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FOXA

21st Century Fox

$47.86

3.15 (7.05%)

, DIS

Disney

$106.00

-0.2 (-0.19%)

12:01
06/20/18
06/20
12:01
06/20/18
12:01

On The Fly: Top stock stories at midday

Stocks opened higher as the market tried to rebound. Although the S&P and Nasdaq have held onto their advances, the Dow has given up its gains and is now in negative territory and near session lows. Trade war concerns continue to weigh on the market without any resolution in clear sight. Meanwhile, oil prices moved higher and have held onto their gains ahead of Friday's OPEC meeting. ECONOMIC EVENTS: In the U.S., the current account deficit widened $26.7B to $124.1B in Q1, which was a little less than expected. Existing home sales slipped 0.4% to a rate of 5.43M in May, which was weaker than expected. COMPANY NEWS: Class A shares of 21st Century Fox (FOXA) are up about 7% at midday after Disney (DIS) raised its bid for the assets it had previously agreed to buy from the company to the equivalent of $38 per 21CF share from a prior offer of $28 per share. "The amended and restated Disney merger agreement offers a package of consideration, flexibility and deal certainty enhancements that is superior to the proposal made by the Comcast Corporation (CMCSA) on June 13," Fox stated. A week ago, Comcast came public with its offer to acquire the businesses that 21CF has agreed to sell to Disney for $35 per share in cash. After the latest round of bidding news, Disney shares are flat near noon, while Comcast (CMCSA) Class A shares are fractionally lower... General Electric (GE), an original member of the Dow Jones Industrial Average in 1896, will soon be losing that membership after S&P Dow Jones Indices announced that Walgreens Boots Alliance (WBA) will replace GE in the blue chip index effective Tuesday, June 26... Shares of Starbucks (SBUX) are trading 9% lower after the coffee giant announced a set of strategic priorities and operational initiatives to accelerate growth and create long-term shareholder value following recent performance that CEO Kevin Johnson called "not acceptable." Starbucks also cut its Q3 global comparable store sales growth view to 1% from its previous guidance for 3% growth and lowered its FY18 adjusted EPS outlook to $2.39-$2.43 from its previous view of $2.48-$2.53... Amazon (AMZN), Berkshire Hathaway (BRK.A, BRK.B) and JPMorgan Chase (JPM) announced that Atul Gawande, a "surgeon, writer and public health innovator," will be the CEO of their partnership on U.S. employee healthcare. The three corporate giants reiterated that the new joint-venture company will operate as an independent entity "free from profit-making incentives and constraints." MAJOR MOVERS: Among the noteworthy gainers was Intelsat (I), which jumped 23% after RBC Capital analyst Wilton Fry upgraded the stock to Outperform from Sector Perform and raised his price target to $30 from $5, saying the expected FCC release of the Notice of Proposed Rulemaking this week will lead to adoption of the company's C-band proposal. Also higher was Synaptics (SYNA), which gained 12% after it confirmed that it is engaged in talks with Dialog Semiconductor (DLGNF) regarding the potential takeover of Synaptics by Dialog. Dialog shares are about 3% lower in New York trading after the news. Among the other noteworthy losers was Oracle (ORCL), which is down 8% at midday after several analysts expressed concern regarding the company's decision to discontinue the disclosure of detailed cloud revenue. Following the company's earnings report, the stock was downgraded at Rosenblatt and Wedbush, while Deutsche Bank analyst Karl Keirstead said he views Oracle's decision to stop disclosing cloud revenue and combine it with on-premise support revenue as a "mistake." Also sliding after its earnings reports last night is FedEx (FDX), which has declined about 1.5%. INDEXES: Near midday, the Dow was down 31.93, or 0.13%, to 24,668.28, the Nasdaq was up 62.86, or 0.81%, to 7,788.44, and the S&P 500 was up 8.37, or 0.30%, to 2,770.96.

FOXA

21st Century Fox

$47.86

3.15 (7.05%)

DIS

Disney

$106.00

-0.2 (-0.19%)

CMCSA

Comcast

$32.77

-0.04 (-0.12%)

GE

General Electric

$12.86

-0.105 (-0.81%)

WBA

Walgreens Boots Alliance

$67.72

3.11 (4.81%)

SBUX

Starbucks

$52.40

-5.03 (-8.76%)

ORCL

Oracle

$42.86

-3.43 (-7.41%)

FDX

FedEx

$253.85

-4.495 (-1.74%)

AMZN

Amazon.com

$1,755.30

19.56 (1.13%)

JPM

JPMorgan

$108.08

0.5 (0.46%)

BRK.A

Berkshire Hathaway

$285,450.00

-810 (-0.28%)

I

Intelsat

$19.52

3.46 (21.54%)

SYNA

Synaptics

$54.39

5.58 (11.43%)

DLGNF

Dialog Semiconductor

$0.00

(0.00%)

FOX

21st Century Fox

$47.24

2.96 (6.68%)

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FOXA 21st Century Fox
$47.86

3.15 (7.05%)

