Notes
QUICK MARKET SUMMARY:
CONSUMER:
🔸 Calavo Growers ( $CVGW): $25M buyback.
🔸 Tesla ( $TSLA): Upgraded to Overweight at Cantor, PT $425.
🔸 Waldencast ( $WALD): Q4 EBITDA missed slightly; FY guidance below estimates.
ENERGY/INDUSTRIALS/MATERIALS:
🔸 Kratos ( $KTOS): Building $50M hypersonic facility in Indiana.
🔸 Mosaic ( $MOS): Upgraded to Overweight at Barclays, PT $33.
FINANCIALS:
🔸 Goldman Sachs ( $GS), Carlyle (CG), Jefferies (JEF): Downgraded at Oppenheimer.
🔸 Morgan Stanley ( $MS): Plans 2,000 job cuts.
🔸 StoneCo ( $STNE): Strong Q4 EPS and revenue beat; upbeat 2025 profit outlook.
HEALTHCARE:
🔸 Absci ( $ABSI): Missed Q4; cash runway into 1H’27.
🔸 Gilead ( $GILD): Shares drop as CDC HIV division review raises concerns.
🔸 HealthEquity ( $HQY): Slight Q4 miss; FY guidance in line.
🔸 Inovio ( $INO): Missed Q4; cash runway into Q1’26.
🔸 OmniAb ( $OABI): Revenue beat; stronger FY outlook.
🔸 Pfizer ( $PFE): Raised $3.3B from Haleon stake sale.
🔸 Purdue Pharma: Filed new bankruptcy plan for opioid settlement.
🔸 Trevi ( $TRVI): Positive trial data; strong cash position.
TECH/MEDIA/TELECOM:
🔸 Asana ( $ASAN): Filed mixed securities shelf.
🔸 Foxconn: Expects server revenue to surpass iPhones in 2 years.
🔸 FuboTV ( $FUBO): Partnered with Texas Rangers for streaming broadcasts.
🔸 HPE & NVIDIA ( $NVDA): Launched new AI solutions.
🔸 Oracle ( $ORCL) & NVIDIA (NVDA): Announced major AI integration.
🔸 Synopsys ( $SNPS) & NVIDIA: Teaming up to speed chip design.
🔸 Teradyne Robotics ( $TER): Showcasing AI robotics at NVIDIA GTC 2025.
$APLT: Baird's target price adjustment: $14 to $5.
RBC's target price change: $12 to $4, rating shift from outperform to sector perform.
$ADSK: Citigroup's slight target price increase: $358 to $361.
$BFb: Barclays' target price reduction: $53 to $49.
$CF: Berenberg's target price elevation: $69 to $74.
$CRWD: Citigroup's significant target price hike: $300 to $400.
$DSGX: RBC's target price upgrade: $115 to $133.
$DOMO: TD Cowen's minor target price lift: $9 to $10.
$EQIX: Truist Securities' substantial target price increase: $935 to $1,090.
$GNL: Truist Securities' target price reduction: $8.50 to $8.
$SJM: Citigroup's target price rise: $134 to $137.
Barclays' target price elevation: $121 to $126.
$PASG: Wedbush's initiation of coverage with outperform rating, target price set at $4 from a previous $3.
$PEB: Stifel's target price adjustment: $15 to $16.25.
$PFE: Berenberg's target price uptick: $27 to $29.
$PLL: BMO's target price increase: $9.50 to $14.
$PLYM: Truist Securities' price target cut: $27 to $22.
$RDNT: Truist Securities' target price boost: $80 to $94.
$SW: JP Morgan's target price adjustment: $65 to $69.
$SBEV: H.C. Wainwright's target price decrease: $1 to $0.50.
$TXNM: Barclays' target price elevation: $46 to $52.
$ULTA: Citigroup's target price increase: $345 to $390.
$URBN: Citigroup's rating upgrade to buy from neutral, target price rise from $42 to $59.
$VYGR: Wedbush's initiation of coverage with outperform rating, target price set at $11 from $7.
$WMG: Citigroup's target price adjustment: $31 to $34.
MORNING RECAP
• Target Corp. ( $TGT): Shares fell after Q3 results missed expectations; EPS $1.85 vs. $2.30 est., sales up 0.9% to $25.23B missing $25.74B est., and operating margin at 4.6% vs. 5.6% est. FY EPS guidance lowered to $8.30-$8.90 from $9-$9.70.
• Azek Company ( $AZEK): Beat Q4 expectations with EPS at $0.29 vs. $0.27 est., adjusted EBITDA $91.8M vs. $88.1M, and sales at $348.22M. FY25 guidance: revenue $1.51B-$1.54B, adjusted EBITDA $400M-$415M.
• Chewy ( $CHWY): Upgraded to 'Buy' by Bank America with price target raised to $40 from $24.
• Delta Air Lines ( $DAL): Projects mid-single digit revenue growth for 2025, with capacity expansion up to 4%.
• La-Z-Boy ( $LZB): Q2 EPS $0.71 vs. $0.64 est., sales up 1.9% to $521M, Q3 guidance provided, dividend raised to $0.22.
