>>> Europe : Brokers Upgrades & Downgrades - 20th of January 2023 V2(+)

>>> Up
* 3i Infra Raised to Buy at Jefferies
* Asos Raised to Buy at BofA (+)
* Boohoo Raised to Buy at BofA (+)
* Cellavision Raised to Buy at Pareto Securities; PT 260 kronor
* Covestro Raised to Outperform at Credit Suisse (+)
* Credito Emiliano Raised to Buy at Deutsche Bank; PT 9.30 euros
* Flutter PT Raised to 17,210 pence from 15,370 pence at Goodbody
* Lufthansa Raised to Outperform at Oddo BHF; PT 10.50 euros
* PVH Raised to Overweight at Barclays
* Ralph Lauren Raised to Overweight at Barclays
* Zalando Raised to Buy at BofA (+)

>>> Down
* Almirall Cut to Neutral at CaixaBank BPI; PT 10.80 euros (+)
* BASF Cut to Underperform at Credit Suisse (+)
* Boiron Cut to Neutral at Oddo BHF; PT 50 euros (+)
* Continental Cut to Hold at Jefferies; PT 70 euros
* Credit Suisse Cut to Underperform at Oddo BHF
* DEME Group Cut to Neutral at Oddo BHF; PT 140 euros (+)
* Europris Cut to Hold at Nordea
* Faron Pharma Cut to Reduce at Kepler Cheuvreux; PT 1.70 euros (+)
* FinecoBank Cut to Hold at Deutsche Bank; PT 17.60 euros
* Geberit Cut to Sell at Deutsche Bank; PT 430 Swiss francs
* Harbour Energy Cut to Hold at Peel Hunt; PT 325 pence
* Hargreaves Lansdown Cut to Underperform at Jefferies
* Michelin Cut to Sector Perform at RBC; PT 28 euros
* Sabadell Cut to Underperform at Oddo BHF; PT 1.05 euros
* Sinch Cut to Neutral at JPMorgan; PT 55 kronor
* Spirent Cut to Hold at Canaccord; PT 280 pence (+)
* Virgin Money UK Cut to Hold at Deutsche Bank; PT 220 pence
* Vitesco Cut to Hold at Jefferies; PT 58 euros
* *WACKER CHEMIE CUT TO NEUTRAL AT CREDIT SUISSE, PT EU160 (+)
* Wizz Air Cut to Neutral at Oddo BHF; PT 3,140 pence

>>> Initiation
* Hybrid Software Group Rated New Accumulate at KBC Securities (+)
* SIG Group Rated New Buy at Berenberg; PT 28 Swiss francs

>>> Call
* 4imprint Offers ‘Exceptional Momentum,’ PT Raised at Liberum (+)
* Autoneum Volumes Disappoint, ‘Clearly Below Market’: Vontobel (+)
* Auto Supplier Cost Inflation Risk Sees 3 Downgrades by Jefferies
* Citi’s Buckland Says US Stocks More Vulnerable to Fund Outflows
* Ericsson Sees ‘Uncertainties’ After Earnings Miss Estimates
* Hargreaves Lansdown Cut at Jefferies on Customer Growth Concerns
* Orsted’s ‘Low Ball’ Guidance is Below Expectations: Street Wrap
* RBC Prefers Trucks and Ferrari in 2023, Downgrades Michelin
* Siemens Energy Beat Weighed Down by Siemens Gamesa Warning: Citi (+)
* SIG Benefits From Position, Scholle Deal, Berenberg Rates Buy

>>> Stoxx 600 Pre-Market Indications

  • SSE (SCT TH) +2%
    • *SSE SEES FY ADJ EPS ABOVE 150P, SAW AT LEAST 120P, EST. 130P
  • Rio Tinto (RIO1 TH) +1.8%
  • Equinor (DNQ TH) +1.7%
  • Reckitt (3RB TH) +1.6%
  • Covestro (1COV TH) +1.4%
  • HelloFresh (HFG TH) +1.2%
  • Zalando (ZAL TH) +1.2%
    • Watch European Retailers as Nordstrom Cuts Outlook on Soft Sales
  • Aixtron (AIXA TH) +1.2%
  • Continental (CON TH) -0.9%
    • RBC Prefers Trucks and Ferrari in 2023, Downgrades Michelin
  • Vestas (VWSB TH) -1.3%
  • Rheinmetall (RHM TH) -1.5%
  • Orsted (D2G TH) -2.6%
    • Orsted’s ‘Low Ball’ Guidance is Below Expectations: Street Wrap
    • Orsted Prelim FY Ebitda Meets Estimates
  • Faurecia (FAU TH) -2.9%
    • Auto Supplier Cost Inflation Risk Sees 3 Downgrades by Jefferies
  • Siemens Energy (ENR TH) -5%
    • Siemens Energy Cuts 2023 Outlook to Net loss on 2022 Level
  • Ericsson (ERCB TH) -6.1%
    • Ericsson Sees ‘Uncertainties’ After Earnings Miss Estimates

