>>> US Research Calls I

Research Calls I
  • Upgrades:
    • Akamai Tech (AKAM) upgraded to Buy from Hold at Craig Hallum; tgt raised to $125
    • Blend Labs (BLND) upgraded to Outperform from Mkt Perform at William Blair
    • Bread Financial (BFH) upgraded to Buy from Neutral at BofA Securities; tgt $54
    • Burlington Stores (BURL) upgraded to Buy from Hold at TD Cowen; tgt raised to $279
    • Confluent (CFLT) upgraded to Overweight from Neutral at JP Morgan; tgt $25
    • Evolent Health (EVH) upgraded to Buy from Hold at Truist; tgt raised to $33
    • Expensify (EXFY) upgraded to Mkt Outperform from Mkt Perform at JMP Securities; tgt $2.50
    • General Dynamics (GD) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $345
    • GoodRx (GDRX) upgraded to Strong Buy from Outperform at Raymond James; tgt $10
    • Heritage Insurance (HRTG) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $13
    • Turtle Beach (HEAR) upgraded to Outperform from Perform at Oppenheimer; tgt $17
  • Downgrades:
    • AN2 Therapeutics (ANTX) downgraded to Market Perform from Outperform at Leerink Partners; tgt lowered to $1
    • Array Tech (ARRY) downgraded to Neutral from Buy at ROTH MKM; tgt lowered to $8
    • Bumble Inc. (BMBL) downgraded to Neutral from Positive at Susquehanna; tgt lowered to $6
    • Cars.com (CARS) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $19
    • Customers Bancorp (CUBI) downgraded to Market Perform from Outperform at Hovde Group; tgt $49
    • Eventbrite (EB) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $4
    • Eventbrite (EB) downgraded to Hold from Buy at Truist
    • Eventbrite (EB) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
    • Five9 (FIVN) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $40
    • Hilton Grand Vacations (HGV) downgraded to Hold from Buy at Jefferies; tgt lowered to $35
  • Others:
    • AGCO Corp (AGCO) initiated with a Market Perform at BMO Capital Markets; tgt $96
    • Cintas (CTAS) initiated with a Neutral at Redburn Atlantic; tgt $670
    • CNH Industrial (CNH) initiated with a Market Perform at BMO Capital Markets; tgt $11
    • Deere (DE) initiated with a Market Perform at BMO Capital Markets; tgt $400
    • H&E Equipment (HEES) initiated with a Sector Weight at KeyBanc Capital Markets

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • ITI +62.1%, IOVA +28.2%, DOCS +28.2%, TARS +26.1%, ADMA +25.3%, PBI +23.6%, SG +22.5%, INOD +19.3%, EVH +15.2%, RKLB +14.7%, PRTA +12.8%, HNST +12.7%, FREY +12.6%, CARG +11.6%, EXPE +10.7%, BE +10.4%, BLND +10%, IAG +9.8%, RXT +9.4%, DIOD +8%, WOW +7.9%, VRRM +7.6%, ONTO +7.6%, AKAM +7.5%, QNST +7.1%, DXC +6.9%, PBPB +6.7%, BLZE +6.6%, DOCN +6.5%, TTD +6.5%, PARA +6.4%, TTWO +6.4%, LIF +6.2%, PAY +6.1%, NUS +5.8%, ATSG +5.2%, CNNE +5%, G +4.9%, HEAR +4.5%, COLL +4.5%, CENX +4.3%, DBX +4%, NWSA +4%, GRND +3.9%, RICK +3.8%, RCUS +3.5%, STEP +3.5%, SANA +3.2%, MP +3%, ASTS +2.9%, AMPL +2.8%, TSM +2.8%, RVNC +2.4%, LGF.A +2.3%, GDOT +2.3%, HZO +2%, CLDX +1.9%, BTDR +1.7%, AVPT +1.6%, SQ +1.5%, YELP +1.5%, DVA +1.1%
  • Gapping down:
    • AVD -28.4%, MITK -26%, PUBM -25.9%, EB -17.1%, FIVN -15.7%, ZVRA -14.7%, SCSC -14.7%, SVV -12.2%, ARRY -11.3%, ELF -9.3%, MNMD -8.3%, TTGT -7%, FNKO -6%, LPRO -4.9%, FNA -4.8%, XENE -4.1%, PLMR -3.6%, CPK -3.6%, NTRA -3.5%, TRUP -2.8%, CRNX -2.7%, TXG -2.6%, AILE -2.5%, BTG -2.5%, PODD -2.4%, ALRM -2.4%, WEST -2.1%, ARLO -2.1%, ARWR -2.1%, AMN -1.9%, WT -1.8%, PBA -1.8%, EYPT -1.7%, DEI -1.7%, PBR -1.6%, SOLV -1.4%, PTCT -1.1%

