TheChek News Flow

After Hours Summary: GPS -2.1% on CEO stepping down, but reaffirms Q2 revs; PSMT -4.2% lower on earnings; PLAY +3.3% on new execs

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: None

Companies trading higher in after hours in reaction to news: WPRT +19.8% (awarded €38 mln program), PLAY +3.3% (names new execs following Main Event acquisition, names new COO), AERC +2% (stock offering), PLRX +1.7% (stock offering), GLSI +1.2% (suspends share repurchase program), VSTO +0.8% (Foresight Sports unit becomes official launch monitor partner of Callaway Golf and Topgolf), GME +0.8% (launches non-custodial, Ethereum Layer 2-based NFT marketplace), GATO +0.8% (announces production results from Cerro Los Gatos mine), CTXS +0.7% (awaiting receipt of final regulatory approvals in going private deal, expected to close in Q3), TWTR +0.6% (responds to Elon Musk; says termination is invalid), IIVI +0.4% (BCPE Watson discloses 12.3% stake; plans to take an active role in working with mgmt), SKY +0.3% (to acquire assets of Factory Expo Home Centers), PSTH +0.3% (to redeem all shares for this SPAC), GPI +0.2% (acquires five franchises in Louisiana), FLR +0.1% (awarded a new contract by New Fortress Energy), CNS +0.1% (reports June AUM)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: VOXX -9.3%, PSMT -4.2%, ETWO -0.9%

Companies trading lower in after hours in reaction to news: BKD -2.1% (reports June operating metrics), GPS -2.1% (CEO will step down; names new CEO for Old Navy unit; reaffirms Q2 rev outlook but expects increased promotional activity), CANO -1.6% (files for $500 mln mixed securities shelf offering), FULC -1.6% (CMO to step down), NDAQ -1.5% (reports June metrics), WBD -0.2% (WBD in talks with AMZN about possibly restarting HBO Max distribution, according to Bloomberg)

Research Calls

• Upgrades:
  • APi Group (APG) upgraded to Buy from Neutral at BofA Securities; tgt $23
  • Axos Financial (AX) upgraded to Outperform from Mkt Perform at Keefe Bruyette; tgt raised to $56
  • Bank of America (BAC) upgraded to Buy from Hold at Societe Generale; tgt $37.50
  • Element Solutions (ESI) upgraded to Overweight from Equal Weight at Barclays; tgt lowered to $22
  • Flowserve (FLS) upgraded to Neutral from Underperform at BofA Securities; tgt $31
  • Hilton (HLT) upgraded to Outperform from In-line at Evercore ISI; tgt lowered to $150
  • Honeywell (HON) upgraded to Buy from Neutral at BofA Securities; tgt $210
  • Mattel (MAT) upgraded to Buy from Neutral at Goldman; tgt raised to $31
  • Range Resources (RRC) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $49
  • REA Group (RPGRF) upgraded to Conviction Buy from Buy at Goldman
  • Southwestern Energy (SWN) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $12
  • Taylor Morrison Home (TMHC) upgraded to Outperform from Neutral at Credit Suisse; tgt $33
• Downgrades:
  • 1Life Healthcare (ONEM) downgraded to In-line from Outperform at Evercore ISI; tgt raised to $12
  • ABB Ltd (ABB) downgraded to Neutral from Buy at Citigroup
  • Allegion (ALLE) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $110
  • AmerisourceBergen (ABC) downgraded to In-line from Outperform at Evercore ISI; tgt $150
  • Ametek (AME) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $122
  • Atos SE (AEXAY) downgraded to Hold from Buy at Kepler
  • Becton Dickinson (BDX) downgraded to Sell from Neutral at Citigroup; tgt lowered to $235
  • Civitas Resources (CIVI) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $67
  • CNX Resources (CNX) downgraded to Equal Weight from Overweight at Wells Fargo; tgt raised to $27
  • DigitalOcean (DOCN) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt $45
  • Duolingo (DUOL) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
  • Dutch Bros (BROS) downgraded to Neutral from Outperform at Robert W. Baird
  • Fastly (FSLY) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt lowered to $12
  • Fidus Investment (FDUS) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $19.50
  • Insulet (PODD) downgraded to Neutral from Buy at Citigroup; tgt lowered to $250
  • ITT (ITT) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $74
  • KB Home (KBH) downgraded to Neutral from Outperform at Credit Suisse; tgt lowered to $35
  • Kura Sushi (KRUS) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt $80
  • lululemon athletica (LULU) downgraded to Underperform from Hold at Jefferies; tgt lowered to $200
  • Manpower (MAN) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $78
  • Meta Platforms (META) downgraded to Underperform from Hold at Needham
  • Moelis (MC) downgraded to Underperform from Peer Perform at Wolfe Research; tgt $42
  • New Relic (NEWR) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt $64
  • O-I Glass (OI) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $13
  • Occidental Petro (OXY) downgraded to Neutral from Buy at Goldman; tgt $70
  • Pinnacle Finl (PNFP) downgraded to Underperform from Hold at Jefferies; tgt lowered to $66
  • Piper Sandler (PIPR) downgraded to Peer Perform from Outperform at Wolfe Research; tgt $132
  • Pulmonx (LUNG) downgraded to Neutral from Buy at Citigroup; tgt lowered to $19
  • Qorvo (QRVO) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $108
  • Silk Road Medical (SILK) downgraded to Sell from Neutral at Citigroup; tgt $33
  • SLR Capital Partners (SLRC) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt lowered to $16.50
  • Stryker (SYK) downgraded to Neutral from Buy at BofA Securities; tgt $215
  • T. Rowe Price (TROW) downgraded to Sell from Neutral at UBS; tgt lowered to $88
  • Under Armour (UAA) downgraded to Hold from Buy at Jefferies; tgt lowered to $10
  • Upstart (UPST) downgraded to Sell from Neutral at Goldman; tgt lowered to $14
• Others:
  • Affirm (AFRM) initiated with a Neutral at Goldman; tgt $22
  • Blucora (BCOR) initiated with an Overweight at Cantor Fitzgerald; tgt $22
  • Boyd Gaming (BYD) initiated with a Buy at Loop Capital; tgt $86
  • G-III Apparel (GIII) initiated with an Equal Weight at Wells Fargo; tgt $20
  • Kontoor Brands (KTB) initiated with an Overweight at Wells Fargo; tgt $40
  • Red Rock Resorts (RRR) initiated with a Hold at Loop Capital; tgt $36
  • SAP SE (SAP) assumed with an Outperform at Credit Suisse
  • System1 (SST) initiated with a Buy at BofA Securities; tgt $12

