>>> US Research Calls

Research Calls

  • Upgrades:
    • CareDx (CDNA) upgraded to Outperform from Mkt Perform at Raymond James; tgt $12
    • Edison (EIX) upgraded to Neutral from Sell at Ladenburg Thalmann
    • Hannon Armstrong Sust. Infr. (HASI) upgraded to Buy from Neutral at BofA Securities; tgt $27
    • Hexcel (HXL) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $85
    • NextDecade (NEXT) upgraded to Buy from Hold at Stifel; tgt raised to $9
    • Pharvaris N.V. (PHVS) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $34
    • Shore Bancshares (SHBI) upgraded to Buy from Neutral at Janney
  • Downgrades:
    • Agiliti (AGTI) downgraded to Neutral from Buy at Citigroup; tgt lowered to $13
    • BioXcel Therapeutics (BTAI) downgraded to Neutral from Buy at Mizuho; tgt lowered to $4
    • Design Therapeutics (DSGN) downgraded to Market Perform from Outperform at SVB Securities; tgt $6
    • Design Therapeutics (DSGN) downgraded to Neutral from Outperform at Wedbush; tgt lowered to $6
    • Design Therapeutics (DSGN) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $7
    • Forward Air (FWRD) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $80
    • GOL Linhas Aereas Inteligentes S.A. (GOL) downgraded to Neutral from Buy at Citigroup; tgt $4.20
    • HF Sinclair (DINO) downgraded to Neutral from Buy at BofA Securities; tgt raised to $65
    • Marathon Petroleum (MPC) downgraded to Neutral from Buy at BofA Securities; tgt raised to $162
    • PBF Energy (PBF) downgraded to Neutral from Buy at BofA Securities; tgt raised to $56
    • PennantPark Investment (PNNT) downgraded to Neutral from Buy at Compass Point; tgt $6.75
    • Valero Energy (VLO) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $152
  • Others:
    • Computer Programs (CPSI) initiated with an Overweight at Cantor Fitzgerald; tgt $24
    • Cytokinetics (CYTK) initiated with an Outperform at SVB Securities; tgt $58
    • Euronav (EURN) initiated with an Overweight at JP Morgan; tgt $21.50
    • Frontline (FRO) initiated with a Neutral at JP Morgan; tgt $20
    • New Found Gold Corp. (NFGC) initiated with a Buy at ROTH MKM; tgt $9
    • ODDITY Tech Ltd. (ODD) initiated with an Equal Weight at Barclays; tgt $57
    • ODDITY Tech Ltd. (ODD) initiated with an Overweight at KeyBanc Capital Markets; tgt $60
    • R1 RCM (RCM) initiated with an Overweight at Cantor Fitzgerald; tgt $20
    • Savers Value Village (SVV) initiated with a Buy at Loop Capital; tgt $31
    • Turnstone Biologics (TSBX) initiated with a Buy at BofA Securities; tgt $18
    • Turnstone Biologics (TSBX) initiated with an Overweight at Piper Sandler; tgt $20

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • DSGN -45.4%, GETY -15.8%, SE -12.5%, ONON -7.9%, TME -7.3%, HRTX -6.6%, DH -5.5%, SLRN -5%, RUM -1.8%

Other news:

  • DFS -6.7% (CEO resigning)
  • DXLG -4.9% (extends contract with Harvey Kanter to continue as its President and CEO until August 2026)
  • GRTS -2.8% (Gritstone bio and Genevant Sciences announce option and license agreement)
  • HRI -1.7% (Carl Icahn discloses closed position)
  • ZVIA -1.6% (appoints interim CFO)
  • AKAM -1.1% (to offer $1.0 bln convertible notes)
  • SLB -0.9% (files mixed shelf)
  • BSY -0.8% (acquires Blyncsy)

Analyst comments:

  • BTAI -3.7% (downgraded to Neutral from Buy at Mizuho)
  • DINO -2.3% (downgraded to Neutral from Buy at BofA Securities)
  • PBF -2.3% (downgraded to Neutral from Buy at BofA Securities)
  • GOL -2.2% (downgraded to Neutral from Buy at Citigroup)
  • VLO -2.1% (downgraded to Neutral from Buy at BofA Securities)
  • AGTI -2% (downgraded to Neutral from Buy at Citigroup)
  • PNNT -1.9% (downgraded to Neutral from Buy at Compass Point)
  • MPC -1.8% (downgraded to Neutral from Buy at BofA Securities)
  • FWRD -1% (downgraded to Neutral from Outperform at Robert Baird)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • GRND +22.4%, ACLX +8.7%, NVTS +6.7%, PSFE +5.8%, SDRL +3.9%, XP +2.4%, LEGN +0.9%, RSKD +0.9%, LLAP +0.8%

Other news:

  • LL +9.9% (exploring strategic alternatives)
  • SKY +3% (Skyline Champion and ECN Capital announce strategic relationship)
  • DHI +2.9% (Berkshire Hathaway discloses new position)
  • NVDA +1.8% (Saudi Arabia and UAE buying NVDA chips for AI according to FT)
  • LEN +1.6% (Berkshire Hathaway discloses new position)
  • CSAN +1.2% (approved a new share buyback program for the common shares issued by the Company)
  • NVTA +0.9% (appoints interim CFO)

