WSJ : Signature Loan Sale Likely to Lower Commercial-Property Values

Signature Loan Sale Likely to Lower Commercial-Property Values
The bank’s assets are expected to sell on average 15% to 40% below their original face amount

The sale of Signature Bank’s $33 billion in commercial-property loans and other assets is expected to attract bids as much as 40% below face value, offering new evidence of how much property prices have eroded.

Regulators closed Signature Bank in March after a run on its deposits, marking the fourth-largest bank failure in U.S. history. Now, the Federal Deposit Insurance Corp. is auctioning off thousands of Signature loans backed by apartment buildings and other commercial properties primarily in the New York region.

Bids are due Thursday on what is the biggest and most closely watched commercial-property sale of the year. Loans are expected to sell on average 15% to 40% below their original face amount, according to prospective bidders.

Those discounts will likely affect values of New York commercial property for a number of years. The market will get an initial data point from the coming loan sale and again when the loans are resolved, either through a payoff, a loan sale or a foreclosure, said D. Michael Van Konynenburg, president of real-estate investment-banking firm Eastdil Secured.

Signature’s loan sale will provide the ailing commercial real-estate market with one of the clearest benchmarks for how badly values have been eroded by the jump in interest rates and the weak return-to-office rate.

Most of Signature’s loans are performing. Nevertheless, the FDIC and Newmark Group, the real-estate firm running the sale, are going to have to sell them at discounts partly because they were made when interest rates were a lot lower than today. An investor would want a discount to buy a loan paying a 6% interest rate if comparable debt issued today is paying 9%.

Some of the loans are for lackluster midblock office buildings in Manhattan, which are suffering high vacancy rates because of the work-from-home trend of the pandemic. Buyers of the loans also will likely face problems down the road when borrowers have to refinance mortgages made when rates were lower.

About half of the offering consists of pools of loans backed by apartment buildings with rents regulated by a city board. Annual rent increases at these buildings are typically kept to very low levels.

Many of these buildings rapidly have declined in value since 2019, when the New York State Legislature ended special exceptions that had allowed landlords to increase rents in excess of the city board’s level.

Investors once spent billions bidding up the price of rent-regulated buildings because they knew they could achieve higher rents through those exceptions. “Now, anybody who bought with that expectation, those expectations are not going to be met anymore,” said Zachary Rothken, a real-estate attorney at Rosenberg & Estis.

Just how far values have fallen on these properties is difficult to pinpoint, but at some buildings where all apartments are regulated, values have fallen as much as 70%, according to the Community Housing Improvement Program, a landlord trade group that cited building-sales data and discussions with brokers.

The FDIC has said it plans to retain a 95% stake in the pools with a rent-regulated loan portfolio, partly because of its statutory obligation to preserve affordability for low- and moderate-income renters.

WWD : Valentino Unveils Mega Flagship in New York

Valentino Unveils Mega Flagship in New York
Located on 654 Madison Avenue, the flagship, which opens with an exhibition of works by artist Mario Schifano, marks an important strategic moment for the couture house's retail approach worldwide.

MILAN – The building housing the new Valentino flagship on 654 Madison Avenue “is a perfect synthesis of the best architecture in New York,” believes creative director Pierpaolo Piccioli, and is “an experience in itself.”

The store in the storied building — it previously was home to Calvin Klein’s iconic Manhattan flagship designed by John Pawson — opens to the public Wednesday and is based on Valentino’s new global retail concept, established last year in-house, directly by Piccioli and his team. But the designer said that for the New York store, he let himself “be led and inspired by the Genius Loci, the spirit of the location,” with its “permanent signs that allow you to recognize [it as]something already known to memory,” he contended. “There is a tangible familiarity that makes New York a bit of a special place for everyone, also for those who have not visited it yet.”

The flagship marks an important strategic moment for Valentino’s retail approach worldwide, after the opening of boutiques in Florence and Paris last June, followed by Shanghai at Plaza 66 a month later, among others.

“Our intention is to bring Valentino around the world,” said Piccioli, while respecting each location. “It is undeniable that every location is unique, and in particular in Madison we let the interiors determine the path we should take. I like to interact with the locations, to create an exchange based on respect and curiosity,” he continued. “I like to think that opening a store can also have a cultural value that is every time a possibility to bring who we are into the world.”

