WSJ : EU Plans to Reserve Most of Mobile Satellite Spectrum for Homegrown Operat

EU Plans to Reserve Most of Mobile Satellite Spectrum for Homegrown Operators
EU proposed an overhaul of how licenses are granted for the 2 gigahertz MSS frequency band that is used for satellite communications

  • The EU proposed an overhaul of mobile satellite spectrum licensing to reserve the majority for homegrown operators.
  • The proposal would set aside two-thirds of the 2 gigahertz MSS frequency band for commercial use, with one-third for secure government communications.
  • The EU seeks to curb reliance on foreign tech companies and boost its sovereignty in the technology sector.

The European Union plans to reserve most of its lucrative mobile satellite spectrum for homegrown operators from next year, the bloc’s latest move to curb reliance on foreign tech companies.

The EU on Wednesday proposed an overhaul of how licenses are granted for the 2 gigahertz MSS frequency band that is used for satellite communications, after May 2027, when licenses held by U.S. companies Viasat and EchoStar are due to expire.

The EU wants to reserve two-thirds of the sought-after band for commercial use such as cellular devices, it said Wednesday.

Non-EU companies such as Elon Musk’s Starlink would be able to bid for access, but access for commercial use would be divided equally between European companies entering the market and other European and non-EU companies in a bid to diversify the bloc’s suppliers.

The remaining one-third of access would also be set aside for EU operators providing secure government communications.

The EU has sought to boost its own sovereignty in the technology sector in recent months, spurred on by concerns over the dominance of U.S. tech giants while trans-Atlantic relations are more volatile under President Trump.

“Europe stands now at a crossroads. We now have a rare opportunity to choose what we want to do for our future,” Henna Virkkunen, the EU’s top tech enforcer, said Wednesday. “We want to boost Europe’s competitiveness, we want to strengthen Europe’s security and, also, we want to embrace new technological possibilities,” she said.

WSJ : A New, Powerful Cholesterol-Lowering Drug Is on the Horizon

A New, Powerful Cholesterol-Lowering Drug Is on the Horizon
Pharmaceutical companies have spent years targeting a common blood particle associated with heart-attack risks

  • Novartis and Ionis Pharmaceuticals expect results as soon as this summer for an experimental drug targeting lipoprotein(a), a cause of heart disease.
  • Amgen and Eli Lilly are also developing gene-based drugs to lower lipoprotein(a), with trial results expected in the next year or two and in 2029, respectively.
  • Elevated lipoprotein(a) affects roughly one in five people globally, is inherited and has eluded effective treatment for decades.

A new class of drugs is poised to take on an insidious cause of heart attacks and strokes that has eluded treatment for decades.

Researchers could know as soon as this summer whether the most advanced experimental drug, from Novartis NOVN 0.96%increase; green up pointing triangle and its partner Ionis Pharmaceuticals IONS 1.09%increase; green up pointing triangle, cut heart attacks, strokes and deaths in a study that could be used to get their drug approved by next year.

Amgen AMGN 0.96%increase; green up pointing triangle and Eli Lilly LLY 1.73%increase; green up pointing triangle are also developing medicines that lower the level of lipoprotein(a), a fatty particle in the blood that is known as Lp(a). It can cause plaque to build up in blood vessels and is linked to heart disease.

Tens of millions of people in the U.S. have elevated Lp(a), an inherited and largely hidden driver of heart disease. If Lp(a) drugs work, companies could be on the verge of the next big heart-drug market. Citi analysts estimate it could be valued at as much as $25 billion a year worldwide.

This isn’t a sure bet, though. Effective Lp(a) drugs have proven difficult to develop. In the past, scientists found drugs that lowered levels of the particle a moderate amount but failed to reduce heart attacks and strokes in research studies, leaving patients with no approved treatment.

“It’s just been the riddle that nobody could solve,” said Monica Florio, who has helped lead research on Amgen’s candidate. “Now I think these trials are going to bring us an answer.”

Lp(a) is an especially treacherous cause of heart disease. The particle is a variant of LDL, the so-called bad cholesterol. Like its cousin, high levels of buildup in arteries threaten heart attacks and strokes.

But the problem is, six decades of research has so far failed to prove that lowering a person’s Lp(a) will actually reduce their risk of heart attacks and strokes. For Lp(a) drugs to work, scientists say they must significantly lower overall levels of the particle in the body.