06/18/18
PIVT
06/18/18
DOWNGRADE
PIVT
Sell
Disney downgraded to Sell from Hold at Pivotal Research
Pivotal Research analyst Brian Wieser downgraded Disney to Sell with an unchanged price target of $93. The stock closed Friday up 10c to $108.85. The recent rally in the shares is unwarranted and fails to reflect that a higher price paid for Fox's (FOXA) entertainment assets would reduce the value of Disney to its shareholders, Wieser tells investors in a research note. Further, the analyst believes the acquisition not being completed would also be negative for Disney as it would mean the company would be unable to realize the synergies it expects to produce from the transaction. The strategic position of Disney would "further be weakened relative to what would otherwise be possible without the transaction," Wieser contends.
06/14/18
LOOP
06/14/18
NO CHANGE
Target $47
LOOP
Buy
21st Century Fox price target raised to $47 from $43 at Loop Capital
Loop Capital analyst Alan Gould raised his price target on 21st Century Fox (FOXA) to $47 following yesterday's confirmation of a Disney (DIS) counterbid from Comcast (CMCSA), saying he expects "at least one additional bid" from each potential acquirer. He also believe that while a Disney merger "offers more regulatory certainty" and its long-term stock value is superior to that of Comcast, the difference in the higher offer from Comcast is too great, requiring more cash or a stock price collar from the former. Gould keeps his Buy rating on 21st Century Fox.
06/14/18
NOMU
06/14/18
NO CHANGE
Target $40
NOMU
Neutral
Nomura sees 'protracted bidding war' for Fox assets
Nomura Instinet analyst Jeffrey Kvaal expects Disney (DIS) to counter Comcast's (CMCSA) offer for 21st Century Fox's (FOXA) assets, which include Premier League sports rights, premium content, and Hulu stake. He sees the stage being set "for a protracted bidding war." The analyst keeps a Neutral rating on Comcast with a $40 price target.
06/14/18
OPCO
06/14/18
NO CHANGE
Target $42
OPCO
Outperform
Disney likely to top bid for Fox entertainment assets, says Oppenheimer
Oppenheimer analyst Timothy Horan notes that Comcast (CMCSA) has bid $65B for a cash offer for Fox's (FOXA) entertainment assets, a 19% premium to Disney's offer (DIS). The analyst believes it does make strategic/financial sense, and Comcast has a great track record on acquisitions. Further, Horan thinks a joint NBC/Fox would be a content powerhouse while expanding the company's presence in Europe with Sky (SKYAY), and slashing OTT video risk. Nonetheless, the analyst believes Disney is likely to top the bid. He reiterates an Outperform rating and $42 price target on Comcast's shares.
DIS Disney
$106.00

-0.2 (-0.19%)

CMCSA Comcast
$32.77

-0.04 (-0.12%)

06/15/18
06/15/18
DOWNGRADE
Target $24

Sell
Juniper downgraded to Sell on key account weakening at Rosenblatt
As previously reported, Rosenblatt analyst Ryan Koontz downgraded Juniper (JNPR) to Sell from Neutral, stating that he believes the company is starting to see weakness in several key accounts, including AT&T (T), Comcast (CMCSA), and Alphabet (GOOGL). Those three customers collectively represent about 15% of sales, Koontz estimates. He cut his second half revenue and EPS estimates for Juniper to below consensus and lowered his price target on the shares to $24 from $28.
GE General Electric
$12.86

-0.105 (-0.81%)

06/04/18
JPMS
06/04/18
NO CHANGE
Target $11
JPMS
Underweight
General Electric needs $30B in cash, JPMorgan's Tusa says
JPMorgan analyst Stephen Tusa says he's watching for General Electric's new board and management to set the longer-term path for a "new GE" as the company's CEO transition approaches its one-year anniversary. In a research note titled "Will The Page Officially Turn In June?," Tusa argues that investors "deserve clarity on the path forward" following "mixed messages" and the debate around portfolio value. The analyst continues to see the need for GE to "de-risk substantially," which he believes includes the need for cash and a cut to the dividend. This is not only about survival, but positioning the company to, as CEO Flannery put it recently, "flourish," Tusa writes. The analyst's preliminary math shows the need for $30B in cash to get to 2.5 times leverage as per ratings agencies. Tusa keeps an Underweight rating on General Electric with an $11 price target.
06/20/18
WBLR
06/20/18
NO CHANGE
WBLR
Outperform
GE's 'here to stay,' William Blair says after headquarter visit
Following a visit to General Electric's corporate headquarters in Boston late last week, William Blair analyst Nicholas Heymann believes the company's transformation, deleveraging and fundamentals "remain solidly on track." The analyst walked away with a "sense of optimism with continued progress" on GE's plan to optimize asset sale proceeds to enable it to deleverage its balance sheet to 2.5 times net debt/EBITDA. While no specific date has been provided for achieving this, the math from industrial asset sale proceeds and GE Capital portfolio liquidations would suggest year-end 2019, Heymann tells investors in a research note partially titled "GE's Here to Stay." The analyst believes GE is "reaching an inflection point for investor sentiment" and keeps an Outperform rating on the shares. He believes the stock is likely to offer "material upside potential over the near and intermediate time horizon." Shares of General Electric are down 6c to $12.89 in early trading after being last night's announcement of its removal from the Dow Jones Industrial Average.
05/30/18
JPMS
05/30/18
NO CHANGE
Target $11
JPMS
Underweight
GE Capital remains 'underappreciated risk,' says JPMorgan
JPMorgan analyst Stephen Tusa believes GE Capital "remains an underappreciated risk." In a new research note titled "GECS: Not Gone and Not to Be Forgotten; Part 3, Recent Disclosure Suggests Further Action Needed to 'De-Risk," Tusa says the math suggests more capital may be needed, even without another charge from lingering liabilities. The analyst sees either $22B in incremental asset wind down versus the standing plan, or a $3B capital contribution. While many investors are discounting January's Insurance charge as one of the last "shoes to drop," it is "more of a wake-up call around a GECS book that continues to operate with the burden of a systemic approach to making short-term earnings look better with ultimately uneconomic long-term moves," Tusa writes. He has an Underweight rating on General Electric with an $11 price target.
06/01/18
UBSW
06/01/18
NO CHANGE
Target $16
UBSW
Neutral
General Electric can cover dividend into 2019, says UBS
UBS analyst Steven Winoker noted investors are concerned about General Electric's ability to pay its dividend. The analyst believes the company can generate enough cash and maintain a strong credit rating if they can execute asset sales. He believes the company can cover the dividend in 2018 and 2019 and most likely into 2020, but argues a bigger free cash flow cushion is warranted. Winoker maintained his Neutral rating and $16 price target on General Electric shares.
WBA Walgreens Boots Alliance
$67.72