The New York unit also reflects Valentino’s development since the arrival of chief executive officer Jacopo Venturini in June 2020, who worked with Piccioli on repositioning the brand as a couture house. This strategy is exemplified by the Madison Avenue flagship, said the executive, “with the goal to raise the values that characterize us in a strategic way in the city.”

North America accounts for 20 percent of global retail sales through directly operated stores. Taking wholesale and non-DOS into account, the weight is of around 25 percent.

As per the latest figures available reported in April, in the 12 months ended Dec. 31, sales at the Rome-based couture house reached 1.42 billion euros, climbing 15 percent compared with 1.23 billion euros in 2021. Venturini has been rebalancing wholesale versus retail by increasingly reducing the wholesale activity “to focus only on working with selected partners that reflect our brand values and sustain our business strategy and vision,” explained Venturini at the time.
The ground floor of the Valentino New York flagship.

Directly operated retail generated 62 percent of sales in 2022 compared to 54 percent in 2019. The goal is for that channel to represent 80 percent of the total by 2025 or 2026.

Valentino’s SoHo boutique in Manhattan will reopen by the end of 2023, said Venturini.

There are 30 Valentino directly operated stores and 27 doors in the U.S. The company is not forsaking wholesale entirely and in the U.S. it works with department stores including Saks Fifth Avenue, Bergdorf Goodman, Neiman Marcus, Nordstrom and Bloomingdale’s.

“Madison Avenue is a key location renowned around the world, which attracts local and international customers,” said Venturini. “We will offer an experiential, tailored and client-centric journey that also includes two VIP areas.”

Asked about the American consumer, Piccioli said that he would “rather think of people, and rather than a geographic area, think of a community.” Valentino’s customers, he said, “are people who choose to embrace a vision that is certainly communicated through a precise aesthetic but that draws strength also from sharing the same values.” There will be specific experiences that include capsule collections, “but all integrated and narrated through the same, shared sentiment.”

Set over three stories that include basement, ground floor, a mezzanine and a second floor, the nearly 12,333-square-foot’s store facade is marked by imposing columns and tall windows.

The building is monumental with ceilings as high as 23 feet, exposed steel columns running across all floors and a rough concrete finish over the perimeter punctuated by illuminated shelving for Valentino Garavani accessories.
The Valentino Garavani accessories on display in the New York flagship.

Each floor hinges on a distinctive visual narrative based on chromatic compositions and carefully curated materials and palettes, including Valentino’s signature red, rendered in several different iterations.

There is a striking contrast between rationalist architecture and warmer, cocooning spaces. Piccioli explained that, since concrete is a significant part of the construction, materials were a key focus, “integrating marbles and tracing the spaces almost in an intangible way through structures that, in addition to being useful as displays, also create thematic areas but in a fluid way, rather than schematic.”

The building’s mezzanine is a concrete box facing the boutique’s ground floor on one side and it will be dedicated to temporary art displays, debuting through a partnership with New York museum Magazzino Italian Art, presenting five large-scale paintings by Mario Schifano. This collaboration strengthens Valentino’s ongoing commitment to global art and visual culture and pays tribute to contemporary Italian painting.


The exhibition of Mario Schifano works at Valentino’s New York flagship.

“The idea of an artistic experience in the store is in sync with our intention to offer a welcoming location which will communicate the values of the brand, maximizing the opportunities that the location offers,” said Piccioli. The designer said that bringing Schifano to New York allows the brand to showcase one of the main artists in the world — from Rome, to boot, where Valentino is headquartered — “conceptually summarizing the way Valentino can be perceived in the world.”
With Magazzino Italian Art, Valentino will collaborate on a series of exhibitions featuring works by renowned Italian artists and talks will be hosted in the new store in the coming months, promoting cross-cultural dialogue. Magazzino has unveiled the new Robert Olnick Pavilion and the collaboration with Valentino is an extension of the exhibition “Mario Schifano: The Rise of the ‘60s”, currently on view at the museum in Cold Spring, N.Y.

