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Fly News Breaks for February 27, 2018
NGVT, AKCA, CRZO, NTRI, BMI
Feb 27, 2018 | 10:23 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Nutrisystem (NTRI) downgraded to Market Perform from Outperform at Barrington by analyst Matthew Gall following last night's Q4 results. The company's flattish guidance for 2018, compared to double-digit growth expectations on sales and earnings, will likely put a ceiling on the stock for the next couple of quarters, Galls said. 2018 may well prove to be a reset year for Nutrisystem, the analyst added. 2. Akcea Therapeutics (AKCA) downgraded to Market Perform from Outperform at Wells Fargo by analyst Jim Birchenough. With a new proposal to reduce volanesorsen dose to biweekly in lighter patients to mitigate risk of severe platelet reduction, the analyst sees increased regulatory risk on questions of adequacy of the lower dose in reducing triglycerides to key threshold levels and in reducing risk of pancreatitis. Shares were also downgraded to Market Perform from Outperform at Cowen and to Hold from Buy at Stifel. Stifel analyst Stephen Willey said that the FDA's upcoming Advisory Committee meeting on May 10 is a potential source of volatility he would prefer to watch from the sidelines. 3. Badger Meter (BMI) downgraded to Sell from Hold at Canaccord Genuity by analyst Chip Moore. With "lackluster" organic growth trends in the company's core utility water metering market and shares trading near all-time peak valuation ranges, the stock has downside risk, Moore said. He believes competitive pressures could be intensifying and that near-term margins are unlikely to move materially higher. 4. Carrizo Oil & Gas (CRZO) downgraded to Sector Weight from Overweight at KeyBanc by analyst Chris Stevens, who said the company in Q4 missed on oil production while capex was high. Further, Q1 production was guided "shockingly low," Stevens said. The Delaware appears a "more challenging place to operate" than expected and the Eagle Ford is "showing signs of fatigue," the analyst contended. Johnson Rice also downgraded shares to Accumulate from Buy. 5. Ingevity (NGVT) downgraded to Hold from Buy at Loop Capital by analyst Chris Kapsch, who cited a more balanced risk/reward at current share levels. The analyst still likes the fundamental story, and raised his price target for the shares to $83 from $80, but cited valuation for the downgrade. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage,
News For NTRI;AKCA;BMI;CRZO;NGVT From the Last 2 Days
NTRI
Oct 15, 2018 | 16:25 EDT
Stocks got off to a rocky start reflecting heightened tension between the U.S. and Saudi Arabia over the disappearance of journalist Jamal Khashoggi. In the second hour of trading the major averages pared their opening losses and moved into positive territory. The move across the flat line was the first of many as the market see-sawed, continuing the volatility it has experienced over the past couple of weeks. In the end, though, the market could not follow-up Friday's bounce back session with another day of gains. ECONOMIC EVENTS: In the U.S., retail sales undershot estimates, rising 0.1% in September, and falling 0.1% excluding autos. The Empire State index rebounded 2.1 ticks to 21.1 in October. Business inventories rose 0.5%, with sales up 0.5% too in August, as expected. The Treasury Department estimated that the budget deficit for fiscal year 2018 grew 17% to $779B, hitting its highest level since 2012. COMPANY NEWS: Bank of America (BAC) reported better than expected third quarter results, with CEO Brian Moynihan touting the bank having delivered "the highest quarterly pre-tax earnings" in the company's history... Sears (SHLD) and certain of its subsidiaries filed voluntary petitions for Chapter 11 bankruptcy relief and announced that Edward Lampert has stepped down from his role as CEO of the company, effective immediately... In M&A news, Harris Corporation (HRS) and L3 Technologies (LLL) announced a deal to combine in an all stock merger of equals. L3 shareholders will receive a fixed exchange ratio of 1.30 shares of Harris common stock for each share of L3 common stock and upon completion of the merger, Harris shareholders will own approximately 54% and L3 shareholders will own approximately 46% of the combined company... Top executives from BlackRock (BLK) and Blackstone (BX) will no longer attend a Saudi investor conference, joining JPMorgan's (JPM) CEO and Ford's (F) chairman in pulling out of the event following the disappearance of a Saudi journalist... Meanwhile, Bloomberg reported that Walmart (WMT) is seeking to create an online store that would sell other companies' video streaming services through Vudu. MAJOR MOVERS: Among the noteworthy gainers was Cambium Learning (ABCD), which rose 19% after it agreed to be acquired by Veritas Capital. Also higher was Canopy Growth (CGC), which gained 14% after it agreed to acquire the assets of Colorado-based hemp company Ebbu. The move higher in Canopy, and other cannabis stocks such as Tilray (TLRY) and Cronos Group (CRON), also comes ahead of Canada becoming the second country in the world to legalize cannabis on Wednesday. Among the notable losers was Nutrisystem (NTRI), which fell 11% after DA Davidson analyst Linda Bolton Weiser downgraded the stock to Underperform from Neutral. Also lower was Occidental Petroleum (OXY), which slid 6% after confirming it will no longer pursue the extension of the Idd El-Sharghi North Dome offshore field in Qatar INDEXES: The Dow fell 89.44, or 0.35%, to 25,250.55, the Nasdaq lost 66.15, or 0.88%, to 7,430.74, and the S&P 500 declined 16.34, or 0.59%, to 2,750.79.
