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Fly News Breaks for October 30, 2019
GRUB, IR, XRX, AMAG, WERN
Oct 30, 2019 | 10:20 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. GrubHub (GRUB) downgraded to Neutral from Buy at Goldman Sachs, BTIG, Mizuho, and DA Davidson, to Neutral from Outperform at Wedbush, to Market Perform from Outperform at JMP Securities and Cowen, and to Hold from Buy at Stifel. 2. Ingersoll-Rand (IR) downgraded to Hold from Buy at Deutsche Bank with analyst Nicole DeBlase saying much of the near-term merger-driven upside potential is now reflected in the share price. 3. Xerox (XRX) downgraded to Underweight from Neutral at JPMorgan with analyst Paul Coster saying the stock, which is up 74% year-to-date, is trading close to peak forward multiples for the last two years. 4. Amag Pharmaceuticals (AMAG) downgraded to Underweight from Neutral at Piper Jaffray saying an FDA panel yesterday issued a "surprisingly definitive" vote to withdraw Makena's approval. 5. Werner (WERN) downgraded to Hold from Buy at Stifel with analyst David Ross citing valuation. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
News For GRUB;IR;XRX;AMAG;WERN From the Last 2 Days
IR
Dec 6, 2019 | 10:04 EST
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Ingersoll-Rand (IR) upgraded to Outperform from Market Perform at Wells Fargo with analyst Deepa Raghavan saying she believes the standalone ClimateCo potential is ready to be realized post-split. 2. Epizyme (EPZM) upgraded to Overweight from Equal Weight at Morgan Stanley with analyst David Lebowitz saying he expects data this weekend at the American Society of Hematology meeting to bolster confidence in tazemetostat for follicular lymphoma. 3. Philips (PHG) upgraded to Overweight from Equal Weight at Morgan Stanley with analyst Michael Jungling saying he thinks its organic sales growth momentum will continue and he believes its Q3 margin outlook downgrade has reset expectation. 4. Montage Resources (MR) upgraded to Outperform from Sector Perform at Scotiabank. 5. HCA Healthcare (HCA) upgraded to Buy from Neutral at BofA/Merrill with analyst Kevin Fischbeck saying the recent trend of elevated utilization with few catalysts in the coming 6 months should benefit hospitals but hurt managed care organizations. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
GRUB
Dec 6, 2019 | 09:25 EST
A takeout of GrubHub (GRUB) is a matter of "when, not if," Needham analyst Brad Erickson tells investors in a research note. He believes GrubHub is the "preeminent acquisition target in the space at the moment." The analyst sees two possible outcomes. The first being an "aspiring needle-threading acquirer" monitors order volumes into 2020, recognizing that GrubHub's deceleration combined with ongoing profit headwinds outside of New York City and Chicago will keep the shares range-bound "somewhat below current levels." The second being an acquirer "with the ability to prioritize securing the asset" versus haggling on price could justify a modest premium above the current share price. Erickson thinks shuttering the GrubHub brand outside of New York City and Chicago while achieving further synergies "would be possible and attractive." Further, the analyst's latest round of New York City channel checks indicate that DoorDash is being less aggressive on the margin, which he feels could be helpful for both GrubHub and Uber Eats (UBER). Erickson tell, who sees "little real valuation support" until $30 per share for GrubHub, keeps a Hold rating on the name.
IR
Dec 5, 2019 | 19:41 EST
Wells Fargo analyst Deepa Raghavan upgraded Ingersoll-Rand to Outperform from Market Perform with a $150 price target.
WERN
Dec 5, 2019 | 10:03 EST
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Facebook (FB) initiated with a Reduce at HSBC. 2. Hess Corp. (HES) initiated with a Market Perform at Cowen. 3. X4 Pharmaceuticals (XFOR) initiated with a Buy at B. Riley FBR. 4. Kansas City Southern (KSU) initiated with a Neutral at Goldman Sachs. 5. Werner (WERN) initiated with a Buy at Goldman Sachs. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
XRX
Dec 4, 2019 | 09:32 EST
Carl Icahn, in an open letter to HP Inc. (HPQ) shareholders, said, "I beneficially own 23,456,087 common shares of Xerox Holdings Corporation (XRX), constituting approximately 10.85% of the outstanding shares, and 62,902,970 common shares of HP Inc., constituting approximately 4.24% of the outstanding shares. These holdings place me among the largest shareholders of each company and I, as well as many others, believe firmly in the industrial logic of combining these two great American businesses. Amazingly, while HP's board and management have also declared publicly that they recognize the potential benefits of consolidation, the only thing standing in the way of moving quickly toward a combination that could yield $2+ billion of cost synergies is HP's board and management's unreasonable refusal to engage in a customary mutual due diligence process. What is the downside of a mutual expedited due diligence process where there is so much to gain? Because I see no other plausible explanation for HP to refuse to engage in customary mutual due diligence, I am left to wonder whether this is simply a delay tactic aimed at attempting to preserve the lucrative positions of the CEO and members of the board, which they fear might be affected if a combination does take place...I cannot believe that the recalcitrance of HP's board is driven by any real confidence in its standalone restructuring plan, which the market, shareholders and analysts met with extreme indifference and which seems to amount to little more than rearranging the deck chairs on the Titanic."