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Global Stocks Trending in the News for March 6th, 2019

Mar 06, 2019

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Global Consumer Stocks Trending in the News

  • Anheuser-Busch Inbev (ENXTBR:ABI) CEO Oliver Goudet will soon, an unexpected development.  Mr. Goudet will assume the top spot at JAB Holdings Ltd. (AIM:JBH), the consumer goods giant.  Anheuser-Busch Inbev said it will announce succession plans in due course with Mr. Goudet pledging to assist however possible.  He will leave right after the company’s annual shareholders meeting on April 24th.  Anheuser-Busch Inbev is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas
  • Bed, Bath & Beyond (BBBY) was downgraded today by Barclay’s to underweight from equal-weight.  Barclay’s cut its price target for Bed, Bath & Beyond to USD$13 from USD$15, implying it sees 22% downside for the stock.  Barclay’s no longer believes in the turnaround plans of Bed, Bath & Beyond.  Bed, Bath & Beyond is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Kohl’s (KSS) fourth quarter EPS of USD$2.24 beating consensus of USD$2.18.  Kohl’s delivered same store sales growth of 1.0%, beating consensus of 0.2%.  Target fourth quarter revenue of USD$6.54 in line with consensus of USD$6.56.  Target affirmed 2019 EPS guidance of USD$5.80-6.15.  Kohl’s is rated “Attractive” in our US Large-Cap and “Attractive” in our US Consumer Discretionary Global Top Stock Ideas.
  • Harley-Davidson (HOG) announced the acquisition of StaCyc Inc, a maker of electric powered two-wheelers for children.  Harley-Davidson said the acquisition reinforces its “commitment to lead in the electrification of motorcycling”.   Harley-Davidson has been seeking to expand its electric portfolio and is likely to make other acquisitions along the same line.  Harley-Davidson is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.
  • Just Eat (LSE:JE) reported full year revenue of 779.5 pounds, in line with consensus of 786 million pounds.  Just Eat expects 2019 revenue of 1.0-1.1 billion pounds.  Investors expect an announcement of a potential divestiture of its stake in Latin-American food delivery concern iFood, which could generate up to 650 million pounds for Just Eat in a sale of its stake.  Just East is rated “Top Short” in our United Kingdom All-Cap Global Top Stock Ideas.
  • Proctor & Gamble (PG) will delist its shares from the Euronext Paris due to low trading volume.  Proctor & Gamble said the costs to keep the listing are not justified given the high costs of maintaining the listing.  Holders will be given the chance to swap their Euronext shares for those on the NYSE at a point in the near future.  Proctor & Gamble is rated “Attractive” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Revlon (REV) share are lower after Jefferies highlights Nielsen data showing recent weak sales of its products.  Nielsen shows a drop in sales of over 15% over the last 4 weeks.  Jefferies cites ongoing challenges for Revlon with the recent deceleration in sales chief among them.  Revlon is rated “Top Buy” in our US SMID-Cap and “Top Short” in our US Consumer Staples Global Top Stock Ideas.  
  • Schaeffler AG (DB: SHA) announced it is cutting 900 jobs, 700 of which are in Germany, as part of a consolidation plan among its 5 factories in Europe.  Schaeffler cut its guidance across the board and now sees single-digit high single-digit profit margins.  Schaeffler in the past was targeting profit margin of 12-13%.  Schaeffler has an 18-24 month plan to turnaround its operations.  Schaeffler is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.
  • Softbank (TSE:9984) has raised a USD$3 billion loan to cover commitments as Softbank waits for funds committed to its Vision Fund.  Softbank has raised over USD$100 billion in what it calls the world’s largest pool of money to fund tech investments.  Softbank’s Vision Fund has stakes in over 70 tech companies worldwide.  Softbank is rated “Neutral” in our Japan Large-Cap Global Top Stock Ideas. 
  • Target (TGT) fourth quarter EPS of USD$1.53 matches consensus of USD$1.53.  Target delivered same store sales growth of 5.3%, beating consensus of 5.1%.  Target fourth quarter revenue of USD$22.98 matched consensus of USD$22.96.  Target affirmed 2019 EPS guidance of USD$5.75-6.05.  Target is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas
  • Tesla (TSLA) CEO Elon Musk would better serve the company he founded by being less combative and less outspoken, according to James Anderson, partner and portfolio manager at Baillie Gifford.  He said he registered an “extraordinarily unsuccessful” pleas in July for Musk to run Tesla in a more peaceful manner.  Anderson wondered if Musk could do more by being in the background helping the company and not in the spotlight on a regular basis.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • The Children's Place (PLCE) had its price target cut today at B. Riley to USD$122 from USD$167 while maintaining its buy rating.  B Riley sees the heavy promotional and sales initiatives that weighed on results continuing into 2019 and likely to further weigh on financial performance.  Children’s Place is rated “Neutral” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Thor Industries (THO) second quarter 2019 loss of 10 cents per share matching consensus.  Thor Industries second quarter 2019 sales of USD$1.29 billion well below consensus of USD$1.57 billion.  Thor Industries affirmed that in 2019 “we expect to face challenges that may affect our financial results.”  Thor Industries is rated “Unattractive” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Trip Adviser (TRIP) was downgraded to underperform from neutral at Cowen.    Cowen cut Trip Adviser’s price target to USD$40 from USD$50 while the average target price in the market is USD$56.14.  Cowen sees the slow start to 2019 for Trip Adviser weighing on results with weak revenue growth in 2019.  Trip Adviser is rated “Neutral” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  

