DAILY US EQUITY OPENING NEWS – XL Group (XL) – The co. is to be acquired by AXA for USD 15.3bln, or USD 57.60/shr

5th March 2018

EARNINGS

Ply Gem (PGEM) – Q4 Adj. EPS USD 0.16 vs Exp. USD 0.18, revenue USD 516.9mln vs Exp. USD 497.1mln. (Newswires)

DJIA

Apple (AAPL) – The tech giant is to release a more affordable MacBook Air. Further, it is currently working on noise cancelling over ear headphones, planned to be released as early as the end of this year. (9to5Mac)

S&P500

Auto names – US President Donald Trump threatened to impose EU auto companies with steep tariffs. This comes in retaliation to EU threats of targeting US imports in response to the steel tariffs. (Twitter)

Duke Energy (DUK) – The co. has filed new rates for customers in North Carolina that are to remain below average. (Newswires)

General Electric (GE) – At least 2 chinse companies are reportedly eyeing the co.’s lighting unit in a deal worth potentially USD 1bln. (Newswires)

General Motors (GM) – Approximately 2500 GM Korea workers are applying for a buyout package offered by the automaker. (Automotive News)

Newell Brands (NWL) – Starboard announced it has added two additional directors to the co. board. Further, Citi removed the co. from its focus list. (Newswires)

Truck Names (CMI, NAV, PCAR) – JP Morgan report class 8 truck orders were up 75% y/y in Feb, reaching 40,600 units, however compared to January data it is down 17% at January saw a 12-year high. Class 5 to 7 net orders at 2700 units, up 19% y/y/ and down 15% m/m. (Newswires)

XL Group (XL) – The co. is to be acquired by AXA for USD 15.3bln, or USD 57.60/shr. (Newswires)

NASDAQ 100

Amazon (AMZN) – The co. is to stop selling smart home devices from Google’s Nest. Further, of note for bank names, Amazon are in talks with JP Morgan and other banks about a branded checking account aimed at younger customers. Amazon are to launch its grocery deliveries in France as part of its expansion into food retail. (Business Insider / CNBC)

Broadcom (AVGO) – The co.’s move to Singapore may be completed as soon as May. (Newswires)

Celgene (CELG) / Juno (JUNO) – Celgene announced its offer to purchase the remainder of Juno shares for USD 87/shr. expired Saturday at midnight, it now forecasts the merger closing in the coming days. (Newswires)

Facebook (FB) – The social media giant waited 9 months before publicly disclosing the discovery of Russian manipulation. (Newswires)

Qualcomm (QCOM) / Broadcom (AVGO) – Qualcomm shareholders were initially going to vote on Broadcom directors to its co. board, however now the US government has ordered Qualcomm to delay the meeting until an investigation has taken place to decide whether a proposed takeover by Broadcom would put national security at risk. Broadcom issued a statement on the matter saying Qualcomm requested the investigation to purposely delay the vote. (FT / CNBC)

OTHER NEWS

Allscripts (MDRX) – The co. and Lyft are joining forces to incorporate non-emergency transportation into physician’s workflow. (Newswires)

Dana Corp. (DAN) – The co. has won a contract to supply Volkswagen (VOW3 GY) with Spicer AdvanTekM180 axles. (Newswires)

Dermira (DERM) – The co.’s Olumacostat glasertil did not meet its co-primary endpoints in its phase 3 pivotal trial and is expecting to discontinue the trial. (Newswires)

Entergy (ETR) – The co. and NorthStar group have reached agreement on terms of approval for the sale of Entergy Nuclear Vermont Yankee. (Newswires)

G1 Therapeutics (GTHX) – The co. announced positive phase 2a data for its Trilacilib trial in patients with small cell lung cancer. (Newswires)

Garmin (GRMN) – The co. co-founder, Dr. MinUAN H Kao has adopted a 10b5-1 plan, to sell a portion of his shares over a designated time frame. Separately, it has been chosen to be the supplier of exclusive marine electronics to IBBO. (Newswires)

