>>> US Research Calls

Research Calls

  • Upgrades:
    • American Airlines (AAL) upgraded to Buy from Neutral at Redburn; tgt $25
    • American Express (AXP) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $186
    • Delta Air Lines (DAL) upgraded to Buy from Neutral at Redburn; tgt $55
    • Enact Holdings (ACT) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $26.50
    • Royal Caribbean (RCL) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $78
    • TripAdvisor (TRIP) upgraded to Buy from Underperform at BofA Securities; tgt raised to $38
    • United Airlines (UAL) upgraded to Neutral from Sell at Redburn; tgt $55
    • Wayfair (W) upgraded to Equal Weight from Underweight at Barclays; tgt $70
  • Downgrades:
    • Adecoagro S.A. (AGRO) downgraded to Neutral from Overweight at JP Morgan; tgt $9
    • Adecoagro S.A. (AGRO) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $9
    • Black Hills Corp (BKH) downgraded to Sector Perform from Sector Outperform at Scotiabank; tgt $67
    • Discover Financial Services (DFS) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $96
    • Duck Creek Technologies (DCT) downgraded to Neutral from Buy at DA Davidson; tgt lowered to $19
    • Enbridge (ENB) downgraded to Underperform from Neutral at Credit Suisse
    • Hain Celestial (HAIN) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $21
    • Hain Celestial (HAIN) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $17
    • Kone Oyj (KNYJY) downgraded to Underperform from Neutral at Exane BNP Paribas
    • Life Storage (LSI) downgraded to Neutral from Buy at Citigroup; tgt $126
    • Southwest Air (LUV) downgraded to Neutral from Buy at Redburn; tgt $40
    • Nutrien (NTR) downgraded to Hold from Buy at TD Securities; tgt $91
    • Sherwin-Williams (SHW) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
    • UroGen Pharma (URGN) downgraded to Hold from Buy at Jefferies; tgt lowered to $10
    • Volvo (VLVLY) downgraded to Hold from Buy at Jefferies
  • Others:
    • Advance Auto (AAP) initiated with an Underweight at Barclays; tgt $145
    • AutoZone (AZO) initiated with an Overweight at Barclays; tgt $2663
    • Best Buy (BBY) initiated with an Equal Weight at Barclays; tgt $88
    • BJ's Wholesale (BJ) initiated with an Equal Weight at Barclays; tgt $72
    • Chesapeake Energy (CHK) initiated with a Neutral at Citigroup; tgt $90
    • Cisco (CSCO) added to Tactical Outperform list at Evercore ISI
    • Costco (COST) initiated with an Equal Weight at Barclays; tgt $510
    • Dollar General (DG) initiated with an Equal Weight at Barclays; tgt $237
    • Dollar Tree (DLTR) initiated with an Equal Weight at Barclays; tgt $145
    • Driven Brands (DRVN) initiated with an Overweight at Barclays; tgt $35
    • Equitable Holdings (EQH) initiated with a Mkt Perform at Raymond James
    • Evolv Technologies Holdings (EVLV) initiated with an Overweight at Cantor Fitzgerald; tgt $5.40
    • Five Below (FIVE) initiated with an Overweight at Barclays; tgt $219
    • Floor & Decor (FND) initiated with an Underweight at Barclays; tgt $88
    • Home Depot (HD) initiated with an Equal Weight at Barclays; tgt $323
    • Lowe's (LOW) initiated with an Equal Weight at Barclays; tgt $215
    • Nouveau Monde Graphite (NMG) initiated with a Buy at H.C. Wainwright; tgt $17
    • O'Reilly Auto (ORLY) initiated with an Equal Weight at Barclays; tgt $815
    • Overstock.com (OSTK) initiated with an Equal Weight at Barclays; tgt $23
    • Target (TGT) initiated with an Equal Weight at Barclays; tgt $163
    • Tractor Supply (TSCO) initiated with an Overweight at Barclays; tgt $254
    • United Rentals (URI) initiated with an Outperform at Credit Suisse; tgt $544
    • Walmart (WMT) initiated with an Overweight at Barclays; tgt $159
    • WillScot Mobile Mini (WSC) initiated with an Outperform at William Blair