>>> TradeGate Pre-Market Indications

DAX:
  • Zalando (ZAL TH) +1.5%
    • Watch European Retailers as Nordstrom Cuts Outlook on Soft Sales
  • Covestro (1COV TH) +1.4%
  • Porsche SE (PAH3 TH) +1.4%
  • Vonovia (VNA TH) +1%
  • Deutsche Post (DPW TH) +0.9%
    • German Union Calls Postal Staff to Strike as Wage Talks Flounder
  • Deutsche Telekom (DTE TH) -0.6%
    • T-Mobile to Take ‘Significant Expenses’ from Cyber Incident
  • BASF (BAS TH) -0.7%
  • Continental (CON TH) -0.9%
    • RBC Prefers Trucks and Ferrari in 2023, Downgrades Michelin
  • Siemens Energy (ENR TH) -4.9%
    • Siemens Energy Cuts 2023 Outlook to Net loss on 2022 Level
MDAX:
  • HelloFresh (HFG TH) +1.6%
  • Kion (KGX TH) +1%
  • Rheinmetall (RHM TH) -1.3%
SDAX:
  • Varta (VAR1 TH) +2.2%
  • SUSE (SUSE TH) +1.7%
  • MorphoSys (MOR TH) +1.2%
  • Hensoldt (HAG TH) +1%
  • SMA Solar (S92 TH) -1.3%
  • Vitesco (VTSC TH) -1.5%
    • Auto Supplier Cost Inflation Risk Sees 3 Downgrades by Jefferies
  • Nordex (NDX1 TH) -2.3%
  • Hypoport (HYQ TH) -5.2%
    • Hypoport Offering of New Shares Prices at €132/Share

>>> Europe : Brokers Upgrades & Downgrades - 20th of January 202

>>> Up
* 3i Infra Raised to Buy at Jefferies
* Cellavision Raised to Buy at Pareto Securities; PT 260 kronor
* Credito Emiliano Raised to Buy at Deutsche Bank; PT 9.30 euros
* Flutter PT Raised to 17,210 pence from 15,370 pence at Goodbody
* Lufthansa Raised to Outperform at Oddo BHF; PT 10.50 euros
* PVH Raised to Overweight at Barclays
* Ralph Lauren Raised to Overweight at Barclays

>>> Down
* Continental Cut to Hold at Jefferies; PT 70 euros
* Credit Suisse Cut to Underperform at Oddo BHF
* Europris Cut to Hold at Nordea
* FinecoBank Cut to Hold at Deutsche Bank; PT 17.60 euros
* Geberit Cut to Sell at Deutsche Bank; PT 430 Swiss francs
* Harbour Energy Cut to Hold at Peel Hunt; PT 325 pence
* Hargreaves Lansdown Cut to Underperform at Jefferies
* Michelin Cut to Sector Perform at RBC; PT 28 euros
* Sabadell Cut to Underperform at Oddo BHF; PT 1.05 euros
* Sinch Cut to Neutral at JPMorgan; PT 55 kronor
* Virgin Money UK Cut to Hold at Deutsche Bank; PT 220 pence
* Vitesco Cut to Hold at Jefferies; PT 58 euros
* Wizz Air Cut to Neutral at Oddo BHF; PT 3,140 pence

>>> Initiation
* SIG Group Rated New Buy at Berenberg; PT 28 Swiss francs

>>> Call
* Auto Supplier Cost Inflation Risk Sees 3 Downgrades by Jefferies
* Citi’s Buckland Says US Stocks More Vulnerable to Fund Outflows
* Ericsson Sees ‘Uncertainties’ After Earnings Miss Estimates
* Hargreaves Lansdown Cut at Jefferies on Customer Growth Concerns
* Orsted’s ‘Low Ball’ Guidance is Below Expectations: Street Wrap
* RBC Prefers Trucks and Ferrari in 2023, Downgrades Michelin
* SIG Benefits From Position, Scholle Deal, Berenberg Rates Buy