Kearny Financial (KRNY) – The co. announced it received regulatory approval for its merger with Clifton Bancorp (CSBK). The combined co., is expected to have roughly USD 6.5bln in assets. (Newswires)

NXP Semiconductors (NXPI) – Qualcomm (QCOM) has extended its cash tender offer for all outstanding co. shares to 17:00 ET on March 9th. (Newswires)

Prospect Capital (PSEC) – CEO Barrys announced the purchase of 269,197 common shares at USD 6.23/shr. (Newswires)

Sparton Corp. (SPA) – The co. and Ultra have ended their merger agreement. (Newswires)

Tenneco (TEN) – Executive chairman Gregg Sherill is to retire on May 16th. (Newswires)

Barron’s positive on: Nordstrom (JWNO), TJX (TJX), Invesco (IVZ)

Barron’s negative on: Apache (APA), CenturyLink (CTL) and Occidental Petroleum (OXY), Fitbit (FIT), L Brands (LB)

BROKER MOVES

Upgrades

BOSTON PROPERTIES (BXP) UPGRADED TO OUTPERFORM FROM IN LINE AT EVERCORE ISI

BRUNSWICK (BC) UPGRADED TO BUY FROM NEUTRAL AT CL KING

CAPELLA EDUCATION (CPLA) UPGRADED TO OVERWEIGHT FROM EQUAL-WEIGHT AT FIRST ANALYSIS

CF INDUSTRIES (CF) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT COWEN

CVR PARTNERS (UAN) UPGRADED TO OUTPERFORM FROM MARKET PERFORM AT COWEN

FEDERAL REALTY (FRT) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI

FEDERATED INVESTORS (FII) UPGRADED TO NEUTRAL FROM SELL AT CITI

FRANK’S INTERNATIONAL (FI) UPGRADED TO NEUTRAL FROM SELL AT SEAPORT GLOBAL

GROUPON (GRPN) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT MORGAN STANLEY

INTREPID POTASH (IPI) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT COWEN

LASALLE HOTEL (LHO) UPGRADED TO OUTPERFORM FROM NEUTRAL AT BAIRD

MICROCHIP (MCHP) UPGRADED TO BUY FROM NEUTRAL AT MIZUHO

MONSTER BEVERAGE (MNST) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK

NEW ORIENTAL EDUCATION (EDU) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JPMORGAN

NORTHWEST NATURAL GAS (NWN) UPGRADED TO MARKET PERFORM AT WELLS FARGO

PUBLIC STORAGE (PSA) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI

STRAYER (STRA) UPGRADED TO OVERWEIGHT FROM EQUAL-WEIGHT AT FIRST ANALYSIS

TERADATA (TDC) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT BERNSTEIN

TRACTOR SUPPLY (TSCO) UPGRADED TO BUY FROM NEUTRAL AT MOFFETTNATHANSON

URBAN EDGE (UE) UPGRADED TO IN LINE FROM UNDERPERFORM AT EVERCORE ISI

USA COMPRESSION (USAC) UPGRADED TO BUY FROM NEUTRAL AT JANNEY CAPITAL

VALEANT (VRX) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK

WHITEHORSE FINANCE (WHF) UPGRADED TO BUY FROM NEUTRAL AT LADENBURG

 