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • CPRI -19.2%, LUMN -15.8%, BKH -9.2%, PERI -6.1%, JKHY -5.7%, CMG -4.7%, VSH -4.7%, TRMB -3.5%, ILMN -3.1%, CMRE -3.1%, PFGC -2.9%, SITC -2.2%, VSAT -2%, HMN -2%, PAYC -1.6%, CMP -1.6%, BG -1.6%, AMCR -1.5% (also authorizes additional $100 mln share repurchase program), ESS -1.4%, SSNC -1.3%, VRTX -1.2%, HIW -1.1% (also files mixed securities shelf offering)

Other news:

  • XPOF -12.7% (prices secondary offering of 5 mln shares of common stock at $24.50 per share)
  • RXST -9.2% ($40 mln stock offering)
  • DT -6.3% (prices offering of 15 mln shares of common stock by selling stockholders)
  • TMCI -5.5% (prices offering of 4,761,905 shares of its common stock at $21.00 per share)
  • AVXL -2.7% (stock offering)
  • NXGN -2.1% (CTO to step down)
  • FRC -2% (stock offering)
  • CR -2% (on track to complete previously announced separation on April 3)
  • ARNC -1.9% (reports loss on sale of Russian ops)
  • AEHR -1.7% (enters At-The-Market offering of common stock of up to $25 million of shares of the Company's common stock)

Analyst comments:

  • HAIN -3.5% (downgraded to Underweight from Neutral at Piper Sandler)
  • LSI -1% (downgraded to Neutral from Buy at Citigroup)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • NEWR +18.2% (also William Hill is standardizing on New Relic), FTNT +10.9%, ENPH +8.7%, UAA +8%, UBER +7.9%, TENB +6.8%, EQNR +6.8%, VOYA +4.8%, COHR +4.8%, WFRD +4.7%, WERN +3.8%, COTY +3.7%, EHC +3.6%, KD +3.2%, HRB +3.1%, ATO +3%, RAMP +2.8%, EPM +2.8%, ITUB +2.6%, NYT +2.6%, VFC +2.5% (also cuts dividend; also commences strategic review for its Global Packs business), CSL +2.5%, INSP +2.2%, EXEL +2%, EPC +2%, BAM +1.9%, CVS +1.6%, RITM +1.6%, BXMT +1.6%, RXO +1.3%, QGEN +1.2%, WU +0.9%

Other news:

  • MANU +16.5% (Qatari investors will bid for MANU within days according to DailyMailUK)
  • PLUS +7.2% (files mixed securities shelf offering)
  • PANW +3.9% (in sympathy with strong FTNT earnings)
  • NCNO +3.5% (announces reseller agreement with Rich Data)
  • BBBY +3.3% (announces closing of public equity offering; provides strategic update)
  • OSH +3.3% (CVS Health to acquire Oak Street Health (OSH) for $39/share)
  • CVAC +2.6% (prices 27027028 common shares at a public offering price of $9.25 per share for gross proceeds of approximately $250 million)
  • CVS +1.7% (CVS Health to acquire Oak Street Health (OSH) for $39/share for enterprise value of $10.6 bln; CVS reaffirms FY23 EPS guidance)
  • MSFT +1.6% (plans to release ChatGPT technology for other companies to customize according to CNBC)
  • GPOR +1.1% (provides Q4 production update)

Analyst comments:

