>>> US Research Calls

Research Calls
  • Upgrades:
    • Ameresco (AMRC) upgraded to Buy from Neutral at ROTH MKM; tgt $44
    • American Express (AXP) upgraded to Neutral from Sell at Citigroup; tgt raised to $154
    • Chewy (CHWY) upgraded to Neutral from Sell at UBS; tgt lowered to $20
    • Gap (GPS) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $16
    • Hexcel (HXL) upgraded to Buy from Hold at Vertical Research; tgt $72
    • Livent (LTHM) upgraded to Buy from Hold at Deutsche Bank; tgt lowered to $21
    • PACCAR (PCAR) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $115
    • Progressive (PGR) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $180
    • Scholar Rock (SRRK) upgraded to Buy from Hold at Jefferies; tgt $20
    • SJW (SJW) upgraded to Equal Weight from Underweight at Wells Fargo; tgt lowered to $61
    • TC Energy (TRP) upgraded to Overweight from Equal Weight at Wells Fargo
    • Veeva Systems (VEEV) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $229
    • Verizon (VZ) upgraded to Overweight from Equal Weight at Barclays; tgt raised to $38
  • Downgrades:
    • Albemarle (ALB) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $155
    • Affirm (AFRM) downgraded to Sell from Neutral at Compass Point; tgt $13
    • Amarin (AMRN) downgraded to Hold from Buy at Jefferies; tgt lowered to $1
    • BellRing Brands (BRBR) downgraded to Equal-Weight from Overweight at Stephens; tgt raised to $47
    • California Water (CWT) downgraded to Underweight from Equal Weight at Wells Fargo; tgt lowered to $47
    • Citizens Financial Group (CFG) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $26
    • Corning (GLW) downgraded to Hold from Buy at Deutsche Bank; tgt lowered to $30
    • Enbridge (ENB) downgraded to Underweight from Equal Weight at Wells Fargo
    • Etsy (ETSY) downgraded to Neutral from Buy at Citigroup; tgt lowered to $67
    • EVgo Inc. (EVGO) downgraded to Market Perform from Outperform at TD Cowen; tgt lowered to $4
    • Farfetch (FTCH) downgraded to Sell from Buy at Societe Generale; tgt $1.50
    • FREYR Battery (FREY) downgraded to Market Perform from Outperform at TD Cowen; tgt lowered to $7
    • Livent (LTHM) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $19
    • Nicolet Bankshares (NIC) downgraded to Equal-Weight from Overweight at Stephens; tgt $81
    • Regions Fincl (RF) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $15
    • TransUnion (TRU) downgraded to In-line from Outperform at Evercore ISI
    • TransUnion (TRU) downgraded to Underperform from Buy at BofA Securities; tgt lowered to $44
  • Others:
    • Enerpac Tool Group (EPAC) initiated with a Buy at CL King; tgt $35
    • SharkNinja (SN) initiated with a Buy at Goldman; tgt $52
    • Syndax Pharmaceuticals (SNDX) initiated with a Buy at BofA Securities; tgt $29
    • Tourmaline (TRML) initiated with an Overweight at Piper Sandler; tgt $65
    • Utz Brands (UTZ) initiated with a Buy at Jefferies; tgt $15

>>> Hess beats by $0.42, misses on revs (155.22)

Hess beats by $0.42, misses on revs (155.22)
  • Reports Q3 (Sep) earnings of $1.64 per share, excluding non-recurring items, $0.42 better than the FactSet Consensus of $1.22; revenues fell 27.3% year/year to $2.29 bln vs the $2.68 bln FactSet Consensus.
  • Oil and gas net production was 395,000 barrels of oil equivalent per day (boepd), up 13% from 351,000 boepd, proforma for asset sold, in the third quarter of 2022. Bakken net production was 190,000 boepd, up 14% from 166,000 boepd in the third quarter of 2022; Guyana net production was 108,000 barrels of oil per day (bopd), compared with 98,000 bopd in the prior-year quarter.
  • Guidance: Net production is now forecast to be approximately 390,000 boepd, which is at the upper end of the previous guidance range of 385,000 boepd to 390,000 boepd. E&P capital and exploratory expenditures are expected to be approximately $4.1 billion, up from previous guidance of $3.7 billion, reflecting the decision to purchase the Liza Unity floating production, storage and offloading vessel (FPSO) in the fourth quarter of 2023 instead of the first quarter of 2024.
Note: Company announced merger with Chevron (CVX) earlier this week (see 10/23 5:41).