Downgrades

AMAG PHARMACEUTICALS (AMAG) DOWNGRADED TO HOLD FROM BUY AT JEFFERIES

BRIXMOR (BRX) DOWNGRADED TO IN LINE FROM OUTPERFORM AT EVERCORE ISI

DDR CORP. (DDR) DOWNGRADED TO UNDERPERFORM FROM IN LINE AT EVERCORE ISI

FINISAR (FNSR) DOWNGRADED TO OUTPERFORM FROM STRONG BUY AT RAYMOND JAMES

KIMCO REALTY (KIM) DOWNGRADED TO UNDERPERFORM FROM IN LINE AT EVERCORE ISI

LIFEPOINT (LPNT) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT LEERINK

MICROSEMI (MSCC) DOWNGRADED TO NEUTRAL FROM BUY AT MIZUHO

MICROSEMI (MSCC) DOWNGRADED TO SECTOR WEIGHT FROM OVERWEIGHT AT KEYBANC

PARAMOUNT GROUP (PGRE) DOWNGRADED TO IN LINE FROM OUTPERFORM AT EVERCORE ISI

PARK HOTELS & RESORTS (PK) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT BOFA/MERRILL

SL GREEN REALTY (SLG) DOWNGRADED TO UNDERPERFORM FROM IN LINE AT EVERCORE ISI

SUSSEX BANCORP (SBBX) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT HOVDE GROUP

VECTRUS (VEC) DOWNGRADED TO HOLD FROM BUY AT DREXEL HAMILTON

 

Initiations

CACTUS (WHD) RATED NEW BUY AT BOFAML; PT USD 30

CACTUS (WHD) RATED NEW OUTPERFORM AT CREDIT SUISSE; PT USD 31

CACTUS (WHD) RATED NEW OVERWEIGHT AT BARCLAYS; PT USD 31

CACTUS (WHD) RATED NEW OVERWEIGHT AT JPMORGAN; PT USD 32

CACTUS (WHD) RATED NEW OVERWEIGHT AT PIPER JAFFRAY; PT USD 30

EVOLUS (EOLS) RATED NEW BUY AT MIZUHO; PT USD 21

EVOLUS (EOLS) RATED NEW BUY AT SUNTRUST; PT USD 24

EVOLUS (EOLS) RATED NEW MARKET OUTPERFORM AT JMP; PT USD 20

EVOLUS (EOLS) RATED NEW OVERWEIGHT AT CANTOR; PT USD 25

HUAMI ADRS (HMI) RATED NEW BUY AT CITI; PT USD 14

PAGSEGURO DIGITAL (PAGS) RATED NEW NEUTRAL AT CREDIT SUISSE; PT USD 34

IPIC ENTERTAINMENT (IPIC) INITIATED WITH A BUY AT ROTH CAPITAL; PT USD 18

REVANCE THERAPEUTICS (RVNC) RATED NEW BUY AT GOLDMAN; PT USD 60

VICTORY CAPITAL HOLDINGS (VCTR) RATED NEW BUY AT BOFAML; PT USD 17

VICTORY CAPITAL HOLDINGS (VCTR) RATED NEW MARKET PERFORM AT KBW

VICTORY CAPITAL HOLDINGS (VCTR) RATED NEW NEUTRAL AT GOLDMAN; PT USD 14.50

VICTORY CAPITAL HOLDINGS (VCTR) RATED NEW OUTPERFORM AT RBC; PT USD 16

VICTORY CAPITAL HOLDINGS (VCTR) RATED NEW OVERWEIGHT AT BARCLAYS

VICTORY CAPITAL HOLDINGS (VCTR) RATED NEW OVERWEIGHT AT JPMORGAN

VICTORY CAPITAL HOLDINGS (VCTR) RATED NEW OVERWEIGHT AT MORGAN STANLEY

XPERI (XPER) RATED NEW OUTPERFORM AT RBC; PT USD 27

 

Ex-Dividends

BB&T Corp (BBT)- USD 0.05 

Eversource Energy (ES)- USD 0.51 

Kronos Worldwide Inc (KRO)- USD 0.17 

La-Z-Boy Inc (LZB)- USD 0.12 

Old Dominion Freight Line Inc (ODFL)- USD 0.13 

Tenneco Inc (TEN)- USD 0.25 

Tootsie Roll Industries Inc (TR)- USD 0.09   

(RANsquawk)