  • TRIP +4.6% (upgraded to Buy from Underperform at BofA Securities)
  • W +1.1% (upgraded to Equal Weight from Underweight at Barclays)
  • AAL +0.9% (upgraded to Buy from Neutral at Redburn)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • MANU +18.3%, NEWR +17.7%, FTNT +11.9%, ENPH +10.2%, EQNR +6.6%, KD +5.4%, PLUS +5.2%, OSH +4.8%, VOYA +4.8%, TENB +4.8%, HRB +4.4%, PANW +4%, WERN +3.8%, NCNO +3.5%, WFRD +3.4%, ITUB +3%, RAMP +2.8%, EPM +2.8%, CSL +2.5%, MSFT +2.1%, BBBY +1.7%, CVAC +1.7%, OMC +1.7%, INSP +1.4%, RXO +1.3%, GPOR +1.1%, ICHR +0.9%, WU +0.9%, CVS +0.8%, NCR +0.8%
  • Gapping down:
    • LUMN -12.8%, XPOF -12%, RXST -9.2%, TMCI -7.4%, JKHY -5.7%, BG -5.7%, CMG -5.1%, DT -4.6%, ATO -4.4%, EXEL -4.2%, BKH -4%, AMCR -3.8%, ILMN -3.6%, AVXL -3.1%, PRU -3.1%, YUMC -2.3%, NXGN -2.1%, GNTX -2%, CR -2%, VSAT -2%, PEAK -2%, TTE -2%, ARNC -1.9%, AOSL -1.5%, FRC -1.4%, ESS -1.4%, SSNC -1.3%, PAYC -1.3%, AEHR -1.1%, CMP -1.1%, HIW -1.1%, OPNT -1%, RRR -0.7%

>>> Europe : Brokers Upgrades & Downgrades - 8th of February 2023 V2(+)

>>> Up
* BP ADRs Raised to Buy at TD; PT $44
* Ence Raised to Outperform at Oddo BHF; PT 4.50 euros
* Fiskars Raised to Buy at SEB Equities; PT 21 euros (+)
* Focus Entertainment Raised to Buy at Berenberg; PT 65 euros
* INWIT Raised to Buy at New Street Research; PT 12.20 euros (+)
* J. Martins Raised to Buy at Wood & Company; PT 23.70 euros (+)
* Sequana Medical Raised to Buy at KBC Securities (+)
* Trustpilot Raised to Overweight at JPMorgan

>>> Down
* Bodycote Cut to Sell at Panmure Gordon; PT 543 pence
* Boliden Cut to Hold at Nordea (+)
* Credito Emiliano Cut to Neutral at Banca Akros (+)
* HelloFresh Cut to Neutral at Credit Suisse
* Humana Cut to Reduce at Kepler Cheuvreux; PT 16 kronor (+)
* Kingfish Cut to Hold at DNB Markets; PT 12.40 kroner
* Kone Cut to Underperform at Exane; PT 43 euros
* Kruk Cut to Neutral at Citi; PT 355 zloty
* Nokian Renkaat Cut to Hold at DNB Markets; PT 10.50 euros
* Nokian Renkaat Cut to Sell at SEB Equities; PT 9 euros
* Nordic Semiconductor Cut to Sell at Nordea; PT 120 kroner
* Roku Cut to Sell at CFRA on Challenging Fundamentals in 2023
* Synlab Cut to Equal-Weight at Barclays; PT 9 euros
* Synlab Cut to Hold at HSBC; PT 10 euros
* Thule Cut to Hold at SEB Equities; PT 275 kronor
* Volvo Cut to Hold at Jefferies; PT 205 kronor

>>> Initiation
* Costco Rated New Equal-Weight at Barclays; PT $510
* Disney Rated New Buy at Accountability Research; PT $130
* Dollar General Rated New Equal-Weight at Barclays; PT $237
* Dollar Tree Rated New Equal-Weight at Barclays; PT $145
* Lowe's Rated New Equal-Weight at Barclays; PT $215
* Overstock Rated New Equal-Weight at Barclays; PT $23
* Target Rated New Equal-Weight at Barclays; PT $163