Gapping up
In reaction to earnings/guidance:

• CAMT +5.3%, AZZ +4.3%, GOL +0.9%

Other news:

• GNS +16.5% (acquires California based University of Antelope Valley)
• DWAC +16.2% (moves +11% higher after hours after Elon Musk backs out of Twitter deal)
• HITI +5.9% (High Tide's Blessed CBD has begun sales of its premium hemp-derived CBD products on Amazon in the United Kingdom)
• TKR +5% (selected as exclusive provider of advanced precision drives for the Redstone Solar Thermal Power project in Northern Cape, South Africa)
• EURN +2.5% (Frontline considers takeover bid on Euronav NV (EURN))
• IONS +2.3% (licenses rare kidney disease treatment and will advance into Phase 3 clinical study)
• PRGO +2.1% (submitted its application to the FDA for the first-ever over-the-counter (OTC) birth control pill in the United States)
• PODD +1.9% (entered into a settlement and license agreement with Roche (RHHBY) Diabetes Care) 

Analyst comments:

• APG +2.5% (upgraded to Buy from Neutral at BofA Securities)

Gapping down
In reaction to earnings/guidance:

• GBX -5%

Select Index ETFs showing early weakness:

• QQQ -0.7%, SPY -0.6%, IWM -0.6%, DIA -0.5%

Other news:

• SWVL -11% (to acquire Mexico-based Urbvan Mobility; acquisition is expected to be completed in Q3 2022)
• MGNX -10% (Announces Closure of CP-MGA271-06 Study Evaluating Enoblituzumab plus Checkpoint Inhibition in Head and Neck Cancer)
• LVS -5.4% (entered into a loan agreement with Sands China)
• TWTR -5.3% (Elon Musk sent a letter to Twitter formally notifying Twitter that Elon Musk is terminating their merger agreement; Twitter Board confident in merger agreement and intends to close transaction at $54.20 per share price)
• RADA -3.4% (releases Leonardo DRS presentation)
• NIO -3.3% (provides update on response to short seller report)
• LLAP -3.1% (files for 27,714,791 share common stock offering by selling shareholder)
• SU -2.3% (CEO to step down immediately, appoints Kris Smith as Interim CEO)
• UBER -2.2% (Uber attempted to lobby politicians and broke laws in effort to expand globally, according to The Guardian)
• VIPS -1.3% (Chief Technology Officer Pengjun Lu tendered the resignation from his current position due to personal reasons effective July 11)
• GFI -1.1% (Gold Fields provides update on Yamana Gold (AUY) acquisition)

Analyst comments:

• DOCN -7.1% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
• DUOL -3.7% (downgraded to Sector Weight from Overweight at KeyBanc Capital Markets)
• BROS -3.5% (downgraded to Neutral from Outperform at Robert Baird)
• ABC -2.5% (downgraded to In-line from Outperform at Evercore ISI)
• BDX -2.5% (downgraded to Sell from Neutral at Citigroup)
• AME -2.3% (downgraded to Neutral from Buy at BofA Securities)
• ALLE -1.4% (downgraded to Neutral from Buy at BofA Securities)
• ABB -1.3% (downgraded to Neutral from Buy at Citigroup)

Early premarket gappers

• Gapping up:
  • DWAC +18.8%, HITI +5.9%, CAMT +4.2%, AZZ +3.4%, PRGO +2.3%, EURN +2.1%, LLAP +1.5%, CBZ +0.8%
• Gapping down:
  • SWVL -8.8%, TWTR -6.6%, LVS -5.3%, GBX -5%, VIPS -4.2%, NIO -3.6%, RADA -3.4%, MGNX -1.4%, SU -1.2%, AUY -0.8%, GFI -0.7%, QQQ -0.7%, SPY -0.5%, IWM -0.5%