(BFW) Omnicare Would Be a Good Strategic Fit for CVS: JPMorgan

Omnicare Would Be a Good Strategic Fit for CVS: JPMorgan
2015-05-19 13:14:24.654 GMT


By Sasha Damouni
(Bloomberg) --Omnicare would present a good strategic fit
for CVS, based on CVS’s ability to continue serving high-
utilizing senior patients, along with significant cost,
purchasing, rev. synergy opportunities, JPMorgan analyst Lisa
Gill wrote in note.
* Gill implies a combined enterprise value of $11.1b-$12.3b
* Deal could drive FY16 adj. EPS accretion of 22c for the
entire company
* NOTE: April 30, Omnicare Said to Draw Interest From CVS,
Express Scripts

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To contact the reporter on this story:
Sasha Damouni in New York at +1-212-617-7787 or
sdamouni2@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net

>>> T-Mobile US remains top telco pick at Gabelli

T-Mobile US remains top telco pick at Gabelli

Gabelli notes TMUS decommissioned the CDMA portion of the MetroPCS networks in Atlanta and Detroit metro areas, with only three major market left, which should free up spectrum that could be used to further improve the speed and quality of the T-Mobile network, and enable the co to realize synergies from running a single network infrastructure. They believe that T-Mobile US should command a 7.0-7.5x FY EBITDA multiple in a buyout/consolidation scenario. While, in the near-term, the industry will likely remain at four national players, in the long-run, they would expect Sprint (S) and T-Mobile to come together. Other potential acquirers could include DISH (DISH), Comcast (CMCSA), foreign carriers, and/or private equity.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: MOMO +25.6%, GIGA +23.5%, (also - co finalized a $10 mln multi-year production order for high performance YIG filters for a major aerospace company), XGTI +13.3%, TTWO +7.4%, CMCM +3.2%, DWSN +2.6%, SLTD +2.1%, KITE +1.3%, HD +1.2%, BLRX +1%

M&A news: GOMO +7.7% ('special committee' was advised that a buyer consortium was formed for the proposed 'going private' transaction), ALTR +1% (Citigroup discussed increased likelihood of Intel (INTC) acquisition; suggests probability of deal -- over 50%)

Other news: MNGA +17.4% (completed a MagneGas2 presentation to a second top ten utility company in the United States), TRQ +10.1% (announced Oyu Tolgoi shareholders sign agreement to progress the development of underground mine), BIOL +7.4% (announced Harold C. Flynn Jr. will become President and Chief Executive Officer, effective July 13, 2015), AIXG +5.1% (disclosed that it received a multiple tool order for its new AIX R6 MOCVD system), NBG +2.1% (optimism in Europe that Greece deal may come in next cpl weeks), ADXS +1.9% (announces a non-exclusive research and clinical trial collaboration agreement with Sorrento Therapeutics (SRNE)), VSR +1.9% (awarded $1.2 mln contract from U.S. Army Corps of Engineers)

Analyst comments: ENPH +8.6% (upgraded to strong buy from Buy at Needham), APIC +5.5% (initiated with a Overweight at Morgan Stanley, among others), HDP +3.4% (upgraded to Overweight from Equal Weight at Barclays), PFPT +1.8% (added to Priority Stock List at Wells Fargo), RCL +1.7% (upgraded to Overweight from Neutral at JP Morgan), ASNA +1.6% (upgraded to Outperform at FBR Capital), TSC +1.3% (upgraded to Outperform from Mkt Perform at Keefe Bruyette), PNRA +1.3% (upgraded to Outperform from Market Perform at Cowen), MA +0.9% (upgraded to Overweight from Sector Weight at Pacific Crest), NFLX +0.9% (target raised to $850 from $650 at Pivotal Research
)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: YGE -28.2%, HNR -17.4%, VPCO -11.8%, AMCN -8%, DKS -5%, A -3.8%, NOAH -2.6%, WBAI -2.6%, WMT -2.1%, ZX -1.6%, TS -1.5%, CBMG -1%, EJ -0.8%, EVGN -0.8%, LEJU -0.7%, CCIH -0.7%

M&A news: ACHN -5% (Biotech blogger Adam Feuerstein out downplaying rumors regarding potential (GILD) acquisition of ACHN)

Select metals/mining stocks trading lower: GFI -3.7%, HMY -3.7%, RIO -2.7%, AU -2.1%, MT -1.7%, FCX -1.7%, GOLD -1.5%, EGO -1.4%

Select oil/gas related names showing early weakness: LNCO -5%, STO -3.1%, SDRL -2.8%, RIG -2.7%, GDP -1.5%, BBEP -1%

Other news: EOX -16.8% (announces the launch of an underwritten public offering of the Company's common stock with an aggregate public offering size of $150,000,000), RNDY -14.9% (announces a proposed underwritten secondary offering of 3.5 mln shares of its common stock owned by selling shareholders), LINE -8.1% (announces public offering of 16 mln units ), ARP -7.5% (Atlas Resource Partners to acquire natural gas producing properties in the Arkoma basin, from its parent company, Atlas Energy for $35.5 mln; also prices its 6.5 mln unit public offering of common units at $7.97/unit), MBI -6.2% (announces the sale of 27.25 mln shares of common stock, by funds affiliated with Warburg Pincus), MNTA -4.7% (announces a proposed public offering of 7.25 mln shares of common stock ), ICPT -4.6% (announces plans for a Phase 3 trial of obeticholic acid, to treat non-cirrhotic nonalcoholic steatohepatitis with liver fibrosis), BRG -4.1% (commenced a public offering of ~3.85 mln shares of its Class A common stock), SABR -2.3% (confirms the public offering of 22 mln shares of common stock by existing stockholders affiliated with TPG Global, LLC and Silver Lake Management Company),. CDW -2.2% (commences public offering of 10 mln shares of common stock by selling shareholders), ATLS -1.4% (Atlas Resource Partners to acquire natural gas producing properties in the Arkoma basin, from its parent company, Atlas Energy for $35.5 mln ), STOR -1.4% (proposed public offering of 9,250,000 shares of common stock to be sold by the Company and 9,250,000 shares of common stock to be sold by the selling stockholder)

