Gapping down
In reaction to earnings/guidance:
- SCS -5.2% RAD -1.6%
Other news:
- EAR -57.5% (discloses criminal investigation by DOJ related to insurance reimbursement claims; withdraws guidance)
- SYBX -9.7% (prices offering of 15.0 mln shares of common stock at $3.00 per share)
- GRIN -3.2% (prices secondary offering of 1841962 ordinary shares at $13.50 per share)
- REXR -2.6% (prices offering of 9.6 mln shares of common stock for gross proceeds of $565.9 mln)
- AXNX -1.4% (provides additional update on inter partes review proceedings)
- CTOS -1% (stock offering)
Analyst comments:
- COMM -1.9% (downgraded to Neutral from Buy at BofA Securities)
- TRMB -1.8% (downgraded to Underweight from Equal-Weight at Morgan Stanley)
- VIPS -1.8% (downgraded to Neutral from Overweight at JP Morgan)
- LHX -1.3% (downgraded to Sell from Neutral at Goldman)
- MRCY -1.3% (downgraded to Neutral from Buy at Goldman)
Gapping up
In reaction to earnings/guidance:
- BB +7.8% DRI +4.2% FUL +2.7% ACN +1.6%
Other news:
- AMHC +52.7% (receives shareholder approval for combination with Jasper Therapeutics)
- TCI +10.6% (Brixton Capital and The Shidler Group seek to acquire 100% of the outstanding capital stock of Transcontinental Realty Investors for $44.40/share in cash)
- BEAM +2.6% (reports preclinical data highlighting optimized LNP delivery approaches)
- ARCT +2.4% (CEO met with President of Vietnam and CEO of Vingroup to discuss ongoing collaboration for supply of COVID-19 vaccines)
- GENI +2.1% (stock offering)
- EGLX +2.1% (provided an update on the development of its social network for gamers Project GG)
- ARD +2% (declares special cash dividend of $1.25/sh)
- ICLR +2% (secures R&D funding to enhance its data solutions and decentralized clinical trial technology)
- LATN +1.9% (Union Acquisition Corp. II announces shareholder approval of business combination with Procaps Group)
- EVGO +1.9% (announced the expansion of EVgo Fleet Charging Solutions with a new suite of services to support fleets as they electrify their vehicles)
- SLDB +1.7% (reports 1.5-year data from patients in the ongoing IGNITE DMD Phase I/II clinical trial of SGT-001; Patient reported outcomes showed sustained improvements)
- WLTW +1.5% (increases share buyback authorization by $4 bln)
- ABCL +1.5% (enters into collaboration and license agreement with Everest Medicines)
- CHPT +1.4% (WEX and CHPT announce plans to expand relationship to ease integration of EVs into corporate fleets)
- OPEN +1.4% (Access Technology Ventures' increases ownership by $300 mln to become the largest shareholder)
- YUMC +1.1% (outlines strategy; accelerating store network expansion to reach 20000 stores; plans to accelerate the expansion of Lavazza cafés in China)
- BNTX +1.1% (BioNTech and Pfizer receive first EUA for COVID-19 vaccine booster)
Analyst comments:
- PLUG +4.6% (upgraded to Overweight from Neutral at Piper Sandler)
- ERJ +4% (upgraded to Buy from Neutral at Goldman)
- DADA +3.5% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
- ARGX +3% (upgraded to Buy from Neutral at Redburn)
- ROKU +3% (upgraded to Buy from Neutral at Guggenheim)
- LBTYA +2.5% (upgraded to Buy from Hold at Jefferies)
- VTR +1.4% (upgraded to Strong Buy from Outperform at Raymond James)
Early premarket gappers
- Gapping up:
- AMHC +80.6%, TCI +10.6%, SLDB +8.7%, BB +7.9%, FUL +2.6%, VTNR +2.4%, ARD +2%, LATN +1.9%, CHPT +1.6%, WLTW +1.5%, YUMC +1.1%, BNTX +1.1%, FB +0.9%, PCOR +0.9%, PFE +0.9%, ABCL +0.8%, KBH +0.8%, H +0.6%, MNDY +0.5%
- Gapping down:
- EAR -58.3%, SYBX -9.7%, SCS -4.6%, GENI -2.6%, REXR -2%, AXNX -1.4%, CTOS -1%, GRIN -0.6%
China Makes Preparations for Evergrande’s Demise
Beijing, reluctant to bail out the country’s most heavily indebted property developer, is asking local officials across the country to prepare for a ‘possible storm’
SINGAPORE—Chinese authorities are asking local governments to prepare for the potential downfall of China Evergrande Group, EGRNF 25.08% according to officials familiar with the discussions, signaling a reluctance to bail out the debt-saddled property developer while bracing for any economic and social fallout from the company’s travails.