Diet and exercise don’t lower Lp(a). About 90% of a person’s level is fixed at birth. Doctors usually prescribe other cholesterol treatments, such as statins, to manage overall cardiovascular risk—yet statins can raise Lp(a) levels.

Roughly one in five people globally have dangerously high levels of Lp(a), according to Dr. Steven Nissen, a cardiologist at the Cleveland Clinic who is involved in trials to test several of the drugs in development.

Lp(a) hardens arteries and promotes clotting, which is “why it is so noxious in terms of increasing adverse cardiovascular events,” Nissen said.

Drugmakers are using new technologies to attack Lp(a) now.

Both Amgen’s experimental Lp(a) drug and Lilly’s most advanced treatment deploy a gene-based technology that aims to silence the gene that produces Lp(a).

Amgen’s late-stage trial is expected to have results in the next year or two, while Lilly’s late-stage trial results aren’t expected until 2029.

The therapy from Novartis and Ionis uses a different gene-based technology that blocks the signal telling the liver to produce Lp(a).

Bill Heym, who is in the Novartis trial, didn’t find out that he had high levels of the particle until he suffered a heart attack.

Shortly after retiring from a 35-year career as a construction electrician, the Parma, Ohio, resident had shoulder-reconstruction surgery in late 2016.

He went into cardiac arrest while at the hospital and required three rounds of cardiopulmonary resuscitation. He was airlifted to the Cleveland Clinic’s main hospital, where doctors performed an emergency procedure to remove blood clots from his arteries and heart.

When Heym woke up three days later, his doctor delivered the news: His Lp(a) level was more than triple the threshold at which the American Heart Association says it starts raising heart risk.

Most people have never had their Lp(a) level tested, according to Nissen, the Cleveland Clinic cardiologist. Doctors have been hesitant to order the test for patients because there aren’t currently any approved drugs to directly lower the particle. Medical bodies updated guidelines earlier this year to recommend Lp(a) testing.

If the drugs work, the question will be who exactly should get them.

The drugs might prove clearly effective only for people with extremely high levels of Lp(a). If the benefit for patients with lower levels is murky, the drugs could end up being covered by insurers only for those at very high risk.

Then there is the question of cost: A decade ago, health plans balked at paying for powerful new cholesterol-lowering drugs called PCSK9 inhibitors because of pricing.

Drugmakers eventually slashed prices to about $200 a month from roughly $1,000 a month before insurers would cover them broadly. Analysts have estimated that the annual price for Lp(a) drugs could be similar to approved PCSK9 drugs—but a lot depends on the coming study results.

Amgen argues that near-total elimination of the particle is what will meaningfully reduce heart attacks and deaths.

“This could prove to be important, especially in patients who benefit from decades of improving other risk-factor management,” said Jay Bradner, Amgen’s executive vice president for research and development.

WSJ : Universal Music Shareholder Deals Blow to Bill Ackman’s $65 Billion Bid

Universal Music Shareholder Deals Blow to Bill Ackman’s $65 Billion Bid
Bollore’s CEO encourages Universal to reject the Pershing Square Capital bid

  • Bollore Group called on Universal Music Group to reject a $65 billion bid from Bill Ackman’s Pershing Square Capital.
  • Cyrille Bollore, chief executive of Bollore Group, said the Pershing Square Capital offer undervalued Universal.
  • The Bollore family holds an 18.5% stake and nearly 40% of voting rights in Universal, where shares are down nearly 30%.

Universal Music Group UMG -2.65%decrease; red down pointing triangle shareholder Bollore Group BOL 0.09%increase; green up pointing triangle said it was calling on the record label to reject a $65 billion bid from Bill Ackman’s Pershing Square Capital, a move that could derail efforts from the billionaire to seize the world’s largest music company.

Cyrille Bollore, chief executive of the Bollore Group, said Ackman’s bid undervalued Universal. Pershing Square Capital in April offered 30.40 euros a share in a cash-and-stock deal that values Universal’s current stock outstanding at 55.89 billion euros, equivalent to $65.01 billion.

“I don’t think that this offer is positive. I don’t think it would be positive for the company and I encourage UMG management to reject that offer,” Bollore told shareholders at the company’s annual general meeting on Wednesday.

