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Global Stocks Trending in the News for January 8th, 2019

Jan 08, 2019

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Global Consumer Stocks Trending in the News

  • Anheuser-Busch InBev (BUD) was downgraded by Goldman Sachs yesterday to neutral from buy.  Anheuser-Busch InBev, like a number of players in the sector, is likely to have a tough 2019 as demand is expected to be less than originally expected.  Anheuser-Busch InBev is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Apple Inc. (AAPL) and Samsung (KOSE: A005930) have announced a deal that will see the iPhone maker offer iTunes movies and TV shows on its rival’s TV sets. The move by Apple displays a shift towards developing its tech and media services business as product sales continue to wane for the company. Apple is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas. Samsung is not rated in our Global Top Stock Ideas. 
  • British American Tobacco (LSE: BATS) shares are falling after Cowen warned investors to be cautious of the impact of higher e-cigarette usage on US combustible cigarette volumes. While cutting its rating for British American Tobacco, Cowen also slashed the rating for Imperial Brands (LSE: IMB) and Altria (MO). British American Tobacco is rated “Top Buy” in our United Kingdom All-Cap Global Top Stock Ideas. Imperial Brands is rated “Attractive” in our United Kingdom All-Cap Global Top Stock Ideas. Altria is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Staples Global Top Stock Ideas. 
  • Dollar Tree (DLTR) has Starboard Value as a shareholder, with a 1.7% stake, according to the Wall Street Journal.  Dollar Tree is being pushed to sell its Family Dollar division and to make changes to its pricing model.  Starboard Value has also named seven candidates for Dollar Tree’s board.  Dollar Tree is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • PF Chang’s (PFCB) is close to being sold, according to a Bloomberg report yesterday.  PF Chang’s owner Triartisan Capital is in talks for a sale of the chain to Centerbridge Partners, according to the report.  The deal could close for as much as USD$700 million though no final deal has been reached.  PF Chang’s has 220 restaurants in the US and international locations.  PF Chang’s is not rated in our Global Top Stock ideas.
  • Tesla (TSLA) broke ground yesterday on its new factory in China.  Tesla calls the newest factory Gigafactory 3 and is located in Shanghai.  Tesla’s factory will be the first production facility of its type that is fully owned by a foreign company.  Tesla expects to build the factory in record time.  Tesla is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology and Communication Services Stocks Trending in the News

  • Adyen (ENXTAM: ADYEN) shares are soaring after Bank of America Merrill Lynch upgraded the company’s stock from neutral to buy. Bank of America Merrill Lynch cited that previous Adyen share prices were not accounting for any, “material growth contribution,” from potential future merchant wins. Adyen is rated “Top Short” in our European Large-Cap Global Top Stock Ideas.
  • Alphabet Inc. (GOOGL) was upgraded to buy from hold at Pivotal Research Group while its price target for the tech giant was raised from USD$1,010/share to USD$1,240/share. Pivotal cited that Google’s parent company, “remains the dominant player in digital advertising,” as reasoning for the upgrade. Alphabet is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • CBS News  (CBS) has named its first female president of the company.  CBS News named Susan Zirinsky, the producer of “48 Hours”, as its new president.  CBS news has suffered ratings weakness and the loss of key anchors and its new president will be tasked with turning the division around.  CBS Corp. is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • DXC Technology (DXC) has agreed on final details of its acquisition of Luxoft Holdings (LXFT).  DXC Technology will pay USD$59 per share for all Class A and Class B shares of Luxoft Holdings.  The deal values Luxoft at an 86% premium to Friday’s close.  DXC is paying cash for Luxoft in a deal valued at USD$2 billion.  DXC Technology is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas  Luxoft is not rated in our Global Top Stock Ideas.
  • Frontier Communications (FTR) was downgraded by Wells Fargo Securities to underperform from market perform.  Frontier Communications also saw its price target cut to USD$1.75 from USD$5.  Frontier Communications is working on a plan to deal with its upcoming debt maturities.  Frontier Communications is rated “Unattractive” in our US SMID-Cap Global Top Stock Ideas.
  • Maxar Technologies (MAXR) reported the failure of its Worldview-4 global imaging satellite.  It appears its gyroscopes have failed at making it remain stable on an axis.  Maxar was downgraded by Credit Suisse to underperform from neutral on the news.  Maxar Technologies is rated “Unattractive” in our US SMID-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Nvidia (NVDA) introduced a new gaming chip, the GeForce RTX 2060 chip, last night at a CES event.  The RTX 2060 is 60% faster than prior generation chips and according to the company, puts Turing architecture within reach of many more PC gamers worldwide.  Nvidia is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Information Technology Global Top Stock Ideas.
  • Samsung (KOSE: 005093) reported revenue and operating income for fiscal 4Q that missed estimates.  Samsung revenue came at 59 trillion won, below 63.6 trillion expected, a drop of 11%.  Operating income of 10.8 trillion won came below the 13.8 trillion consensus expectation.  Samsung is feeling the pinch of softer demand in its 2 key export markets of US and China.  Samsung is not rated in our Global Top Stock Ideas.
  • Billions of Xiaomi Corp. (SEHK: 1810) shares will be free of their six-month lock lockup period on Wednesday, causing investors to question if it will exacerbate the stock’s drop from a listing price of HK$17/share to HK$11.10/share as of its last close. More than 3bn shares accounting for about 19% of shares outstanding will be unlocked Wednesday. JPMorgan Chase & Co. also cut its buy recommendation for Xiamoi today. Xiaomi is rated “Neutral” in our China All-Cap Global Top Stock Ideas.

