>>> US Research Calls

Research Calls

  • Upgrades:
    • A.O. Smith (AOS) upgraded to Buy from Neutral at Longbow; tgt $71
    • Callon Petroleum (CPE) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt $75
    • Centennial Resource Development (CDEV) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt $11
    • Dun & Bradstreet (DNB) upgraded to Neutral from Underperform at BofA Securities; tgt raised to $17
    • Enanta Pharmaceuticals (ENTA) upgraded to Outperform from In-line at Evercore ISI; tgt $62
    • Mercer Intl (MERC) upgraded to Outperform from Neutral at Credit Suisse; tgt raised to $19
    • Rocket Companies (RKT) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $10
    • Sabre (SABR) upgraded to Buy from Underperform at BofA Securities; tgt $10
    • Sempra Energy (SRE) upgraded to Buy from Neutral at Goldman; tgt raised to $167
  • Downgrades:
    • Azul S.A. (AZUL) downgraded to Underweight from Equal Weight at Barclays; tgt lowered to $7
    • Continental Resources (CLR) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $80
    • Coinbase Global (COIN) downgraded to Neutral from Overweight at Atlantic Equities; tgt lowered to $54
    • Earthstone Energy (ESTE) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $21
    • EOG Resources (EOG) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $150
    • GOL Linhas Aereas Inteligentes S.A. (GOL) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $4
    • Grocery Outlet (GO) downgraded to Neutral from Buy at DA Davidson; tgt raised to $43
    • HCA (HCA) downgraded to Underperform from Market Perform at BMO Capital Markets; tgt lowered to $160
    • Kornit Digital (KRNT) downgraded to Hold from Buy at Stifel; tgt lowered to $50
    • Littelfuse (LFUS) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $269
    • McKesson (MCK) downgraded to Hold from Buy at Argus
    • Moelis (MC) downgraded to Neutral from Buy at UBS; tgt lowered to $40
    • Pioneer Natural Resources (PXD) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt $290
    • RingCentral (RNG) downgraded to Hold from Buy at Needham
    • SAP SE (SAP) downgraded to Equal Weight from Overweight at Barclays
    • Union Pacific (UNP) downgraded to Neutral from Positive at Susquehanna; tgt $235
    • Universal Health (UHS) downgraded to Underperform from Market Perform at BMO Capital Markets; tgt lowered to $90
  • Others:
    • Abbott Labs (ABT) initiated with an Underperform at Wolfe Research; tgt $95
    • BHP Group (BHP) assumed with a Neutral at Credit Suisse
    • Boston Scientific (BSX) initiated with an Outperform at Wolfe Research; tgt $43
    • Definitive Healthcare (DH) initiated with a Buy at Needham; tgt $30
    • Fusion Pharmaceuticals (FUSN) initiated with an Outperform at William Blair
    • Materion (MTRN) initiated with a Buy at CL King; tgt $95
    • Medtronic (MDT) initiated with an Underperform at Wolfe Research; tgt $85
    • POINT Biopharma (PNT) initiated with an Outperform at William Blair
    • Portman Ridge Finance (PTMN) initiated with a Perform at Oppenheimer; tgt $26
    • Rio Tinto (RIO) assumed with an Outperform at Credit Suisse
    • Teleflex (TFX) initiated with an Outperform at Wolfe Research; tgt $300

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • KRNT -23.5% (issues downside Q2 guidance), RADA -13.7% (guidance), UMC -2.6% (June sales)

Other news:

  • DASH -7.6% (negative reaction to Amazon taking 2% stake in Just Eat Takeaway.com's US food delivery business GrubHub; to offer Prime members service for 1 year)
  • HR -5% (Independent Proxy Advisory Firm Glass Lewis Recommends Healthcare Realty Trust Shareholders Vote for Proposed Transaction With Healthcare Trust of America)
  • UBER -3.3% (negative reaction to Amazon taking 2% stake in Just Eat Takeaway.com's US food delivery business GrubHub; to offer Prime members service for 1 year)
  • OIS -2.4% (names new COO)
  • HIVE -1.8% (to delay annual filing of Form 40-F)
  • FSP -1.7% (adopts a variable quarterly dividend policy)
  • VMW -1.7% (AVGO's deal to acquire VMW will move forward after rival bidder failed to emerge according to Bloomberg)
  • DNMR -1.6% (to submit Part II application for loan guarantee under US DOE loan guarantee program)
  • RKLB -1.3% (next two launches will be responsive space missions for the U.S. govt)
  • VSTO -1.3% (to acquire Irvine Calif.-based Fox Racing a global icon in performance motocross mountain bike and lifestyle gear for $540 mln + potential earnout)
  • STAG -1% (names new CEO)