3.11 (4.81%)

05/29/18
MZHO
05/29/18
NO CHANGE
Target $77
MZHO
Buy
Walgreens Boots Alliance price target lowered to $77 from $87 at Mizuho
Mizuho analyst Ann Hynes views Walgreens Boots Alliance's sell-side event last week as "strange." Management highlighted the company was focused on a new strategy for the stores, but would not share any details on the strategy for competitive reasons, Hynes tells investors in a research note. The analyst, however, keeps a Buy rating on the shares citing Walgreens' current valuation, "strong" cash flow and likely limited downside risk to adjusted earnings estimates.
05/23/18
LEER
05/23/18
NO CHANGE
Target $70
LEER
Market Perform
Walgreens Boots Alliance price target lowered to $70 from $75 at Leerink
Leerink analyst David Larsen lowered his price target for Walgreens Boots Alliance to $70 from $75 as healthcare hub strategy is taking time and headwinds continue. The analyst reiterates a Market Perform rating on the shares.
04/24/18
LEER
04/24/18
NO CHANGE
LEER
Amazon shelving pharma supply efforts to hospitals not surprising, says Leerink
Leerink analyst David Larsen notes that Amazon (AMZN) is said to be shelving its pharmaceutical supply efforts to hospitals, which he does not see as a suprise given several barriers to entry. The consumer market has always been Amazon's core competency, though he expects it will be a long, gradual, and difficult process of building up an online drug portfolio with an initial focus likely on generics. The analyst believes the risk of Amazon entering retail in the near term is reduced significantly. Nonetheless, Larsen thinks risk remains longer term for retail pharmacies such as CVS (CVS) and Walgreens Boots Alliance (WBA).
04/17/18
MZHO
04/17/18
NO CHANGE
MZHO
Amazon news removes 'unprecedented overhang' on drug sellers, says Mizuho
After CNBC reported yesterday afternoon that Amazon (AMZN) has decided to shelve its plan to sell and distribute pharmaceutical products, Mizuho analyst Ann Hynes said she had thought Amazon's current logistics and distribution model would not translate into healthcare. However, based on conversations with investors, she believes the magnitude of the overhang that Amazon presented for drug distributors and retail pharmacies was "unprecedented." While drug pricing is still a concern, she notes that the CNBC report removes one overhang on the drug supply chain stocks. Hynes remain a buyer of CVS Health (CVS) and Walgreens (WBA) and keeps Neutral ratings on Rite Aid (RAD) as well as on drug distributors AmerisourceBergen (ABC), Cardinal Health (CAH) and McKesson (MCK).
SBUX Starbucks
$52.40

-5.03 (-8.76%)

06/20/18
06/20/18
DOWNGRADE

On The Fly: Top five analyst downgrades
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Starbucks (SBUX) downgraded to Market Perform from Outperform at Telsey Advisory, to Equal Weight from Overweight at Morgan Stanley, and to Neutral from Buy at BTIG. 2. Alarm.com (ALRM) downgraded to Sell from Neutral at Goldman Sachs with analyst Gabriela Borges saying his analysis indicates that new "Do it Yourself" deployments with professional monitoring are 35% cheaper than professionally installed and monitored security systems. 3. Williams-Sonoma (WSM) downgraded to Neutral from Buy at Citi with analyst Kate McShane citing valuation. 4. Oracle (ORCL) downgraded to Neutral from Outperform at Wedbush and to Neutral from Buy at Rosenblatt. 5. Sally Beauty (SBH) downgraded to Market Perform from Outperform at Cowen. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
06/20/18
LEHM
06/20/18
NO CHANGE
Target $60
LEHM
Equal Weight
Starbucks price target lowered to $60 from $65 at Barclays
Barclays analyst Jeffrey Bernstein lowered his price target for Starbucks to $60 saying the company last night preannounced "disappointing" Q3 global comps and reduced fiscal 2018 guidance. The analyst is surprised by the comp shortfall given that management expressed confidence in April on a second half of fiscal 2018 comp re-acceleration. While happy to see the steps towards maturation, the brand continues to set a high bar of outsized "growth at scale," which will continue to prove challenging, Bernstein tells investors in a research note. He keeps an Equal weight rating on Starbucks.
06/20/18
BMOC
06/20/18
NO CHANGE
Target $56
BMOC
Market Perform
Starbucks price target lowered to $56 at BMO Capital on reduced comps and EPS
BMO Capital analyst Andrew Strelzik lowered his price target on Starbucks to $56 from $58 after the company lowered its Q3 comps and FY18 EPS outlook while also increasing its capital return target and announced some store closures. The analyst also cut his FY18 EPS view to $2.40 from $2.50 while keeping his Market Perform rating, stating that he will await greater visibility into sustained comps improvement following yesterday's announcement. Strelzik adds that it is "difficult to have confidence in the sustainability of comps", especially given that Starbucks may have benefited from earlier price increases relative to last year.
06/20/18
06/20/18
DOWNGRADE
Target $59

