Fly News Breaks for September 4, 2019
DD, CE, RDSMY
Sep 4, 2019 | 08:02 EDT
Morgan Stanley analyst Vincent Andrews notes that DuPont (DD) can pursue further tax-free strategic options as of September 1, which was the two-year anniversary of the DowDuPont merger, and he also notes that DuPont and Celanese (CE) executives have made public comments about strategic alternatives being a clear priority. Andrews, who thinks "converging forces" may create the environment for a new round of chemical industry consolidation and other dealmaking, believes Celanese, DuPont and DSM (RDSMY) could "be the nexus of any activity" given their size, resources and management commentary. Citing his view that the market will increasingly price in potential M&A, Andrews increased his price target on DuPont shares to $85 from $78, raised his Celanese target to $124 from $102 and upped his DSM target to EUR104 from EUR90. He recommends DuPont as the best way to play the chemical consolidation theme and keeps an Overweight rating on the shares, while keeping Equal Weight ratings on the other two stocks named above.
News For DD;CE;RDSMY From the Last 2 Days
Oct 21, 2019 | 18:36 EDT
UP AFTER EARNINGS: Cadence Design (CDNS) up 5.5%... TD Ameritrade (AMTD) up 4.2%... Helix Energy (HLX) up 3.3%... Zions Bancorporation (ZION) up 1.8%. ALSO HIGHER: Stamps.com (STMP) up 21.0% after entering UPS Digital Access Program deal, UPS (UPS) is up 1.3% on the announcement... First BanCorp (FBP) up 10.2% after acquiring FirstBank Puerto Rico for $425M... Vertex (VRTX) up 3.0% after establishing annual Trikafta price, raising FY19 CF sales forecast... Kadmon Holdings (KDMN) up 2.9% after getting FDA approval for Clovique. DOWN AFTER EARNINGS: Del Taco (TACO) down 9.6%... Hexcel (HXL) down 2.5%... Site Centers (SITC) down 2.4%... Agree Realty (ADC) down 1.1%... Celanese (CE) down 1.1%. ALSO LOWER: Howard Hughes Corp (HHC) down 19.0% after announcing results of strategic alternatives review and planned asset sale. Movers as of 18:15ET.
Oct 21, 2019 | 16:36 EDT
The company states: "Looking forward to 2020, we remain focused on controllable factors including productivity initiatives, business model enhancements, and high-return capital deployment that will deliver double-digit adjusted earnings per share growth next year, whether or not current demand conditions improve. At this stage, given an uncertain demand outlook, we expect 2020 adjusted earnings of $11 to $12 per share, with the higher end of the range achievable if we see improvement in demand conditions next year. We are still working a number of controllable actions and will have more visibility to further clarify the outlook as we get into next year and can assess early business conditions across the globe."
Oct 21, 2019 | 16:34 EDT
The company's says its "net sales grew 2% as sequential volume growth offset the impact of a 1% decline in both pricing and foreign exchange. Despite no meaningful improvement in market demand over the second quarter, the Company recorded sequential growth in both Engineered Materials and the Acetyl Chain via their differentiated business models while again displaying a stable earnings profile in Acetate Tow. The company generated operating cash flow of $397M and free cash flow of $315M. Celanese returned $352M of cash to shareholders in the quarter via $275M in share repurchases and $77M in dividends, bringing the total year-to-date cash returned to $1.0B. Based on an expectation that market conditions are unlikely to improve in 2019, and including the impacts of the previously announced unplanned Clear Lake outage, the company expects to deliver 2019 adjusted earnings between $9.60 and $9.80 per share."
Oct 21, 2019 | 12:59 EDT
Notable companies reporting after the market close, with earnings consensus, include TD Ameritrade (AMTD), consensus 98c... Cadence Design (CDNS), consensus 51c... Celanese (CE), consensus $2.51... Zions Bancorp (ZION), consensus $1.08.