>>> US After Hours Summary: OSH +25.8% on guidance, FRO +17.5% after terminating

After Hours Summary: OSH +25.8% on guidance, FRO +17.5% after terminating Euronav agreement, ACCD +4.8% and AZZ +3.8% on earnings; BLI -6.4% on guidance, PLNT -5.0% on year-end metrics

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: OSH +25.8% (guidance), ACCD +4.8%, AZZ +3.8%, PSMT +2.3%, WWW +2% (guidance), DHR +1.8% (guidance), SHC +1.7% (guidance), WDFC +0.2%

Companies trading higher in after hours in reaction to news: FRO +17.5% (terminates Euronav combination agreement), RGNX +4.7% (names new COO), TRIN +4.2% (originates $239 mln in gross debt and equity commitments), ASRT +3.4% (FDA orange book listing for Sympazan), DHT +2.5% (provides business update), RCKT +1.9% (expands cardiac gene therapy portfolio), CHDN +1.2% (multi-year agreement with bet365), A +1.1% (authorizes $2 bln repurchase plan), TXRH +0.8% (names new President)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: BLI -6.4% (guidance), ETWO -5%, FICO -1.8% (CFO stepping down, reaffirms guidance), JEF -0.7%

Companies trading lower in after hours in reaction to news: PLNT -5% (reports year-end metrics), AVGO -0.7% (trading in sympathy to AAPL news), GEHC -0.3% (to acquire IMACTIS), STRO -0.1% (to provide update on STRO-002), AAPL -0.1% (to drop AVGO and QCOM chips by 2025, according to Bloomberg), QCOM -0.1% (trading in sympathy to AAPL news)

>>> US Research Calls

Research Calls

  • Upgrades:
    • Alibaba (BABA) upgraded to Conviction Buy from Buy at Goldman; tgt raised to $138
    • Ally Financial (ALLY) upgraded to Neutral from Underweight at Piper Sandler; tgt raised to $28
    • Core Labs (CLB) upgraded to Neutral from Underperform at BofA Securities
    • Enterprise Products (EPD) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $27
    • Ferrari (RACE) upgraded to Neutral from Sell at Citigroup; tgt $230.60
    • GXO Logistics (GXO) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $60
    • Helmerich & Payne (HP) upgraded to Buy from Neutral at BofA Securities
    • i3 Verticals (IIIV) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $30
    • Landstar System (LSTR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $140
    • Mastercard (MA) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $425
    • Nuvei Corporation (NVEI) upgraded to Buy from Neutral at Goldman; tgt lowered to $35
    • Oracle (ORCL) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $104
    • Phillips Edison & Company (PECO) upgraded to Outperform from Neutral at Credit Suisse
    • Reckitt Benckiser (RBGLY) upgraded to Buy from Sell at Societe Generale
    • Riskified (RSKD) upgraded to Neutral from Sell at Goldman; tgt $5
    • Saia (SAIA) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $185
    • Shift4 Payments (FOUR) upgraded to Buy from Neutral at Goldman; tgt raised to $67
    • Stryker (SYK) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $284
    • Thor Industries (THO) upgraded to Neutral from Underperform at DA Davidson; tgt raised to $85
    • Uber (UBER) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $33
    • Visa (V) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $210
    • Weibo (WB) upgraded to Buy from Neutral at Goldman; tgt $25
    • Zillow (ZG) upgraded to Buy from Underperform at BofA Securities; tgt raised to $42
    • Zimmer Biomet (ZBH) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $141
  • Downgrades:
    • Akzo Nobel N.V. (AKZOY) downgraded to Mkt Perform from Outperform at Bernstein
    • Alliant Energy (LNT) downgraded to Neutral from Buy at Mizuho; tgt lowered to $55
    • BlackLine (BL) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $66
    • Cognizant Tech (CTSH) downgraded to Underperform from Neutral at BofA Securities; tgt $57
    • Con Edison (ED) downgraded to Neutral from Buy at Mizuho; tgt raised to $98
    • Danone (DANOY) downgraded to Sell from Buy at Societe Generale
    • Douglas Emmett (DEI) downgraded to Neutral from Outperform at Credit Suisse; tgt $16
    • DoorDash (DASH) downgraded to Underweight from Neutral at Piper Sandler; tgt lowered to $40
    • Douglas Emmett (DEI) downgraded to Neutral from Outperform at Credit Suisse; tgt $16
    • Equity Residential (EQR) downgraded to Neutral from Outperform at Credit Suisse; tgt $58
    • Fidelity Nat'l Info (FIS) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets; tgt $75
    • Hartford Financial (HIG) downgraded to Neutral from Buy at Goldman; tgt $84
    • Hilton (HLT) downgraded to Hold from Buy at Jefferies; tgt lowered to $134
    • Invitation Homes (INVH) downgraded to Neutral from Outperform at Credit Suisse; tgt $31
    • Kimco Realty (KIM) downgraded to Neutral from Outperform at Credit Suisse; tgt $22
    • Paymentus (PAY) downgraded to Sell from Neutral at Goldman; tgt $7.50
    • PayPal (PYPL) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets; tgt lowered to $80
    • Pioneer Natural Resources (PXD) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
    • PNM Resources (PNM) downgraded to Neutral from Buy at Mizuho; tgt lowered to $50.30
    • Prudential (PRU) downgraded to Sell from Neutral at Goldman; tgt lowered to $96
    • Renault (RNSDF) downgraded to Neutral from Buy at Citigroup
    • Omega Health (OHI) downgraded to Underperform from Neutral at Credit Suisse; tgt $25
    • Sea Limited (SE) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $60
    • TotalEnergies SE (TTE) downgraded to Neutral from Buy at Goldman
  • Others:
    • Ceridian HCM (CDAY) initiated with a Market Perform at MoffettNathanson; tgt $68
    • CF Industries (CF) assumed with an Underperform at Credit Suisse
    • Embraer SA (ERJ) initiated with a Buy at UBS; tgt $14
    • Nutrien (NTR) assumed with an Underperform at Credit Suisse
    • Paycom Software (PAYC) initiated with an Underperform at MoffettNathanson; tgt $310
    • Paycor (PYCR) initiated with a Market Perform at MoffettNathanson; tgt $28
    • Workday (WDAY) initiated with an Outperform at MoffettNathanson; tgt $245