Pershing and Universal declined to comment. The record label previously said its board was reviewing the proposal.

Bollore’s remarks poured cold water on Ackman’s efforts to land Universal, home to some of the world’s most successful artists, including Lady Gaga, Taylor Swift, Billie Eilish and the Beatles.

The family of French billionaire Vincent Bollore commanded a stake of roughly 18.5% and nearly 40% of voting rights in Universal, according to the music company’s latest annual report. Universal’s other major shareholders include Vivendi and China’s Tencent Holdings and any deal would require a two-thirds vote to pass, according to Pershing Square’s proposal.

“Without Bollore, we don’t have a transaction,” Ackman said in a call with investors on April 7 to present the deal. Universal’s other major shareholders include Vivendi and China’s Tencent Holdings, and any deal would require a two-thirds vote to pass.

Ackman has long sought to get Universal listed in the U.S., saying its stock price had languished due to what Pershing called uncertainty in relation to Bollore’s stake in the company, the underutilization of UMG’s balance sheet and the lack of a publicly disclosed capital allocation plan.

Pershing is seeking to merge Universal with Pershing Square Sparc Holdings, a specially created acquisition vehicle. The new entity would be based in Nevada and would shift its stock listing from Amsterdam to the New York Stock Exchange.

The label has operational headquarters in Santa Monica and corporate headquarters in Hilversum, Netherlands. It started trading on the Euronext Amsterdam in September 2021 after a spinoff from Vivendi.

Universal shares in Amsterdam are down nearly 30% over the past 12 months. Revenue from subscriptions and streaming services boomed during the pandemic when coronavirus restrictions prevented people from attending live concerts. Those services are still resilient, but growth has cooled since pandemic highs.

Last month, the company reported weak revenue and earnings for the first quarter and said it would sell half of its 3.1% equity stake in Spotify Technology and channel funds to buy back shares.

FT : Uber adds to its Delivery Hero stake at €12bn valuation

Uber adds to its Delivery Hero stake at €12bn valuation
Share purchase from Aspex Management steps up US ride-hailing group’s pursuit of German food delivery company

Uber has increased its stake in Delivery Hero to nearly 37 per cent and set a €12bn benchmark for its valuation as the ride hailer steps up its efforts to acquire the German food delivery group.

The San Francisco-based tech company acquired Aspex Management’s 14.6 per cent stake in Delivery Hero earlier this week through a series of share purchases and derivatives, according to three people familiar with the matter.

Uber agreed to pay slightly below €40 per share, valuing Delivery Hero at about €12bn, the people added.

The move is the latest step by Uber in its pursuit of the Berlin-based delivery group, after it previously submitted a takeover offer to the company’s board at €33 per share. Uber’s board met on Saturday to discuss a higher offer, which would have valued Delivery Hero at more than €11.5bn.

One person familiar with Uber’s thinking said the company was still weighing whether to pursue a formal tender offer for Delivery Hero and that a decision was probably “weeks away”.

Uber had pledged to compensate Aspex if it agreed to purchase Delivery Hero at a higher price, the people added.

After the acquisition from Aspex, Uber now holds an economic interest close to 37 per cent, it disclosed in a filing on Wednesday, up from 25 per cent.

It controls 24.99 per cent of Delivery Hero’s voting rights, strengthening its position to block any rival attempt to acquire it while staying just below the legal threshold for a foreign investment review by the German government as well as merger controls.

Under German law, only voting rights attached to shares or physically settled derivatives count towards the 30 per cent threshold, which would mandate a takeover offer.

The FT previously reported that DoorDash had considered an approach for Delivery Hero’s 80 per cent stake in Middle Eastern delivery app Talabat.

Delivery Hero’s share price has risen almost 100 per cent in the past month due to speculation of a potential takeover attempt. Uber’s share price has retreated more than 4 per cent over the past week.

Any transaction would add to growing consolidation in the global food delivery market after DoorDash’s £2.9bn takeover of Deliveroo and the €4.1bn acquisition of Just Eat Takeaway by Prosus last year.

Prosus, which was previously Delivery Hero’s largest shareholder with a 27 per cent holding, has forfeited its voting rights and agreed to sell down its stake to “single digits” as part of a deal with EU antitrust authorities to allow the Just Eat takeover.