>>> What to look at today - 20th of January 2023

Asian stocks shook off worries from rising interest rates and economic risks to advance on Friday before Lunar New Year holidays interrupt trading across many markets in the region next week. Hong Kong equities led gains and shares in Japan reversed small initial losses. Futures for US stocks rose after the selloff on Wall Street showed some signs of easing Thursday, when the S&P 500 fell for a third day. Commodities and Asian equities have overcome some of the bearish news this week out of the US as traders bet on China’s economic revival. JPMorgan Chase & Co. raised its estimate for the nation’s oil demand growth and said it’s reopening sooner and more rapidly than the bank originally expected. Bitcoin trimmed its advance after cryptocurrency lender Genesis Global Holdco filed for bankruptcy. Treasuries fell slightly with the 10-year yield climbing two basis points to take the edge off a drop in the rate earlier in the week. Japan’s benchmark 10-year yield fell half a basis point to 0.4% versus the central bank’s 0.5% ceiling, while bond futures rallied. Australian 10-year yields were up eight basis points.  Japan’s benchmark 10-year yield fell half a basis point to 0.4% versus the central bank’s 0.5% ceiling, while bond futures rallied. Australian 10-year yields were up eight basis points.  A gauge of dollar strength edged slightly higher on the day and the week.  Oil headed for a second weekly gain as optimism over stronger Chinese demand overshadowed a weaker outlook in other major economies.  Copper was poised for a fifth weekly increase, its best run since May 2021, with global supply risks persisting and inventories near historic lows. Gold steadied in Asia after jumping to an eight-month high in the previous session. US After Hours ATRO +13.1% on Q4 guidance, NFLX +7.2%, PPG +2.9% on earnings, COST +1.3% on reauthorized repurchase program; JWN -6.3% on FY22 guidance, TMUS -1.8% after noting a data breach could lead to significant expenses

Nikkei +0.65% Shenzen +0.70% Shanghai +0.59% CSI +1.61% Hang Seng +0.56%

Eur$ 1.0830 CNH 6.7798 CNY 6.7805 JPY 129.11 GBP 1.2371 CHF 0.9167 RUB 68.9992 TRY 18.7966 WTI$ 80.50 +0.10% ETH 1,547 +0.17% BTC 20,975 -0.27% Gold 1,927 +0.21%

S&P SMI +0.43% Dax +0.47% FTSE +0.44% EuroStoxx +0.43% Nasdaq +0.24%+0.13%

Macro :
- Citi’s Buckland Says US Stocks More Vulnerable to Fund Outflows

Keep an eye on :
- AGS BB : BE Group Said to Make Fresh Takeover Approach for Insurer Ageas
- AUTN SW : Autoneum FY Sales Misses Estimates, Sees FY Result at Lower End
- AZA SS : Avanza 4Q Operating Income Beats Estimates
- BMPS IM : Banca Monte Dei Paschi Chairman Grieco to Leave Role
- BOO LN : Boohoo Slashes Inventory by 27%, 100 Jobs to Likely Be Cut: FT
- CSGN SW : Credit Suisse Sees ‘Focused’ Acquisitions as Option: Finews
- DPW GY : German Union Calls Postal Staff to Strike as Wage Talks Flounder
- ERICB SS : Ericsson 4Q Adjusted Ebit Misses Estimates
- HOLN SW : Holcim Eyes Acquisition Drive to Push Beyond Cement, CEO Says
- HUBN SW : Huber+Suhner FY Revenue Beats Estimates
- INTC US : Intel CEO Says Italy Still a Candidate for €3b Plant: Corriere
- ORP FP : Orpea Talks With CDC, Creditors to Restructure Debt Fall Apart
- ORSTED DC : Orsted Prelim FY Ebitda Meets Estimates
- RNO FP : Nissan, Renault Announcement May Come as Soon as Feb. 1: Reuters
- ROG SW : Genentech Gets Accelerated FDA Approval for Lunsumio
- SPM IM : Saipem Gets Two Offshore Contracts for About $900m Total Amount
- BUMP LN : Seraphine to Be Taken Private by Mayfair at 30p/Share: Sky
- SFSN SW : SFS Prelim. 2022 Gross Sales Rise 45.1% to CHF2.75B
- ENR GY : Siemens Energy Cuts 2023 Outlook to Net loss on 2022 Level
- SWEDA SS : Swedbank Seen Facing Significantly Lower US AML Fine Than Danske
- UBSG SW : UBS Plans to Hire Dealmakers From Boutique Banks: FT