Equal Weight
Morgan Stanley questions if Starbucks doing enough, downgrades to Equal Weight
As previously reported, Morgan Stanley analyst John Glass downgraded Starbucks to Equal Weight from Overweight after the company announced a same-store sales shortfall and cut its FY18 guidance. While the company announced plans for product and digital innovation in reaction to "what is now a clearer pattern of slower U.S. sales," Glass said it is hard to see how much those will impact sales. U.S. unit growth also is being slowed temporarily, but Glass thinks more action on this front may be warranted, he tells investors. China deceleration was a "negative surprise," and believing in the long-term opportunity there is important to the long-term thesis, added the analyst, who lowered his price target on Starbucks shares to $59 from $72. The stock was also downgraded to Neutral at BTIG and to Market Perform at Telsey Advisory this morning.
ORCL Oracle
$42.86

-3.43 (-7.41%)

06/20/18
RBCM
06/20/18
NO CHANGE
Target $52
RBCM
Sector Perform
Oracle price target lowered to $52 at RBC Capital on slower Software Support
RBC Capital analyst Ross MacMillan lowered his price target on Oracle to $52 from $55 and kept his Sector Perform rating after the company's Q4 results. The analyst says that despite the earnings beat, the change in the company's disclosure is "interesting", warning that Software Support growth has slowed to less than 1% and may turn negative next year. MacMillan adds that given the lower gross margins for the Support segment relative to Cloud, "aggressive" expenditure controls or higher buybacks may be needed to sustain earnings growth.
06/20/18
06/20/18
DOWNGRADE
Target $51

Neutral
Oracle downgraded to Neutral with $51 price target at Rosenblatt
As previously reported, Rosenblatt analyst Marshall Senk downgraded Oracle to Neutral from Buy, stating that the company delivered "its typical seasonally strong fourth quarter," but that the report also raised concern about a rebound in the company's cloud businesses. Senk lowered his price target on Oracle shares to $51 from $58.
06/20/18
RSBL
06/20/18
DOWNGRADE
RSBL
Neutral
Oracle downgraded to Neutral from Buy at Rosenblatt
FDX FedEx
$253.85

-4.495 (-1.74%)

06/20/18
BARD
06/20/18
NO CHANGE
Target $280
BARD
Outperform
FedEx positions should be trimmed into strength, says Baird
Baird analyst Benjamin Hartford said he still likes FedEx's positioning given its visibility to a rising return-on-capital and cash flow profile over time. However, near-term catalysts appear limited given the incremental macroeconomic cycle and trade risks and a still constrained free cash flow profile that keeps him cautious near-term. The analyst recommends trimming positions into strength, but would be a more aggressive buyer near the $240 level. Hartford maintains his Outperform rating and $280 price target on FedEx shares.
06/20/18
SPHN
06/20/18
NO CHANGE
Target $306
SPHN
Overweight
FedEx 'cleared decks' with FY19 guidance, says Stephens
Stephens analyst Jack Atkins believes FedEx's initial FY19 EPS guidance was in-line with or slightly ahead of buy-side expectations and that the "decks are now cleared" to focus on the significant earnings potential he sees in the business. Atkins, who believes FedEx has earnings power of over $20 per share in FY20, keeps an Overweight rating and $306 price target on the stock.
06/20/18
MSCO
06/20/18
NO CHANGE
MSCO
Equal Weight
FedEx guidance looks 'soft,' cash flow concerns to linger, says Morgan Stanley
Morgan Stanley analyst Ravi Shanker said FedEx's Q4 EPS beat expectations, but the "quality was not great." Additionally, FY19 guidance missing by 1% at the midpoint may have been expected, but the "details are likely to disappoint," according to Shanker. While bulls may be relieved that FY19 capex guidance declined year-over-year, the relief is likely to be short-lived and free cash flow concerns are likely to continue as management warned of capex spiking in FY20 and FY21, added the analyst, who keeps an Equal Weight rating on FedEx shares.
06/20/18
SBSH
06/20/18
NO CHANGE
Target $304
SBSH
Buy
FedEx results 'good enough' given investor concerns, says Citi
Citi analyst Christian Wetherbee says FedEx's Q4 results and outlook were basically right in line with expectations, which he believes is "good enough" given investor concerns toward quarter end. The company continues to enjoy tailwinds to its business from e-commerce growth and favorable comps from last year's cyber-attack, Wetherbee tells investors in a research note. He continues to see a path to $20 in fiscal 2020 earnings per share and keeps a Buy rating on FedEx with a $304 price target.
AMZN Amazon.com
$1,755.30

19.56 (1.13%)