The Amsterdam-based group, which holds a 16.8 per cent stake in Delivery Hero, had been lobbying Brussels in recent weeks for a waiver of that agreement, according to people familiar with the matter.

If granted, Prosus could attempt to block an Uber takeover attempt.

Prosus chief executive Fabricio Bloisi told the FT in December that the EU was at risk of becoming “irrelevant in terms of technology” due to its antitrust rules. The group has criticised European regulators for opening the door for an American takeover of Delivery Hero.

Uber, Aspex, Prosus and Delivery Hero declined to comment.

FT : For ailing Lululemon, going private might not be a stretch

For ailing Lululemon, going private might not be a stretch
The company has essentially no net debt and still generated $1bn in free cash flow last year

It is over a decade since Chip Wilson, founder of Lululemon, suggested that some customers really did not belong in his company’s garments. This was, it’s fair to say, the wrong response to complaints that Lululemon’s yoga pants were too sheer. Yet Wilson has not stopped having opinions — or thinking he has the solution to the group’s problems.

The athleisure mogul stepped down from Lululemon in 2013, but still owns 7 per cent of its stock. He has also spent recent months battling the company to put his three suggestions for directors on the board. On Wednesday, Lululemon agreed to admit two of those candidates. In return, Wilson must stop bad-mouthing the company for 18 months.

Wilson’s public criticisms may have been unwelcome and even possibly unhelpful, but they weren’t unfounded. Shares of Lululemon have fallen 75 per cent from the peak levels hit in 2023. Its founder’s beef has been that the once aspirational marque has become too diluted and basic. A partnership with Walt Disney, for example, does suggest a drift in brand values.


Lululemon’s management concedes its merchandising must improve; a new chief executive will join from Nike shortly. But since Wilson left, annual sales have gone from $2bn to $11bn. There is no simple solution to the challenge of retaining a gilded brand when the market is also under attack from buzzy newcomers such as Vuori and Alo, and public market investors want to see sustained growth.

Shrinking, though, is Lululemon’s near-term reality. Like-for-like sales in its core Americas market fell by 3 per cent in 2025. Analysts expect a 5 per cent contraction in 2026, according to Visible Alpha. More worryingly, its balance of inventories grew by a whopping 18 per cent, a sign that its apparel is not moving as it should, and is a drain on its cash.

When Lululemon was growing, Wall Street proved a huge booster. At the beginning of 2021, the stock had quadrupled in three years, and the company was trading at 50 times estimated year-ahead earnings. That figure has cratered at about 10 times now.

Wilson will now have eyes in the boardroom looking out for his, and all other shareholders’, interests. And if that isn’t enough? Lululemon has essentially no net debt and still generated $1bn in free cash flow last year, suggesting a buyout isn’t out of the question. Wilson’s claim that some customers weren’t meant for his clothing was tin-eared. Apply the premise to Lululemon and the stock market, and it might make more sense.

FT : Uber bid for Delivery Hero would be an odd route to superapp status

Uber bid for Delivery Hero would be an odd route to superapp status
Food delivery group’s taxed operating profit this year is only about 2.4 per cent of its enterprise value

It isn’t hard to see why Uber wants to be “one app for everything.” Piling everything from hotels and cars to shopping and finance on to a single “super app” is tantamount to a giant cross-selling opportunity, and a rich seam of customer behavioural data. But buying Delivery Hero, the €14.2bn food delivery business that Uber has been circling, would be a complicated and expensive way to get closer to boss Dara Khosrowshahi’s dream. 

One problem is that the German group, which biked almost €50bn worth of meals last year in around 65 countries under brands such as Glovo and Foodora, has already markedly risen in price. As one of the last sizeable assets left in a sector that has been consolidating — with Deliveroo acquired by DoorDash and Just Eat Takeaway by Prosus — bid talk has swirled and its shares have roughly doubled over the past month.


That makes it hard for Uber to get anything like value for money. Delivery Hero’s taxed operating profit this year, a proxy for the free cash flow it might generate after making investments in its business, is only about 2.4 per cent of its enterprise value. To get a reasonable return of, say, 10 per cent on an acquisition at these prices, Uber would need to believe it could roughly quadruple Delivery Hero’s operating profit to €2bn. 

