>>> Europe : Brokers Upgrades & Downgrades - 1st of February 2024

>>> Up
* EasyJet Raised to Overweight at JPMorgan; PT 690 pence
* KPN Raised to Buy at Citi; PT 3.55 euros
* Marshalls Raised to Buy at Berenberg; PT 420 pence
* Pihlajalinna Raised to Hold at SEB Equities; PT 7.40 euros
* PunaMusta Media Raised to Reduce at Inderes; PT 2.90 euros
* Rockwell Automation Raised to Buy at Daiwa; PT $310
* SSAB Raised to Hold at Pareto Securities; PT 69 kronor

>>> Down
* Alphabet Cut to Hold at China Renaissance; PT $146
* BioArctic Cut to Hold at Nordea
* Boeing Cut to Sell at CFRA; PT $194
* Bytes Technology Cut to Hold at HSBC; PT 675 pence
* Enel Cut to Hold at Jefferies; PT 6.50 euros
* Givaudan Cut to Neutral at Davy; PT 3,660 Swiss francs
* Mandatum Cut to Accumulate at OP Corporate Bank; PT 4.50 euros
* Next Cut to Equal-Weight at Barclays; PT 8,500 pence
* Nucor Cut to Sell at CFRA
* Pets at Home Cut to Hold at Berenberg
* Rana Gruber Cut to Neutral at SpareBank; PT 80 kroner
* Richemont Cut to Hold at HSBC; PT 141 Swiss francs

>>> Initiation
* Mondelez Rated New Buy at Citi; PT $87
* Swedbank Reinstated Hold at Pareto Securities; PT 237 kronor

>>> Call
* Enel Cut to Hold at Jefferies on Limited Near-Term Catalysts
* KPN Upgraded to Buy at Citi as Financial Outlook Improves
* Marshalls Offers Interesting Rebuild Story, Berenberg Upgrades
* Puma Faces Increasing Competition, Cut to Sector Perform at RBC

>>> What to look at today - 1st of February 2024

China stocks gained on an official signaled potential spending plans, while shares in other Asian markets fell after disappointing US earnings reports and Federal Reserve pushback on interest-rate-cut expectations. China’s CSI 300 swung to gains after a four-day slump, while Hong Kong’s Hang Seng Index advanced after a two-day decline. The Caixin manufacturing PMI gauge came in as expected, in expansion territory, and an official in Beijing said the government would set a “reasonable” size for investment. Shares in Australia and Japan slipped after the S&P 500 fell 1.6%, the most since September. Aozora Bank Ltd. fell 21% in Tokyo after it announced losses tied to US commercial property, echoing troubles for New York Community Bancorp in America. Contracts for US equities edged higher, with Nasdaq 100 futures outperforming, after Big Tech stalwarts like Microsoft Corp. and Alphabet Inc. led losses on Wall Street Wednesday. European contracts declined. Speaking after the Fed decision, Chair Jerome Powell said he doesn’t think it’s likely the central bank will ease policy in March. In a sign that officials are not in a hurry to lower rates, the central bank also said it “does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%.”  Treasuries held most of their gains in Asian trading. The yield on the 10-year note fell 12 basis points in the previous session after Powell’s comments and amid the fresh concerns about regional lenders. A gauge of dollar strength edged lower, while the yen led gains among its Group-of-10 peers. A separate report from the ADP Research Institute showed companies added a smaller-than-expected 107,000 jobs in January, and worker pay growth slowed. The market has been too quick to dismiss the threat posed by inflation after a “miraculous” decline toward central bank targets, said Greg Peters at PGIM Fixed Income. He’s worried that the hardest part of the fight against inflation is still ahead, implying more market volatility and a potential wake-up call for bondholders betting on deep interest-rate cuts this year.   Despite Wednesday’s losses, the S&P 500 and a gauge of global stocks advanced a third straight month last month. As goes January, so goes the year. That’s the theory of a phenomenon known as the “January Barometer” — Wall Street folklore positing that if stocks rise in that month, they’ll be poised to finish the year higher, and vice versa. Since 1938, the Barometer has been right about 74% of the time, with the next 11 months higher 67% of the time, according to the Stock Trader’s Almanac. In commodities, oil was mostly unchanged in Asia trading but capped its first monthly gain since September amid tensions in the Middle East. Gold advanced for a fourth consecutive day. US After Hours NXT +18.2%, CMPR +13%, ALGN +10.7%, RYN +5.8%, QRVO +4.9% higher on earnings; MXL -11.1%, CNMD -9.6%, QCOM -1.4% lower on earnings.