Analyst comments: LL -2.1% (downgraded to Hold from Buy at Cantor Fitzgerald ), HSBC -1.8% (downgraded to Mkt Perform from Outperform at Bernstein), PAGP -1.8% (transferred/downgraded to Hold at Wunderlich), HII -1.6% (downgraded to Neutral from Buy at BofA/Merrill
)

>>> Medtronic sees Q4 revenue of approx $7.3 bln, Capital IQ consensus $7.07 bln

Medtronic sees Q4 revenue of approx $7.3 bln, Capital IQ consensus $7.07 bln

  • Preliminary Q4 Worldwide Revenue of Approximately $7.3 Billion Grew 7% on a Comparable, Constant Currency Basis; 60% as Reported (Capital IQ consensus is $7.07 bln)
  • Preliminary Q4 U.S. Revenue of Approximately $4.1 Billion Grew 8% on a Comparable Basis; 67% as Reported.
  • Preliminary FY15 GAAP Revenue of Approximately $20.3 Billion Grew 19% as Reported, or 6% on a Comparable, Constant Currency Basis
  • Company Tightens Fourth Quarter Adjusted EPS Expectations; expects EPS at the upper end of the prior guidance range of $1.08-1.13, Capital IQ consensus $1.03.
  • As this is the first quarter where the company is reporting results that include its recent acquisition of Covidien, full financial results are expected to be reported on June 2, 2015, two weeks later than the company's normal reporting date.
  • Unless otherwise noted, all comparisons and growth rates in this press release are stated on a comparable, constant currency basis, which includes Covidien plc in the prior year comparison and aligns Covidien's prior year monthly revenue to Medtronic's fiscal quarters. Aligning historic Covidien revenue to Medtronic's fiscal quarters is different than the pro forma revenue information previously included within certain SEC filings. Management believes that referring to comparable, constant currency growth rates is a more useful way to evaluate the underlying performance of Medtronic's revenue.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: GIGA +27.7%, MOMO +15.5%, XGTI +13.3%, TRQ +12.4%, BIOL +7.4%, TTWO +7.2%, TTWO +7.1%, NBG +2.8%, DWSN +2.6%, CMCM +2.5%, ASNA +1.9%, RCL +1.7%, EJ +1.5%, TEVA +1.4%, BUD +1.3%, KITE +1.3%, MA +1%, RSTI +0.8%

Gapping down: YGE -32.9%, EOX -13.4%, RNDY -8.5%, ARP -7.7%, LINE -7.5%, AMCN -6.5%, MBI -5.7%, BHP -4.3%, A -3.8%, VOD -3.4%, BRG -3.2%, GFI -3.1%, SDRL -3.1%, STO -2.6%, NOAH -2.6%, WBAI -2.6%, RIG -2.4%, SABR -2.3%, WMT -2.2%, RIO -2.1%, AU -2%, CDW -1.8%, MT -1.7%, ZX -1.6%, ATLS -1.4%, GOLD -1.2%, SLV -1.1%, TS -1.1%, CBMG-1%

>>> Airbus / A400M on Reuters

PARIS (Reuters) - Airbus Defense & Space on Tuesday ordered engine software checks on the A400M aircraft following a recent crash of Europe's new military transporter.

The request comes after the discovery of a potential anomaly in the system running the plane's turboprop engines.

However, one person familiar with the findings said evidence gathered so far appeared to suggest a "quality" problem rather than a fundamental design flaw.

Four crew members were killed when an A400M crashed in Spain on May during a pre-delivery flight test.

AIRBUS (EAD.PAAIRBUS62,900 +2,28% +1,40

Última noticiaAirbus orders checks on A400M engine system after crash Ver más resumen noticias perfil gráficos carteras histórico )said it had issued an alert asking air forces to examine the plane's 'Electronic Control Unit' before the next flight.

The unit controls the engines and is part of a suite of software systems that were partly blamed for earlier delays and cost overruns in building the troop and cargo carrier.

Additionally, nations operating the plane must carry out other checks whenever this unit or an engine is replaced.

"To avoid potential risks in any future flights, Airbus Defense and Space has informed the operators about necessary actions to take," a statement said.

The call for engine-related checks confirms an earlier Reuters report.

So far, few if any clues have emerged from the 'black box' flight recorders, at least one of which has been sent to the United States for examination.

The potential area of concern was discovered by Airbus in its own review.

"It is a precautionary measure which is part of our continued airworthiness activities," the spokeswoman said.

The Airbus A400M was developed at a cost of 20 billion euros in Europe's largest defence project.

It is powered by the West's largest turboprop engines, designed by Britain's Rolls-Royce , France's Safran and MTU Aero Engines of Germany.

Problems in developing the engines, and particularly in certifying the engine control software, contributed to three years of delays and a new cash injection by governments in 2010.

The Electronic Control Unit is one of two pieces of complex software that make up the engine control system, or FADEC, whose development was led by Munich-based MTU Aero Engines.

The crash came amid new delays in fitting the aircraft with military systems and raised further questions over the timing of deliveries after Spain suspended pre-delivery test flights.

Airbus has said the deliveries are "under review".

The A400M has been delivered so far to Britain, France, Germany, Turkey and Malaysia, which is so far the only export customer. Other buyers include Belgium, Luxembourg and Spain.