>>> Greif has entered into exclusive negotiations to acquire I PACKCHEM Group SA

Greif has entered into exclusive negotiations to acquire I PACKCHEM Group SAS from an affiliate of SK Capital Partners, in a cash transaction valued at $538 mln (63.75)
  • IPACKCHEM is a global leader in premium barrier and non-barrier jerrycans and small plastic containers.
  • Platform investment supports future growth in EMEA and APAC, with unique barrier technology, best-in-class facilities across five continents, and strong technical and operational management.
  • Favorable exposure to secular growth markets in agriculture, specialty chemicals, flavor & fragrances, and pharmaceutical & medical diagnostics.
  • Financial profile is immediately accretive to EBITDA margins and free cash flow.
  • Compelling value at 9.4x last twelve months adjusted EBITDA of $57 million and 8.4x synergized1 EBITDA of $64 million for a global leader with nearly 25% EBITDA margins and 65% cash conversion.
  • Planned acquisition is fully aligned with Greif's enterprise strategy of growing into margin-accretive, resin-based products with strong circularity characteristics serving multiple end markets.

>>> US Research Calls

Research Calls
  • Upgrades:
    • Arista Networks (ANET) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $220
    • Asbury Automotive (ABG) upgraded to Overweight from Neutral at JP Morgan; tgt $245
    • AutoNation (AN) upgraded to Neutral from Underweight at JP Morgan; tgt $145
    • AvalonBay (AVB) upgraded to Overweight from Neutral at Piper Sandler; tgt lowered to $194
    • Boeing (BA) upgraded to Buy from Neutral at Northcoast; tgt $217
    • Chewy (CHWY) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt lowered to $28
    • Deciphera Pharmaceuticals (DCPH) upgraded to Buy from Hold at JonesTrading; tgt $168
    • Genelux (GNLX) upgraded to Buy from Neutral at Brookline; tgt $30
    • Globe Life (GL) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $137
    • Grupo Aeroportuario del Pacifico (PAC) upgraded to Outperform from Underperform at Bradesco BBI; tgt $135
    • Grupo Aeroportuario Del Sureste (ASR) upgraded to Outperform from Neutral at Bradesco BBI; tgt $250
    • L3Harris (LHX) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $216
    • Lincoln Electric (LECO) upgraded to Buy from Neutral at Seaport Research Partners; tgt $210
    • McDonald's (MCD) upgraded to Buy from Hold at DZ Bank; tgt $300
    • Phillips 66 (PSX) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $146
    • Pinterest (PINS) upgraded to Buy from Neutral at BofA Securities; tgt raised to $37
    • Saia (SAIA) upgraded to Positive from Neutral at Susquehanna; tgt lowered to $420
    • Smith & Nephew (SNN) upgraded to Buy from Hold at HSBC Securities
    • SoFi Technologies (SOFI) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $7
    • T. Rowe Price (TROW) upgraded to Neutral from Sell at Citigroup; tgt lowered to $95
    • Williams-Sonoma (WSM) upgraded to Hold from Underperform at Jefferies; tgt raised to $144
    • XPO, Inc. (XPO) upgraded to Buy from Hold at Jefferies; tgt raised to $95
  • Downgrades:
    • Camden Property (CPT) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $84
    • Camden Property (CPT) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $80
    • Clearwater Paper (CLW) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $396
    • Diodes (DIOD) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $70
    • EngageSmart (ESMT) downgraded to Neutral from Buy at Citigroup; tgt raised to $23
    • Euronav (EURN) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $18.43
    • Ferguson plc (FERG) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $138
    • Lithia Motors (LAD) downgraded to Neutral from Overweight at JP Morgan; tgt $295
    • Lyft (LYFT) downgraded to Sell from Neutral at MoffettNathanson; tgt $7
    • Mid-America Aptmt (MAA) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $130
    • Mid-America Aptmt (MAA) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $112
    • ON Semiconductor (ON) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $60
    • Roku (ROKU) upgraded to Neutral from Sell at MoffettNathanson; tgt $55
    • Sonic Automotive (SAH) downgraded to Underweight from Neutral at JP Morgan; tgt $50
    • Spirit Realty Capital (SRC) downgraded to Mkt Perform from Mkt Outperform at JMP Securities
    • UDR (UDR) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $33
    • UDR (UDR) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $30
  • Others:
    • Affirm (AFRM) initiated with an Equal Weight at Wells Fargo; tgt $17
    • Arlo Technologies (ARLO) initiated with a Buy at ROTH MKM; tgt $13
    • AvidXchange (AVDX) initiated with an Equal Weight at Wells Fargo; tgt $9
    • Bill.com (BILL) initiated with an Overweight at Wells Fargo; tgt $115
    • Block (SQ) initiated with an Equal Weight at Wells Fargo; tgt $45
    • Celsius (CELH) initiated with an Equal-Weight at Morgan Stanley; tgt $190
    • CleanSpark (CLSK) initiated with an Outperform at Bernstein; tgt $5.30
    • Deckers Outdoor (DECK) resumed with a Buy at William O'Neil
    • Etsy (ETSY) assumed with a Neutral at UBS; tgt lowered to $75
    • Flywire (FLYW) resumed with an Overweight at Wells Fargo; tgt $35
    • Immunocore (IMCR) initiated with an Outperform at Robert W. Baird; tgt $84
    • Lightspeed (LSPD) initiated with an Equal Weight at Wells Fargo; tgt $14
    • Marathon Digital Holdings (MARA) initiated with a Mkt Perform at Bernstein; tgt $8.30
    • Marqeta (MQ) initiated with an Equal Weight at Wells Fargo; tgt $6
    • Mitek Systems (MITK) assumed with a Buy at Jefferies; tgt $13
    • NaaS Technology (NAAS) initiated with a Buy at Jefferies; tgt $4.50
    • PayPal (PYPL) initiated with an Equal Weight at Wells Fargo; tgt $55
    • Riot Platforms (RIOT) initiated with an Outperform at Bernstein; tgt $15.60
    • Shift4 Payments (FOUR) initiated with an Overweight at Wells Fargo; tgt $55
    • Shopify (SHOP) initiated with an Overweight at Wells Fargo; tgt $65
    • Toast (TOST) initiated with an Underweight at Wells Fargo; tgt $16
    • Tourmaline (TRML) initiated with a Buy at Guggenheim; tgt $50

