Notes
MARKET HIGHLIGHTS
AUTOS:
🔸 GM & Ford drop as Trump imposes 25% import tax on foreign cars (effective April 3); European & Asian automakers also down.
🔸 S&P Changes: Cava ( $CAVA) replaces Altair ( $ALTR) in S&P MidCap 400 (March 31) after Siemens acquires Altair.
🔸 Crypto: GameStop ( $GME) plans $1.3B convertible notes offering to buy Bitcoin.
EARNINGS:
🔸 MillerKnoll ( $MLKN): Q3 EPS $0.44 in line, revenue $876.2M (miss); Q4 guide below estimates.
🔸 Nio ( $NIO): Raises $450M via share placement for EV development.
🔸 Petco ( $WOOF): Q4 EBITDA beats, but weak Q1 & FY guidance.
🔸 Steelcase ( $SCS): Q4 EPS beats; Q1 revenue & EPS guidance above estimates.
INDUSTRIALS & MATERIALS:
🔸 Chemours ( $CC) upgraded at Mizuho;
🔸 Liberty Energy ( $LBRT) upgraded at Morgan Stanley.
🔸 HB Fuller ( $FUL) beats Q1 EPS, guides FY revenue lower.
FINANCIALS:
🔸 Jefferies ( $JEF) Q4 EPS misses; cites challenging capital markets.
HEALTHCARE:
🔸 Medicaid overpaid insurers ( $CI, $HUM, $UNH, $ELV), per WSJ.
🔸 Nkarta ( $NKTX): Q4 EPS beats, cash runway to 2029.
🔸 Soleno ( $SLNO): FDA approves Vykat XR for genetic disorder.
🔸 Zentalis ( $ZNTL): Files mixed shelf offering up to $250M.
TECH & MEDIA:
🔸 $AMD downgraded at Jefferies (AI concerns, competition).
🔸 S&P Changes: Angi ( $ANGI) replaces ODP in SmallCap 600.
🔸 3D Systems ( $DDD): Q4 EPS misses, weak FY guidance.
🔸 Concentrix ( $CNXC): Q1 EPS & revenue beat, reiterates FY outlook.
🔸 OpenAI nears $40B funding at $300B valuation (Bloomberg).
🔸 Verint ( $VRNT): Q4 EPS & revenue miss, weak FY guidance.
MORNING BID
🔸 $CWAN acquires $ENFN for $11.25/share, totaling $1.5B, including $30M to end Enfusion's tax agreement.
🔸 $NVDA and $AMD drop due to new U.S. AI chip export controls, effective in 120 days.
🔸 $UNH, $CI, $CVS, $HUM up after U.S. proposes 2.2% increase in 2026 Medicare Advantage payments.
🔸 $SAGE confirms $BIIB $7.22/share acquisition proposal.
🔸 $EXAS reports Q4 revenue $713M, FY24 $2.76B; plans three new cancer tests in 2025.
🔸 $HOLX Q1 revenue $1.022B, slightly below expectations due to currency impact.
🔸 $JNJ to buy $ITCI for $132/share, valuing deal at $14.6B.
🔸 $NTRA Q4 revenue $472M, FY24 guidance $1.7B.
🔸 $RXST FY25 revenue guidance $185M-$197M, gross margin 71%-73%.
🔸 $BEN AUM dropped to $1.58T in Dec '24 from $1.65T in Nov '24 due to market downturn and $18.9B net outflows.
🔸 $LZ upgraded by JPMorgan to Overweight from Underweight, price target raised to $9 from $8.
🔸 $CLMT secured a $1.44B DOE loan to expand its Montana Renewables facility.
🔸 Biden admin delayed Nippon Steel's (NPSCY) $14.9B bid for $X to June, after blocking it on Jan. 3 for national security.
🔸 $ASO highlighted by Barron's for recovery potential in 2025 despite recent sales dips.
🔸 $BNED files for a $100M mixed shelf offering.
🔸 BMW saw sales decline due to China demand drop and recalls.
🔸 $BOOT Q3 EPS $2.43 vs. $2.05 est., revenue $608.2M vs. $593.45M, with 8.6% same-store sales growth.
🔸 $HSY CEO Michele Buck to retire by June 30, 2026.
🔸 $KSS to close San Bernardino EFC and 27 stores by April 2025, incurring $60M-$80M in charges.
🔸 $LULU ups Q4 EPS to $5.81-$5.85, revenue to $3.56B-$3.58B, with gross margin up 30 bps.
🔸 $JWN reports 4.9% net sales, 5.8% comp sales growth for holiday, expects 2.5%-3.5% comp sales growth for FY24.
#Upgrades - Oct 08, 2024
$AFRM: BTIG Upgrades to Buy from Neutral - PT $68
$CX: RBC Capital Upgrades to Sector Perform from Underperform - PT $6.50 (from $9)
$HUM: Bernstein Upgrades to Outperform from Market Perform - PT $308
$SNCY: Wolfe Research Upgrades to Outperform from Peerperform - PT $14
$UFPI: Wedbush Upgrades to Outperform from Neutral - PT $155 (from $120)
$UWMC: Barclays Upgrades to Equalweight from Underweight - PT $8 (from $6)
$WAT: Jefferies Upgrades to Buy from Hold - PT $415 (from $355)
$WFC: Wolfe Research Upgrades to Outperform from Peerperform - PT $65