Research Calls
- Upgrades:
- Array Tech (ARRY) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $28
- D.R. Horton (DHI) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $84
- EQT Corp. (EQT) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $65
- HEICO (HEI) upgraded to Buy from Hold at Jefferies; tgt $180
- Innovative Industrial Properties (IIPR) upgraded to Buy from Neutral at Compass Point; tgt raised to $175
- KB Home (KBH) upgraded to Sector Weight from Underweight at KeyBanc Capital Markets
- Lennar (LEN) upgraded to Overweight from Underweight at KeyBanc Capital Markets; tgt $89
- Meritage (MTH) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $87
- PulteGroup (PHM) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $47
- Toll Brothers (TOL) upgraded to Sector Weight from Underweight at KeyBanc Capital Markets
- TopBuild (BLD) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $205
- Downgrades:
- Adobe (ADBE) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $310
- Adobe (ADBE) downgraded to Hold from Buy at Edward Jones
- Essex Property (ESS) downgraded to Neutral from Buy at Mizuho; tgt lowered to $264
- Fidelity Nat'l Info (FIS) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $98
- Laboratory Corp (LH) downgraded to Hold from Buy at Argus
- NCR Corp (NCR) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $27
- NetApp (NTAP) downgraded to Neutral from Positive at Susquehanna; tgt lowered to $75
- Tronox (TROX) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $16
- UDR (UDR) downgraded to Neutral from Buy at Mizuho; tgt lowered to $46
- Venator Materials (VNTR) downgraded to Underperform from Market Perform at BMO Capital Markets; tgt lowered to $0.60
- Others:
- AgileThought (AGIL) initiated with an Overweight at Cantor Fitzgerald; tgt $6
- Aon (AON) resumed with a Neutral at BofA Securities; tgt $294
- Aerovate Therapeutics (AVTE) assumed with an Outperform at Wedbush; tgt $27
- Goldman Sachs BDC (GSBD) resumed with a Neutral at BofA Securities; tgt $16.50
- Gossamer Bio (GOSS) initiated with an Outperform at Wedbush; tgt $24
- Liquidia Technologies (LQDA) assumed with an Underperform at Wedbush; tgt $3
- QuidelOrtho (QDEL) initiated with a Neutral at Citigroup; tgt $90
- Rubicon Technologies (RBT) initiated with a Buy at Jefferies; tgt $10
- Symbotic (SYM) initiated with a Buy at UBS; tgt $17
- United Therapeutics (UTHR) assumed with an Outperform at Wedbush; tgt $263
- Verona Pharma (VRNA) assumed with an Outperform at Wedbush; tgt $27
- Zillow (ZG) initiated with a Buy at Compass Point; tgt $50
Gapping down
Select index ETFs showing early weakness:
- IWM -1%, QQQ -0.9%, SPY -0.8%, DIA -0.8%
Other news:
- APLD -7% (files for 48,287,076 share common stock offering by selling shareholders)
- TMC -6.4% (files for $100 mln mixed securities shelf offering; also files for 38,266,180 share common stock offering by selling shareholders)
- KOS -3.1% (provides update on Typhoon Muifa)
- ALHC -2.6% (prices offering of 9.0 mln shares of common stock at $14.75 per share)
- CS -2.3% (report co is considering rebranding as First Boston, according to BNN Bloomberg)
- EQT -2.1% (files mixed securities shelf offering)
- GSL -1.6% (files mixed securities shelf offering)
- ZEAL -1.6% (Presents Data from Phase 3 Trial of Dasiglucagon in Congenital Hyperinsulinism at the 60th Annual ESPE Meeting)
Analyst comments:
- ADBE -1.4% (downgraded to Equal Weight from Overweight at Wells Fargo)
Gapping up
In reaction to earnings/guidance:
- AZO +2.7%, J +0.9% (reaffirms Q4 EPS and adjusted EBITDA guidance)
Other news:
- PRPL +32.6% (confirms it received an unsolicited, non-binding proposal from Coliseum Capital Management to acquire all of the outstanding capital stock of Purple for $4.35 per share)