Global Industrials Stocks Trending in the News

  • Alstom SA (ENXTPA: ALO) shares are trading lower after Les Echos reported that the European Union (EU) is unlikely to approve the rail business’ merger with Siemens AG (DB: SIE). The merger will reportedly not be approved because of a competitive threat from China. Alstom is rated “Top Buy” in our European Large-Cap Global Top Stock Ideas. Siemens is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Six current and former BASF SE (DB: BAS) engineers have been arrested in Taiwan for allegedly accepting bribes and sharing the German company’s technology with China’s Jiangyin Jianghua Microelectronics Materials Co. (SHSE: 603078). The employees were reportedly offered 40mm yuan (USD$5.8mm).  BASF SE is rated “Top Short” in our European Large-Cap Global Top Stock Ideas. Jiangyin Jianghua Microelectronics Materials is not rated in our Global Top Stock Ideas.
  • Geely Automotive (SEHK: 175) provided guidance that implies its challenges will continue.  Geely sees sales growth in 2019 of just 1% while many analysts are expecting double-digit sales growth.  Merrill Lynch cut its price target to HK$10 from HK$19.  Credit Suisse cut its target to HK$11 from HK$29.  Geely Automotive is rated “Neutral” in our China All-Cap Global Top Stock Ideas.
  • General Dynamics (GD) had its shares downgraded at Jefferies to hold from buy.  Jefferies cut the price target of General Dynamics to USD$164 from USD$197.  General Dynamics won a USD$898 million cyber engineering contract for the US Navy, it also announced.  General Dynamics is rated “Top Buy” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.
  • General Motors Company (GM) was upgraded to outperform from market perform by GMO while its price target for the automobile manufacturer was raised from USD$38/share to USD$41/share. BMO cited a strong outlook and better catalysts from GM in 2019 for the upgrade. GM is rated “Unattractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Nissan (TSE: 7201) CEO Hiroto Saikawa said on Monday that he wants to, “discuss whether there need to be some sorts of initiatives or changes,” as the company continues its partnership with Renault (ENXTPA: RNO). Saikawa also stressed that the alliance itself is, “not in danger.” Nissan is rated “Top Buy” in our Japan Large-Cap Global Top Stock Ideas. Renault is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Norwegian Air Shuttle ASA (OB: NAS) shares are gaining after Pareto said that the firm’s December yield was ahead of its estimate while the firm’s load factor was below its estimate. Additionally, Pareto said that, while Norwegian Air’s hedging loss of NOK2bn adds pressure on its book equity, there is no covenant breach expected in FY4Q2018. Norwegian Air is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas.
  • Sika AG (SWX: SIKA) will acquire private equity-owned Parex Group for 2.5bn Swiss francs (USD$2.6bn). The acquisition will enable Sika to expand its building materials operations into construction markets from France to China. Sika AG is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • Union Pacific Corp (UNP) was upgraded at Seaport Securities to buy from neutral.  Seaport Securities raised the Union Pacific Corp price target to USD$165, implying a 19 upside to yesterday’s close.  Union Pacific is rated “Attractive” in our US Large-Cap and “Attractive” in our US Industrials Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • Apollo Capital (APO) is considering a bid for General Electric’s (GE) jet-leasing unit, according to a story from Bloomberg yesterday.  Apollo Management is trying to arrange financing for a bid that could reach USD$40 billion.  Discussions are in the preliminary stage and a deal is not assured.  Apollo Management is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.  General Electric is rated “Top Short” in our US Large-Cap and is rated “Top Short” in our US Industrials Global Top Stock Ideas.

