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

Apr 08, 2019

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Global Consumer Stocks Trending in the News

  • Amazon (AMZN) is set to enter the generic drug market as soon as October, according to a note from Cleveland Research.  The note comments that Amazon will likely make a “more meaningful move” into the pharmacy business over the next 12 months.  Amazon also announced it has added some health-related functions to Alexa, including scheduling doctor visits and checking prescriptions.  Amazon is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas. 
  • Boston Beer (SAM) shares tumbled by the most in more than 6 months after Goldman Sachs downgraded the stock from neutral to sell. Goldman Sachs also slashed its price target for Boston Beer from USD$270/share to USD$245/share, implying a 7% downside as of Thursday’s close. Goldman explained that Boston Beer’s sales growth will likely deaccelerate as the company’s Twisted Tea brand observes slower growth. Boston Beer is rated “Unattractive” in our US Large-Cap and “Unattractive” in our US Consumer Staples Global Top Stock Ideas.
  • Chipotle (CMG) published a statement saying none of its restaurants are implicated in the latest E. coli outbreak.   The statement was in response the federal officials’ investigation of a multi-state outbreak of E. coli.  Officials said no specific focus exists yet and Chipotle said they have not been contacted by officials.  Chipotle is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
  • Lyft (LYFT) is accusing Morgan Stanley (MS) of marketing products to help pre-IPO investors bet against the stock.  Lyft sent a letter to Morgan Stanley making the allegation and threatening a lawsuit if not.  Lyft asked Morgan Stanley to stop marketing those products if it is, in fact, doing do.  The investors being marketed too are subject to lock-up agreements, prohibiting sales of their shares.  Lyft is not yet rated in our Global Top Stock Ideas.  Morgan Stanley is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Nike (NKE) snagged tennis start Naomi Osaka from Adidas (DB:ADS), in a surprise move.  Osaka was expected to sign with Adidas for a record sum, reported to be $8.5 million.  Nike then announced it signed #1 ranked Osaka for an undisclosed amount.  Osaka will wear Nike clothing for the first time later this month.  Nike is rated “Neutral” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  Adidas is rated “Neutral” in our European Large-Cap Global Top Stock Ideas.
  • Roku (ROKU) was downgraded at Guggenheim to neutral from buy.  Roku also saw its price target trimmed to $72 from $77.  Roku is facing competition from a number of large players making its platform vulnerable.  Free content from bigger players on their own platforms is threatening Rolu’s growth outlook, Guggenheim notes, saying Roku is fairly valued at these levels.  Roku is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas.
  • Snap Inc. (SNAP) shares rallied after the company hosted an event and announced several new products, one of which includes a video game business. The suite of new products unveiled by the social media company instituted a slew of upgrades from analysts covering the stock. Snap Inc. is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Information Technology Global Top Stock Ideas.
  • Starbucks (SBUX) was downgraded to neutral from buy at UBS.  Starbucks’ saw its price target hiked to $78 from $72, the average price target in the market is $71.  The rating cut is due to UBS’ belief that the risk/reward situation is balanced at this time.  The hike in the price target is due to the previously announced $2 billion share repurchase program.  Starbucks is rated “Top Buy” in our US Large-Cap and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Tesla (TSLA) had its delivery estimate and target lowered at Morgan Stanley today.  Telsa’s target was cut to $240 from $260.  Tesla is now expected to deliver 344,000 cars in total in 2019, down from 362,000 originally expected.  Morgan Stanley expects the 45% drop in Model X + S sees recently to continue through 2019.  Tesla is rated “Top Short” in our US Large-Cap and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  

Global Information Technology and Communication Services Stocks Trending in the News

  • Alphabet’s Google (GOOGL) was forced to scrap its outside council that was set up to advise it on complicated ethical issues related to artificial intelligence.  The council, called the Advanced Technology External Advisory Council, became the focus on complaints for the members Google chose for it.  “It became clear that in the current environment, ATEAC could not function as intended,” Google said, so it disbanded the council and will try again.  Alphabet is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Facebook (FB) and other social media executives could be held personally liable for harmful content on their platforms in the UK, according to a report from Bloomberg.  Legislation may be presented as early as Monday with those provisions, the report notes.  UK ministers are unhappy with the rate of progress on self-regulation and are ready to craft government regulations for the space.  The recent massacre in New Zealand and the use of the Facebook platform before and during that incident gave new impetus for the regulations.  Facebook is rated “Neutral” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Intel (INTC) was downgraded to market perform from outperform at Wells Fargo Securities.  Intel’s price target was raised to $60 from $55.  Wells writes that the downgrade “reflects a more cautious view on the current semi demand and data points” with the close of the first quarter.  Wells is cautious about 2H19 demand with the potential for further weakness, seeing downside to its current expectations.  Intel is rated “Unattractive” in our US Large-Cap and “Attractive” in our US Information Technology Global Top Stock Ideas.
  • Micron (MU) was downgraded market perform from outperform at Cowen.  Micron’s price target was cut to $45 from $46.  Cowen wrote in a note that Micron’s earnings are likely to fall this coming year and that is “a stark contrast to what is expected by most investors.”  Cowen highlighted the weak DRAM market and its expectation that it will stay weaker for longer than expected.  Micron is rated “Unattractive” in our US Large-Cap and “Neutral” in our US Information Technology Global Top Stock Ideas.  
  • SAP (DB:SAP) was downgraded to reduce from neutral at Oddo BHF.  SAP saw its price target  cut to 84 euros from 90 euros.  Oddo cut SAP’s target to well below the market average of 107.47 euros.  SAP is trading above 102 euros so Oddo sees significant downside from present levels.  SAP is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • SES SA (BDL: SESGL) shares rose by the most in 9 months after FCC Commissioner Michael O’Reilly made supportive comments in regards to C-band. O’Reilly discussed that the FCC needs to adopt an order within the, “coming months,” on C-band to get spectrum for 5G technology. The comments from O’Reilly, however, did not confirm that the FCC will follow through with its C-Band Alliance (CBA) to run the auction. SES is not rated in our Global Top Stock Ideas.
  • Snap (SNAP) is getting into gaming on its platform as it tried to edge into the gaming market.  Snap said its platform will launch multi-player games with its first called Botmoji Party.  Snap is seeking to have users spend more time on its platform and a slew of new games with be launched with development partners.  Snap is further blurring the line between social network and gaming.  Snap is rated “Top Short” in our US Large-Cap and “Unattractive” in our US Information Technology Global Top Stock Ideas.  