Nikkei -0.85% Hang Seng +0.90% CSI +0.48% Shanghai -0.17% Shenzen -0.05%

Eur$ 1.0849 CNH 7.1884 CNY 7.1787 JPY 146.80 GBP 1.2676 CHF 0.8636 RUB 89.8547 TRY 30.3667 WTI$ 76.16 +0.41% Gold 2,046 +0.30% BTC 42,035 -1% ETH 2,265 -0.60%

S&P +0.17% Nasdaq +0.30% EuroStoxx -0.30% FTSE -0.37% Dax -0.37% SMI

Macro :
- Fed Keeps Rates Steady While Powell Says March Cut Unlikely
- Gundlach Sees Grim Outlook for US Economy After Fed Decision
- Trump Says He Would Seek to Block Nippon Steel-US Steel Deal

Keep an eye on :
- ABBN SW : ABB Sees 2024 Op. EBITA Margin To 'Slightly' Improve Y/y
- ADS GY : Adidas Sees 2024 Operating Profit About EU500M, Est. EU1.27B
- AC FP : Travel + Leisure Enters Pact to Buy Accor Vacation Club
- AIR FP : Airbus Appoints New Chief Operating Officer for China Operations
- AS US : Arc’teryx Maker Amer Gets $1.37 Billion in Below-Range IPO
- AXFO SS : Axfood Profit Beats Estimates; to Open 10-15 Stores in 2024
- BABA US : Alibaba Said to Weigh Sale of Mall Chain in Latest Overhaul Step
- BG AV : Bawag to Buy Knab From ASR Nederland for EU510m
- BALN SW : Baloise, RGA Agree on Reinsurance Transaction of Belgium Assets
- BNP FP : BNP Paribas Restates 9 Month Distributable Net Income
- DSY FP : Dassault Systemes Sees 1Q Non-IFRS Rev Ex-FX +7% to +8%
- DBK GY : Deutsche Bank’s Investment Arm Reports Fourth Quarter of Inflows
- DIS US : *DISNEY IN PRELIM PACT TO SELL 60% OF INDIA UNIT TO VIACOM18:WSJ
- DSV DC : DSV 4Q Ebit Before Significant Items Misses Estimates
- DWS GY : DWS 4Q Net Inflows Beats Estimates, Plans Special Div. €4/Shr
- ELUXB SS : Electrolux Professional 4Q Ebit Beats Estimates
- ENI IM : Eni Says Acquisition of Neptune Has Been Completed
- EPR NO : Europris 4Q Revenue Misses Estimates
- GLJ GY : Grenke to Sell Factoring Companies, Focus on Leasing Business
- INGA NA : ING 4Q Net Interest Income Misses Estimates
- BAER SW : Julius Baer FY Net Inflows Misses Estimates
- KOA NO : Kongsberg Automotive Names Nyquist-Evenrud as President, CEO
- OMV AV : OMV 4Q Net Beats Estimates, Russian Gas Supplies Continue (1)
- OVS IM : OVS Reports ‘Slight Improvement’ to 2023 Prelim Adj. EBITDA
- PHIA NA : FDA Gets 176 New Death Reports in Philips Sleep Apnea Recall
- PUB FP : Roku is set to announce Publicis exec Jay Askinasi as its next ad sales boss
- RNO FP : Dealmaking Stellantis CEO Is Ready to Seize on Renault’s Setback
- RKLB US : Rocket Lab Said to Offer $275m Convertible at 3.75%-4.25% Coupon
- SAN FP : Sanofi 4Q Business EPS Misses Estimates
- SDZ SW : Sandoz Proposes Ex-Unilever CFO Pitkethly for Election to Board
- SHL GY : Siemens Healthineers 1Q Adjusted Ebit Misses Estimates
- WAF GY : Siltronic 4Q Ebitda Meets Estimates
- SW FP : Pluxee Stock Reference Price Set at €26 Per Share: Euronext
- STERV FH : Stora Enso 4Q Sales Misses Estimates
- VIV FP : Canal+ Makes Offer for MultiChoice, Potentially at 105 Rand/Shr
- VLTSA FP : Voltalia 4Q Revenue EU170.0M Vs. EU142M Y/y
- VOLCARB SS : Volvo Car to Stop Funding Polestar, May Distribute Shares
- X US : Trump Says He Would Seek to Block Nippon Steel-US Steel Deal

>>> US After Hours Summary: NXT +18.2%, CMPR +13%, ALGN +10.7%, RYN +5.8%, QRVO

After Hours Summary: NXT +18.2%, CMPR +13%, ALGN +10.7%, RYN +5.8%, QRVO +4.9% higher on earnings; MXL -11.1%, CNMD -9.6%, QCOM -1.4% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: NXT +18.2%, CMPR +13%, ALGN +10.7%, RYN +5.8%, QRVO +4.9% (also to acquire Anokiwave), EZPW +4.7%, CTVA +4.5%, NYCB +3.5%, CACC +2.4%, FLEX +1.5%, BOOT +1.2%, AXS +0.3%, CLB +0.2%, BHE +0.1%