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:
  • PINS +16.6%, LUNG +12.9%, WOLF +12.7%, GPRE +11.1%, ANET +10.4%, SSTK +10%, TREX +8.5%, GPN +7.9%, VRNS +6.8%, RYI +5.9%, KMPR +5.4%, ZBRA +5.4%, OTTR +5%, XYL +4.9%, HRMY +4.8%, MPWR +4.5% (also announced $640 mln for repurchases), CCJ +4.3%, BUD +4.1%, ETN +3.9%, QGEN +3.7%, COCO +3.6%, STLA +3.5%, DEA +3.4%, ARGX +2.9%, RGEN +2.9%, KFRC +2.7%, THC +2.5%, AGCO +2.5%, CWK +2.1%, TWO +2.1%, ABEV +2.1%, BLD +2.1%, OGS +2%, AGNC +2%, SITC +2% (also spinning off its Convenience portfolio), GPK +2%, ACGL +1.9%, AME +1.9%, INCY +1.9%, NBIX +1.7%, INST +1.6%, ALLE +1.5%, GVA +1.5%, ETRN +1.4%, LDOS +1.3%, MPC +1.3%, EQC +1.2%, SPG +1.1%, PSA +1.1%, GEHC +0.9%
Other news:
  • BEAM +7.3% (Eli Lilly (LLY) to acquire certain rights under BEAM's collaboration agreement with Verve Therapeutics (VERV))
  • VERV +5.1% (Eli Lilly (LLY) to acquire certain rights under BEAM's collaboration agreement with Verve Therapeutics (VERV))
  • ZYXI +4.8% (to evaluate potential strategic alternatives)
  • WE +3.9% (details Forbearance Agreement)
  • LLY +1.7% (Eli Lilly (LLY) to acquire certain rights under BEAM's collaboration agreement with Verve Therapeutics (VERV))
  • INST +1.6% (to acquire Parchment for $835 mln)
  • IMO +1.2% (announces terms of its substantial issuer bid for up to CAD1500000000 and receipt of exemptive relief )
Analyst comments:
  • DCPH +3.5% (upgraded to Buy from Hold at JonesTrading)
  • ABG +2.6% (upgraded to Overweight from Neutral at JP Morgan)
  • AN +1.4% (upgraded to Neutral from Underweight at JP Morgan)
  • PAC +1.4% (upgraded to Outperform from Underperform at Bradesco BBI)
  • SOFI +0.9% (upgraded to Equal-Weight from Underweight at Morgan Stanley)

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:
  • PETS -29.1% (suspends dividend), LSCC -15.4%, AMKR -14.7%, HAYW -13.6%, FWRD -11.4%, HLIT -9.6%, DORM -8.5%, HUBB -8.2%, PLOW -7.4%, VFC -6.3%, JBLU -6.2%, DENN -5.8%, MDXG -5.1%, AESI -5%, CHGG -4.3%, CAT -4.3%, FMC -4.2%, ARES -4.2%, BP -3.1%, ST -2.9%, PACB -2.7%, CGNX -2.7%, RWT -2.5%, ZI -2.5%, PACK -2.5%, PSMT -2%, HTLF -2%, AXNX -1.8%, WK -1.5%, LEG -1.5%, CVI -1.3% (declares special dividend), CRK -1%, BCC -1%, MAC -1%, TECH -0.9%, MSCI -0.9%
Other news:
  • SRPT -44.7% (announces results from EMBARK)
  • WDC -5.3% (commences $1.3 bln convertible offering)
  • LIAN -1.5% (announces results from Phase 3 LIBRA trial)
  • STT -1.2% (COO retiring)
  • SWK -1.1% (files mixed shelf)
  • DRS -1% (awarded contract by U.S. Army)
  • GEO -1% (files mixed shelf)
  • BHP -1% (approves CAD6.4 billion for stage two of the Jansen potash project)
Analyst comments:
  • CLW -1.7% (downgraded to Sector Perform from Outperform at RBC Capital Mkts)
  • SAH -1.7% (downgraded to Underweight from Neutral at JP Morgan)
  • LAD -1.2% (downgraded to Neutral from Overweight at JP Morgan)