To be fair, there are ways Uber could juice those numbers up. One would simply be to wait: Delivery Hero is growing, and is forecast to reach €1bn of operating profit by 2028 on S&P Capital IQ numbers. Another is to take out a chunk of its general and administrative expenses: personnel costs last year were around $2.2bn excluding delivery, reckon Bernstein analysts. If Uber managed to cut a quarter of those, it would get closer to its target.

Khosrowshahi could also sell some of Delivery Hero’s country operations — and might have to in order to get antitrust approval. In Europe, Delivery Hero is lossmaking and Uber already operates in many countries under its own Uber Eats brand. Peddling some of its target’s businesses at a reasonable price might further improve the economics of a transaction.

Beyond that, the hope must be that the two groups combined would grow faster. This is where superapp economics, in theory, kick in. Customers who come for the rides stay for the fries. And if all goes well, a much-improved Delivery Hero then generates lots of extra cash for Uber to plough into its business.

Still, the whole endeavour looks astonishingly laborious. Should Uber continue to pursue its quarry at increasingly high prices, it would start to look less like the hunter and more like the hunted. After all, its existing ride-hailing business faces a threat from self-driving cabs, which could over time outcompete its human drivers. Being willing to spend a lot of time and money to bulk up its less-exposed activities, then, might be a sign of weakness rather than strength.

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • DY +20.8%, APPS +13.7%, BBWI +12.4%, SMTC +10.1%, QFIN +8.6%, DTIL +7.1%, ANF +5.1%, API +4.0%, MOD +2.9%, CPRI +2.3%, BMO +2.0%
Other news:
  • MU +8.6% (Continues to rally following UBS price target increase yesterday to $1625 from $535.)
  • RKLB +7.4% (has successfully passed System Requirements Review for the Space Development Agency's Tracking Layer Tranche 3 (TRKT3) constellation.)
  • FLY +7.2% (Won a $75 million NASA JPL subcontract to deliver four drones to the Moon's south pole.)
  • AMWD +6.9% (FTC closed its investigation of MasterBrand's proposed merger, with closing expected on or about May 28.)
  • IREN +4.8% (Entered a $1.6 billion Dell purchase agreement for air-cooled Blackwell systems supporting its five-year $3.4 billion AI contract.)
  • TSM +4.4% (Lifted by news that NVIDIA to spend $150 bln each year in Taiwan; staff will see a 30% increase in profit sharing, according to Bloomberg)
  • RMBS +4.3% (Announces complete DDR5 9600 client memory module chipset for high-performance CUDIMM, CQDIMM and CSODIMM modules.)
  • ENTG +4.0% (Entered a non-exclusive cross-licensing agreement to help advance EUV lithography for next-generation chip manufacturing.)
  • FUL +4.0% (Issued statement saying board and management value shareholder feedback and have engaged with Ancora.)
  • GCTS +3.9% (Announced strategic partnership with MaxLinear to develop integrated 5G fixed wireless access and converged gateways.)
  • LULU +3.6% (Enters into cooperation agreement with Chip Wilson; Laura Gentile and Marc Maurer to Join Company's Board of Directors.)
  • WS +3.5% (Received German antitrust clearance for the Klöckner acquisition, satisfying final closing condition; deal expected to close June 3.)
  • SSYS +3.1% (Agrees to acquire Markforged from Nano Dimension in an all-cash transaction valued at $42.5 million.)
  • STSS +2.7% (Rebranding as SkyAI and changing its Nasdaq ticker to SKYA effective May 28 while building an agentic finance platform.)
  • STNG +2.6% (Satisfied conditions to earn a 49% working interest in Colombia's Tisquirama block from Ecopetrol.)
  • NN +2.4% (Announces stock offering related to warrants)