>>> Europe : Brokers Upgrades & Downgrades - 9th of August 2024 V3(++)

>>> Up
* Deliveroo PT Raised to 140 pence from 122 pence at Bryan Garnierok
* Deliveroo PT Raised to 140 pence from 122 pence at Bryan Garnier (++)
* Deliveroo PT Raised to 257 pence from 217 pence at UBS (++)
* GE Vernova PT Raised to $221 from $197 at BNPP Exane
* General Dynamics Raised to Overweight at Morgan Stanley; PT $345
* Hargreaves Lansdown Raised to Neutral at Citi; PT 1,110 pence (++)
* Just Eat Takeaway Raised to Overweight at Morgan Stanley
* Maersk Raised to Buy at Clarksons; PT 14,000 kroner (+)
* Norsk Hydro Raised to Buy at Norne Securities; PT 66 kroner
* Paramount Global Raised to Equal-Weight at Wells Fargo; PT $11 (++)
* QT Group Raised to Accumulate at OP Corporate Bank; PT 93 euros (++)
* SUSS MicroTec Raised to Buy at M.M. Warburg; PT 68 euros (+)
* Technoprobe Raised to Buy at Banca Akros (+)

>>> Down
* Adesso SE Cut to Hold at Kepler Cheuvreux; PT 80 euros
* Etteplan Cut to Reduce at Inderes; PT 13 euros
* Future PLC Cut to Sell at Canaccord; PT 733 pence
* Hargreaves Lansdown Cut to Hold at Peel Hunt; PT 1,140 pence (++)
* Hilton Grand Vacations Cut to Hold at Jefferies; PT $35
* Italian Exhibition Cut to Hold at TP ICAP Midcap; PT 6.50 euros
* Optomed Cut to Reduce at Inderes; PT 5.50 euros
* Orion Cut to Reduce at Inderes; PT 44 euros
* Piovan Cut to Hold at Berenberg; PT 14 euros
* QT Group Cut to Hold at SEB Equities; PT 95 euros
* Scatec Cut to Hold at Norne Securities; PT 92 kroner

>>> Initiation
* Ashtead Rated New Sector Weight at KeyBanc
* FedEx Rated New Hold at DBS Bank; PT $267
* Galderma Rated New Overweight at JPMorgan; PT 90 Swiss francs
* HP Inc Rated New Buy at DBS Bank; PT $44
* UPS Rated New Buy at DBS Bank; PT $155
* Wolftank-Adisa Holding Rated New Buy at Baader Helvea

>>> Call
* Galderma Jumps on JPMorgan Initiation, Sees Double-Digit Growth (++)
* Just Eat Gains as Morgan Stanley Upgrades on Fee Caps Progress (++)
* JPMorgan Strategists Say US Sales Misses Put 2H Margins at Risk (+)

Reuters : China's Harvest Fund chairman under investigation steps down

China's Harvest Fund chairman under investigation steps down

BEIJING, Aug 9 (Reuters) - China's Harvest Fund Management said on Friday that Chairman Zhao Xuejun had resigned and is cooperating with relevant authorities regarding an investigation pertaining to "personal problems", without elaborating.

Co-chairman An Guoyong will serve as acting chairman.

The probe has nothing to do with the company's fund business, Harvest Fund said in a statement, adding that it is operating normally.

The Information : Why Uber is a Better Bet Than DoorDash

Why Uber is a Better Bet Than DoorDash

The Takeaway
Despite Uber stock’s rally in the past nine months, it still trades at a discount to DoorDash’s stock. But Uber has the potential to grow faster than DoorDash, which argues in favor of a premium valuation.

For almost the entire time since DoorDash went public in late 2020 the restaurant-delivery service has traded at a premium valuation to Uber. Lately the gap between the two stocks has nearly closed, although the much bigger ride-hailing and delivery firm remains the underdog of the pair.

While that made sense early on, when the pandemic blitzed Uber’s ride-hailing business and turbocharged DoorDash's service, things have changed. Uber's ride-hailing revenue has surged well past pre-pandemic levels, while its Uber Eats food-delivery business has mushroomed in size. That transformation has turned Uber from a perennial money-loser into a cash machine, churning out $1.7 billion in free cash flow in the second quarter alone.

DoorDash’s revenue is still growing faster than Uber’s—but not in a way that is necessarily sustainable. In fact, growth in the number of orders on its service, as well as their total dollar value, has been steadily slowing over the past 12 months or so.

DoorDash has managed to curb the impact of that slowdown by drawing in more advertising and by signing up more restaurants and grocery stores, which can both widen its appeal to consumers and make it easier for drivers to pick up more orders more quickly. But neither of these maneuvers can drive top-line growth indefinitely.

