Gapping down
In reaction to earnings/guidance:
In reaction to earnings/guidance:
- MGPI -20.3%, FNB -5.7%, WAL -5.1%, AXP -3.1%, WDFC -3%, FITB -1.9%, OZK -1.8%, MRTN -1.5%, PG -1.3%, RF -0.8%, SLB -0.8%
Other news:
- CVS -12.9% (announced that David Joyner was appointed President and Chief Executive Officer, effective October 17, replacing Karen Lynch; sees Q3 EPS below consensus)
- BHC -4.3% (BHC rejects bondholders' debt restructuring proposals, exploring sale of BLCO, according to WSJ)
- MSB -3.1% (increases dividend)
- KNTK -1.8% (increases dividend)
Gapping up
In reaction to earnings/guidance:
In reaction to earnings/guidance:
- ALV +7.4%, NFLX +6.7%, ISRG +6.4%, ALLY +5.1%, OCFC +2.8%, CCK +2.1%, CMA +0.6%
Other news:
- HEPS +67.7% (Kaspi.kz to become controlling shareholder in Türkiye's Hepsiburada)
- CMTL +8.8% (announces transformation strategy and capital structure update; wants to become pure-play satellite and space comms co)
- SUPN +8.2% (data from Phase 2a Study of SPN-820)
- AURA +6.9% (provides update from phase 1 trial for Bel-sar)
- BLCO +4.9% (BHC rejects bondholders' debt restructuring proposals, exploring sale of BLCO, according to WSJ)
- LEU +4.9% (wins DoE award)
- GHI +4.1% (forms JV with Blackrock)
- AS +3.2% (commits to innovation and will appeal Norwegian court ruling)
- USM +3% (US Cellular to sell a portion of its retained spectrum licenses to Verizon (VZ) for total consideration of $1.0 bln)
- FLR +2.5% (receives DoE approval for Hanford Tank to begin contract)
- TNYA +2.3% (announces updates on TN-201 gene therapy program)
- KSPI +2.1% (Kaspi.kz to become controlling shareholder in Türkiye's Hepsiburada)
- LOT +1.7% (reports nine-month delivery results)
- ROKU +1.4% (in sympathy with NFLX earnings)
- HBCP +1% (increases dividend)
Research Calls I
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Upgrades:
- Albertsons (ACI) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $23
- Bank of America (BAC) upgraded to Accumulate from Neutral at Phillip Securities
- Clearwater Paper (CLW) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt lowered to $37
- Community Trust Bancorp (CTBI) upgraded to Outperform from Mkt Perform at Raymond James; tgt $60
- Datadog (DDOG) upgraded to Buy from Neutral at UBS; tgt raised to $150
- Ecolab (ECL) upgraded to Buy from Hold at Jefferies; tgt raised to $310
- Nestle (NSRGY) upgraded to Outperform from Sector Perform at RBC Capital Mkts
- ServiceNow (NOW) upgraded to Positive from Mixed at OTR Global
- Tyra Biosciences (TYRA) upgraded to Buy from Neutral at BofA Securities; tgt raised to $31
- Victory Capital (VCTR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $60
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Downgrades:
- Boston Scientific (BSX) downgraded to Hold from Buy at Needham
- BrightSphere Investment Group (BSIG) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt raised to $26
- Coherent (COHR) downgraded to Neutral from Buy at B. Riley Securities; tgt $86
- Global-E Online (GLBE) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $40
- Kennametal (KMT) downgraded to Underperform from Neutral at BofA Securities; tgt $26
- Liberty Energy (LBRT) downgraded to Neutral from Buy at Citigroup; tgt lowered to $19
- Lilium N.V. (LILM) downgraded to Neutral from Overweight at Cantor Fitzgerald; tgt lowered to $1
- Netflix (NFLX) downgraded to Neutral from Accumulate at Phillip Securities
- Old Dominion (ODFL) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $210
- Texas Capital (TCBI) downgraded to Neutral from Overweight at Piper Sandler; tgt raised to $82
- T-Mobile US (TMUS) downgraded to Sector Perform from Sector Outperform at Scotiabank; tgt raised to $236
- Zeta Global (ZETA) downgraded to Equal Weight from Overweight at Barclays; tgt $28
- Others:
- CF Industries (CF) initiated with a Neutral at Redburn Atlantic; tgt $77
- ChoiceOne Financial Services (COFS) initiated with a Buy at DA Davidson; tgt $37
- Flowserve (FLS) resumed with a Buy at Jefferies; tgt $65
- Global Medical REIT (GMRE) initiated with a Buy at Berenberg; tgt $11.75
- Kroger (KR) initiated with a Neutral at Exane BNP Paribas; tgt $56
- Neonode (NEON) initiated with a Buy at Ladenburg Thalmann; tgt $16.50
- Omega Health (OHI) initiated with a Buy at Berenberg; tgt $45
- PureCycle Technologies (PCT) initiated with an Overweight at Cantor Fitzgerald; tgt $14
- Rapport Therapeutics (RAPP) initiated with a Buy at JonesResearch, tgt $42
- Tesco PLC (TSCDY) initiated with an Outperform at Exane BNP Paribas
Procter & Gamble beats by $0.03, misses on revs; reaffirms FY25 EPS guidance, revs guidance (172.28)
- Reports Q1 (Sep) earnings of $1.93 per share, $0.03 better than the FactSet Consensus of $1.90; revenues fell 0.6% year/year to $21.74 bln vs the $21.99 bln FactSet Consensus.
