>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • HUBS +20.9%, GP +13.3% (also enters into purchase agreement for up to 150 GreenPower EV Star Cab and Chassis), CGNX +11.3% (also Chairman to resign), TWOU +7.9%, VCRA +6.5%, IMGN +6.4%, JCOM +6%, CUZ +5.1%, ING +5%, VRSN +4.6%, RARE +3.5%, CC +3.3% (also to split Fluoroproducts segment into two new segments), MHK +2.6%, HUN +2.6%, FROG +2.3%, REG +1.5%, DIS +1.5% (Disney+ subs at 94.9 mln), PRLB +1.4%, WPC +1.4%, FTS +1.2%, BIO +1%

Other news:

  • XERS +27.9% (receives EC approval for Ogluo Injection)
  • RTP +11.8% (nearing merger deal with Joby Aviation, according to FT)
  • FTFT +8.3% (enters agreement with China Foundation of Consumer Protection to use blockchain technology against counterfeit products)
  • FUSE +6.5% (Fusion Acquisition Corp: MoneyLion, digital financial platform, to become publicly traded via merger with Fusion Acquisition Corp)
  • CVAC +6.4% (initiates rolling submission with European Medicines Agency for COVID-19 vaccine candidate, CVnCoV)
  • BHC +5.7% (issued statement in response to the Schedule 13D filed by Icahn Capital)
  • TMQ +5.3% (provides approval for JV to enter into an Ambler Access Dev Agreement with AIDEA)
  • DNLI +5% (interim results from the ongoing Phase 1/2 study evaluating ETV:IDS as a potential brain-penetrant enzyme replacement therapy for treating both central nervous system and peripheral manifestations of Hunter syndrome)
  • INFI +4.9% (stock offering)
  • CLPT +4.2% (announces a multi-product development deal with Blackrock Microsystems)
  • FCAC +4.1% (Falcon Capital Acquisition Corp and Sharecare reach agreement to combine, creating publicly traded digital health company)
  • APLT +2.9% (prices offering of 3 mln shares of common stock at $23.00 per share) ST +2.8% (to acquire telematics and data insight provider, Xirgo Technologies Intermediate Holdings for $400 mln)
  • MRNA +1.1% (President Biden confirms that PFE and MRNA will sell 200 mln COVID-19 doses to US; MRNA confirms US has purchased an additional 100 mln doses)

Analyst comments:

  • NWSA +3.7% (upgraded to Overweight from Underweight at Morgan Stanley)
  • YETI +1.9% (upgraded to Buy from Neutral at Citigroup)
  • CPRT +0.9% (upgraded to Overweight from Equal-Weight at Stephens)

>>> Elon Musk talks Biden administration’s response to his carbon tax request

Elon Musk has long been a proponent of a carbon tax, which imposes a fee for carbon emissions. The carbon tax could be implemented in several ways, such as a direct cost to industries based on their overall carbon emissions or a tax for products that burn fossil fuels. For the Tesla CEO, a carbon tax simply makes sense, and this is something that Musk has addressed to the new US administration.
Among the Biden administration’s critical programs is its adoption of sustainable solutions, as evidenced by its initiative to transition the government’s fleet of vehicles to electric cars, as well as its revival of a tax credit for EV purchases. Yet, according to Elon Musk, the Biden administration actually admitted that a carbon tax would be politically difficult to implement. This wasn’t very reassuring to say the least, considering that sustainability was one of the reasons why Biden was elected in the first place.

“I talked to the Biden administration, and they were like ‘Well, this seems too politically difficult.’ And I was like, ‘Well, this is obviously a thing that should happen.’ And by the way, SpaceX would be paying a carbon tax too. So I’m like, you know, I’m like, I think we should pay it too. It’s not like we shouldn’t have carbon generating things. It’s just that there’s got to be a price on this stuff,” Musk said in his recent appearance at the Joe Rogan Experience podcast.
Musk later noted that he believes a carbon tax would effectively solve the carbon emissions issue. The CEO pointed out that the concept is simple and sensible enough. After all, initiatives that are detrimental to the environment should have a negative incentive, while those that sustain the environment must have a positive incentive. Musk explained this using a rather simple example.
“It will automatically fix the problem, for sure. You know, just think about it like taxes. It’s like, you know, here we are drinking alcohol, now taxes on alcohol and tobacco are higher than on, let’s say, fruits and vegetables, ok? Because everyone knows like fruit and vegetables are good for you and alcohol and tobacco are not good for you. So we’re like, yeah, you should probably bias the taxes towards alcohol and tobacco. Have higher taxes on alcohol and tobacco, and lower taxes on fruits and vegetables. That’s just sensible. The same thing goes for energy,” Musk said.
Musk further noted that a carbon tax, if it does get implemented, must be non-regressive, allowing it to prevent affecting low-income people. It should also be pointed out that Biden is not the first US president that Musk has talked to about a carbon tax. In 2017, reports indicated that Musk was pushing for a carbon tax with the Trump administration as well.