06/15/18
MSCO
06/15/18
NO CHANGE
Target $23
MSCO
Underweight
Etsy fee increase made from position of strength, says Morgan Stanley
Morgan Stanley analyst Brian Nowak said Etsy's (ETSY) planned fee increase is a "smart strategic move from a position of strength" that will bring it into closer alignment with third-party commission rates charged by eBay (EBAY), Amazon (AMZN) and JD.com (JD). While the higher fees will help Etsy invest to attract new buyers, increase marketing and enhance support, Nowak believes the stock's current valuation relative to growth is already pricing in execution and return on these investments, he tells investors. Nowak is reviewing his estimates for Etsy, but currently has an Underweight rating on the stock.
06/20/18
GSCO
06/20/18
DOWNGRADE
Target $37
GSCO
Sell
Alarm.com downgraded to Sell from Neutral at Goldman Sachs
Goldman Sachs analyst Gabriela Borges downgraded Alarm.com (ALRM) to Sell and lowered her price target for the shares to $37 from $41. The analyst's analysis indicates that new "Do it Yourself" deployments with professional monitoring are 35% cheaper than professionally installed and monitored security systems. This creates risk to subscriber growth and unit economics in the existing home security ecosystem, which drives the majority of Alarm.com's business, Borges tells investors in a research note. Further, the analyst believes the Amazon (AMZN) versus Google (GOOG, GOOGL) battle for dominance in the connected home will likely cap Alarm.com's ability to expand beyond its core market. She finds Alarm.com's risk/reward unfavorable at current valuations.
06/20/18
MKMP
06/20/18
NO CHANGE
Target $280
MKMP
Buy
Alibaba is 'years ahead' of competition on digital commerce, says MKM Partners
MKM Partners analyst Rob Sanderson kept his Buy rating and $280 price target on Alibaba (BABA), saying the company is "years ahead of any competitor in driving digital commerce forward" while also estimating its online retail market share in China to be 18 points higher than that of Amazon (AMZN) in the U.S. Sanderson states that the company's initiative in digitizing offline commerce is of even "greater consequence" given its potential to multiply its addressable market, and believes the opportunity is "misunderstood" by investors. Sanderson contends that Alibaba valuation is reasonable, and its apparent value will become more apparent.
06/14/18
DADA
06/14/18
NO CHANGE
Target $2100
DADA
Buy
Amazon.com price target raised to $2,100 from $1,900 at DA Davidson
DA Davidson analyst Tom Forte raised his price on Amazon.com to $2,100 and kept his Buy rating, citing his updated model projecting incremental revenue generated by the company's private-label and ad efforts relative to his prior forecasts. Forte says he is raising his sales growth projections by 1% for the forward years and still expects longer-term adjusted EBITDA margin to reach 20% vs. 11.1% in 2017.
JPM JPMorgan
$108.08

0.5 (0.46%)

04/17/18
BMOC
04/17/18
NO CHANGE
Target $34
BMOC
Market Perform
Bank of America is the best of the 'big four' U.S. banks, says BMO Capital
BMO Capital analyst James Fotheringham kept his Market Perform rating and $34 price target on Bank of America (BAC) after its in-line Q1 earnings but raised his FY18 EPS view to $2.62 from $2.59 and FY19 view to $3.18 from $3.12. Fotheringham says than in contrast, he lowered earnings forecasts for JPMorgan (JPM), Wells Fargo (WFC), and Citigroup (C) because of higher costs and lower revenues, but Bank of America's better than expected net interest income rise justifies his view of the bank as the "best of the bunch". The analyst also notes the bank's more favorable valuation trading at a below-average two-year-forward P/E multiple despite his forecast of double the core earnings growth rate of Bank of America's peers.
06/08/18
BERN
06/08/18
NO CHANGE
BERN
Bernstein offers list of possible CEOs for Amazon-Berkshire-JPMorgan venture
After Berkshire' (BRK.A) Warren Buffett and JPMorgan's (JPM) Jamie Dimon announced on CNBC that they have selected a CEO for their healthcare joint venture with Amazon (AMZN) and added that they would announce the name in about two weeks, Bernstein analyst Lance Wilkes noted that Geisinger CEO David Feinberg denied accepting the position and said he is committed to Geisinger. The ultimate choice of the CEO will inform on the intended scope of the NewCo and how the companies will prioritize strategic direction and needed capabilities, said Wilkes, who offered a list of potential CEO candidates that includes Gary Loveman, Rick Jelinek, Matt Manders, Patrick Conway, Amir Rubin, Owen Tripp, Chris Grant, Marc Harrison, Andy Slavitt, Todd Park and Peter Orszag.
04/11/18
HSBC
04/11/18
INITIATION
Target $111
HSBC
Hold
JPMorgan initiated with a Hold at HSBC
HSBC analyst Alevizos Alevizakos started JPMorgan with a Hold rating and $111 price target. The analyst sees minimal share upside from current valuation levels.
04/11/18
04/11/18
INITIATION

On The Fly: Top five analyst initiations
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Alphabet (GOOG, GOOGL), Apple (AAPL), and Facebook (FB) were initiated with a Buy at Monness Crespi. 2. Caterpillar (CAT) initiated with a Buy at Buckingham. 3. JPMorgan (JPM) initiated with a Hold at HSBC. 4. eBay (EBAY) assumed with an Overweight at KeyBanc. 5. Ericsson (ERIC) initiated with a Hold at Berenberg. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
BRK.A Berkshire Hathaway
$285,450.00

-810 (-0.28%)