>>> Boeing misses by $0.08, reports revs in-line; reaffirms FY23 OCF and FCF gui

Boeing misses by $0.08, reports revs in-line; reaffirms FY23 OCF and FCF guidance; results reflects lower 737 deliveries and abnormal costs; lowers 737 unit delivery guidance (182.36)
  • Reports Q3 (Sep) core (non-GAAP) loss of $(3.26) per share, excluding non-recurring items, $0.08 worse than the FactSet Consensus of ($3.18); revenues rose 13.5% year/year to $18.10 bln vs the $18.01 bln FactSet Consensus. Q3 results were impacted by unfavorable defense performance and lower 737 deliveries.
  • Co reaffirms FY23 guidance of $4.5-$6.5 bln of operating cash flow and $3-5 bln of free cash flow (non-GAAP); co still expects to deliver 70-80 787 and now expects to deliver 375-400 737 airplanes in FY23 vs 400-450 prior guidance.
  • "We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term," said Dave Calhoun, Boeing president and chief executive officer. "We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand."
  • Segment Overview:
    • Commercial Airplanes revenue rose 25% yr/yr to $7.88 bln with operating margin of (8.6)%, which reflects lower 737 deliveries as well as abnormal costs and period expenses, including R&D.
      • On the 737 program, during the quarter a supplier non-conformance was identified on the aft pressure bulkhead section of certain 737 airplanes. This is not an immediate safety of flight issue and the in-service fleet can continue operating safely. Near-term deliveries and production will be impacted as the program performs necessary inspections and rework, and the company now expects to deliver 375-400 airplanes this year. On production, suppliers are continuing with planned rate increases, and the company expects to complete the final assembly transition to 38 per month by year-end, with plans to increase to 50 per month in the 2025/2026 timeframe.
      • The 787 program is now transitioning production to five per month and plans to increase to 10 per month in the 2025/2026 timeframe. The program still expects to deliver 70-80 airplanes this year.
      • During the quarter, Commercial Airplanes booked 398 net orders, including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes for United Airlines, and 39 787 airplanes for Saudi Arabian Airlines. Commercial Airplanes delivered 105 airplanes during the quarter and backlog included over 5,100 airplanes valued at $392 bln.
    • Defense, Space & Security segment revenue rose 3% yr/yr to $5.48 bln. Results were impacted by a $482 mln loss on the VC-25B program driven by higher estimated manufacturing cost related to engineering changes and labor instability, as well as resolution of supplier negotiations. Results were also impacted by $315 mln of losses on a satellite contract due to estimated customer considerations and increased costs.
    • Global Services revenue rose 9% yr/yr to $4.81 bln.

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • LRN +15.9%, VRT +10.3%, COOP +9.1%, BDN +6.9%, DB +6.3%, LTH +5%, TNL +4.7%, WAB +4.1%, MSFT +3.8%, SAN +3.4%, BA +3.2%, MHO +3.2%, SNAP +3.1%, HIW +2.9%, WFRD +2.8%, ASTS +2.1% (guidance), NTB +2%, RHI +2%, RNST +2%, IMAX +2%, OMF +1.9%, GD +1.9%, CB +1.7%, LYG +1.5%, ROP +1.5%, ADC +1.3%, TMUS +1.3%, MNRO +1.2%, WNC +1.1%, HES +1%, AMED +0.9%, JBT +0.8%, RRC +0.7%, GPI +0.7%
Other news:
  • KGS +3.7% (initiates dividend)
  • NOG +2.8% (provides preliminary financial and operational updates for Q3; Q3 Cap-ex of $215 -218 million)
  • MASS +1.4% (wins USAF purchase orders)
  • MWA +0.9% (increases dividend)
  • QCOM +0.8% (MU now shipping production samples for QCOM's latest flagship mobile platform)
Analyst comments:
  • SRRK +9.4% (upgraded to Buy from Hold at Jefferies)
  • GPS +3.8% (upgraded to Overweight from Equal Weight at Wells Fargo)
  • HXL +2.1% (upgraded to Buy from Hold at Vertical Research)
  • SJW +2% (upgraded to Equal Weight from Underweight at Wells Fargo)
  • VEEV +1.7% (upgraded to Overweight from Equal Weight at Wells Fargo)
  • CHWY +1.1% (upgraded to Neutral from Sell at UBS)