 

 

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We Crunch the Numbers, You Make the Trade.We Crunch the Numbers, You Make the Trade.

Global Industrials Stocks Trending in the News

  • Boeing (BA) has accepted that its flight control systems was to blame for the crash of Ethiopian Airlines.  Boeing’s CEO said “We own it and we know how to fix I,” in a statement following a preliminary report on the crash.   Pilots on the doomed flight followed Boeing’s instructions when problems began, them shut off the system.  Pilots then turned that system back on and the plane crashed.  All 737 Max jets are grounded and it is not clear when they will fly again.  Boeing is rated “Top Short” in our US Large-Cap and “Neutral” in our US Industrials Global Top Stock Ideas
  • Dow Inc (DOW) was initiated at JP Morgan with an underweight rating.  Dow Inc’s target was set at $49, the lowest on Wall Street today.   JP Morgan highlight a number of risks facing Dow including the trade war, lower ethylene derivative margins, slower global growth and large capacity additions in 2019.  Dow will also have to cope with higher feedstock costs, additionally weighing on the investment case.  Dow is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.
  • General Electric (GE) saw a key analyst at JP Morgan turn bearish on the stock, cutting its rating to underweight from neutral.  JP Morgan cut its GE price target to $5, the lowest on The Street.  General Electric got a significant boost in December when JP Morgan upgraded the stock to neutral.   Since then, JP Morgan has turned negative on a number of divisions of GE, leading to the downgrade.  General Electric is rated “Unattractive” in our US Large-Cap and “Unattractive” in our US Industrials Global Top Stock Ideas
  • SNC-Lavalin Group Inc. (TSX: SNC) will sell a 10% stake in its Toronto-area toll highway for up to CAD$3.25bn as the engineering firm ramps up efforts to bolster its balance sheet. SNC-Lavalin will sell the highway stake to OMERS Infrastructure pension fund, reducing the engineering firm’s stake to just 6.8% from 17%. Since January, SNC has lost nearly a third of its value as the company has issued 2 profit warnings. SNC-Lavalin Group is rated “Top Buy” in our Canada All-Cap Global Top Stock Ideas.
  • Triumph Group (TGI) announced it hired bankers to help it filed alternatives for its Aerospace Structures business unit.  The announcement comes at the end of a 3-year restructuring effort.  Triumph could reap $00-500 million in a sale, according to analysts.  Triumph has limited potential buyers for the asset.  Triumph  is rated “Unattractive” in our US SMID-Cap and “Top Short” in our US Industrials Global Top Stock Ideas.

Global Financials Stocks Trending in the News

  • JP Morgan (JPM) CEO Jamie Dimon commented on banks’ potentially limited ability to help during the next crisis situation.  He commented in his letter to shareholders that new regulations and liquidity requirements will not allow banks to respond as they did during the crisis.  JP Morgan is rated “Neutral” in our US Large-Cap Global Top Stock Ideas
  • Societe Generale SA (ENXTPA: GLE) shares edged lower after the company announced plans to cut up to 700 jobs in Paris and to eliminate 100s more at its London and New York locations. The slew of job cuts at Societe Generale comes after the firm’s investment bank observed a difficult CY1Q2019. Societe Generale is rated “Unattractive” in our European Large-Cap Global Top Stock Ideas.
  • TradeWeb Markets (TW) placed its IPO and started trading Thursday.  Share were priced at $27 and the shares opened the day 27% higher at $34.26.  TradeWeb sold 40 million shares raising $1.1 billion in the sale and twice increased the size of the offering due to demand.  The IPO values TradeWed at $7.9 billion.  TradeWeb is not yet rated in our Global Top Stock Ideas.

Global Commodities & Energy Stocks Trending in the News

  • Canopy Growth Corp (TSX:WEED) started trading 5 years ago this week as the first listed pot stock.  Canopy Growth has risen 2,159% since going public, rising higher in a cloud of smoke.  What started as a listing on the Toronto Exchange’s Venture Market with a stock a bot over $1, is now a $15 billion company.   Canopy Growth is rated “Unattractive” in our Canada All-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