- KNBE +24.9% (received a non-binding proposal from Vista Equity Partners Management to acquire all of the outstanding shares at $24/share)
- BLUE +6.5% (receives FDA accelerated approval for SKYSONA Gene Therapy)
- WIX +5.3% (Starboard Value building an approximately 9% stake in the company, according to Reuters)
- AGIO +5% (appoints Cecilia Jones as CFO)
- ALLK +3.7% (priced an underwritten offering of 29,882,000 shares of its common stock at an offering price of $5.02/share)
- TBPH +3.2% (initiates $250 million capital return program)
- EAF +1.3% (Mexico govt has issued a temporary suspension notice for its Monterrey facility)
- EWTX +1% (closing of its upsized offering of 13,372,093 shares at a price to the public of $10.32 per share)
Analyst comments:
- ARRY +3.4% (upgraded to Overweight from Neutral at Piper Sandler)
- LEN +0.9% (upgraded to Overweight from Underweight at KeyBanc Capital Markets)
- MTH +0.9% (upgraded to Overweight from Sector Weight at KeyBanc Capital Markets)
- TOL +0.9% (upgraded to Sector Weight from Underweight at KeyBanc Capital Markets)
- BLD +0.9% (upgraded to Overweight from Sector Weight at KeyBanc Capital Markets)
Early premarket gappers
- Gapping up:
- BLUE +15.6%, VXX +3.9%, WIX +2.1%, EWTX +2%, KDP +1.6%, EW +0.8%, UHAL +0.7%
- Gapping down:
- TMC -8.8%, EAF -7.7%, APLD -3.3%, CS -2.7%, KOS -2.6%, GSL -1.6%, ZEAL -1.6%, IWM -1.2%, QQQ -1%, DIA -1%, SPY -0.9%, AWK -0.9%, EQT -0.6%
- Eni (ENI TH) +6%
- VW (VOW3 TH) +1.2%
- STMicroelectronics (SGM TH) +1.1%
- Alstom (AOMD TH) +0.7%
- France’s Alstom Wins $220 Million Additional Electric Train
- Tomra (TMRA TH) +0.6%
- BBVA (BOY TH) +0.5%
- TotalEnergies (TOTB TH) +0.5%
- TotalEnergies Approves Fenix Offshore Gas Project in Argentina
- K+S (SDF TH) -1.1%
- Linde (LIN TH) -1.2%
- Philips (PHI1 TH) -1.2%
- Alfen (703 TH) -1.4%
- TUI (TUI1 TH) -1.5%
- Telefonica (TNE5 TH) -1.6%
- Carl Zeiss Meditec (AFX TH) -1.7%
- GTT (9TG TH) -1.9%
DAX:
- VW (VOW3 TH) +1.4%
- Vonovia (VNA TH) +0.7%
- Fresenius Medical (FME TH) +0.7%
- Zalando (ZAL TH) +0.7%
- Porsche SE (PAH3 TH) +0.5%
- Volkswagen Seeks to Raise $9.4 Billion in Porsche IPO (1)
- Infineon (IFX TH) -0.6%
- German Holdings Round-Up: Bayer, Infineon, Siemens Energy
- Munich Re (MUV2 TH) -0.7%
MDAX:
- Aroundtown (AT1 TH) +1.2%
- Duerr (DUE TH) +0.8%
- RTL (RRTL TH) +0.7%
- Evotec SE (EVT TH) +0.7%
- Rheinmetall (RHM TH) +0.7%
- TAG Immobilien (TEG TH) -0.5%
- Aixtron (AIXA TH) -0.6%
- Nemetschek (NEM TH) -0.7%
- Carl Zeiss Meditec (AFX TH) -1%
- Fraport (FRA TH) -1.4%
SDAX:
- Hamborner REIT (HABA TH) +2.3%
- Deutz (DEZ TH) +1.8%
- Ceconomy (CEC TH) +1.6%
- Heidelberger Druck (HDD TH) +1.5%
- MorphoSys (MOR TH) +1%
- SGL (SGL TH) -0.8%
- Hensoldt (HAG TH) -0.8%
- Nordex (NDX1 TH) -0.9%
- DIC Asset (DIC TH) -1.4%
- 1&1 (DRI TH) -1.7%
>>> Up
* Cofinimmo Raised to Outperform at Oddo BHF; PT 120 euros
>>> Down
* Adobe Cut to Hold at Edward Jones
* Tryg Cut to Hold at HSBC; PT 185 kroner
>>> Initiation
>>> Call
* Morgan Stanley Quant Sees Capitulation Risk Rising for Equities
* MS Says Mentality of Simply Buying Stocks and Bonds Is Breaking
Stocks declined in a cautious start on Monday as investors await a slew of interest rate decisions in the days ahead and after global equities notched their worst week since hitting this year’s low in June. Shares dropped in Hong Kong, Australia and South Korea, along with US stock futures. Trading may be muted by a holiday in Japan and the UK observing a day of mourning for Queen Elizabeth II, with no trading in cash Treasuries during the Asian and European sessions. The S&P 500 index fell almost 5% last week in its worst performance since June 17 while the rate sensitive 2-year Treasury yield