>>> US premarket gappers

Early premarket gappers

  • Gapping up:
    • XERS +27.5%, HUBS +18.1%, RTP +15.7%, GP +9.4%, IMGN +8.3%, FCAC +7.5%, VCRA +7.1%, CLPT +6.1%, JCOM +6%, BHC +5.8%, CGNX +5.7%, INFI +5.1%, FTFT +5.1%, CUZ +5.1%, ING +4.7%, TWOU +4.6%, CVAC +4.4%, CC +3.5%, RARE +3.5%, AWK +3%, ST +2.6%, MHK +2.1%, DIS +1.9%, VRSN +1.8%, FTS +1.8%, REG +1.5%, ACB +1.2%, PRLB +1.1%, BIO +1%
  • Gapping down:
    • CLGN -28.2%, FOLD -22.3%, LLNW -19.7%, PLX -15.9%, CFMS -11.9%, VECO -10.5%, CRVS -8.9%, CARG -8.6%, SVMK -8%, NET -6.4%, AFRM -6.3%, ONCR -5.8%, PHUN -5.7%, AEM -4.5%, SGEN -4.4%, DDOG -4.1%, CREE -4%, AGFY -3.4%, SILV -3.1%, DXCM -2.7%, CDAK -2.4%, BASI -2.2%, ILMN -2.2%, BL -1.8%, DLR -1.8%, FRT -1.8%, BBIO -1.5%, GDDY -0.9%

>>> Europe : Brokers Upgrades & Downgrades - 12th of February 2021 V2(+)

>>> Up
* Brenntag SE PT Raised to 80 euros at Bankhaus Metzler (+)
* Diploma Raised to Buy at HSBC; PT 2,705 pence
* Fincantieri Raised to Neutral at Banca Akros (ESN) (+)
* Helical Raised to Buy at Peel Hunt; PT 425 pence
* John Laing Group Rated New Buy at Liberum; PT 350 pence
* Kongsberg Raised to Buy at Arctic Securities; PT 214 kroner
* Lok'nStore Group Cut to Add at Peel Hunt; PT 660 pence
* Neste Raised to Overweight at Barclays; PT 75 euros
* Pandox PT Raised, EPS Estimate Lowered at Morgan Stanley Post 4Q
* Royal Mail PT Raised to 680 pence at Deutsche Bank
* Scout24 Raised to Buy at Goldman; PT 77.40 euros
* Spar Nord Raised to Buy at Danske Bank Markets; PT 69 kroner (+)
* Sweco Raised to Buy at SEB Equities; PT 148 kronor
* Sweco Raised to Buy at Danske Bank Markets; PT 150 kronor (+)
* TGS Raised to Buy at Danske Bank Markets; PT 147 kroner (+)
* Total SE Raised to Buy at LBBW; PT 39 euros

>>> Down
* Aroundtown Cut to Hold at Jefferies; PT 6.30 euros
* Carnival Plc Cut to Sell at Berenberg; PT 1,000 pence
* Caverion Cut to Hold at Danske Bank Markets; PT 6.10 euros (+)
* Hensoldt Cut to Neutral at Citi; PT 15.90 euros
* Hyatt Cut to Sell at Berenberg; PT $55
* Royal Caribbean Cut to Sell at Berenberg; PT $55
* Norwegian Cruise Cut to Hold at Berenberg; PT $22
* Sbanken Cut to Hold at Pareto Securities; PT 85 kroner
* StrongPoint Cut to Hold at Norne Securities; PT 35 kroner
* Uponor Cut to Hold at Danske Bank Markets; PT 18 euros (+)
* Watches of Switzerland Cut to Neutral at Goldman; PT 690 pence

>>> Initiation
* Breedon Rated New Overweight at Morgan Stanley; PT 114 pence
* Ferguson Rated New Equal-Weight at Morgan Stanley
* FRP Advisory Group Reinstated Buy at Panmure Gordon
* Millicom Rated New Buy at SEB Equities; PT $405

>>> Call
* Carnival, Other Cruise Stocks Cut at Berenberg Amid Higher Risks (+)
* Danone Margin Reset ‘Inevitable’ as Change Coming: Bernstein (+)
* Hensoldt Gets First Downgrade Since IPO as Citi Cuts to Hold (+)
* Hydrogen Stocks Offer Buying Opportunity After Pullback: Citi
* ING Core Results Better, While Profit In Line: Morgan Stanley (+)
* L’Oreal Results Strong on Sales, Margin, Stock May Rise: Goldman
* More Pain for U.K. Retail Property, Logistics Strong: Peel Hunt
* Royal Mail Gets Street-High Price Target at Deutsche Bank (+)
* Schibsted Results ‘Good,’ Momentum Returning, JPMorgan Says (+)

>>> Stoxx 600 Pre-Market Indications

  • FDJ (1WE TH) +3.1%
    • FDJ FY Ebitda EU427M
  • Glaxo (GS7 TH) +2.2%
  • Scout24 (G24 TH) +2.1%
    • Scout24 Raised to Buy at Goldman; PT 77.40 euros
  • Orsted (D2G TH) +1.5%
  • ArcelorMittal (ARRD TH) +1.2%
  • Reckitt (3RB TH) +1%
  • L’Oreal (LOR TH) +1%
    • L’Oreal Results Strong on Sales, Margin, Stock May Rise: Goldman
    • L’Oreal’s Skin-Care Brands Help It Weather Covid Lockdowns (1)
  • HelloFresh (HFG TH) -1%
  • Glencore (8GC TH) -1.2%
    • What to Watch in Commodities: Miners Report, Tin, Glencore, USDA
  • Zalando (ZAL TH) -1.3%
  • Norsk Hydro (NOH1 TH) -1.6%
    • Norsk Hydro 4Q Underlying Ebit Beats Estimates
  • Carnival Plc (POH1 TH) -1.7%
  • Aroundtown (AT1 TH) -2.1%
    • Aroundtown Cut to Hold at Jefferies; PT 6.30 euros