Companies trading higher in after hours in reaction to news: PTGX +8% (PTGX and TAK enter into license and collaboration deal), AMPS +5.7% (acquires 84MW portfolio from Vitol), NTLA +3.7% (announces publication of interim Phase 1 Data for NTLA-2002), BTBT +2.3% (expands mining fleet; finalizes deal for 6 MW of incremental hosting capacity), PARA +2.1% (taking initial steps toward possible sale, according to NY Post), FUN +1.4% (SEC declares effective FUN's Registration Statement in connection with SIX merger), UFI +0.5% (begins implementing profitability improvement plan), BRBR +0.3% (Exec Chairman ends medical leave and resumes full duties), UTL +0.1% (increases dividend), CF +0.1% (increases dividend), SIX +0.1% (SEC declares effective FUN's Registration Statement in connection with SIX merger)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: MXL -11.1%, CNMD -9.6%, BV -7.2%, CHRW -6.1%, SIGI -5.9%, CVGW -4.2%, WOLF -4.1%, MTH -3.4%, MET -3.3%, AVB -2.9% (also increases dividend), PTC -2.6%, AFL -2.1%, EGHT -1.8%, QCOM -1.4%, NTGR -1.4%, CCS -0.8%, MTG -0.8%, MEOH -0.7%, MKL -0.6%, TTEK -0.3%, UGI -0.2%, THG -0.1%

Companies trading lower in after hours in reaction to news: RKLB -8.5% ($275 mln convertible notes offering), ZCAR -3.4% (introduces new product category with 50% lower pricing), TAK -1.6% (PTGX and TAK enter into license and collaboration deal), NTGR -1.4% (CEO to retire, names new CEO; also narrows its Q4 revenue guidance), AHG -0.6% (to make equity investment in Deyihui), BA -0.5% (FAA's previously announced audit of 737 MAX production to include SPR fuselage according to Reuters), ARQT -0.5% (files $300 mln mixed shelf securities offering), OFG -0.1% (increases dividend; also approves new $50 mln stock repurchase authorization), SPR -0.1% (FAA's previously announced audit of 737 MAX production to include SPR fuselage according to Reuters)