ended at 3.87%. The weakness in markets reflects expectations for an outsized interest rate hike from the Federal Reserve on Wednesday and worries that its aggressive tightening to quell inflation will trigger a recession. Investors also face potential volatility from policy decisions this week by the Bank of England, the Bank of Japan and a host of other central banks. The British pound sank to its weakest level against the dollar since 1985 on Friday and the yen remains under pressure, though it has backed off from just below the key 145 level versus the dollar. A gauge of the greenback was little changed. The slump in global stocks deepened after hotter-than-expected inflation data spurred traders to ratchet up wagers for rate hikes. Swaps continue to price in a 75 basis-point hike when the Fed meets -- with some wagers leaning toward a full point. Traders briefly priced the Fed’s key policy rate peaking at 4.5% in March last week as the central bank escalates its effort to contain inflation. That expected peak was up by a full percentage point since the Fed’s last policy meeting in July. Oil climbed towards $86 per barrel as the Chinese city of Chengdu ended a two-week lockdown, boosting the outlook for demand. The offshore yuan extended its decline against the dollar even after the People’s Bank of China set a reference rate with a record bias toward the strong side after it warned companies against shorting the currency last week. Cryptocurrencies were also weighed by pre-Fed jitters. Bitcoin fell below $19,000 while Ether extended its drop after its blockchain was upgraded last week.
Nikkei -1,11% Hang Seng -0,96% CSI +0,14% Shanghai -0,16% Shenzen -0,55%
Eur$ 0,9997 CNH 7,0154 CNY 7,0081 JPY 143,17 GBP 1,1402 CHF 0,9660 RUB 60,4242 TRY 18,2662 WTI$ 85,51 +0,60% Gold 1,668-0,40% BTC 18,810 -5% ETH -5%
S&P -0,28% Nasdaq -0,52% EuroStoxx +0,11% FTSE Close Dax +0,22% SMI
Macro :
- Morgan Stanley Quant Sees Capitulation Risk Rising for Equities
- Goldman Cuts US Growth Forecast for 2023 After Rate Path Change
- Ether Falls to Lowest in Seven Weeks; Offshoot Token Plunges
- MS Says Mentality of Simply Buying Stocks and Bonds Is Breaking
- Crypto Drops on Pre-Fed Jitters as Ether Falls to Two-Month Low
Keep an eye on :
- AIR FP : France Seeks to Invest EU9b in Space Industry: Les Echos
- CNHI IM : CNH Industrial Starts First Tranche of $300m Share Buyback
- CSGN SW : Credit Suisse Considers Rebranding Investment Bank First Boston
- DTG GY : Electric Big Rigs Face Uphill Trip From Show Floor to Highways
- DIS US : Disney Shows Adjusted Pay Data by Race and Gender for First Time
- EDF FP : France’s EDF May Halt Power Exports to Italy for Two Years
- EQT SS : EQT Private Equity Sells Stake in GPA Global
- FUR NA : Fugro to Repay Part of EU91M Outstanding 2024 Bonds
- FUTR LN : Future PLC CEO Zillah Byng-Thorne Plans to Step Down, Sky Says
- GBG LN : GB Group Attracts Buyout Interest From Advent, KKR: Daily Mail
- KARO SS : EQT Has 94% of Karo Pharma Shares; Completes Offer
- LHA GY : Swiss Pilots Threaten Strike by Mid-October, Tages-Anzeiger Says
- MC FP : Watch Luxury Stocks as China Lifts Two-Week Lockdown in Chengdu
- NOVN SW : Novartis Pharma Sandoz: Rosalia Study Met Primary Endpoints
- TSLA US : Tesla Wants to Double German Sales in 2022, Automobilwoche Says
- VLA FP : Valneva, IDT Biologika Agree to Terminate Covid Vaccine Pact
- VAR NO : Var Energi Raises Balder X Gross Investment Estimate by $1.2b
- VOW GY : Tesla Wants to Double German Sales in 2022, Automobilwoche Says
- VOW GY : Volkswagen Seeks to Raise $9.4 Billion in Porsche IPO
- MF FP : Wendel Hires BPCE’s Laurent Mignon to Become CEO by Jan. 1
- WIX US : Hedge Fund Starboard Has Built Stake in Platform Wix.com: Rtrs