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • LULU -12.1%, ESPR -8.7%, FWRG -7.1%, STAA -5.2%, M -5.1%, NVTA -3.5%, RRGB -2.4%, LTH -2.1%, NVCR -2%, AYI -1.6%, BCRX -1%

Other news:

  • IDYA -5% (proposed clinical study may proceed to evaluate IDE161 in solid tumors)
  • SCLX -5% (entered into a Standby Equity Purchase Agreement)
  • MOLN -4.9% (Provides Updates at 41st Annual JPM Healthcare Conference)
  • HRMY -4.8% (CEO John C Jacobs is stepping down; CMO Jeffrey M. Dayno, MD, appointed interim CEO, effective immediately)
  • JWN -4.6% (in sympathy with M guidance)
  • KSS -4.6% (in sympathy with M guidance)
  • BILI -3.5% (proposed notes repurchases and equity offering)
  • BCAB -2.9% (files for $200 mln mixed securities shelf offering)
  • AGIO -1.3% (Unveils 2023-2026 Value-driving Catalysts Enabling Company's Vision to Transform Patient Outcomes in Rare Diseases)
  • SAGE -1.3% (to Provide Update on 2023 Key Initiatives at 41st Annual J.P. Morgan Healthcare Conference)
  • GTHX -1.3% (upcoming 2023 readouts from its Phase 2 and Pivotal Phase 3 clinical trials of trilaciclib)

Analyst comments:

  • DASH -3.7% (downgraded to Underweight from Neutral at Piper Sandler)
  • CTSH -1.7% (downgraded to Underperform from Neutral at BofA Securities)
  • BL -0.9% (downgraded to Neutral from Overweight at Piper Sandler)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • EXAS +18.7%, PACB +8.3%, BROS +5.9%, ANF +4%, HOLX +2.8%, EXEL +2.3%, CDNA +2.3%, PRMW +2%, RAD +1.7%, CMC +1.6%, RARE +1.5%, EBS +1.4%, CVS +0.9%

Other news:

  • CINC +136.8% (CinCor Pharma to be acquired by AstraZeneca (AZN) for $26.00 per share in cash plus a non-tradable CVR of $10.00 per share in cash payable upon a specified regulatory submission of a baxdrostat product)
  • AMYT +107.4% ( to be acquired by Chiesi Farmaceutici S.p.A. for $14.50 per ADS)
  • ALBO +88.8% (to be acquired by Ipsen (IPSEY) for $42.00 per share plus CVR of $10.00 per share related to the U.S. FDA approval of Bylvay in biliary atresia)
  • DAWN +26.3% (Topline Data from Pivotal Phase 2 FIREFLY-1 Trial)
  • PAYA +24.5% (Nuvei (NVEI) will acquire Paya in an all-cash transaction at USD $9.75 per share for total consideration of ~$1.3 bln)
  • CVAC +24.1% (data on joint COVID-19 and Flu mRNA vaccine development programs)
  • GRNA +19% (GreenLight Biosciences and EpiVax Therapeutics signed exclusive collaboration agreement to jointly develop and commercialize personalized mRNA-based vaccine candidates for cancer)
  • OCGN +18.5% (results from the Phase 2/3 observer-blind immuno-bridging and broadening study of its COVID-19 vaccine candidate COVAXIN)
  • VRDN +9.6% (Data from Ongoing Phase 1/2 Trial Evaluating Low Dose VRDN-001 in Patients with Thyroid Eye Disease)
  • CBAY +6.4% (collaborates with Kaken Pharmaceutical to develop and commercialize Seladelpar in Japan for primary biliary cholangitis)
  • PHAT +6.1% (Topline Results from Phase 3 PHALCON-NERD-301 Trial)
  • MRUS +5% (provides milestone update for 2023)
  • TRDA +4.9% (announced the selection of a second clinical candidate within its Duchenne franchise ENTR-601-45 for the potential treatment of people living with Duchenne who are exon 45 skipping amenable)
  • ANNX +4.6% (Highlights Strategic Focus to Advance Four Flagship Complement Programs through Late-Stage Development and Progress Across Three Therapeutic Franchises)
  • TNYA +4.6% (FDA has provided clearance of its Investigational New Drug IND application to initiate clinical testing of TN-201)
  • LQDA +4% (enters into a revenue interest financing agreement with HealthCare Royalty for up to $100 million)
  • ALVR +2.9% (announces the company's 2023 priorities and anticipated future milestones across its pipeline of virus-specific T cell therapie)
  • CVE +2.5% (provides update on Downstream operations)
  • XPOF +2.5% (provides in line FY22 guidance and enters into a privately negotiated preferred stock repurchase agreement with certain holders of its outstanding Convertible Preferred Stock)
  • AFMD +2.5% (Reports on Corporate Progress and Provides Regulatory Update for AFM13)
  • KEX +2.2% (concluded the Company's review of strategic alternatives for its Distribution and Services business which was initiated in early 2022)
  • BEAM +2.1% (reports progress across base editing portfolio and outlines key anticipated milestones)
  • RVNC +1.7% (receives FDA Acceptance of sBLA for DAXXIFY)
  • BLUE +1.5% (Provides Update on Commercial Launch Progress Program Milestones and 2023 Financial Outlook)

Analyst comments:

  • BABA +5% (upgraded to Conviction Buy from Buy at Goldman)
  • ZG +4.1% (upgraded to Buy from Underperform at BofA Securities)
  • WB +2.9% (upgraded to Buy from Neutral at Goldman)
  • UBER +2.8% (upgraded to Overweight from Neutral at Piper Sandler)
  • ORCL +1.5% (upgraded to Overweight from Neutral at Piper Sandler)
  • ALLY +1.2% (upgraded to Neutral from Underweight at Piper Sandler)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • CINC +140.1%, AMYT +109.3%, ALBO +91.8%, DAWN +26.8%, CVAC +24.7%, PHAT +21.8%, OCGN +20%, VRDN +8.4%, CBAY +8.3%, RVNC +5.5%, HOLX +5.4%, MRUS +5%, ANNX +4.6%, LQDA +4.2%, SWTX +3.4%, BMRN +2.4%, EXEL +2.4%, EXAS +2.4%, PRMW +1.8%, BEAM +1.5%, RARE +1.5%, BIIB +1%, FWRG +1%, CVE +0.8%, QDEL +0.7%
  • Gapping down:
    • LULU -11.5%, ESPR -6.3%, M -6.1%, KSS -5.5%, IDYA -5%, MOLN -4.9%, HRMY -4.8%, BILI -3.9%, AFMD -3.3%, BCAB -2.9%, JWN -2.3%, AYI -1.6%, XPOF -1.5%, AGIO -1.3%, SAGE -1.3%, GTHX -1.3%, ALNY -1.2%, DDS -0.7%, IRWD -0.6%

FT : Battery start-up Britishvolt in talks to sell majority stake

Battery start-up Britishvolt in talks to sell majority stake
Company says it is in talks with consortium of investors after trying for months to raise fresh funds

Britishvolt is in talks to sell a majority stake to a consortium of investors, offering a potential lifeline to the troubled UK battery start-up.