06/19/18
GDHS
06/19/18
NO CHANGE
GDHS
PG&E would be 'contiguous fit' in Berkshire power portfolio, says Gordon Haskett
Gordon Haskett analyst Don Bilson noted that Warren Buffett bought Portland-based PacifiCorp in 2005 and then bought a Nevada utility in 2013, adding that PG&E (PCG) would be a "contiguous fit" in Berkshire Hathaway's (BRK.A) portfolio. PG&E's current market cap of $20B is "hardly daunting" for Berkshire, added Bilson, who also noted that recent media reports indicate that Elliott Management, which butted heads with Buffett last year when Berkshire was trying to buy a Texas utility, is also involved with a stake in PG&E.
04/03/18
SBSH
04/03/18
NO CHANGE
SBSH
Buy
No news from GE could be considered good news, says Citi
Outside of a potential investment from Warren Buffett's Berkshire Hathaway (BRK.A), "no news" could be viewed as "good news" for General Electric (GE), Citi analyst Andrew Kaplowitz tells investors in a research note. No significant new "issues" have emerged following the announcement of GE's insurance reserves funding plan, nor in the company's annual filing published in late February, Kaplowitz argues. He believes that the more time passes with no significant new issues emerging, the more investors can gain confidence that new management can fully focus on executing a turnaround. Further, he sees "at least three specific areas in which inflections over the coming year could serve as catalysts to changing the narrative:" improving cash generation, asset sale announcements, and potentially inflecting energy end markets. Kaplowitz keeps a Buy rating on shares of General Electric. The stock closed yesterday down 36c to $13.12.
05/07/18
LEHM
05/07/18
NO CHANGE
Target $367500
LEHM
Overweight
Berkshire price target raised to $367,500 from $357,000 at Barclays
Barclays analyst Jay Gelb raised his price target for Berkshire Hathaway Class A (BRK.A) to $367,500 from $357,000 and for Class B (BRK.B) to $245 from $238. Berkshire is well positioned to benefit from an expanding economy, higher short-term interest rates, and potential future accretive acquisitions, Gelb tells investors following the company's Q1 results. He keeps an Overweight rating on the shares.
I Intelsat
$19.52

3.46 (21.54%)

06/20/18
RBCM
06/20/18
UPGRADE
Target $30
RBCM
Outperform
Intelsat upgraded to Outperform at RBC Capital on expected FCC NPRM draft
As reported earlier, RBC Capital analyst Wilton Fry upgraded Intelsat to Outperform from Sector Perform and raised his price target to $30 from $5. Fry cites his expected FCC release of the Notice of Proposed Rulemaking this week that will lead to adoption of the company's C-band proposal, "conservatively" estimating that this could add over $19 in earnings per share. The analyst adds that the company's recent equity and convertible debt issuance "enabled Intelsat to break the captive nature of some of its debt instruments, leaving a pathway to refinance until 2023".
06/01/18
MSCO
06/01/18
NO CHANGE
Target $6
MSCO
Underweight
Intelsat price target raised to $6 from $1 at Morgan Stanley
Morgan Stanley analyst Simon Flannery noted that at a recent tower show FCC Chairman Ajit Pai announced his intention to introduce a C-band Notice of Proposed Rulemaking at the Commission's July 12 meeting, adding that the agenda for that meeting is expected June 21. While Flannery expects the FCC will be generally supportive of the joint spectrum sharing proposal being made by Intelsat (I) and Intel (INTC), he said "the devil is in the details" and that the C-band opportunity does not displace the secular pressures on Intelsat's organic business. Flannery is raising his Intelsat valuation to reflect the increased likelihood of spectrum monetization and increased his price target on the stock to $6 from $1, but he maintains an Underweight rating on the stock given the ongoing pressures in the satellite business.
06/20/18
06/20/18
UPGRADE

On The Fly: Top five analyst upgrades
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Citi (C) upgraded to Buy from Hold at Deutsche Bank. 2. BT Group (BT) upgraded to Buy from Hold at Jefferies with analyst Jeremy Dellis saying reducing the dividend to increase investment in fiber-to-the-premises networks to satisfy demands by British telecommunications regulator Ofcom could make BT a "geat deal more investable." 3. Duke Energy (DUK) upgraded to Buy from Neutral at BofA/Merrill with analyst Julien Dumoulin-Smith citing recent share underperformance and resolved regulatory overhangs. 4. Glatfelter (GLT) upgraded to Buy from Neutral at DA Davidson with analyst Steven Chercover saying he is "incrementally positive" on the stock based on his view of the announced acquisition of GP's European airlaid nonwoven business, which adds 35K tonnes per year in capacity to the company's existing 129K tpy. 5. Intelsat (I) upgraded to Outperform from Sector Perform at RBC Capital with analyst Wilton Fry citing his expected FCC release of the Notice of Proposed Rulemaking this week that will lead to adoption of the company's C-band proposal, "conservatively" estimating that this could add over $19 in earnings per share. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
06/20/18
RBCM
06/20/18
UPGRADE
RBCM
Outperform
Intelsat upgraded to Outperform from Sector Perform at RBC Capital
SYNA Synaptics
$54.39

5.58 (11.43%)