• Uber ( $UBER): Launched Uber XXL for airport travel in 60+ airports and new reservation features with flight tracking.
• AeroVironment ( $AVAV): Upgraded to Buy from Hold by Jefferies.
• DT Midstream ( $DTM): Acquires three pipelines from Oneok for $1.2B, spanning 1,300 miles across seven Midwest states.
• Dycom ( $DY): Q3 EPS $2.68 vs. $2.26 est., revenue $1.27B vs. $1.22B est.; anticipates mid- to high single-digit revenue growth in Q4.
• Patrick Industries ( $PATK): Announces a 3-for-2 stock split.
• Powell Industries ( $POWL): Q4 revenue up 32.1% to $275.1M, but missed $284.3M est.; EPS $3.77 vs. $3.55 est.; orders up 56% to $267M, backlog steady at $1.3B, expects strong FY25.
• SolarEdge ( $SEDG): Upgraded to Neutral from Sell by Guggenheim, previous $10 price target dropped.
• Forestar Group ( $FOR): Files for potential sale of up to $300M in common stock.
• JPMorgan ( $JPM): Downgraded to Perform from Outperform by Oppenheimer due to valuation.
• Lemonade ( $LMND): Upgraded to equal weight from underweight by Morgan Stanley post-investor day.
• StoneX Group ( $SNEX): Q4 EPS $2.32 vs $2.05 est., net revenue $454.8M vs $462.98M est.
• XP Inc. ( $XP): Launches a buyback program up to R$1.0B; Q3 EPS as expected at 2.18, revenue slightly below at 4.319B; active clients increased to 4.7M.
• Concentra Group Holdings Inc. ( $CON) will replace Myers Industries Inc. (MYE) in the S&P SmallCap 600 on November 27, following a distribution by Select Medical Holdings Corp. (SEM).
• Pfizer ( $PFE) appointed Chris Boshoff as its R&D chief starting January 1. It also received EC approval for Hympavzi for hemophilia treatment.
• Sangamo Therapeutics ( $SGMO) received FDA clearance for ST-503 human trials, with enrollment planned for mid-2025.
• Varex Imaging ( $VREX) reported Q4 EPS at $0.19, beating the $0.09 estimate, but revenue dropped 10% to $205.7M. Forecasts Q1 revenue between $195M-$215M.
• Viking Therapeutics ( $VKTX) shared positive mid-stage trial results for VK2809, showing significant improvement in liver fibrosis over placebo.
• Comcast Corp. ( $CMCSA) is set to spin off cable channels like MSNBC, CNBC, and USA to reduce exposure to declining viewership and ad revenue, keeping NBC and Peacock, per WSJ.
• Dolby Labs ( $DLB) Q4 EPS $0.81 vs. $0.70 est., revenue slightly below at $305M. Forecasts Q1 revenue $330-360M and FY revenue $1.33-1.39B.
• Flex Ltd ( $FLEX) will replace Azenta Inc. ( $AZTA) in S&P MidCap 400, with Azenta moving to S&P SmallCap 600, effective November 25.
• Keysight Technologies (KEYS) Q4 EPS $1.65 vs. $1.57 est., revenue at $1.287B. Q1 guidance: revenue $1.265-1.285B, EPS $1.65-1.71.
• https://t.co/jK5z8CZLV2 ( $WIX) Q3 EPS $1.62 vs. $1.51 est., revenue $444.67M vs. $457.9M est. Increases FY24 revenue and bookings forecasts.
• ZoomInfo Technologies ( $ZI) Chairman Schuck purchased 492,500 shares at $10.25 each on November 15, transaction worth $5,049,750.
#Upgrades - Nov 13, 2024
• $BMY: Daiwa Securities Upgrades to Outperform from Neutral - PT $65 (from $50)
• $BKU: Wells Fargo Upgrades to Overweight from Equal Weight - PT $48 (from $38)
• $CCCS: Morgan Stanley Upgrades to Overweight from Equalweight - PT $15 (from $14)
• $CMI: Evercore ISI Upgrades to Outperform from In Line - PT $408 (from $294)
• $DSP: Canaccord Upgrades to Buy from Hold - PT $18 (from $13)
• $EQR: Stifel Upgrades to Buy from Hold - PT $81.50 (from $77.75)
• $ONON: BTIG Upgrades to Buy from Neutral - PT $64
• $ONON: Williams Trading Upgrades to Buy from Hold - PT $60 (from $40)
• $PCAR: Evercore ISI Upgrades to Outperform from In Line - PT $129 (from $99)
• $PECO: Wolfe Research Upgrades to Outperform from Peerperform
• $PFE: CFRA Upgrades to Buy from Hold - PT $30
• $TKR: Evercore ISI Upgrades to Outperform from In Line - PT $91 (from $87)
• $TSLA: Phillip Securities Upgrades to Reduce from Sell - PT $230 (from $135)
• $TSN: CFRA Upgrades to Buy from Hold - PT $74