>>> US Research Calls I

Research Calls I
  • Upgrades:
    • Advanced Drainage Systems (WMS) upgraded to Overweight from Equal Weight at Stephens, tgt $175
    • BioNTech (BNTX) upgraded to Buy from Neutral at UBS, tgt $135
    • CDW (CDW) upgraded to Overweight from Neutral at JPMorgan, tgt $130
    • Ecolab (ECL) upgraded to Buy from Neutral at UBS, tgt $325
    • FedEx (FDX) upgraded to Overweight from Neutral at JPMorgan, tgt $460
    • Gulfport Energy (GPOR) upgraded to Outperform from Neutral at Mizuho, tgt $252
    • GXO Logistics (GXO) upgraded to Overweight from Equal Weight at Barclays, tgt $65
    • H.B. Fuller (FUL) upgraded to Neutral from Underweight at JPMorgan, tgt $58
    • ICU Medical (ICUI) upgraded to Buy from Hold at Needham, tgt $165
    • Ingram Micro (INGM) upgraded to Neutral from Underweight at JPMorgan, tgt $27
    • Insight Enterprises (NSIT) upgraded to Neutral from Underweight at JPMorgan, tgt $105
    • MGM Resorts (MGM) upgraded to Buy from Hold at Truist, tgt $55
    • MGM Resorts (MGM) upgraded to Overweight from Neutral at JPMorgan, tgt $46
    • MSCI (MSCI) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $700
    • Nayax (NYAX) upgraded to Outperform from Perform at Oppenheimer, tgt $86
    • Par Pacific (PARR) upgraded to Outperform from Neutral at Mizuho, tgt $79
    • Pebblebrook Hotel (PEB) upgraded to Buy from Hold at Truist, tgt $17
    • Phillips 66 (PSX) upgraded to Outperform from Neutral at Mizuho, tgt $212
    • RPM Inc (RPM) upgraded to Buy from Neutral at UBS, tgt $130
    • SanDisk (SNDK) upgraded to Overweight from Equal Weight at Barclays, tgt $2,300
    • TD Synnex (SNX) upgraded to Overweight from Neutral at JPMorgan, tgt $298
  • Downgrades:
    • ACNB Corp. (ACNB) downgraded to Market Perform from Outperform at Hovde Group, tgt $57
    • Dollar General (DG) downgraded to Hold from Buy at Deutsche Bank,t gt $110
    • Endava (DAVA) downgraded to Neutral from Buy at Guggenheim
    • Ferrovial (FER) downgraded to Neutral from Buy at Citigroup, tgt $70
    • First Interstate (FIBK) downgraded to Neutral from Buy at DA Davidson, tgt $39
    • Genesco (GCO) downgraded to Neutral from Buy at Seaport Research
    • Here Group (HERE) downgraded to Neutral from Buy at Citigroup, tgt $2.50
    • HF Sinclair (DINO) downgraded to Neutral from Outperform at Mizuho
    • Kennametal (KMT) downgraded to Underweight from Equal Weight at Barclays, tgt $33
    • Kosmos (KOS) downgraded to Underperform from Neutral at Mizuho, tgt $3
    • Ralliant (RAL) downgraded to Hold from Buy at Vertical Research, tgt $65
    • Sportradar (SRAD) downgraded to Neutral from Overweight at JPMorgan, tgt $16
    • Verra Mobility (VRRM) downgraded to Hold from Buy at Deutsche Bank, tgt $9
    • Verra Mobility (VRRM) downgraded to Market Perform from Outperform at William Blair
    • Verra Mobility (VRRM) downgraded to Neutral from Outperform at Robert W. Baird, tgt $8
    • Verra Mobility (VRRM) downgraded to Underweight from Neutral at JPMorgan, tgt $8
    • Vinci (VCISY) downgraded to Neutral from Buy at Citigroup
    • Westlake (WLK) downgraded to Neutral from Buy at Citigroup, tgt $95
    • Winnebago (WGO) downgraded to Neutral from Buy at Citigroup, tgt $30
    • Xiaomi (XIACF) downgraded to Underperform from Hold at Jefferies
    • Zscaler (ZS) downgraded to In Line from Outperform at Evercore ISI, tgt $155
  • Others:
    • Agilent (A) initiated with an Outperform at RBC Capital, tgt $153
    • Asbury Automotive (ABG) initiated with a Neutral at UBS, tgt $202
    • AutoNation (AN) initiated with a Buy at UBS, tgt $234
    • BioAge Labs (BIOA) initiated with a Buy at Roth Capital, tgt $36
    • CarMax (KMX) initiated with a Neutral at UBS, tgt $42
    • Cellebrite (CLBT) initiated with a Buy at DA Davidson, tgt $20
    • Century Therapeutics (IPSC) initiated with an Outperform at Mizuho, tgt $8
    • Dave (DAVE) initiated with an In Line at Evercore ISI, tgt $260
    • Fervo Energy (FRVO) initiated with a Hold at Jefferies, tgt $42
    • GE Aerospace (GE) initiated with a Buy at Seaport Research, tgt $375
    • Group 1 Automotive (GPI) initiated with a Neutral at UBS, tgt $338
    • Intuit (INTU) resumed with a Buy at BofA Securities, tgt $400
    • Kodiak Gas Services (KGS) initiated with an Overweight at Wells Fargo, tgt $93
    • Lamb Weston (LW) initiated with an Equal Weight at Stephens, tgt $46
    • Larimar Therapeutics (LRMR) initiated with an Overweight at JPMorgan, tgt $9
    • LB Pharmaceuticals (LBRX) initiated with a Buy at Clear Street, tgt $45
    • LeonaBio (LONA) initiated with an Overweight at Piper Sandler, tgt $20
    • Lithia & Driveway (LAD) initiated with a Buy at UBS, tgt $348
    • MapLight Therapeutics (MPLT) initiated with a Buy at UBS, tgt $48
    • MaxLinear (MXL) assumed with a Buy at Benchmark, tgt $125
    • Penske Automotive (PAG) initiated with a Neutral at UBS, tgt $167
    • Pershing Square Inc. (PS) initiated with a Buy at Loop Capital, tgt $49
    • Red Cat (RCAT) initiated with a Buy at H.C. Wainwright, tgt $20
    • Sonic Automotive (SAH) initiated with a Buy at UBS, tgt $90
    • Vertex Pharmaceuticals (VRTX) assumed with a Buy at Truist, tgt $542
    • Workday (WDAY) resumed with a Neutral at BofA Securities, tgt $140