Analyst comments:

  • CDNA +3.7% (upgraded to Outperform from Mkt Perform at Raymond James)
  • HASI +2.2% (upgraded to Buy from Neutral at BofA Securities)
  • SHBI +1.3% (upgraded to Buy from Neutral at Janney)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • GRND +23.5%, LL +12.5%, ACLX +9.9%, NVTS +7.4%, HUYA +6.7%, SDRL +4.3%, SKY +3%, DHI +2.8%, SWX +2.8%, LLAP +2.5%, XP +2.4%, LEN +2.1%, BOC +1.8%, LEGN +0.9%, NVDA +0.7%
  • Gapping down:
    • DSGN -36.3%, GETY -18.7%, ONON -7.4%, DFS -5.8%, DH -5.5%, SLRN -5%, TME -4.4%, HRI -1.7%, ZVIA -1.6%, CRC -1.2%, INTC -0.9%, BSY -0.8%, AKAM -0.6%, OTLK -0.6%, SLB -0.6%

FT : US government-backed start-up on course to become mining unicorn

US government-backed start-up on course to become mining unicorn
TechMet set for $1bn valuation in boost to west’s challenge of China’s dominance in critical minerals sector

A US government-backed mining start-up has raised $200mn in fresh equity, putting it on course to become one of the sector’s few unicorns with a valuation of more than $1bn.

The fundraising for TechMet, a Dublin-based private investment vehicle for nickel, lithium and other metals will help the west combat China’s dominance of critical minerals supplies for clean energy technologies.

The fundraising comes at a challenging time for early-stage mining companies as higher interest rates have squeezed available capital for developing expensive projects.

The investment activities of TechMet are also intended to address feared shortages of minerals later this decade and beyond as electric cars and wind farms are rolled out.

Demand for critical minerals is expected to grow by three and a half times by 2030, which would keep the world on track to reach net zero targets, according to the International Energy Agency.

However, mining projects can take many years, even decades, to develop, which could lead to shortages.

Brian Menell, chair of TechMet, said funds would be used to accelerate development of the 10 projects in its portfolio that would help reduce the west’s dependence on China for sourcing minerals including graphite, vanadium and rare earths.

“It’s a massive problem for the world as where is going to come the tens and tens of billions of dollars that is needed to be invested yesterday for us not to hit a structural deficit of lithium, nickel and cobalt,” he said.

He added that his company aims “to balance China’s overwhelming dominance across all of these critical minerals supply chains”.

The Biden administration’s $369bn Inflation Reduction Act and Bipartisan Infrastructure Law have offered up juicy incentives for companies to set up minerals processing facilities in the US but TechMet helps the country bolster critical raw material supplies from mines globally.

US-based S2G Ventures, a venture capital arm of the Walton family who founded Walmart, was one of the new shareholders to join TechMet’s latest fundraising round.

The company’s existing roster includes the US International Development Finance Corporation (DFC), the US government development bank, Swiss-based commodity trader Mercuria and London-based asset manager Lansdowne Partners, all of which contributed to the latest round.

Menell said the equity fundraising was oversubscribed and the company intends to embark on another round by the close of the year, with the aim of raising several hundreds of millions of dollars more.

In the past 12 months, the group has invested more than $180mn into critical minerals companies.

US DFC took a $25mn stake in TechMet three years after the Irish firm was founded in 2017 as concerns flared up in Washington about China’s stranglehold on critical minerals.

Last year the US government agency invested a further $30mn and plans to put in $80mn over the course of this year.

TechMet holds stakes in Brazilian Nickel, a nickel and cobalt project in north-eastern Brazil, Cornish Lithium, a lithium project developer focused on the UK’s south-west region, and EnergySource Minerals, a US lithium technology developer backed by oilfield services giant Schlumberger.

China controls 63 per cent of global lithium refining, 70 per cent of nickel processing and 65 per cent of graphite mining, according to Benchmark Mineral Intelligence, an information provider.

>>> Stoxx 600 Pre-Market Indications

  • Adidas (ADS TH) +1.1%
  • Philips (PHI1 TH) +1%
  • UniCredit (CRIN TH) +0.9%
    • From HSBC to UniCredit, €46 Billion Credit Losses Near Trough
  • Infineon (IFX TH) +0.9%
  • ASML (ASME TH) +0.9%
  • ASMI (AVS TH) +0.8%
  • Beiersdorf (BEI TH) +0.7%
  • Covestro (1COV TH) +0.7%
  • Rheinmetall (RHM TH) -0.2%
  • Hermes (HMI TH) -0.2%
    • Watch China-Exposed European Sectors as Consumer Spending Slides
  • Airbus (AIR TH) -0.2%
    • German Minister Cancels Australia Trip After Second Plane Glitch
  • Novo Nordisk (NOVC TH) -0.8%
  • Henkel (HEN3 TH) -1.4%