Global Commodities Stocks Trending in the News

  • PG&E (PCG) is considering whether to file bankruptcy protection, according to a report in Bloomberg.  PG&E is looking to the state of California to help it with legislation as it faces billions and billions of dollars in liabilities over the fire.  PG&E has not made any decision yet as to how it will proceed.  PG&E is rated is “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • PG&E (PCG) shares fell sharply yesterday on new it is exploring bankruptcy.  PG&E is considering bankruptcy because liabilities from wildfires has reached a potential USD$30 billion for the company with USD$10 billion in market cap.  The company is seeking help from the state of California for a potential bailout, though no specifics have been mentioned.  PG&E is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Petroleum Geo-Services ASA (OB: PGS) shares are trading higher after issuing a FY4Q update indicating a stronger-than-expected quarter. PGS reported that it expects segment EBITDA of about USD$145mm for FY4Q2018 while citing, “strong customer interest and momentum,” in the quarter. Petroleum Geo-Services is rated “Attractive” in our European SMID-Cap Global Top Stock Ideas. 
  • QEP Resources (QEP) has received an offer from Elliott  Management for the rest of the company it does not already own.  Elliott  Management offered USD$8.75 per share for oil driller QEP Resources, a 44% premium to Friday’s close.  Elliott said the deal is subject to due diligence.  Elliott has been engaged with QEP Resources since early 2018 on how to improve performance.  QEP Resources is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.

Global Healthcare Stocks Trending in the News

  • Danaher Corp. (DHR) Chief Executive Officer Thomas Joyce, Jr. is set to comment on the company’s performance at the J.P. Morgan Healthcare Conference in San Francisco today. Ahead of the conference, Danaher sees its FY4Q core revenue growth above its prior forecasts with its adjusted EPS expected to be, “at or near the high-end,” of previously announced guidance. Danaher is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.
  • Eli Lilly (LLY) is acquiring Loxo Oncology (LOXO) for USD$235 per shares, or about USD$8 billion.  Eli Lilly is expanding its cancer treatment business with the acquisition.  The companies will hold a press conference this morning to go over the details of the deal.  Eli Lilly is rated “Attractive” in our US Large-Cap Global Top Stock Ideas.  Loxo Oncology Nvidia is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.
  • NuVasive (NUVA) shares are trading lower after reporting financials that missed analyst expectations. NuVasive reported preliminary revenue of USD$1.10bn in FY2018 while analysts expected USD$1.11bn. NuVasive’s FY4Q2018 revenue of USD$288mm missed analysts’ consensus of USD$294.4mm. NuVasive is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Sage Therapeutics Inc. (SAGE) shares surged higher after announcing that their experimental antidepressant was successful in treating women’s postpartum depression symptoms. After two weeks of treatment, 45% of women were in remission compared to 23% of women on the placebo. Sage is rated “Top Short” in our US Large-Cap Global Top Stock Ideas.

 

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