this way: They have terrible communication skills. That’s why everybody is all up in arms.

[Dr. Dre enters the room.]

Iovine: We’re talking about A.I. He’s the guy to ask.

Dr. Dre: I don’t see it as a threat. I think the only people that see it as a threat are the people who have trouble creating.

Iovine: That’s all you have to know.

Dr. Dre: OK, I can leave now?

Iovine: He’s not kidding about leaving, by the way.

Dr. Dre: I had a discussion with a few people a few days ago. They were against A.I. and I’m like, “OK, you sound like the person that would have been against the drum machine when it came out.” Or synthesizers, right? It’s a new tool for creativity. Some people are afraid of learning new things.

I’m embracing it. I can’t wait to see what’s going to happen with this.

So you’re using A.I. when you’re producing?

Dr. Dre: Yes, I’m using it. Again, as a tool to see what it would do with what I just did.

Iovine: So is Timbaland — another brilliant producer. By the way, there’s a lot of closet A.I. producers out there.

Dr. Dre: That’s a good way to put it. They’re using it, they just don’t want to admit it.

I’ve written about co-chief executives, which can be a tricky way to run a company. Has there ever been a time when you two had a disagreement that you had to work through?

Dr. Dre: All the time. I don’t like the word arguments because that means one or two people are trying to win. We have disagreements, which means we’re trying to get to a solution.

Iovine: We do different things.

Give me an example.

Iovine: We were looking at 10 different headphone designs. We’re talking about it and Dre really liked one, somebody else liked one and I liked two. So Pharrell comes in my office and he goes, “That’s it.” It was the one Dre liked. You think I needed to hear another word about it? That’s how the design was picked.

I can just tell who has a feel for culture.

Dre, how do you create the conditions for creativity to thrive?

Dr. Dre: I like to simplify it. Everybody has the same 16 hours in a day, if you sleep for eight. What am I doing with those 16 hours? I wake up every day thinking about that. I drive myself crazy with that at times.

As I get older, I’m really a lot more conscious about the time I’m spending, who I’m spending it with. I have 40 summers left if I’m lucky. I’m really paying attention to that now.

Do you spend any of that time listening to business podcasts or reading business books?

Dr. Dre: I listen to self-help books.

What’s the most recent one?

Dr. Dre: “The Power of Now.”

And when you think about the corporate world and the world of C.E.O.s…

Dr. Dre: I don’t.

You don’t?

Dr. Dre: I don’t. I’m trying to figure out who I’m going to be next. I’m really excited about the discovery of the next man I’m going to be. I have no idea what that is or who that is, but the unknown is exciting to me.

It’s time for the lightning round. What was the last concert you attended?

Iovine: Lily Allen.

Dr. Dre: I think it was Kendrick.

What’s the last thing you asked A.I.?

Iovine: I do it all day. I’ll look it up and tell you. The last thing I asked was what’s going on with democratic socialism. And another thing I asked was about David Byrne’s set list. And about the absorption of iron in your body and the timing of it. And as far as iron’s concerned, shrimp versus tuna?

Dr. Dre: Mine is so much more simpler than that: How do you put on muscle and lose fat at the same time? That’s it.

Did it give good answers?

Dr. Dre: Nothing that I didn’t already know.

What hours do you sleep? People in the music industry seem to stay up late.

Iovine: Man, I tend to sleep 10 to 7 every night.

Dr. Dre: I go from 8 to 6. And I might take a nap. I’m mad at myself for not taking naps in the last 40 years of my career.

Iovine: Sleep makes you a better person.

Dr. Dre: I’m sleepy now.

What’s your best advice for jet lag?

Iovine: I don’t get jet lagged.

Dr. Dre: I make sure there’s nothing for me to do for at least two days after I land.

What’s the most used app on your phone?

Iovine: ChatGPT and Apple Music.

Dr. Dre: Box. That’s where we listen to all the music that we’re working on.

Which C.E.O.s do you admire?

Iovine: Steve Jobs, Phil Knight, Akio Morita.

Dr. Dre: Mine’s easy. Jimmy Iovine.

NYT : California Cancels Talks With Paramount Over Warner Bros. Merger The attor

California Cancels Talks With Paramount Over Warner Bros. Merger
The attorney general of California, one of 12 states suing to block the $111 billion deal, accused Paramount of leaking and misrepresenting earlier settlement discussions.

California’s attorney general has canceled a meeting with representatives of Paramount that was scheduled for Monday to begin discussing a settlement of the state’s lawsuit seeking to block Paramount’s proposed acquisition of Warner Bros. Discovery.

Rob Bonta, the attorney general, called off the meeting late Sunday, accusing Paramount of acting in bad faith. In a statement to The Times, Mr. Bonta accused Paramount of leaking details of a meeting the parties held on Friday.

“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Mr. Bonta said in the statement. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”

A spokeswoman for Paramount did not have immediate comment on Monday morning.

The Monday meeting was supposed to be preliminary, and there was never any assurance that it would lead to meaningful negotiations toward a settlement. But the possibility that the two sides could begin moving toward an agreement was seen as something of a breakthrough after Paramount threatened to leave California and Gov. Gavin Newsom expressed a preference for settling the case.

Paramount’s proposed $111 billion purchase of Warner Bros. would create a media giant, combining two major movie studios, multiple streaming services and the news outlets CNN and CBS News. The company, headquartered in Hollywood, would also be a major employer in Los Angeles.

Last month, California led a group of 12 state attorneys general in suing to block the deal, arguing it would create a company with outsize market power in cable television and movie studios.

Mr. Bonta had previously said he would be willing to accept only structural remedies to resolve the lawsuit, which would typically mean requiring the companies to sell off parts of the combined business. Executives are often reluctant to hive off parts of a newly merged company because they have already made financial assumptions about the combined operations.

With a trial scheduled for March, delays could cost the company hundreds of millions of dollars in fees that it must start paying to Warner Bros. shareholders if the deal is not closed by October.

Political pressure has been building for the two sides to reach a resolution. Mayor Karen Bass of Los Angeles last week said disputes over the merger had stalled productions and led to job losses in Hollywood. She called for a “swift and urgent resolution” to the lawsuit.

Xavier Becerra, the Democratic candidate for governor of California, also said this month that he would like to see the lawsuit settled.

Mr. Newsom, who is in his final months as governor of California and considering a run for president in 2028, said on Friday that he took Paramount’s threat to leave the state seriously.

“I’m concerned about the state, our reputation,” he said. “I want to see Hollywood thrive.”