Over the years the Valentino on Canvas projects have shined a light on contemporary and emerging painters and sculptors. In Shanghai and Beijing in 2020 and 2021, the house staged two physical experiences, “Re-signify Parts I and II,” where the codes of the fashion house were interpreted by and presented alongside contemporary art and visual research. Last year the company sponsored the Italian Pavilion at the 59th Biennale di Venezia, supporting the work of artist Gian Maria Tosatti in the pavilion’s first-ever sole exhibition. Recently Valentino collaborated with contemporary artists for Frieze in Singapore and Seoul and sponsored an exhibition dedicated to Italian contemporary painting slated to run to Feb. 11 at Milan’s Triennale museum.

Customers enter the new store through a pair of grand double doors with sculptural marble handles, their organic shapes modeled on works by artisans, whose work appears in different guises throughout the brand’s stores worldwide. The same handles with organic shapes are present inside the store made in ceramic and modeled by ceramicist Massimiliano Pipolo.

The space is divided into different functions through bespoke elements that include an imposing green onyx display unit placed at the center, and different materials and textures, such as marble carpets and concrete on the floors, outlining areas and functions.


Footwear is displayed in one area with floors and seating in a travertine red contrasting with the luminous onyx and concrete shelving. The brand’s ready to wear offer is separated from the main store by concrete shelving and an immersive, box-like effect is reinforced there by red velvet cladding walls and bespoke seating.

The women’s collections on the ground floor.

Leading upstairs is a monumental staircase that anchors the space from the back, with a rationalist, asymmetric composition of marbles, including red Travertino, white Botticino and black Nero Marquina. The staircase’s red stone forms the perimeter of the adjacent ready-to-wear box.

On the second floor, Valentino’s women’s rtw collection displays are defined by a giant red lacquered wardrobe structure and matching seating, contrasting with the checkered floor in white Botticino and black Nero Marquina marbles.
The women’s ready-to-wear area in Valentino’s New York flagship.

Here, there are two VIP areas where the ivory environment references the house’s ateliers and an apartment-like setting, each featuring a sitting room and dressing area. Bespoke seating and furniture are combined with contemporary chandeliers by American lighting specialist Roll & Hill, chairs by Charles Zana and ceramic objects by Massimiliano Pipolo.

The brand’s menswear in the basement is defined by a different color narrative, descending through Botticino, red Travertino and Marquina stairs. Here, stark concrete and black parquet contrast with brightly illuminated shelving.

Next door, a warmer environment is achieved with lilac flooring matched with mirrored columns, bespoke glass displays and angular green onyx shelving. A 1970s DeSede Snake sofa and Mario Bellini’s 1970s Camaleonda sofas and poufs from the same era appear throughout the boutique.
The menswear area of the Valentino Madison Avenue flagship.

FT : French prosecutors examine claims of market manipulation against Sanofi

French prosecutors examine claims of market manipulation against Sanofi
Preliminary probe looks into financial communications around 2017 launch of group’s blockbuster drug Dupixent

France’s financial prosecutor has opened a preliminary investigation of pharmaceutical group Sanofi over allegations of market manipulation related to the launch of its hit drug Dupixent in 2017. 

The prosecutor’s office, which opened the probe in March, is looking into allegations of “dissemination of false or misleading information and price manipulation” concerning financial communications by the group, according to a judicial official. The next step may or may not be a formal investigation, depending on the evidence.

Sanofi said: “We stand by the accuracy of our accounts,” adding that it “reserves the right to take legal action against any false or defamatory allegations”. The probe was first reported by French publication La Lettre A.

Dupixent, which is used to treat asthma and eczema, is Sanofi’s best-selling product. Sales increased 35 per cent in the first nine months of the year to €7.7bn, about a quarter of its total sales for the period. Shortly after he began in the role in September 2019, chief executive Paul Hudson said he wanted to increase sales of the drug and obtain approval for its wider use.

Dupixent sales subsequently quadrupled from €2bn in 2019 to €8.3bn in 2022. However, investors have become worried about the company’s dependence on Dupixent, which it developed with US biotech Regeneron. 

Sanofi has marketed new prescription drugs recently — including haemophilia treatment Altuviiio, and Beyfortus for respiratory syncytial virus in young children — as it works to improve its drug pipeline. The company also acquired a type 1 diabetes treatment as part of its $2.9bn takeover of Provention Bio in March. 