06/12/18
KEYB
06/12/18
NO CHANGE
KEYB
Apple iPhone inventories normalize, Galaxy S9 continue to disappoint, says KeyBanc
KeyBanc analyst John Vinh says his latest carrier surveys indicate stable sell-through of Apple's (AAPL) iPhone 8/X, and in line with store expectations. Accordingly, days of inventory have normalized at about 5 DOI and are consistent with healthy levels seen in past cycles, he adds. Conversely, the analyst notes that sell-through of the Samsung's (SSNLF) GS9 continues to deteriorate, accompanied by an increase in DOI. However, he notes a significant reduction in absolute inventories. While GS9 gives him pause, stable sell-through, and normalized iPhone 8/X inventories leave him incrementally more constructive ahead of the 2H ramp of the new iPhone 9 cycle. Vihn recommends investors continue to own Broadcom (AVGO), Skyworks (SWKS), and Synaptics (SYNA).
06/20/18
KEYB
06/20/18
NO CHANGE
KEYB
Dialog Semiconductor acquisition of Synaptics would make sense, says KeyBanc
KeyBanc analyst John Vinh notes that Synaptics (SYNA) and Dialog Semiconductor (DLGNF) announced they are in discussions regarding a potential acquisition. Strategically, the analyst believes this deal would make sense for Dialog Semiconductor as it would allow the company to offset the loss of its PMIC share at Apple (AAPL) and would allow it to diversify into IoT and other areas of mobile.
06/20/18
CHLM
06/20/18
NO CHANGE
CHLM
Synaptics likely to consider bid closer to $80, says Craig-Hallum
Craig-Hallum analyst Tony Stoss notes that Synaptics (SYNA) confirmed they are in discussions with Dialog Semiconductor (DLGNF). Recall, a few weeks back it was reported that Synaptics rejected a $59 per share all cash bid from Dialog, he adds. Stoss does not believe Synaptics would accept a $59 per share offer given where the stock has traded in the past, and would likely consider an offer closer to $80 per share which Dialog is unlikely to finance.
06/20/18
STFL
06/20/18
NO CHANGE
Target $62
STFL
Buy
Synaptics price target raised to $62 at Stifel after deal talks confirmed
After Synaptics (SYNA) confirmed that it is engaged in talks with Dialog Semiconductor (DLGNF) regarding a potential acquisition deal, Stifel analyst Kevin Cassidy raised his price target on Synaptics shares to $62 from $54, noting that Bloomberg previously reported that a $59/share offer was rejected by Synaptics. He believes a combined Synaptics and Dialog could expand operating margins through increasing dollar content sold into smart phones, though also notes such a combination does not decrease the number of competitors in the market. Cassidy keeps a Buy rating on Synaptics shares.
DLGNF Dialog Semiconductor
$0.00

(0.00%)

06/11/18
CHLM
06/11/18
NO CHANGE
CHLM
Buy
Synaptics may consider offer closer to $80 per share, says Craig-Hallum
Craig-Hallum analyst Tony Stoss notes that Synaptics (SYNA) reportedly rejected a $59 per share all cash bid from Dialog Semiconductor (DLGNF). The analyst does not believe Synaptics would accept a $59 per share offer given where the stock has traded in the past and recalls the company reportedly turned down a $110 per share offer from a Chinese bidder in 2016. Stoss thinks Synaptics would likely consider an offer closer to $80 per share. He reiterates a Buy rating on Synaptics shares.
FOX 21st Century Fox
$47.24

2.96 (6.68%)

05/10/18
OPCO
05/10/18
NO CHANGE
Target $42
OPCO
Outperform
Comcast acquisition of Fox would make strategic, financial sense, says Oppenheimer
Oppenheimer analyst Timothy Horan notes that press reports stated Comcast (CMCSA) has lined up $60B in financing to make an all-cash offer for Fox's (FOXA) entertainment assets, representing a 15% premium to Disney's (DIS) offer. While he thinks this has caused half the 30% decline in Comcast's stock year to date, the analyst believes it does make strategic and financial sense, and Comcast has a great track record on acquisitions. Horan thinks a joint NBC/Fox is a content powerhouse while expanding the company's presence in Europe through Sky (SKYAY), and slashing OTT video risk. The analyst reiterates an Outperform rating and $42 price target on Comcast's shares.
03/07/18
WELS
03/07/18
NO CHANGE
WELS
Wells Fargo expects bidding war for Sky
Wells Fargo analyst Marci Ryvicker expects a bidding war for Sky (SKYAY). The analyst believes Sky appears to be more accretive to Disney (DIS)-Fox (FOXA) but more strategic for Comcast (CMCSA; CMCSK). Ultimately, Ryvicker thinks the latter with win but not without a fight from Disney/Fox.
05/01/18
MSCO
05/01/18
NO CHANGE
Target $130
MSCO
Overweight
Disney trades at 'historic discount' while building out OTT, says Morgan Stanley
Morgan Stanley analyst Benjamin Swinburne believes Disney's (DIS) new segment presentation could benefit shares by highlighting Disney's Over-the-top, or OTT, opportunity and providing visibility into the earnings power of its core businesses. If Fox (FOXA) is included and Hulu is consolidated, Swinburne estimates Disney's OTT and Direct-to-consumer businesses grow to roughly $6.5B in gross annual revenues by FY20, while noting that the stock is currently trading at a historical discount to the S&P 500. He maintains an Overweight rating and $130 price target on Disney shares.
03/14/18
MACQ
03/14/18
UPGRADE
MACQ
Outperform
Sky upgraded to Outperform from Neutral at Macquarie
Macquarie analyst Guy Peddy upgraded Sky (SKYAY) to Outperform from Neutral after he raised his FY19/20 and FY20/21 EPS by about 16% due to the lower EPL costs. His valuation analysis suggests the current 1075p offer from 21st Century Fox (FOXA) "materially undervalues" Sky and even Comcast's (CMCSA) indicative offer at 1250p "fractionally undervalues" it, Peddy tells investors. What happens next is up to Comcast and Disney (DIS), as Fox is just an intermediary, he added. Peddy raised his price target on Sky shares to 1450p, as he believes tension between those two could lift the offer price at least 10% above his fair value estimate of 1287p.