The officials characterized the actions being ordered as “getting ready for the possible storm,” saying that local-level government agencies and state-owned enterprises have been instructed to step in only at the last minute should Evergrande fail to manage its affairs in an orderly fashion.
They said that local governments have been tasked with preventing unrest and mitigating the ripple effect on home buyers and the broader economy, for example by limiting job losses—scenarios that have grown in likelihood as Evergrande’s situation has worsened.
Evergrande faces a series of bond payments in the coming weeks, including one closely watched deadline Thursday for an interest payment on an offshore bond.
Local governments have been ordered to assemble groups of accountants and legal experts to examine the finances around Evergrande’s operations in their respective regions, talk to local state-owned and private property developers to prepare to take over local real-estate projects and set up law-enforcement teams to monitor public anger and so-called “mass incidents,” a euphemism for protests, according to the people.
Spokespeople for Evergrande and the information office of China’s cabinet, the State Council, didn’t immediately respond to requests for comment.
>>> Up
* Deutsche Wohnen Raised to Neutral at Exane; PT 53 euros
* Pantheon Raised to Buy at Jefferies
* Robertet Raised to Buy at Tradition; PT 1,140 euros
* S Immo Raised to Buy at Hauck & Aufhaeuser; PT 26 euros (+)
* SKF Raised to Overweight at Morgan Stanley; PT 250 kronor
* Telecom Plus Raised to Buy at Finncap; PT 1,650 pence (+)
* Uniper Raised to Buy at Bankhaus Metzler; PT 39 euros
* Warner Music Raised to Overweight at Barclays; PT $48
* X-Fab Silicon Foundries Raised to Buy at HSBC; PT 10 euros (+)
>>> Down
* IDOX PLC Cut to Hold at Canaccord; PT 75 pence (+)
>>> Initiation
* Covivio Reinstated Outperform at Exane; PT 90 euros
* Inmobiliaria Colonial Rated New Outperform at Exane; PT 11 euros
* Merlin Properties Reinstated Neutral at Exane; PT 10 euros
* TAG Immobilien Rated New Outperform at Exane; PT 33 euros
* Universal Music Group Rated New Underweight at Barclays
* WDP Reinstated Underperform at Exane; PT 33 euros
>>> Call
* Bachem Capital Raise Makes Sense for Heavy Capex, Vontobel Says (+)
* Chemicals Firms Will Need to Raise Prices on Energy Spike: JPM (+)
* EDF Should Be Boosted by France View on Tariffs: Morgan Stanley
* CVS Group Results Complete Its ‘Exceptional’ Year: Berenberg (+)
* Goldman Raises Lufthansa to Neutral On Passenger Volume Outlook
* Kone at Attractive Level on Overdone China Concerns: Berenberg
* Reckitt’s Maintained Outlook Likely Seen as Small Positive: MS (+)
* SKF Double-Upgraded at Morgan Stanley on Unsustainable De-Rating
* Trigano 4Q Sales ‘Clearly’ Above Estimates, Portzamparc Bullish (+)
* U.K. Utilities Are Unlikely to Face Windfall Tax, Citi Says
* U.S. May Hike Rates in First Half of 2023: Credit Suisse
*SMCP SHAREHOLDER TOPSOHO HAS UNTIL SEPT. 30 TO REMEDY DEFAULT
- Lufthansa (LHA TH) +2.8%
- Goldman Raises Lufthansa to Neutral on Passenger Volume Outlook
- Rio Tinto (RIO1 TH) +2.7%
- Iron Ore Steadies Above $100 as Autumn Demand Supports Rebound
- Anglo American (NGLB TH) +2.5%
- Vivendi (VVU TH) +1.7%
- EDP (EDP TH) +1.6%
- Axa (AXA TH) +1.3%
- Carrefour (CAR TH) +1.3%
- Enel (ENL TH) +1.2%
- Deutsche Bank (DBK TH) +1.1%
- Iberdrola (IBE1 TH) +1.1%
- Universal Music Group (0VD TH) -0.6%
- Recorded-Music Industry May Hit New High on Streaming Surge
- Continental (CON TH) -0.6%
- Salmar (JEP TH) -0.7%
- SalMar’s Buy of Refsnes Laks Stake Gets Competition Approval
- Eurofins Scientific (ESF0 TH) -0.8%
- Faurecia SE (FAU TH) -1.2%
- Faurecia SE Sees FY Operating Margin 6% to 6.2%, Saw About 7.00%