In October, Sanofi announced plans to spin off its consumer care division and increase investment in research and development as part of efforts to focus on new treatments for cancer and rare diseases. Sanofi said the spin-off could take place by the end of next year, most likely through a listing in Paris.

However, a cut to earnings forecasts because of the increased R&D budget caused shares to fall almost 20 per cent in one day, and they have remained in that range.

Shares fell 2 per cent on Tuesday to trade at about €84, giving Sanofi a market capitalisation of €106bn. 

As part of turnaround plans announced when he took over as chief, Hudson said he would shift the company to focus on speciality medicines for cancer and rare diseases, moving it away from the mass-market products that had been its core business. Sanofi has since restructured its consumer division as a standalone business within the company.

WSJ : Your Next Airbnb Host Could Be a Private-Equity Firm

Your Next Airbnb Host Could Be a Private-Equity Firm
TPG’s purchase of single-family homes in Florida, which it rents out nightly, shows how travel habits are evolving

Private-equity giant TPG has started buying single-family homes in Florida vacation markets, where it is renting them out nightly as alternatives to hotels and short-term rentals on websites like Airbnb.

Other private-equity firms, publicly traded companies like Invitation Homes and many institutional investors have been active buyers of single-family homes for years, leasing their properties for a year or longer.

TPG is the rare large investment firm to buy up homes expressly for the purpose of renting them out daily. The firm hired Kasa, a New York-based hospitality firm that manages about 75 properties for daily lodging across the U.S., to manage the Florida homes.

A representative for TPG said that the Florida home-buying project is a “pilot program” and wouldn’t necessarily scale to large numbers if results fall below expectations. But the firm also said that Florida was the test ground, and if the program proved successful it would look to expand to other vacation markets.

TPG’s new program reflects the evolving nature of travel during the pandemic. Corporate travelers are extending their stays by tacking on a day or more of vacation, combining business and leisure trips in a phenomenon the lodging industry calls bleisure travel.

Executives at TPG are betting that bleisure travelers, more flexible remote and hybrid workers, and people traveling with families will want more room, a kitchen and greater privacy, making a spacious home preferable to a hotel suite.

If other big investment firms were to emulate this strategy and rent out homes nightly in major tourist markets, it would represent another potential threat to the hotel industry, which is already facing increased competition from short-term rental companies like Airbnb and Vrbo in many vacation spots.

Hotel operators have acknowledged that many guests want longer-stay options by investing more in extended-stay brands, many of which include larger guest rooms with kitchens and dishwashers to accommodate visits of a week or longer.

“People have more time to do bleisure,” Hilton Chief Executive Chris Nassetta said at a Fast Company event last month.

Both Hilton and Marriott International in recent months have unveiled plans for new extended-stay brands. Hyatt said it has preliminary commitments from developers for more than 100 hotels under its new brand Hyatt Studios, a higher-end extended-stay brand.

At the same time, TPG believes that by renovating the Florida homes, adding new furniture, and professionally managing them through Kasa, the private-equity firm can charge a premium rate compared with individual Airbnb hosts.

Sean Hennessey, head of a hotel consultancy and associate professor at New York University’s Tisch Center of Hospitality, said carving out a new lodging model can be a challenge, and it isn’t clear if the economics will work daily.

But he sensed an opportunity among more affluent travelers who have found the experience of renting from individual homeowners inconsistent.

“Some are disaffected and are looking for a higher level of quality and service,” Hennessey said.

TPG said it has acquired about a dozen homes in Fort Lauderdale, Pompano Beach and other Florida hot spots through one of its real-estate funds. The firm has purchased homes as recently as the first quarter, though along with other institutional investors it has paused most of its buying as soaring mortgage rates and tight supply of inventory for sale has limited opportunities.

“We started this pilot project almost two years ago as part of our longstanding thematic focus on leisure,” a TPG representative said. “As a result of changing market dynamics and the emergence of more compelling opportunities, we are concentrating our time and capital on other areas of the real-estate sector.”

While TPG’s purchase prices for the homes have varied, some have run to more than $1 million. In Fort Lauderdale, for example, the firm paid $1.3 million in March for a five-bedroom home with three bathrooms, a swimming pool and nearly 2,500 total square feet, according to real-estate firm Zillow and Broward County property records. Kasa recently listed the TPG home, which was furnished with a pool table and backyard grill, for $275 a night on Airbnb.