TODAY'S FREE FLY STORIES

HWC

Hancock Whitney Corporation

$48.35

-0.1 (-0.21%)

17:03
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Hancock Whitney Corporation reports Q2 adjusted EPS 96c, consensus 95c »

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MEOH

Methanex

$71.15

1.4 (2.01%)

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TXN

Texas Instruments

$115.80

1.21 (1.06%)

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RNST

Renasant

$45.06

0.05 (0.11%)

17:01
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TXN

Texas Instruments

$115.80

1.21 (1.06%)

16:59
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Texas Instruments reports Q2 EPS $1.40, consensus $1.31 »

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  • 24

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DERM

Dermira

$10.57

-0.16 (-1.49%)

16:57
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Breaking Hot Stocks news story on Dermira »

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UAL

United Continental

$72.66

0.38 (0.53%)

16:53
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Breaking Hot Stocks news story on United Continental »

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  • 18

    Jul

NLY

Annaly Capital

$10.42

0.04 (0.39%)

, MTGE

MTGE Investment

$19.70

0.05 (0.25%)

16:46
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Hot Stocks
Annaly Capital extends exchange offer to acquire MTGE Investment »

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NLY

Annaly Capital

$10.42

0.04 (0.39%)

MTGE

MTGE Investment

$19.70

0.05 (0.25%)

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TXN

Texas Instruments

$115.80

1.21 (1.06%)

16:42
07/17/18
07/17
16:42
07/17/18
16:42
Hot Stocks
Texas Instruments CEO Brian Crutcher resigns, Rich Templeton to succeed »

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  • 24

    Jul

CSX

CSX

$64.42

0.46 (0.72%)

16:41
07/17/18
07/17
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16:41
Hot Stocks
Breaking Hot Stocks news story on CSX »

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  • 17

    Jul

  • 26

    Aug

WTFC

Wintrust Financial

$88.40

0.25 (0.28%)

16:40
07/17/18
07/17
16:40
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16:40
Earnings
Wintrust Financial reports Q2 EPS $1.53, consensus $1.44 »

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  • 18

    Jul

  • 24

    Sep

UBNK

United Financial

$17.40

-0.07 (-0.40%)

16:39
07/17/18
07/17
16:39
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Earnings
United Financial reports Q2 EPS 31c, consensus 30c »

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  • 18

    Jul

16:38
07/17/18
07/17
16:38
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General news
API crude inventories for week of July 13 »

API reports that crude…

CASI

Casi Pharmaceuticals

$7.26

-0.215 (-2.88%)

16:38
07/17/18
07/17
16:38
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16:38
Syndicate
Breaking Syndicate news story on Casi Pharmaceuticals »

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SHAK

Shake Shack

$66.86

1 (1.52%)

16:37
07/17/18
07/17
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16:37
Hot Stocks
Shake Shack plans to expand to Manila in spring 2019 »

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  • 02

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SAH

Sonic Automotive

$20.45

0.3 (1.49%)

16:36
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Breaking Hot Stocks news story on Sonic Automotive »

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SAH

Sonic Automotive

$20.45

0.3 (1.49%)

16:34
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Earnings
Sonic Automotive sees Q2 adjusted cont ops EPS 32c-36c, consensus 49c »

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HOPE

Hope Bancorp

$17.52

-0.05 (-0.28%)

16:32
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Hot Stocks
Hope Bancorp raises quarterly dividend to 14c per share from 13c »

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  • 18

    Jul

  • 07

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NTRS

Northern Trust

$105.64

0.18 (0.17%)

16:32
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Northern Trust approves new stock repurchase program of 25M shares »

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  • 18

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CSX

CSX

$64.42

0.46 (0.72%)

16:32
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Earnings
Breaking Earnings news story on CSX »

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  • 17

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NTRS

Northern Trust

$105.64

0.18 (0.17%)

16:32
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Hot Stocks
Northern Trust raises dividend 30% to 55c »

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  • 18

    Jul

HOPE

Hope Bancorp

$17.52

-0.05 (-0.28%)

16:31
07/17/18
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Earnings
Hope Bancorp reports Q2 EPS 36c, consensus 37c »

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  • 18

    Jul

  • 07

    Nov

FULT

Fulton Financial

$16.70

-0.05 (-0.30%)

16:31
07/17/18
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Earnings
Fulton Financial reports Q2 EPS 20c, consensus 14c »

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  • 18

    Jul

  • 14

    Aug

CSX

CSX

$64.42

0.46 (0.72%)

16:31
07/17/18
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Hot Stocks
CSX reports Q2 operating ratio 58.6% versus 67.4% in same quarter last year »

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  • 17

    Jul

  • 26

    Aug

16:30
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Options
Preliminary option volume of 17.8M today »

Preliminary option volume…

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