 

Global Information Technology & Communication Services Stocks Trending in the News

  • Align Technology (ALGN) shares rebounded following Pipper Jaffray’s analyst Matt O’Brien defense of the stock in a note to clients. O’Brien told investors to, “buy the pullback,” that resulted from news that Align Technology will close its Invisalign Stores by April 3, 2019. Align Technology is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.  
  • Altice Europe NV (ENXTAM: ATC) shares fell after they were downgraded from equal-weight to underweight at Barclays. Barclays also slashed its price target for Altice Europe NV shares from 2.80 euros/share to 1.50 euros/share, which implies a 27% downside from Monday’s closing price. Altice Europe NV is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  
  • Baidu (BIDU) was upgraded to outperform from neutral at CCB International Securities.  CCB cut its price target for Baidu to USD$187 from USD$190, with an 11% upside to its new price target.  The upgrade comes in the wake of updated guidance from Baudi which expects first quarter revenue of USD$3.5-3.68 billion.  Baidu is rated “Unattractive” in our China All-Cap Global Top Stock Ideas. 
  • Ctrip.com International (CTRP) shares posted their largest intraday gains in over three years after reporting stronger-than-expected CY4Q2018 results. Six analysts, including Citigroup, upgraded Ctrip.com shares on the news. Ctrip.com is rated “Neutral” in our China All-Cap Global Top Stock Ideas.  
  • Dialog Semiconductor (DB:DLG) fourth quarter EPS od USD$1.06 matching consensus of USD$1.06.  Dialog Semiconductor fourth quarter revenue of USD$430.7 million below consensus of USD$442 million.  Dialog Semiconductor affirmed 2019 EPS guidance of USD$2.90 with revenue falling in the single digits.   Dialog Semiconductor is not rated in our Global Top Stock Ideas.  
  • Papa John’s Pizza (PZZA) announced that its founder, Joh Schnatter, will be quitting the board as part of his settlement with the company he founded.  Papa John’s said Schnatter will help the board find a suitable replacement for him on the board.  The recent tension comes after Starboard Value LP mounted an activist campaign to improve performance along with its USD$200 million investment in the company.  Papa John’s Pizza is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.   
  • Salesforce.com (CRM) reported fourth quarter adjusted EPS of USD$0.70 beating consensus of USD$0.55.  Salesforce.com reported first quarter 2019 adjusted revenue of USD$3.6 billion in line with consensus of USD$3.54 billion.  Salesforce.com Inc gave first quarter EPS guidance of 60-61 cents per share.  Salesforce.com Inc is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas. 
  • VMware (VMW) was downgraded to sell from neutral at Goldman Sachs while maintaining its price target of USD$177.  The downgrade of VMware was based on valuation with Goldman saying it sees all the good news priced into the stock.  VMware is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Weibo (WB) reported a 62% jump in profit in 2018, delivering a USD$571.8 million with revenue up 49% from a year ago.  Weibo saw as spending rise 50% in 2018 and made up 87% in Weibo’s revenue.  Weibo saw 462 million daily active users in December.  Weibo is rated “Attractive” in our China All-Cap Global Top Stock Ideas.
  • YY (YY) reported fourth quarter EPS of 12.86 yuan beating consensus of 12.66 yuan.  YY delivered fourth quarter gross margin of 35.1%, a touch better than 35.0% expected.  YY fourth quarter revenue of 4.64 billion yuan a touch better than consensus of 4.47 billion yuan.  YY affirmed first quarter revenue guidance of 4.01-4.16 billion yuan.  YY is rated “Neutral” in our China All-Cap Global Top Stock Ideas. 