The business model is riskier than renting homes annually. Like hotel operators, TPG will have to resell a property each day. But it also offers greater upside by renting homes on a daily or weekly basis at rates comparable with similar vacation rental homes in the area, TPG said.

Another potential risk is the prospect of public backlash if TPG controls a swath of housing in a particular market.

Some housing advocates say that single-family rental companies and their all-cash offers make them more appealing to sellers, and that they are squeezing an already-tight supply of homes for sale.

While home-buying firms have said they are creating opportunities for renters to live in neighborhoods where they can’t afford to buy, TPG could face similar complaints if the program ramps up and has large ownership in certain towns.

TPG declined to comment on any public reaction.

FT : UK gilts rally after official signals BoE is open to rate cuts in 2024

UK gilts rally after official signals BoE is open to rate cuts in 2024
Yield on short-term British government debt falls to lowest level since June

Short-term UK gilts rallied sharply on Tuesday as traders seized on comments from a senior Bank of England policymaker suggesting it may be willing to consider interest rate cuts in the middle of next year. 

The yield on the interest rate-sensitive two-year gilt fell as much as 0.1 percentage points to 4.6 per cent, the lowest level since June, after comments from Huw Pill, the BoE’s chief economist, late on Monday. Yields move inversely to prices.

The declines come as investors shift their focus from interest rates needing to stay high to curb global price pressures to the prospect of weaker economic growth.

Speaking after markets had closed on Monday, Pill said the BoE could be in a position to “consider or reassess” its stance on rates in the middle of next year depending on how the economic prospects evolved.

Market expectations for cuts next summer were not “unreasonable”, he said, while adding that it was unlikely that nothing would happen over the next nine months to change the outlook.

“BoE’s Pill opened the door for discussions about cuts by suggesting that rate cuts around summer are possible,” said Mohit Kumar, chief European economist at Jefferies. “This is the first time a major central bank has started talking about cuts.”

Government bonds across the US and Europe have rallied sharply over the past week after a string of weaker than expected economic data and downgrades to the BoE’s growth forecasts.

Benchmark US Treasury yields have fallen 0.26 percentage points over the past week, the biggest weekly decline since the collapse of Silicon Valley Bank in March.

“Global yields have been moving together since Friday’s payroll data,” said Lyn Graham-Taylor, a rates strategist at Rabobank. “It’s all variations of a theme — we had a massive bid for bonds on Friday, an unwind on Monday and a bit of a bid again today,” he said.

Official figures from Germany on Tuesday showed industrial production fell for the fourth consecutive month in September, taking third-quarter output in the sector down 2.1 per cent and adding to the gloom over Europe’s largest economy.

Ten-year Bund yields — the benchmark for the eurozone — fell 0.05 percentage points on Tuesday to 2.69 per cent.

Swaps markets are now fully pricing in the first rate cuts for the Federal Reserve and the European Central Bank in June next year. The UK’s first rate cut is priced for August.

Analysts attributed the rally in short-dated gilts to the market bringing forward its expectations for the BoE’s rate cuts. The market has priced in a rate of 4.56 per cent by December next year, down from 4.75 per cent at the start of the month.

“The UK is playing catch-up in terms of pricing in rate cuts for next year as the global narrative has turned to a weaker growth outlook over the last week” said Megum Muhic, senior associate strategist at RBC Capital Markets.

The bank has stressed it expects to keep rates on hold for an extended period as it combats inflation, while declining to define that period specifically. Last week, the bank predicted a stagnant period for UK economic growth next year, while warning that risks to the inflation outlook remained “skewed to the upside”. 