Analyst comments:

  • AZUL -2.9% (downgraded to Underweight from Equal Weight at Barclays)

>>> US Gapping up

Gapping up

News:

  • RFP +65.7% (entered into an agreement under which Domtar will acquire all of the outstanding common shares of Resolute stock for $20.50 per share and one Contingent Value Right)
  • AMTI +2.9% (to report top-line Phase 2 results from MARKET combination Trial of Oral AMT-101)
  • PRIM +2.1% (awarded a $170 mln project by Texas DOT)
  • BIIB +2.1% (Biogen and Eisai receives BLA acceptance and Priority Review from FDA for Lecanemab)
  • EPM +2% (CEO to step down)
  • MO +2% (FDA administratively stayed the marketing denial order; determined that there are scientific issues unique to the JUUL application that warrant additional review)
  • BOC +1.8% (acquires the internet service assets of Strawberry Comms)
  • FTI +1.6% (to conduct iFEED study for Equinor)
  • LSI +1.6% (increases dividend)
  • VORB +1.5% (entered into a securities purchase agreement pursuant to which the Company sold and issued convertible debenture on June 29, 2022 in the principal amount of $50.0 mln)
  • CMBM +1.5% (delivers initial order of Microwave Line-of-Sight radios to Advanced Technology Systems Company)
  • JKS +1.1% (authorizes the Company to repurchase up to $200 million of its ordinary shares represented by ADSs during an 18-month period)
  • SRPT +1% (to share new clinical data and analysis for SRP-9001)
  • ISEE +1% (IVERIC bio and DelSiTech enter exclusive agreement for development of sustained release Zimura)
  • VERU +1% (New England Journal of Medicine Evidence Publication of Phase 3 Clinical Trial Results Demonstrating that Sabizabulin Treatment Significantly Reduced Deaths in High-Risk Hospitalized COVID-19 Patients)

Analyst comments:

  • CDEV +3.5% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
  • AOS +1.2% (upgraded to Buy from Neutral at Longbow)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • AMTI +7.1%, RKLB +3%, MO +2.6%, PRIM +2.1%, BOC +1.8%, HIVE +1.8%, BIIB +1.8%, FTI +1.6%, LSI +1.6%, ISEE +1%, SRPT +0.7%, EPM +0.6%, ESTE +0.5%
  • Gapping down:
    • KRNT -23.9%, RADA -10.5%, FSP -5.5%, VORB -3.2%, OIS -2.4%, UMC -2.3%, STAG -2%, VMW -1.8%, DNMR -1%, AVGO -0.6%

>>> Europe : Brokers Upgrades & Downgrades - 6tb of July 2022 V2(+)

>>> Up
* Continental Raised to Equal-Weight at Barclays; PT 70 euros
* Dechra Pharma Raised to Add at Numis; PT 4,000 pence
* DNB Bank Raised to Buy at Norne Securities; PT 220 kroner (+)
* Dometic Raised to Buy at Nordea; PT 90 kronor (+)
* Hunting Raised to Buy at Canaccord; PT 300 pence (+)
* Ion Beam Raised to Hold at ING; PT 18 euros
* Michelin Raised to Overweight at Barclays; PT 35 euros
* Rosenbauer Raised to Buy at Baader Helvea; PT 42 euros
* Sage Raised to Equal-Weight at Barclays; PT 720 pence
* Sainsbury Raised to Market Perform at Bernstein; PT 210 pence
* Trainline Raised to Overweight at JPMorgan; PT 354 pence (+)