>>> Boeing beats by $0.31, beats on revs, does not provide guidance; taking imme

Boeing beats by $0.31, beats on revs, does not provide guidance; taking immediate actions to strengthen quality on the 737 program (200.42)
  • Reports Q4 (Dec) core (non-GAAP) loss of $(0.47) per share, $0.31 better than the FactSet Consensus of ($0.78); revenues rose 10.2% year/year to $22.02 bln vs the $21.14 bln FactSet Consensus.
  • Note: Boeing typically provides full year operating cash flow and free cash flow guidance, but co did not provide guidance.
  • "While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day," said Dave Calhoun, Boeing president and chief executive officer. "As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders."
  • Segment Performance:
    • Commercial Airplanes Q4 segment revenue increased 13% yr/yr to $10.48 bln, driven by higher deliveries and favorable mix.
      • Co continues to cooperate transparently with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9. Commercial Airplanes is taking immediate actions to strengthen quality on the 737 program, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality.
      • Co has also appointed an outside expert to lead an in-depth independent assessment of Commercial Airplanes' quality management system, with recommendations provided directly to Calhoun and the Aerospace Safety Committee of Boeing's Board of Directors.
        • The 737 program continues to deliver airplanes and its production rate is now at 38 per month.
        • The 787 program production rate is now at five per month.
        • Commercial Airplanes delivered 157 airplanes during the quarter and backlog included over 5,600 airplanes valued at $441 billion.
    • Defense, Space & Security Q4 revenue rose 9% yr/yr to $6.75 bln. Fourth quarter operating margin was (1.5)%, primarily driven by $139 million of losses on certain fixed-price development programs. Results were also impacted by unfavorable performance and mix on other programs.
    • Global Services Q4 revenue rose 6% yr/yr to $4.85 bln. During the quarter, Global Services opened its first parts distribution center in India and received a follow-on contract option to provide sustainment for the C-17 Globemaster III.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • NYCB -17.1%, EXTR -16.5%, ROK -7.9%, RHI -7.3%, MOD -7.2%, TER -6.3%, GPI -5.9%, FCF -5.6%, GOOG -5.5%, GIB -5%, AMD -4.7%, MDLZ -4.6%, NVS -4.6%, LC -3.9%, ROP -3.7%, LFUS -3.6%, HA -2.2%, EA -2%, TMO -2%, TEVA -2%, CP -1.8%, HES -1.8%, EAT -1.2%, FBIN -1% (also increases share buyback auth by $650 mln), RKLB -1% (guidance), FTV -0.9%, AX -0.8%, MSFT -0.8% (also Robot startup Figure AI in funding talks to raise as much as $500 mln, led by MSFT and OpenAI, according to Bloomberg)
Other news:
  • AMSC -13.2% (stock offering; also files $250 mln mixed shelf securities offering)
  • ATKR -4.3% (initiates dividend)
  • VOD -3.8% (fails to accept iliad Group's revised proposal to merge Italian businesses)
  • TEVA -3% (announces its intention to divest its active-pharmaceutical ingredient business or "TAPI")
  • TSLA -2.6% (Delaware judge agreed to void CEO Elon Musk's $56 bln compensation package according to CNBC)
  • SLDB -2.2% (stock offering by selling shareholders)
  • BNTX -1.2% (BioNTech and Duality Biologics announces that the U.S. FDA granted Fast Track designation for BNT325/DB-1305)
  • DELL -1.1% (DELL terminates Commercial Framework Agreement with AVGO)
  • ICFI -1% (awarded a $33 mln digital modernization contract by Dept of HHS)
  • AVGO -0.9% (DELL terminates Commercial Framework Agreement with AVGO)
  • IMCR -0.8% (prices upsized offering of $350.0 mln of 2.50% convertible senior notes due 2030)
Analyst comments:
  • ERIC -3% (downgraded to Sell from Neutral at UBS)
  • SOFI -2.5% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
  • TSVT -1% (downgraded to Market Perform from Outperform at TD Cowen)
  • FBIN -1% (downgraded to Market Perform from Outperform at BMO Capital Markets)
  • VZ -0.8% (downgraded to Equal Weight from Overweight at Barclays)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • POWL +17.6% (also increases dividend), MANH +9.9%, ASH +6.5%, SYK +6.5%, EQR +4.5% (also buyback authorization replenished), NMR +4.4%, SBUX +3.7%, GSK +3%, BSX +3%, RNR +2.8%, COR +2.8%, SWKS +2.7%, SLGN +2%, NAVI +1.9%, PSX +1.9%, APAM +1.8%, SAN +1.8%, CB +1.7%, LII +1.6%, SLB +1.1% (guidance), ADP +1.1%
Other news:
  • CRBP +12.7% (announces proposed public offering)
  • ALLO +3.6% (entered into an Amended and Restated Collaboration and License Agreement with Notch Therapeutics)
  • ORIC +2.3% (Viking Global discloses 5.9% stake)
  • NAVI +1.9% (to outsource student loan servicing other actions)
  • REVG +1.1% (expects to incur pre-tax charges of approximately $23 million to $29 million)
  • WMT +1% (3-for-1 stock split)
Analyst comments:
  • CORZ +2.9% (upgraded to Buy from Neutral at Compass Point)

>>> US Research Calls

Research Calls
  • Upgrades:
    • Check Point Software (CHKP) upgraded to Outperform from Mkt Perform at William Blair
    • Commvault Systems (CVLT) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $109
    • Core Scientific (CORZ) upgraded to Buy from Neutral at Compass Point; tgt raised to $8.50
    • SM Energy (SM) upgraded to Buy from Neutral at Seaport Research Partners; tgt $50
  • Downgrades:
    • 2seventy bio (TSVT) downgraded to Market Perform from Outperform at TD Cowen
    • Crexendo (CXDO) downgraded to Neutral from Buy at B. Riley Securities; tgt raised to $6.75
    • Deutsche Bank (DB) downgraded to Neutral from Buy at Citigroup
    • Eagle Bulk Shipping (EGLE) downgraded to Hold from Buy at Jefferies; tgt $55
    • Ericsson (ERIC) downgraded to Sell from Neutral at UBS
    • Euronav (EURN) downgraded to Hold from Buy at Jefferies; tgt lowered to $18
    • Fortune Brands Innovations (FBIN) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt raised to $82
    • Johnson Controls (JCI) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $60
    • SoFi Technologies (SOFI) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $6.50
    • Southwestern Energy (SWN) downgraded to Neutral from Buy at Seaport Research Partners
    • Verizon (VZ) downgraded to Equal Weight from Overweight at Barclays; tgt $44
    • Vertex Pharma (VRTX) downgraded to Underperform from Neutral at Robert W. Baird; tgt $325
  • Others:
    • BridgeBio Pharma (BBIO) initiated with a Market Perform at BMO Capital Markets; tgt $37
    • ESSA Pharma (EPIX) initiated with a Buy at Jones Trading
    • Northwest Natural (NWN) initiated with a Neutral at Janney; tgt $39
    • Sarepta Therapeutics (SRPT) initiated with an Outperform at BMO Capital Markets; tgt $170
    • Silence Therapeutics (SLN) initiated with an Outperform at BMO Capital Markets; tgt $67
    • Toast (TOST) initiated with a Sector Perform at RBC Capital Mkts; tgt $19