>>> US Research Calls

Research Calls
  • Upgrades:
    • Appian (APPN) upgraded to Buy from Neutral at DA Davidson; tgt raised to $55
    • DigitalOcean (DOCN) upgraded to Buy from Sell at Goldman; tgt $33
    • Hess (HES) upgraded to Buy from Hold at Argus; tgt $171
    • HP Inc. (HPQ) upgraded to Buy from Hold at Edward Jones
    • MacroGenics (MGNX) upgraded to Buy from Neutral at Guggenheim; tgt $12
    • Monday.com (MNDY) upgraded to Buy from Neutral at DA Davidson; tgt $170
    • NatWest Group plc (NWG) upgraded to Outperform from Underperform at Exane BNP Paribas
    • Spirit Realty Capital (SRC) upgraded to Neutral from Underperform at Exane BNP Paribas; tgt $46
    • Ventas (VTR) upgraded to Outperform from Neutral at Wedbush; tgt raised to $51
  • Downgrades:
    • ADTRAN (ADTN) downgraded to Neutral from Buy at Rosenblatt; tgt lowered to $7
    • Ameresco (AMRC) downgraded to Mkt Perform from Outperform at William Blair
    • Codexis (CDXS) downgraded to Hold from Buy at The Benchmark Company
    • Eversource Energy (ES) downgraded to In-line from Outperform at Evercore ISI; tgt lowered to $65
    • FEMSA (FMX) downgraded to Market Perform from Outperform at Itau BBA; tgt $127
    • GOL Linhas Aereas Inteligentes S.A. (GOL) downgraded to Neutral from Buy at Seaport Research Partners
    • Kennedy Wilson (KW) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $6
    • NorthWestern (NWE) downgraded to Neutral from Buy at Ladenburg Thalmann; tgt $51
    • Olo Inc. (OLO) downgraded to Mkt Perform from Outperform at William Blair
    • Peloton (PTON) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $4
    • RE/MAX Holdings (RMAX) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $9
    • Sonos (SONO) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $12
    • UDR (UDR) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $34
    • Ventyx Biosciences (VTYX) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $8
    • Ventyx Biosciences (VTYX) downgraded to Hold from Buy at Stifel; tgt $6
    • Zentalis Pharma (ZNTL) downgraded to Market Perform from Outperform at Leerink Partners; tgt $15
  • Others:
    • Accenture (ACN) initiated with a Neutral at UBS; tgt $333
    • Alight (ALIT) initiated with a Buy at UBS; tgt $10
    • ASGN Incorporated (ASGN) initiated with a Sell at UBS; tgt $72
    • Automatic Data (ADP) initiated with a Neutral at UBS; tgt $235
    • Birkenstock Holding Plc (BIRK) initiated with an Outperform at Evercore ISI; tgt $47
    • BridgeBio Pharma (BBIO) initiated with a Buy at Citigroup; tgt $42
    • Burlington Stores (BURL) initiated with an Outperform at Evercore ISI; tgt $150
    • Canada Goose (GOOS) initiated with an In-line at Evercore ISI; tgt $11
    • Ceridian HCM (CDAY) initiated with a Buy at UBS; tgt $87
    • Clearwater Analytics (CWAN) initiated with a Buy at UBS; tgt $24
    • Cognizant Tech (CTSH) initiated with a Neutral at UBS; tgt $70
    • Enfusion (ENFN) initiated with a Neutral at UBS; tgt $9
    • Ferrari (RACE) initiated with an Outperform at Evercore ISI; tgt $375
    • Foot Locker (FL) initiated with an In-line at Evercore ISI; tgt $23
    • Gap (GPS) initiated with an Outperform at Evercore ISI; tgt $17
    • GFL Environmental (GFL) initiated with an Outperform at TD Cowen; tgt $40
    • Granite Ridge Resources (GRNT) initiated with a Buy at BofA Securities; tgt $9
    • Home Depot (HD) initiated with a Sector Perform at RBC Capital Mkts; tgt $303
    • Intapp (INTA) initiated with a Buy at UBS; tgt $45
    • Iron Mountain (IRM) initiated with a Sell at UBS; tgt $44
    • Kohl's (KSS) initiated with an In-line at Evercore ISI; tgt $24
    • Lowe's (LOW) initiated with a Sector Perform at RBC Capital Mkts; tgt $194
    • lululemon athletica (LULU) initiated with an Outperform at Evercore ISI; tgt $475
    • Macy's (M) initiated with an In-line at Evercore ISI; tgt $13
    • NIKE (NKE) initiated with an Outperform at Evercore ISI; tgt $124
    • Nordstrom (JWN) initiated with an In-line at Evercore ISI; tgt $14
    • New Oriental Education & Technology (EDU) initiated with an Overweight at Morgan Stanley; tgt $81
    • Newmont Goldcorp (NEM) resumed with an Outperform at BMO Capital Markets; tgt lowered to $58
    • On (ONON) initiated with an Outperform at Evercore ISI; tgt $38
    • Paychex (PAYX) initiated with a Neutral at UBS; tgt $120
    • Paycom Software (PAYC) initiated with a Buy at UBS; tgt $235
    • Paycor (PYCR) initiated with a Neutral at UBS; tgt $20
    • Paylocity (PCTY) initiated with a Neutral at UBS; tgt $160
    • PVH (PVH) initiated with an Outperform at Evercore ISI; tgt $100
    • Rackspace Technology (RXT) initiated with a Neutral at UBS; tgt $1.40
    • Ralph Lauren (RL) initiated with an Outperform at Evercore ISI; tgt $130
    • Revolve Group (RVLV) initiated with an In-line at Evercore ISI; tgt $14
    • Robert Half (RHI) initiated with a Sell at UBS; tgt $60
    • Ross Stores (ROST) initiated with an Outperform at Evercore ISI; tgt $140
    • Savara (SVRA) initiated with a Buy at Guggenheim; tgt $7
    • SS&C Techs (SSNC) initiated with a Buy at UBS; tgt $72
    • TAL Education (TAL) initiated with an Overweight at Morgan Stanley; tgt $10.50
    • Tapestry (TPR) initiated with an In-line at Evercore ISI; tgt $30
    • Thomson Reuters (TRI) initiated with a Buy at UBS; tgt $153
    • TJX (TJX) initiated with an Outperform at Evercore ISI; tgt $105
    • TriNet Group (TNET) initiated with a Neutral at UBS; tgt $110
    • Ulta Beauty (ULTA) initiated with an Outperform at Evercore ISI; tgt $460
    • Under Armour (UAA) initiated with an In-line at Evercore ISI; tgt $8
    • V.F. Corp (VFC) initiated with an In-line at Evercore ISI; tgt $17
    • Victoria's Secret (VSCO) resumed with an In-line at Evercore ISI; tgt $20