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • VICR -15.7%, ATEC -15.4% (also $150 mln stock offering), CHX -13.2%, CSGP -8.5%, RES -8.3%, ENVA -7.9%, HA -7.7%, TXN -6.1%, GOOG -5.9%, MANH -5.5%, TDOC -5.4%, SLGN -5.4%, EDU -5%, CSTM -5%, SF -5%, ROIC -4.5%, ODFL -4.1%, BYD -3.6%, HCSG -3.6%, CNX -3%, USNA -2.6%, LAD -2.5%, PAG -2.5%, CME -2.5%, GBX -2.1%, RUSHA -2%, TRMK -2%, VLRS -2%, MSM -2%, FTV -1.8%, FFIV -1.7%, TDY -1.6%, ADP -1.4%, ALKS -1.3%, V -1.2% (also authorizes new $25 bln share repurchase program; also increases dividend), IART -0.9%, TMO -0.9%
Other news:
  • IDYA -11% (prices offering of 5.0 mln shares of common stock at $23.50 per share)
  • SPWR -9.1% (discloses material weakness in internal control; to restate select financials)
  • AFRM -7% (Apple Pay Later now available in US according to Apple Insider)
  • SHEN -4.7% (increases dividend; to acquire Horizon Telcom for cash and stock)
  • SBSW -3.9% (enters Section 189 consultations regarding four shafts and associated support services at its SA PGM operations)
  • SQ -2.9% (after disappointing Worldline guidance)
  • PYPL -2.2% (after disappointing Worldline guidance)
  • ERII -2.1% (CEO to step down)
  • MARA -1.7% (files $750 mln mixed shelf securities offering)
  • TDY -1.6% (names new CEO and new COO; Robert Mehrabian to become Exec Chairman)
Analyst comments:
  • ETSY -3% (downgraded to Neutral from Buy at Citigroup)
  • TRU -2.9% (downgraded to Underperform from Buy at BofA Securities)
  • FTCH -2.7% (downgraded to Sell from Buy at Societe Generale)
  • ALB -2% (downgraded to Neutral from Overweight at Piper Sandler)
  • FREY -1.2% (downgraded to Market Perform from Outperform at TD Cowen)
  • GLW -1% (downgraded to Hold from Buy at Deutsche Bank)

>>> Europe : Brokers Upgrades & Downgrades - 25th of October 2023 V2(+)

>>> Up
* AB Dynamics Raised to Hold at Jefferies; PT 1,220 pence
* BNP Paribas Bank Polska Raised to Buy at Citi; PT 78 zloty
* DSV Raised to Hold at HSBC; PT 1,150 kroner
* Finnair Raised to Hold at Carnegie (+)
* Munters Raised to Buy at ABG; PT 145 kronor
* Norsk Hydro Raised to Neutral at SpareBank; PT 60 kroner
* Paccar Raised to Buy at Deutsche Bank; PT $115
* PKO Bank Polski Raised to Buy at Citi; PT 50 zloty
* Ponsse Raised to Hold at Nordea
* Santander Bank Polska Raised to Buy at Citi; PT 464 zloty
* SIG Group Raised to Neutral at BNPP Exane; PT 18.70 Swiss francs
* Verizon Raised to Overweight at Barclays
* XP Power Raised to Buy at Berenberg; PT 1,400 pence

>>> Down
* Atria Cut to Reduce at Inderes; PT 11.50 euros
* CAB Payments Cut to Hold at Liberum; PT 100 pence (+)
* Cherry PT Cut to 5.70 euros at Hauck & Aufhaeuser (+)
* Kering Cut to Hold at SocGen; PT 430 euros (+)
* UPM-Kymmene Cut to Reduce at Inderes; PT 32 euros

>>> Initiation
* AT&S Reinstated Buy at Deutsche Bank; PT 34 euros
* Oxford Instruments Rated New Outperform at Davy; PT 2,200 pence
* Spectris Rated New Neutral at Davy; PT 3,300 pence
* Xaar Rated New Outperform at Davy; PT 200 pence
* XP Power Rated New Outperform at Davy; PT 1,940 pence

>>> Call
* AB Dynamics Upgraded at Jefferies on More Supportive Valuation
* Forbo Indicated Lower; ZKB Says Profit Warning Dents Confidence (+)
* Siemens Energy PT Slashed at Deutsche Bank on Wind Unit Troubles (+)
* SSAB Shares to Outperform on 3Q Beat, Buyback: Morgan Stanley (+)
* Worldline Results Are a Miss ‘Across The Board,’ Jefferies Says (+)