The company has been trying for months to raise fresh funds and last year narrowly avoided administration after raising several million pounds from mining group Glencore and imposing temporary wage cuts on its staff.

In a statement on Monday, Britishvolt said it was “in discussions with a consortium of investors concerning the potential majority sale of the company”.

“The discussions aim to secure legally binding terms that would provide Britishvolt with the long-term sustainability and funding necessary to enable it to pursue its current plans to build a strong and viable battery cell R&D and manufacturing business in the UK,” it added.

The company’s plan to build a £3.8bn battery gigafactory in the north-east of England has been beset by delays. Britishvolt has been promised £100mn in funding from the UK government but must begin construction work on the site in Blyth, Northumberland, to unlock the funding.

A sale would ensure Britishvolt’s survival until it receives firm orders from carmakers. The company last year shipped prototypes of its batteries to several manufacturers and has said it expects to receive the first orders this year.

The “two parties will provide further details at the appropriate time and have nothing further to add at this stage”, Britishvolt added.

FT : Jeff Ubben takes $500mn stake in Bayer

Jeff Ubben takes $500mn stake in Bayer
US activist invests in German conglomerate still grappling with legacy of $63bn Monsanto takeover

US activist investor Jeff Ubben has taken a $500mn stake in Bayer, the German conglomerate still reeling from litigation over its weedkiller Roundup and years of shareholder discontent.

Ubben’s stake in Bayer, which is held through his firm Inclusive Capital Partners, amounts to almost 1 per cent of the company, the San Francisco-based firm said on Monday.

The investment comes at a crucial time for Bayer, which is looking for a new leader to replace chief executive Werner Baumann who is due to leave his post in 2024, according to people familiar with the matter.

The German businessman has been heavily criticised by shareholders for his ill-fated decision in 2016 to acquire seedmaker Monsanto, the deal that brought Roundup under Bayer’s ownership.

The $63bn takeover, which faced shareholder opposition from the start, is widely regarded as one of the most damaging acquisitions in recent times.

Ubben, known on Wall Street for a softer approach to activist investing, has already received support from at least one of Bayer’s largest shareholders to push for changes.

“[Ubben] is someone certainly we would strongly consider voting for if he were on the ballot for [Bayer’s] supervisory board,” said David Herro, chief investment officer of international equities at Harris Associates, Bayer’s fifth-largest shareholder, according to Bloomberg data.

“Management has not shown a strong propensity to disrupt the status quo,” he added, noting that the company trades at steep discounts to rivals in each of its three business divisions: pharmaceuticals, consumer healthcare and crop science.

Bayer’s share price has never recovered from its Monsanto acquisition, which at the time was the largest all-cash deal ever attempted and the biggest overseas acquisition of a US company. Bayer was quickly engulfed with litigation costs tied to glyphosate, Roundup’s main ingredient.

While shares in the company are down about 50 per cent since the Monsanto deal closed in 2018, there has been some improvement in its stock price recently after it won at least three cases involving Roundup.

“The wins could help remove the perceived legal headwinds that have weighed on the stock’s valuation for several years,” Morningstar said in a November report.

Temasek, the Singaporean sovereign wealth fund and Bayer’s second-largest investor, told business newspaper Handelsblatt last year that “there is still a lot to do” to fix the company.

Bayer has faced off with activists before. Elliott Management built a $1bn stake in the company in 2019, saying there was more value in Bayer’s business divisions than the share price accounted for and pushing for it to quickly settle Roundup litigation.

The same year, Baumann and other key executives lost a crucial vote of confidence at the company’s annual shareholder meeting, with 55.5 per cent of investors voting against ratifying the top management’s actions in a symbolic but non-binding vote.

Ubben led several activist campaigns at his former firm ValueAct, which he left in 2020 to start Inclusive Capital.

The new firm, which focuses on environmental and social impact investing, had a significant stake in electric truckmaker Nikola and Ubben defended the company’s founder Trevor Milton after he was accused of fraud by a short seller, saying he had been “misunderstood”. Milton was convicted of fraud in October.