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • TMDX +40.4%, UIS +27%, AYX +17%, VMEO +13.4%, PAY +12.2%, PRAA +10.5%, TRIP +10.2%, CLVT +10.2%, ROVR +9.3%, SEAT +8.6%, CELH +8%, RNG +7.7%, TASK +7.7%, VECO +7.4%, DCGO +7.4%, MTTR +7.1%, HIMS +6.7%, BLDP +6.5%, QTRX +6.5%, IFF +6%, ATEC +4.8%, NEO +4.4%, SKWD +4.3%, AAON +4.1%, CBT +3.3%, TDC +3.2%, CTRA +3%, MGNX +2.9%, UBS +2.6%, ACMR +2.6%, IDYA +2.6%, VLRS +2.4%, KIDS +2.2%, HALO +2.1%, AMK +2%, DO +1.9%, FSK +1.8%, JELD +1.8%, STEP +1.6%, NEE +1.3%, FN +1.3%, O +1.2%, CRSP +1.1%, COHR +1.1%
  • Gapping down:
    • VTYX -73.5%, AMRC -22%, AURA -17.3%, EVCM -15.6%, SANM -11.9%, ALPN -10.7%, ATSG -9.7%, ADTN -9.1%, ERO -7.8%, SWAV -7.4%, CPG -5.9%, MMS -5.6%, MED -5.2%, COCO -4.9%, BATRA -4.8%, HNRG -4.6%, OLO -4.3%, OSCR -3.7%, CWAN -3.6%, DHT -2.6%, CXW -2.5%, WELL -2.4%, CPRI -2.3%, VRTX -2.3%, CNM -2%, ICHR -2%, ICUI -2%, AZPN -1.7%, AOSL -1.7%, CE -1.7%, VTLE -1.5%, EPIX -1.5%, OPK -1.5%, MYGN -1.5%, CG -1.5%, GT -1.4%, RCKT -1.4%, VAL -1.3%, GEO -1.1%, HL -1%, PAX -1%, TSLA -0.8%