Today's noteworthy downgrades include: Auspex Pharmaceuticals (ASPX) downgraded to Hold from Buy at Stifel... Catamaran (CTRX) downgraded to Neutral from Buy at SunTrust... Cogeco Cable (CGEAF) downgraded to Equal Weight from Overweight at Barclays... Corus Entertainment (CJREF) downgraded to Underweight from Equal Weight at Barclays... Cypress Energy (CELP) downgraded to Hold from Buy at Wunderlich... Echo Global (ECHO) downgraded at BB&T... Emerge Energy (EMES) downgraded to Market Perform from Outperform at Wells Fargo... GOL Linhas (GOL) downgraded to Neutral from Buy at Citigroup... Hyperion Therapeutics (HPTX) downgraded to Hold from Buy at Cantor... Louisiana-Pacific (LPX) downgraded to Sector Perform at Scotia Capital... Norcraft (NCFT) downgraded to Hold from Buy at Gabelli... OFG Bancorp (OFG) downgraded to Neutral from Buy at Guggenheim... Schlumberger (SLB) downgraded to Market Perform from Outperform at Wells Fargo... World Point Terminals (WPT) downgraded to Underperform from Outperform at Credit.

Azul's (AZUL) pursuit of a merger with Gol Linhas has gained momentum, with talks underway for a deal with the controlling shareholder of Gol, Rachel Gamarski, Erin Hudson and Giovanna Bellotti Azevedo of Bloomberg report, citing people familiar with the matter. In one scenario under consideration, holding company Abra Group would contribute its Gol shares to Azul in exchange for a stake in the combined airline, a source told Bloomberg. That type of transaction could appeal to Azul because it wouldn't have to commit much cash, if any, the person said.

Reports Q1 revenue $174.2M, consensus $151.92M. Reports Q1 tangible book value per share $23.55. Reports Q1 CET1 capital ratio 14.45%. Jose Rafael Fernandez, CEO, said: "First quarter EPS-diluted increased 9.4% year-over-year on a 5.9% increase in total core revenues, reflecting an overall solid performance across all businesses in line with our plans. Our Digital First strategy continues to drive customer acquisition and engagement. Puerto Rico business activity and consumer liquidity looks good. Our balance sheet is well-positioned for a higher for longer interest rate environment. Thanks to our team members for their hard work and commitment to helping our customers and communities achieve progress."