Notes
MARKET UPDATES
CONSUMER
🔸 $BSET: Q1 EPS $0.21 (est. $0.03), rev $82.2M (est. $79.62M).
🔸 $LCID: Q1 production 2,212 vehicles, 600+ in transit; delivered 3,109; files to sell $1B in notes; guides Q1 revs $232M-$236M (est. $256.3M).
🔸 $LYFT: Downgraded to Underperform at BofA, tgt cut to $10.50.
🔸 $NKE, $ADDYY: Shares drop on new 46% Vietnam tariff (impacting AEO, W).
🔸 $RH: Q4 revs $812.4M (est. $829.6M), EPS $1.58 (est. $1.91); guides FY25 rev growth 10%-13%; warns of tariff risks.
🔸 $ROST, $TJX: Upgraded to Buy at Citi; tariffs boost off-price retail inventory.
ENERGY, INDUSTRIALS & MATERIALS
🔸 $BALL, $CCK: Potential impact from new 25% tariff on canned beer, aluminum.
🔸 $EMN: Upgraded to Outperform at Mizuho, tgt $105 (+18% upside).
🔸 $LSTR: Q1 EPS cut to $0.90-$0.95 (prior $1.05-$1.25) due to supply chain fraud.
🔸 $MSM: Q2 EPS $0.72 in line, revs $891.72M (est. $908.3M).
🔸 $PCAR: CFO Harrie Schippers to retire; Brice Poplawski promoted.
FINANCIALS
🔸 $RGP: Q3 adj. EBITDA $1.7M (est. -$0.5M), revs $129.4M (est. $130M).
HEALTHCARE
🔸 $RXST: Cuts FY25 rev view to $160M-$175M (prior $185M-$197M).
🔸 $SRNA: Files for $100M mixed shelf.
🔸 Drugmakers ($AZN, $SNY, $NVO): Spared from Trump tariffs, benefiting exporters.
🔸 Medical Devices ($DXCM, $GHHC, $BSX, $ABT): Under pressure due to new tariffs (34% China, 20% EU).
TECH, MEDIA & TELECOM
🔸 $MSFT: Pausing data center projects, impacting VRT, CRWV, ETN, SMCI, DELL, VST, SMR, OKLO, NRG, CEG.
🔸 $GCT: Increases buyback by $16M.
🔸 $PDD: Investing $13B over three years to support merchants.
🔸 $PENG: Q2 EPS $0.52 (est. $0.38), sales $366M (+29% y/y, est. $345.1M).
MORNING BID
🔸 QXO ( $QXO) is in talks to buy Beacon Roofing Supply (BECN) for $11B ($124.35/share in cash).
🔸 Uber ( $UBER) & Lyft ( $LYFT) dominate North American ride-hailing, but Bolt aims to challenge them, per The Information.
🔸 Xpeng ( $XPEV) plans to mass-produce its modular flying car by 2026, said Chairman He Xiaopeng.
🔸 Yum China ( $YUM) appointed Adrian Ding as CFO, removing his interim title after a search following Andy Yeung’s resignation.
🔸 Franco-Nevada ( $FNV) Q4 adj. EPS $0.95 (est. $0.89), revenue $321M (+6% y/y, est. $304.44M); expects 2025 revenue to rise 25%+ with gold at $2,800/oz.
Upgrades:
🔸 Grainger ( $GWW), Fastenal (FAST) → Outperform (from Market Perform) at William Blair.
🔸 Knight-Swift ( $KNX) → Neutral (from Sell) at Citigroup.
Downgrade:
🔸 Sherwin-Williams ( $SHW) → Hold (from Buy) at Jefferies.
🔸 Beam Therapeutics ( $BEAM) prices 16.2M shares at $28.48 each.
🔸 DexCom ( $DXCM) gets FDA warning after inspections but sees no material impact on FY25 revenue.
🔸 Nordisk ( $NVO) reports REDEFINE 2 trial met its primary endpoint, showing significant weight loss with CagriSema in 1,206 patients over 68 weeks.
🔸 Trevi ( $TRVI) Phase 2a RIVER trial: Haduvio reduced 24-hour cough frequency by 67% (57% placebo-adjusted, p<0.0001).
🔸 Cognizant ( $CTSH) shares rose as Mantle Ridge built a $1B+ stake, seeing them as undervalued (WSJ).
Upgrades:
🔸 DocuSign ( $DOCU) → Neutral (from Underweight) at JPMorgan.
Deals:
🔸 NVent ( $NVT) to buy Avail’s electrical products for $975M, expects EPS boost in year one.
🔸 Perion ( $PERI) expands buyback program to $125M.
🔸 Taiwan Semi ( $TSM) Feb revenue NT$260.01B (+43% y/y, -11% m/m); Jan-Feb total NT$553.30B (+39% y/y).
$TSLA $GOOGL $UBER $LYFT - UBER, LYFT EMBRACE ROBOTAXI COMPETITION -- WSJ
The ride-hailing leaders are preparing to bring driverless taxis to your door with new app features that allow customers to use their phones to open trunks and honk horns. They are building infrastructure to maintain the high-tech taxis and training human support staff to handle riders without drivers.
Both companies will have driverless cars -- from Alphabet's Waymo and others
Stock Gainers Brief:
• $CVS: +3%; added four new board members, including Larry Robbins from Glenview Capital, expanding to 16 members; upgraded by Wells Fargo.
• $FOUR: +4%; to join S&P MidCap 400 in place of RCM on November 20.
• $HOOD: +6%; upgraded to Buy by Needham due to expected benefits from Trump's policy changes at SEC.
• $LBRT: +2%; stock up with Chris Wright, a fracking advocate, nominated for Energy Secretary.
• $MBI: +10%; upgraded to Outperform by KBW with a new $9 target after favorable legal and earnings news.
• $SMCI: +9%; plans to meet Nasdaq compliance requirements for continued listing.
• $TSLA: +8%; due to Trump team's interest in autonomous vehicle regulations.
• $WOLF: +5%; CEO Gregg Lowe ousted, Thomas Werner steps in as Executive Chairman during CEO search.
Stock Laggards Brief:
• $BIIB: -1%; downgraded to Hold by Needham, with no expected upside in the next year.
• $CMAX: -55%; filed for bankruptcy with $693M in debt, $390M in assets.
• $LLY: -4%; continues to decline with other obesity/healthcare stocks.
• $MARA: -6%; issuing $700M in convertible notes.
• $NGNE: -35%; halted development of high-dose gene therapy due to serious side effect.
• $PLTR: -9%; despite being a top S&P performer YTD, sees significant drop.
• $UBER & $LYFT: -6%; both affected by news of potential regulations for autonomous vehicles.