Uber is in the reverse position: total consumer spending on its delivery platform has lately been growing faster than what it reports as revenue, which implies its topline has more potential to keep expanding.

Uber’s stock has rallied strongly since last fall, lifting it well above its initial public offering price for the first time. And yet Uber is currently trading at 19 times the next 12 months’ earnings before interest, taxes, depreciation and amortization, compared to DoorDash’s 21 times, according to Koyfin. That discount suggests investors don’t fully appreciate Uber’s potential.

A DoorDash spokesperson argues that DoorDash’s business has proved “relatively insensitive to changes in consumer spending, particularly when compared to categories like travel.”

While that’s true, ride hailing has lately also appeared to be less sensitive to consumer sentiment than might have been the case in the past. That’s likely because both Uber and Lyft have raised prices, making their services more of a luxury item. The CEOs of both companies this week said they weren’t seeing any signs of weaker consumer spending, unlike companies such as Airbnb and theme park operator Disney. Uber CEO Dara Khosrowshahi noted pointedly that “our consumers tend to be higher income.”

Efficiencies and Advertising

One of the biggest arguments in favor of Uber is that its revenue growth appears to be more sustainable than that of DoorDash.

That’s most noticeable in food delivery, where the two companies compete head on. In that segment, Uber’s gross bookings—the total value of customer orders—grew 16% in the second quarter, about four percentage points below DoorDash’s rate. But pull the camera back a bit and you see that Uber’s growth rate in the segment has doubled since the start of last year, while DoorDash’s has steadily slowed.

DoorDash’s revenue growth has also slowed sharply, although its top line is growing faster than the number, and volume, of orders. That discrepancy is partly because it has added more restaurants and grocers to its network, which has made it easier for its delivery drivers to complete more orders in the same amount of time.

That has helped DoorDash effectively lower the amount it pays those workers in wages per order, which has the effect of increasing its take of each order and its revenue. DoorDash securities filings have attributed its recent revenue growth partially to unlocking such efficiencies.

But there’s a limit to how efficient a network can become—you can never shrink the time it takes a messenger to deliver a grocery order to zero—even if it takes DoorDash a while to hit that ceiling.

DoorDash has also boosted revenue by selling space on its app to advertisers, which restaurants and consumer brands typically use to reach new customers. This business is growing quickly, DoorDash executives say, but there’s only so much money it can generate from ad sales on its app without alienating customers.

As DoorDash CEO Tony Xu put it to investors on the company’s earnings call last week, “Ads do have a negative impact on the consumer experience.”

Moreover, a slowdown in the growth of users puts a ceiling on how much money advertisers may want to spend to reach those users. As Xu noted, “It’s a healthy marketplace that enables an ads business, and not the other way around.”

To sustain long-term growth, DoorDash needs to find ways to consistently drive up the number of orders placed on its platform each quarter—which means attracting new customers.

Uber’s Structural Advantage

Uber’s diversification in both ride hailing and food delivery also gives it a big advantage over DoorDash and Uber’s rival in ride hailing, Lyft.

As Morningstar analyst Malik Ahmed Khan pointed out in a May report on DoorDash, Uber “benefits from cross-selling its ride-hailing and delivery services, possibly attracting more users and in the future, maintaining a higher percentage” of the customers in its paid membership program, Uber One, than DoorDash can in its similar offering, DashPass.

Ride hailing is a fundamentally higher-margin business than food delivery, according to Andrew Boone, an equity analyst at Citizens JMP.

That helps explain why, for example, Uber’s Ebitda in the second quarter accounted for 3.9% of its gross bookings, compared to 2.2% for DoorDash. (The two figures are generally comparable, although it’s worth noting that DoorDash says it includes tips paid to drivers in its gross bookings figure, while Uber does not.)

There’s also reason to believe Uber’s food-delivery growth may accelerate, thanks to a recent tie-up it has arranged with grocery-delivery firm Instacart. The deal allows Instacart customers to order meals from restaurants on UberEats directly through the Instacart app. The arrangement has helped Uber attract new customers, its executives said, especially in suburban markets, where it’s historically been less successful than in cities.

Uber and Instacart cozying up to one another could even presage an acquisition, which would help Uber’s food-delivery arm expand into groceries faster than would otherwise be possible. Uber could easily afford the purchase: Instacart’s enterprise value is roughly $7 billion. Uber has over $6 billion in cash on its balance sheet, while its $140 billion in market capitalization gives it the scale to use its stock.

As questions about consumer spending intensify, the prospects for Uber and DoorDash will be in the spotlight. If consumer spending worsens, Uber should be better positioned, thanks to its track record of building and expanding a network that serves a wider variety of different needs, from ordering groceries to getting a ride to work

UBER VS DOOR