Reuters: Chipmaker X-FAB surges in retail-driven rally as chip frenzy builds

Chipmaker X-FAB surges in retail-driven rally as chip frenzy builds - Reuters News
Sentiment:
Mostly Positive
27 May 2026 02:02:55 PM
 

GDANSK/MILAN, May 27 (Reuters) - Shares of European chipmaker X-FAB XFAB.PA jumped as much as 76% on Wednesday, driven by retail buying amplified by a viral social media post, the latest sign of chip sector frenzy.

There was no obvious specific news behind the surge, but traders cited a post on platform X from the handle Serenity that highlighted X-FAB as an "interesting long idea" tied to photonics and power semiconductors.

"It's being pushed on X," said Stephane Ekolo, equity strategist at TFS Derivatives in London.

X-FAB was not immediately available for comment.

The same handle, also known as @aleabitoreddit, has previously been linked to sharp gains in UK computer hardware firm Raspberry PiRPI.L in February. Since then, its followers have grown to more than 411,000 from around 58,000.

Retail flows appeared to dominate activity, with X-FAB among the most traded stocks on Germany's Tradegate platform, ranking second behind U.S. chipmaker Micron Technology MU.O and ahead of Germany’s Infineon IFXGn.DE.

Paris-listed X-FAB pared gains after briefly reaching a market capitalisation of around 2.06 billion euros ($2.4 billion), roughly three times its value at the start of 2026. By 1127 GMT, the stock was up 35%.

The spike comes against a strong broader rally in semiconductor stocks, fuelled by expectations that AI will drive sustained demand.

SK Hynix000660.KS topped $1 trillion in market value for the first time on Wednesday, joining its memory chip peers Samsung Electronics 005930.KS and Micron.

($1 = 0.8593 euros)

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • JBGS +15.6%, APPS +15.2%, EE +8.2%, RKLB +7.9%, FLY +7.7%, QFIN +6.4%, MU +5.9%, SMTC +5.8%, NN +4.4%, KEN +4.0%, MH +3.9%, IREN +3.9%, SRE +3.5%, GOOD +3.3%, MOD +3.1%, DELL +2.5%, HIMS +2.3%, TSLA +1.8%, UAL +1.3%, NCLH +1.2%
  • Gapping down:
    • VRRM -45.9%, ZS -23.6%, DK -8.5%, MGR -4.8%, ATAT -4.3%, ZTO -3.8%, SB -3.1%, TRS -3.0%, SKM -2.8%, HBNB -2.3%, FCPT -1.9%, JBIO -1.5%