>>> Call
* Ence Upgraded at Oddo, Sees Value Unlocked on Pontevedra Ruling
* Equinor Earnings and Payouts Ahead of Expectations, RBC Says
* European Truckmakers Still Have Supply Chain Issues: Jefferies
* HelloFresh Cut and PT Slashed at CS on Tough Near-Term Outlook
* Kindred’s Current Trading ‘Very Strong,’ Morgan Stanley Says (+)
* SocGen Earnings Strong, Distribution Only Negative: Jefferies
* Trustpilot Reaching Ebitda Turning Point, JPMorgan Upgrades
* Volkswagen May Avoid ‘Harsh’ Reaction to FCF Target Miss: RBC

FT : SocGen profits slide as bank lifts bad loan provisions fivefold

SocGen profits slide as bank lifts bad loan provisions fivefold
Net income fell 35% in fourth quarter

Société Générale reported a 35 per cent drop in fourth-quarter net income on Wednesday, as the bank increased its provisions for bad loans fivefold in expectation of customers struggling to repay their debts.

France’s third-biggest bank comfortably beat analyst expectations in the final three months of 2022, but its net income fell from €1.8bn to €1.2bn compared to a year earlier after setting aside €413mn for bad loans.

SocGen said it planned to return €1.8bn to shareholders through a cash dividend of €1.70 a share and a €440mn buyback programme after enjoying a 9 per cent increase in net banking income over the year, helped by rising interest rates.

“2022 marked a decisive stage for the group, which was able to deliver record underlying performances while adapting itself swiftly and efficiently to an uncertain and complex environment,” said chief executive Frédéric Oudéa, who is due to step down from his role at the bank’s annual meeting in May.

French banks have not benefited from rising interest rates to the same degree as their European peers due to the popularity of a Napoleonic Wars-era savings product in the country whose rates are linked to inflation and set by the government.

Even so, Paris-headquartered bank BNP Paribas said on Tuesday that it would return €5bn to shareholders in buybacks this year after producing record annual profits in 2022, despite its results disappointing in the final three months of the year.

SocGen’s shares are up 16 per cent this year, though down 20 per cent from a year earlier after its Russian subsidiary Rosbank was affected by the war in Ukraine.

SocGen took a €3bn hit when it sold the business last year.

>>> Stoxx 600 Pre-Market Indications

  • ABN AMRO (AB2 TH) +6.7%
    • ABN Amro Beats Estimates, Announces $536 Million Buyback (1)
  • Equinor (DNQ TH) +2.8%
    • Equinor’s Quarterly Profit Jumps, Boosts Shareholder Payout (1)
  • Voestalpine (VAS TH) +2.2%
    • Voestalpine Raises Ebitda Goal, 3Q Ebit Down Less Than Est. (1)
  • Linde (LIN TH) +1.9%
  • ASML (ASME TH) +1.7%
  • Zalando (ZAL TH) +1.1%
  • E.On (EOAN TH) +1.1%
    • EON Preliminary Results Ahead, Assisted by Weather: Street Wrap
  • UniCredit (CRIN TH) +1.1%
  • BAT (BMT TH) +1.1%
  • BNP Paribas (BNP TH) +1.1%
  • VW (VOW3 TH) -0.6%
    • Volkswagen Misses 2022 Cash Target Due to Supply Chain Woes (1)
  • Renault (RNL TH) -0.8%
  • Handelsbanken (SVHH TH) -0.8%
    • Handelsbanken 4Q Net Interest Income Beats Estimates
  • Alstom (AOMD TH) -0.9%
  • HelloFresh (HFG TH) -0.9%
    • HelloFresh Cut and PT Slashed at CS on Tough Near-Term Outlook
  • Scout24 SE (G24 TH) -2.2%
  • Maersk (DP4B TH) -4.9%
    • Maersk Sees Global Trade Contracting as Much as 2.5% in 2023
  • Adyen (1N8 TH) -6%
    • Adyen 2H Ebitda Margin Misses Estimates