>>> Down
* Aalberts Cut to Neutral at Oddo BHF; PT 40 euros
* Amadeus Cut to Neutral at BofA; PT 65 euros (+)
* Ashmore PT Cut to 170 pence from 200 pence at Berenberg
* Faurecia SE Cut to Underweight at Barclays; PT 15 euros
* HeidelbergCement Cut to Underperform at Oddo BHF; PT 45 euros
* Intertek Cut to Hold at Jefferies; PT 4,700 pence
* Nordex Cut to Hold at Stifel; PT 9 euros
* Profoto Holding Cut to Hold at Handelsbanken
* SAP Cut to Equal-Weight at Barclays; PT 102 euros
* SAP ADRs Cut to Equal-Weight at Barclays; PT $108
* Software AG Cut to Underweight at Barclays; PT 30 euros
* Swatch Cut to Hold at Stifel; PT 250 Swiss francs
* Thyssenkrupp Cut to Hold at DZ Bank; PT 5.80 euros (+)
* Titan Cement Cut to Neutral at Oddo BHF; PT 12 euros
* Valeo Cut to Equal-Weight at Barclays; PT 20 euros
* Voxel Cut to Hold at Dom Maklerski BOSSA; PT 46.40 zloty (+)
* Wienerberger Cut to Underperform at Oddo BHF; PT 20 euros

>>> Initiation
* Ambea Rated New Buy at Berenberg; PT 75 kronor

>>> Call
* Ambea New Buy at Berenberg, Demographic Trends to Spur Demand
* Ashmore PT Cut to Street-Low at Berenberg as Problems Persist
* Alcohol Spending Patterns to Change, Citi Is Cautious on Diageo (+)
* Intertek Cut on China Exposure, Prefer Bureau Veritas: Jefferies
* Sainsbury Upgraded at Bernstein With Bad News Now Priced In
* SEB a ‘Bulletproof Growth Story,’ Initiated Buy at Berenberg
* Swatch Cut at Stifel, Which Recommends Switch to LVMH, Richemont (+)
* Trainline Estimates Raised at Morgan Stanley on Guidance Uplift (+)

WSJ : Amazon Strikes Partnership Deal with Grubhub That Could Include Small Equi

Amazon Strikes Partnership Deal with Grubhub That Could Include Small Equity Stake
E-commerce giant adds restaurant delivery to its Prime membership; Grubhub parent Just Eat Takeaway.com continues to explore possible sale of the U.S. food-ordering company

Amazon.com Inc. AMZN 3.60%▲ agreed to add Grubhub to its suite of Prime services in the U.S., in a deal that also gives the e-commerce giant the option to acquire a small stake, the parent of the food-ordering company said.

Grubhub’s parent, Netherlands-based Just Eat Takeaway.com NV, TKWY -2.65%▼ said Amazon has an initial option to take a 2% stake in U.S.-based Grubhub, and U.S. Prime members can have their delivery fees waived from select restaurants. Amazon could bump up its total stake to 15% of Grubhub based on performance terms focused on adding new customers, Just Eat said.

Just Eat will still own Grubhub and will continue exploring a full or partial sale of Grubhub, it said. The deal will renew annually unless either Amazon or Just Eat terminates it and it is expected to materially add to Grubhub’s business next year, Just Eat said.

The deal brings Amazon further into food-related services through its Prime membership program. The online commerce giant has provided grocery benefits to Prime members under its Whole Foods Market division as a way to make its annual subscription program more valuable.

Amazon last year said that millions of Prime members in the U.K. and Ireland would get discounts through U.K. food delivery firm Deliveroo, in which Amazon invested in 2019.

Amazon will offer Prime members a subscription to Grubhub’s membership program for a year, which includes free delivery from a network of restaurants, as well as other discounts.

Grubhub CEO Adam DeWitt said the deal will introduce new customers to the company’s membership program and bring more business to restaurants and drivers that work with Grubhub.

Just Eat said it expects the agreement to expand membership to Grubhub’s subscription program and have a neutral impact on the division’s earnings and cash flow this year, while adding to earnings next year.

Netherlands-based Just Eat said in April that it would consider a full sale of Grubhub after acquiring Grubhub in a $7.3 billion deal that closed last year. Activist investor Cat Rock Capital Management LP, Just Eat’s third-largest shareholder according to FactSet, has pressed the company to focus on its European markets, and sell Grubhub.