- Co reaffirms guidance for FY25, sees EPS of $6.91-7.05, excluding non-recurring items, vs. $6.96 FactSet Consensus; sees FY25 revs of +2-4% yr/yr to ~$85.7-87.4 bln vs. $86.13 bln FactSet Consensus.
American Express beats by $0.20, reports revs in-line; raises FY24 EPS guidance (285.78)
- Reports Q3 (Sep) earnings of $3.49 per share, $0.20 better than the FactSet Consensus of $3.29; revenues rose 8.2% year/year to $16.64 bln vs the $16.68 bln FactSet Consensus.
- Consolidated provisions for credit losses were $1.4 billion, compared with $1.2 billion a year ago. The increase reflected higher net write-offs driven by growth in loan balances, partially offset by a lower net reserve build year-over-year. The third-quarter net write-off rate was 1.9 percent, compared to 1.8 percent a year ago, and down from 2.1 percent in the prior quarter.
- In the third quarter, total Card Member spending increased 6 percent, and card fee revenue growth accelerated to 18 percent. We continued to attract large numbers of new premium Card Members with 3.3 million new card acquisitions, while maintaining our high retention rates, excellent credit performance, and expense discipline.
- Co issues upside guidance for FY24, sees EPS of $13.75-$14.05, excluding non-recurring items, up from prior guidance of $13.30-$13.80, vs. $13.62 FactSet Consensus. Continues to expect full-year revenue growth that is within the annual guidance range we provided in the beginning of the year, at around 9 percent.
Early premarket gappers
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Gapping up:
- HEPS +82.3%, AURA +17%, CMTL +8.8%, SUPN +8.2%, ISRG +6.4%, NFLX +5.8%, BLCO +4.9%, GHI +4.1%, LEU +3%, OCFC +2.8%, MCB +2.4%, DCBO +2.2%, RF +2.2%, KSPI +1.5%, ROKU +1.2%, FLR +1.2%, LECO +1%, HBCP +1%
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Gapping down:
- MGPI -16%, FNB -5.7%, WAL -5.3%, TNYA -4.2%, BHC -3.1%, MSB -3.1%, VERI -3.1%, WDFC -1.9%, KNTK -1.8%, LOT -1.7%, NYCB -1.5%, MRTN -1.5%
ECB’s Villeroy Says Risk of Undershooting Inflation Target Now as Great as Overshoot
The eurozone’s central bank Thursday lowered its key interest rate, marking the first back-to-back cut in borrowing costs since 2011
The risk that eurozone inflation will fall below the European Central Bank’s target is now as great as the risk that it will exceed it, the governor of the Bank of France said Friday.
The eurozone’s central bank Thursday lowered its key interest rate, marking the first back-to-back cut in borrowing costs since 2011 as the outlook for the economy weakens.
In a statement, François Villeroy de Galhau said that would not be the last rate cut.
“The risk of sustainably missing our target by going down now exists as much as that of exceeding it,” he said. “We should continue to reduce the restrictiveness of our monetary policy as appropriate.”
Villeroy said eurozone inflation is set to reach the ECB’s 2% target sustainable “earlier than expected in 2025” while there is no clear sign of a pickup in economic growth.
“The persistent moderation of private investment and consumption, with in particular the recent rise in household savings rates, justifies this new drop in interest rates,” he said.
The ECB has now lowered its key rate three times since June, and by a quarter of a percentage point in each of those steps. But Villeroy indicated that larger moves are possible.
“The pace must be one of agile pragmatism: in a highly uncertain international environment, we retain full optionality for our upcoming meetings,” he said.