 

Global Industrials Stocks Trending in the News

  • Alaska Air (ALK) has lowered revenue guidance for the first quarter.  Alaska Air see revenue growing just 1-2% in the first quarter, down from 3-4% earlier.  Poor winter weather has dampened demand early in the quarter and is the main reason for the cut to guidance.  Alaska Air is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas 
  • General Electric (GE) CEO Larry Culp said yesterday the power unit will continue to burn through cash in 2019 and the company will post a negative cash flow, a surprise to investors.  General Electric’s cash burn will be mainly from the power unit and “other operational pressures”.  He added that deleveraging GE Capital “is key to reducing its risk profile.  Culp highlighted that General Electric’s turnaround is a multi-year effort and that the company must “pay the piper” in the ongoing revamp.  General Electric is rated “Neutral” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.
  • Hertz Global Holdings Inc. (HTZ) shares tumbled after top shareholder Carl Icahn slashed his holdings overnight. Icahn sold about 5mm Hertz shares at about USD$19.60/share yesterday, nearly a 2% discount to the last closing price of Hertz. Icahn still, however, owns about 24mm Hertz shares. Hertz is rated “Unattractive” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas.  
  • JetBlue (JBLU) has improved guidance somewhat, now seeing RASM down 1.5% to 3.5%, an improvement over previous guidance of a 2% to 4% drop.  JetBlue also cut its capacity growth guidance to 6.5%, down 0.5%   JetBlue affirmed 2019 EPS guidance of USD$2.50-3.00.  JetBlue is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Industrials Global Top Stock Ideas. 

 

 

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Global Financials Stocks Trending in the News

  • Aon Plc (AON) is considering the acquisition of rival insurance brokerage Willis Towers Watson Plc (TCK), according to sources familiar with the matter. According to the sources, Aon will submit a bid in the coming weeks with the two companies having already help preliminary talks. Aon declined to comment on the report. Aon is not rated in our Global Top Stock Ideas.  
  • Raiffeisen Bank International (WBAG: RBI) shares slid following news that is predecessor, RZB, helped to launder money associated with Russian tax fraud. According to an article published on Addendum.org, a report filed by Hermitage Fund contains evidence of links to the laundered money. Raiffeisen Bank is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  
  • Societe Generale SA (ENXTPA: GLE) analysts Thomas Swoboda and Peter Clark cut their recommendation for Wacker Chemie (XTRA: WCH) from buy to hold just hours before a weaker-than-expected earnings announcement sent the stock tumbling as much as 11%. Wacker Chemie cited lower average prices for polysilicon as reasoning for the earnings slump. Societe Generale is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas. Wacker Chemie is rated “Top Short” in our European SMID-Cap Global Top Stock Ideas. 

Global Commodities & Power Stocks Trending in the News

  • Vale (VALE) changed the inspection company that was inspecting the dam that collapsed after the initial inspectors would not affirm the dam was safe, according to the Wall Street Journal today.  Vale rehired a past inspection company that gave the dam a passing grade, the dam that eventually collapsed killing 186 people, mostly Vale employees.  There are still 122 people missing.  Vale is rated “Neutral” in our Brazil All-Cap Global Top Stock Ideas.

Global Health Care Stock Trending in the News

  • Eli Lilly (LLY) announced it is launching an authorized generic version of its best-selling insulin Humalog that will have a list-price of 50% below Humalog.  Insulin prices have soared and have been the spotlight of much negative press for drug makers.  Humalog is a 20-year old drug and critics complain its price has only continued to rise.  Eli Lilly is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • Eurofins Scientific SE (ENXTPA: ERF) shares slipped amid pressure from short sellers and reports that it pays annual rent to its founding family for laboratory space. Eurofins, which paid 26mm euros (USD$29.5mm) in rent last year to affiliates of Analytical Bioventures SCA, publicly defended its practice. Eurofins is rated “Neutral” in our European SMID-Cap Global Top Stock Ideas.  

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS