>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • SCHL -17.9%
Other news:
  • AVGR -9% (determined again to increase the amount available for sale under the ATM Agreement, up to an additional aggregate offering price of $320,507)
  • VATE -1.3% (COO to resign)
  • LOVE -0.9% (confirms notification from Nasdaq related to delayed form 10-Q Filing; has 60 calendar days (until November 17, 2023) to submit a plan to regain compliance)
  • FULT -0.7% (files mixed shelf securities offering)
  • CMP -0.5% (stock offering by selling shareholder)
Analyst comments:
  • CHCT -0.6% (downgraded to Neutral from Outperform at Robert Baird)

>>> US Gapping up

Gapping up
News:
  • RNLX +9% (signed a contract with BlueCross and BlueShield of Texas to expand insurance coverage of KidneyIntelX in the state of Texas)
  • HPK +6.6% (CEO bought 500,000 shares)
  • ATEX +5.9% (authorized new $250 mln share repurchase program)
  • FFIE +5.2% (Announces Management Stock Purchase Plan)
  • SGEN +3.9% (Seagen and Merck (MRK) report PADCEV and KEYTRUDA significantly improve Overall Survival and Progression-Free Survival in patients with previously untreated advanced bladder cancer in Pivotal Phase 3 EV-302 Trial)
  • ATS +3.7% (to acquire Avidity Science for $195 mln)
  • ASLN +3% (Announces Acceptance of Late Breaker Abstract on Eblasakimab Phase 2b Results as Oral Presentation and Three Additional Abstracts at 32nd European Academy of Dermatology and Venereology Congress)
  • ZYME +2.8% (ZYME and BGNE terminate collaboration agreement for zanidatamab zovodotin)
  • AZN +2.8% (reports first Phase III results for datopotamab deruxtecan; Plans for global regulatory submissions underway)
  • DDD +2.4% (CFO to step down)
  • EBAY +2% (issues statement regarding Adevinta comments)
  • PRPL +1.9% (names new CFO)
  • ATVI +1.8% (UK CMA provides update on approval Microsoft (MSFT)/ Activision Blizzard)
  • X +1.2% (Canada's Stelco weighs bid for US Steel according to Bloomberg)
  • AMZN +1% (provides Prime Video update - starting in early 2024 Prime Video shows and movies will include limited advertisements)
  • MAS +0.7% (names new CFO)
Analyst comments:
  • CDE +4.7% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
  • YUMC +2.7% (upgraded to Buy from Hold at Jefferies)
  • W +2.4% (upgraded to Mkt Perform from Underperform at Bernstein)
  • RL +0.8% (initiated with an Outperform at Raymond James)

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • FFIE +5.7%, HPK +5.4%, SGEN +3.2%, ZYME +2.8%, LUNR +2.7%, AZN +2.6%, DDD +2.4%, NVTS +2.2%, PRPL +1.9%, EBAY +1.9%, ATVI +1.8%, X +1.5%, TXN +0.7%
  • Gapping down:
    • SCHL -19.4%, AVGR -6.9%, VATE -1.3%, FULT -0.7%, CMP -0.5%

WWD : L’Oréal to Invest in Chinese Biotech Company

L’Oréal to Invest in Chinese Biotech Company
The beauty giant plans to take a minority stake in Shinehigh Innovation, specializing in supramolecular chemistry.

PARIS – L’Oréal has agreed to take a minority stake in Shinehigh Innovation, a Chinese innovation-led biotech company specializing in supramolecular chemistry.

This marks the first open innovation investment the beauty giant has made through Shanghai Meicifang Investment Co. Ltd., L’Oréal China’s investment company, with support from Business Opportunities for L’Oréal Development, or BOLD, which is the group’s strategic innovation venture capital fund.

It is also the first investment from L’Oréal’s Big Bang Tech Innovation Challenge, which the company launched four years ago in China.

Scientist Jiaheng Zhang founded Shinehigh Innovation in China in 2017.

“Its breakthrough smart self-assembling technology allows previously impossible ingredient combinations, resulting in end-products with greater efficacy and sustainability,” L’Oréal said in a statement released Friday.

“The partnership will enable L’Oréal to unlock the full potential of raw material, overcoming known limitations, such as incompatability and delivery, to develop innovative skin, hair and scalp formulations with a wider range of benefits,” the company said.

“The paced and unique ecosystem of startups in China is an incredibly important enabler for our future strategy of innovation at L’Oréal,” said Barbara Lavernos, deputy chief executive officer of L’Oréal in charge of research, innovation and technology. “This partnership will enable us, thanks to their world-leading application of supramolecular technology in the beauty industry, to bring breakthrough new performances to the beauty market.”

L’Oréal and Shinehigh Innovation have jointly carried out research on the supramolecular development of multiple active raw materials in the fields of skin care, makeup, hair care and hair coloration.

“We have longterm confidence in the Chinese market. After 25 years’ development, China has become the group’s inspiration cradle of future innovation,” said Fabrice Megarbane, president of L’Oréal North Asia Zone and CEO of L’Oréal China.

“Under our firm belief in co-creation, we initiated Big Bang four years ago, and founded L’Oréal China’s investment company Meicifang last year,” he continued. “I am so thrilled to see all our efforts have harvested fruits today: investing in Shinehigh Innovation, our 2022 Big Bang winner. Now Big Bang has been extended to the North Asia Zone, and we expect to invent the future of beauty with more partners in North Asia and the global beauty market.”

FT : UK recession risk increases, S&P data shows

UK recession risk increases, S&P data shows
More businesses than forecast reported a contraction in latest purchasing managers’ survey

UK economic activity slipped at the fastest pace since January 2021, according to a closely watched survey that suggests the chances of a recession have increased.

The S&P Global/Cips purchasing managers’ index fell to 46.8 in September, down from 48.6 in August, and the lowest in 32 months. The pound fell 0.4 per cent against the dollar to $1.2249, close to its recent six-month low.

The PMI reading was worse than the 48.7 that was forecast by economists polled by Reuters, and well below 50, which indicates a majority of businesses reporting a contraction in activity.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said the disappointing PMI Flash UK Composite Output for September meant “a recession is looking increasingly likely in the UK”.

>>> Europe : Brokers Upgrades & Downgrades - 22nd of September 2023 V2(+)

>>> Up
* Allianz Raised to Overweight at JPMorgan; PT 270 euros
* Eni Raised to Overweight at JPMorgan; PT 19 euros
* Repsol Raised to Neutral at JPMorgan; PT 16.50 euros
* Repsol Raised to Outperform at Mediobanca SpA; PT 20 euros
* Saras Raised to Outperform at Mediobanca SpA; PT 1.80 euros
* TotalEnergies Raised to Neutral at Mediobanca SpA
* VW Raised to Buy at Stifel; PT 149 euros
* Yara Raised to Buy at ABG; PT 475 kroner

>>> Down
* Boeing Cut to Hold at CFRA; PT $210
* Demant Cut to Sell at Jyske Bank; PT 290 kroner (+)
* Galp Cut to Underperform at Mediobanca SpA; PT 13.50 euros
* Hochtief Cut to Hold at SocGen; PT 103.60 euros
* Lancashire Cut to Neutral at JPMorgan; PT 715 pence
* Phoenix Group Cut to Underweight at JPMorgan; PT 500 pence
* Stora Enso Cut to Underperform at BNPP Exane; PT 9.70 euros
* Tenaris Cut to Neutral at Mediobanca SpA; PT 18.50 euros

>>> Initiation
* Autostore Rated New Overweight at Barclays; PT 24 kroner
* Jungheinrich Rated New Overweight at Barclays; PT 36 euros
* Kion Rated New Equal-Weight at Barclays; PT 37 euros
* Ralph Lauren Rated New Outperform at Raymond James; PT $135
* Shurgard Rated New Outperform at Oddo BHF; PT 48 euros
* Thyssenkrupp Nucera Rated New Buy at SocGen; PT 29 euros

>>> Call

>>> Stoxx 600 Pre-Market Indications

  • MTU Aero (MTX TH) +1.3%
    • MTU Aero Raised to Buy at Citi; PT 217 euros
  • HSBC (HBC1 TH) +1.3%
  • Rio Tinto (RIO1 TH) +1.1%
    • Watch European Miners as Chinese Stimulus Hopes Lift Iron Ore
  • VW (VOW3 TH) +0.7%
    • VW Raised to Buy at Stifel; PT 149 euros
  • Voestalpine (VAS TH) +0.6%
    • Watch European Miners as Chinese Stimulus Hopes Lift Iron Ore
  • BAT (BMT TH) +0.6%
  • Allianz (ALV TH) +0.6%
  • Porsche AG (P911 TH) -0.8%
  • Lufthansa (LHA TH) -0.8%
  • TotalEnergies (TOTB TH) -0.8%
  • Siemens Energy (ENR TH) -0.8%
  • Equinor (DNQ TH) -0.9%
  • TUI (TUI1 TH) -1%
    • TUI Profit Recovery Keeps Sub-3x Gross-Leverage Target Honest
  • LEG Immobilien (LEG TH) -1%
  • Hochtief (HOT TH) -2.2%
    • Hochtief Cut to Hold at SocGen; PT 103.60 euros
  • Stora Enso (ENUR TH) -3.2%
    • Stora Enso Cut to Underperform at BNPP Exane; PT 9.70 euros
  • Nel (D7G TH) -3.5%
    • Nel Cut to Underperform at Bernstein; PT 9 kroner

>>> TradeGate Pre-Market Indications

DAX:
  • MTU Aero (MTX TH) +1.3%
    • MTU Aero Raised to Buy at Citi; PT 217 euros
  • VW (VOW3 TH) +1.1%
  • Allianz (ALV TH) +0.6%
    • Allianz Raised to Overweight at JPMorgan; PT 270 euros
  • Porsche (PAH3 TH) +0.5%
  • Deutsche Telekom (DTE TH) -0.5%
  • RWE (RWE TH) -0.6%
  • Siemens Energy (ENR TH) -0.8%
MDAX:
  • Jungheinrich (JUN3 TH) +2%
    • Jungheinrich Rated New Overweight at Barclays; PT 36 euros
  • Lanxess (LXS TH) +0.5%
  • Lufthansa (LHA TH) -0.6%
  • TAG Immobilien (TEG TH) -1.2%
  • Hochtief (HOT TH) -1.6%
    • Hochtief Cut to Hold at SocGen; PT 103.60 euros
SDAX:
  • Varta (VAR1 TH) +0.8%
  • Ceconomy (CEC TH) +0.7%
  • Aroundtown (AT1 TH) -2.5%