Notes
MORNING BID
Baidu ( $BIDU) Q4 Revenue: ¥34.12B (-2% y/y, Est. ¥33.32B) 📉
🔹 Ad revenue down 7% to ¥17.9B, offset by AI Cloud growth (+26% y/y).
Broadcom ( $AVGO) & Intel ( $INTC):
🔹 Broadcom held informal talks on acquiring Intel’s chip-design unit (WSJ).
🔹 No formal offer yet; deal uncertain.
Roku ( $ROKU): Files mixed securities shelf.
Alcohol Industry Struggles:
🔹 Younger consumers opt for moderation/abstinence, hurting alcohol sales.
🔹 Underperforming stocks: TAP, DEO, BF/B, BUD.
🔹 Winners: Nonalcoholic brands like Athletic Brewing & Ritual Zero Proof thrive.
🔹 Anglo American ( $NGLOY): Selling nickel unit to MMG Ltd for up to $500M, refocusing on copper & iron ore.
🔹 Delta ( $DAL): Regional jet flipped on landing in Toronto amid high winds; 18 injured.
🔹 Diamondback ( $FANG): Acquires Double Eagle units for 6.9M shares + $3B cash to expand Midland Basin.
🔹 Entergy ( $ETR): Q4 adj. EPS $0.66 (Est. $0.63); FY25 guidance: $3.75-$3.95 (Est. $3.92).
🔹 H&E ( $HEES): Accepts Herc Rentals' $5.3B bid, rejecting United Rentals' offer (FT).
🔹 Sealed Air ( $SEE): CEO Patrick Kivits steps down; Dustin Semach appointed; FY24 outlook reaffirmed.
🔹 Capital One ( $COF): Jan. net charge-offs 6.12% (vs. 5.71% y/y); delinquencies 4.61% (vs. 4.78% y/y).
🔹 Discover ( $DFS): Jan. credit card delinquency 1.80%, charge-off 2.63% (SEC filing).
🔹 JPMorgan ( $JPM): Jan. credit card delinquency 0.88%, charge-off 1.64% (SEC filing).
🔹 Janus Henderson ( $JHG): Expanding into Saudi Arabia to grow Middle East presence (Bloomberg).
🔹 KKR ( $KKR): Buying 5% more of Eni’s (E) Enilive biofuel unit for €587.5M, raising stake to 30%.
🔹 Johnson & Johnson ( $JNJ): Faces court decision today on $10B settlement over baby powder litigation; Judge Lopez to decide on Chapter 11 filing.
🔹 Medtronic ( $MDT): Q3 adj. EPS $1.39 (Est. $1.36); Q3 revs +2.5% y/y to $8.29B (Est. $8.33B); maintains full-year guidance.
🔹 Oculis ( $OCS): 5M share secondary priced at $20.00 per share.
#Downgrades - Dec 04, 2024
• $ACMR: Needham Downgrades to Hold from Buy
• $ALEC: BofA Securities Downgrades to Underperform from Neutral - PT $1 (from $9)
• $BMY: CFRA Downgrades to Hold from Buy - PT $60
• $CDMO: Stephens Downgrades to Equal Weight from Overweight - PT $12.50 (from $12)
• $DTE: KeyBanc Downgrades to Sector Weight from Overweight
• $ETR: KeyBanc Downgrades to Sector Weight from Overweight
• $FCNCA: KBW Downgrades to Market Perform from Outperform
• $HAFC: KBW Downgrades to Market Perform from Outperform
• $IPGP: Northcoast Research Downgrades to Neutral from Buy
• $MSM: Stephens Downgrades to Equal Weight from Overweight - PT $85
• $MTB: JPMorgan Downgrades to Neutral from Overweight - PT $223.50 (from $215)
• $NVS: HSBC Downgrades to Reduce from Hold
• $PNFP: KBW Downgrades to Market Perform from Outperform
• $YPF: UBS Downgrades to Neutral from Buy - PT $38 (from $30)
#Upgrades - Sep 17, 2024
$ALRS: Raymond James Upgrades to Outperform from Market Perform - PT $24
$APP: UBS Upgrades to Buy from Neutral - PT $145 (from $100)
$BANC: Raymond James Upgrades to Outperform from Market Perform - PT $16
$BNTX: Jefferies Upgrades to Buy from Hold - PT $150 (from $96)
$CURV: William Blair Upgrades to Outperform from Market Perform
$DCOM: Raymond James Upgrades to Strong Buy from Outperform - PT $35 (from $29)
$ETR: Barclays Upgrades to Overweight from Equalweight - PT $138 (from $115)
$GCI: Citi Upgrades to Neutral from Sell - PT $5.10
$GEV: BofA Securities Upgrades to Buy from Neutral - PT $300 (from $200)
$HPE: BofA Securities Upgrades to Buy from Neutral - PT $24 (from $21)
$LIVN: Baird Upgrades to Outperform from Neutral - PT $66 (from $55)
$LSCC: Stifel Upgrades to Buy from Hold - PT $55
$NYCB: Raymond James Upgrades to Market Perform from Underperform
$RLMD: Jefferies Upgrades to Buy from Hold - PT $13 (from $3.50)
$SHOP: Redburn-Atlantic Upgrades to Buy from Neutral - PT $99
$SNV: Raymond James Upgrades to Outperform from Market Perform
$TCBI: Raymond James Upgrades to Outperform from Market Perform
$VBTX: Raymond James Upgrades to Strong Buy from Market Perform
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