>>> US After Hours Summary: ATRO +13.1% on Q4 guidance, NFLX +7.2%, PPG +2.9% on

After Hours Summary: ATRO +13.1% on Q4 guidance, NFLX +7.2%, PPG +2.9% on earnings, COST +1.3% on reauthorized repurchase program; JWN -6.3% on FY22 guidance, TMUS -1.8% after noting a data breach could lead to significant expenses

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: ATRO +13.1% (Q4 guidance), NFLX +7.2%, PPG +2.9%, OZK +0.6%

Companies trading higher in after hours in reaction to news: CMPX +4.5% (announces Phase 2 data of CTX-009 to be presented), FTK +2.2% (appoints interim CEO and Chairman upon current CEO and Chairman's departure), COST +1.3% (reauthorizes repurchase program), MGNI +1.1% (reducing workforce by 6%), EOSE +0.7% (investors pour $13.75 mln into convertible senior notes), SAVE +0.1% (selling 29 aircraft)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: JWN -6.3% (FY22 guidance), CNXC -4.9%

Companies trading lower in after hours in reaction to news: TMUS -1.8% (continuing investigation on data breach), PTRA -1.1% (concentrating manufacturing at SC facilities), SPT -0.3% (acquires Respustate), MRTX -0.3% (announces IND clearance by FDA), OPNT -0.2% (announces FDA acceptance of NDA for OPNT003)

FT : Space funding plunges 58% from record year as investors shun risk

Space funding plunges 58% from record year as investors shun risk
Many put off by ‘disappointing’ performance of companies that were highly valued during 2021 space boom

Investors retreated from the space economy last year with private investment tumbling 58 per cent after a record 2021, according to Space Capital, an early stage venture capital provider. 

Last year was “the most difficult investment year since the great recession 15 years ago”, according to Chad Anderson, managing partner at Space Capital, which on Thursday produced its quarterly assessment of the sector.

Anderson said there was little immediate prospect of recovery. “Overall, we expect the macro market will continue to disproportionately affect funding for these capital-intensive companies for the foreseeable future,” he told the Financial Times.

Since 2013 some $272.3bn has been invested in the space sector by private investors, with 2021 logging a record $47.4bn. However, last year just $20.1bn was invested in 420 rounds, the lowest volume since 2015, according to Space Capital. SpaceX was the outlier, the report noted, raising $2bn in 2022, its second highest annual fundraising after a $2.6bn call in 2020.

But investors are wary of betting on growth momentum elsewhere in the sector, as the global economy struggles with rising inflation and the threat of recession.

“They are now paying more attention to the fundamentals of their investments, and not just looking at growth,” said Thomas Coudry, analyst at Bryan Garnier. “Profitability now means something again.”

Anderson said many investors had been put off the sector by the performance of companies that had been highly valued at the peak of the space boom in 2021. Several space companies, such as Virgin Galactic, Astra and Spire, went public between 2019 and 2021 via special purpose acquisition companies, or Spacs. They are now trading substantially below their opening prices.

“Impossibly optimistic projections fuelled by hype were funded by investors who did little, if any, diligence in a white hot market,” he said. “The disappointing performance of many Spac companies, like Virgin Galactic, has caused many investors to view space as a higher risk asset class, in line with other speculative technology fields like cryptocurrency and the metaverse.”

This was an inaccurate view of a sector that provided crucial data and connectivity to industry and government, he said. 

“Government spending . . . will be even more vital to companies this year amid a choppy economy,” he said. Space was one of the fastest growing areas of spending at the Department of Defense, and the 2023 Space Force budget of $26bn was now larger than Nasa’s at $25bn.

Chinese investors also continued to show strong interest in space infrastructure such as satellites and launch systems. China now accounted for 8 per cent of global infrastructure investment, which last year scored $6.3bn in funding — the third highest on record. “China’s latest focus, Satcom, is expected to further accelerate investments,” Space Capital said.