NTRI
Oct 15, 2018 | 12:04 EDT
Stocks opened in negative territory amid building tension between the U.S. and Saudi Arabia over the disappearance of journalist Jamal Khashoggi. The market moved lower in the opening hour, but has since seen a few reversals as the averages see-saw around the flatline. The Dow is close to unchanged near noon, though the Nasdaq has fallen about 1%. ECONOMIC EVENTS: In the U.S., retail sales undershot estimates, rising 0.1% in September, and falling 0.1% excluding autos. The Empire State index rebounded 2.1 ticks to 21.1 in October. Business inventories rose 0.5%, with sales up 0.5% too in August, as expected. COMPANY NEWS: Bank of America (BAC) reported better than expected third quarter earnings and revenue, though shares were down 2.5% near midday. The slide comes despite CEO Brian Moynihan touting the bank having delivered "the highest quarterly pre-tax earnings" in the company's history, thanks to "responsible growth, backed by a solid U.S. economy and a healthy U.S. consumer"... Sears (SHLD) and certain of its subsidiaries filed voluntary petitions for Chapter 11 bankruptcy relief and announced that Edward Lampert has stepped down from his role as CEO of the company, effective immediately. Lampert said Sears and Kmart stores remain open for business as they "look toward the holiday season," and he thanks the company's vendors for "their continuing support through the upcoming season and beyond"... In M&A news, Harris Corporation (HRS) and L3 Technologies (LLL) announced a deal to combine in an all stock merger of equals. L3 shareholders will receive a fixed exchange ratio of 1.30 shares of Harris common stock for each share of L3 common stock and upon completion of the merger, Harris shareholders will own approximately 54% and L3 shareholders will own approximately 46% of the combined company. Following the merger news, L3 shares rose 9% while Harris shares gained 8%... Top executives from BlackRock (BLK) and Blackstone (BX) will no longer attend a Saudi investor conference, joining JPMorgan's (JPM) CEO and Ford's (F) chairman in pulling out of the event following the disappearance of a Saudi journalist. MAJOR MOVERS: Among the noteworthy gainers was Cambium Learning (ABCD), which rose 19.5% after it agreed to be acquired by Veritas Capital. Also higher was Canopy Growth (CGC), which gained 9% after it agreed to acquire the assets of Colorado-based hemp company Ebbu. Among the notable losers was Nutrisystem (NTRI), which fell 13% after DA Davidson analyst Linda Bolton Weiser downgraded the stock to Underperform from Neutral and cut her price target to $28 from $40. Also lower was Axon Enterprise (AAXN), which slipped 4% after Ladenburg Thalmann analyst Glenn Mattson downgraded the stock to Neutral from Buy. INDEXES: Near midday, the Dow was down 10.80, or 0.04%, to 25,329.19, the Nasdaq was down 70.81, or 0.94%, to 7,426.08, and the S&P 500 was down 8.53, or 0.31%, to 2,758.60.
NTRI
Oct 15, 2018 | 10:29 EDT
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Parker-Hannifin (PH) and Rockwell Automation (ROK) were downgraded to Underperform from Market Perform at Cowen. 2. Nutrisystem (NTRI) downgraded to Underperform from Neutral at DA Davidson with analyst Linda Bolton Weiser saying she is less confident in the company being able to achieve the over 30% growth in Q4 EBITDA implied by its guidance and believes that the management could cut its outlook, citing "anecdotal evidence" that "steep" price discounting of as high as 29% may be continuing for Nutrisystem's reactivation customers. 3. KLA-Tencor (KLAC) downgraded to In Line from Outperform at Evercore ISI with analyst CJ Muse saying his recent data suggest that WFE orders are tracking to fall about 10% to $45B in FY19, but the decline could be as high as 20% if memory spending does not recover from the DRAM inventory glut-driven slump. 4. Delphi Technologies (DLPH) downgraded to Equal Weight at Morgan Stanley with analyst Armintas Sinkevicius citing the "surprise" CEO transition, stating that the reasons for the change at the top are not clear. 5. Monster Beverage (MNST) downgraded to In Line from Outperform at Evercore ISI with analyst Robert Ottenstein saying he sees fitness/sports energy drinks being poised to take share from traditional energy drinks. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
NTRI
Oct 15, 2018 | 09:12 EDT
HIGHER: Cambium Learning (ABCD), up 19% announcing it will be acquired by Veritas Capital... Tandem Diabetics (TNDM), up 4% after after receiving Health Canada approval to market t:slim X2 insulin pump... AcelRx (ACRX), up 23% after an FDA advisory committee recommended approval of Dsuvia... Harris (HRS) and L3 Technologies (LLL), up 5% and 6%, respectively, after agreeing to combine in an all stock merger of equals. UP AFTER EARNINGS: Bank of America (BAC), up 1%. LOWER: Progenics (PGNX), down 3% after filing a $250M mixed securities shelf... Axon (AAXN), down 3% after Ladenburg Thalmann analyst Glenn Mattson downgraded the stock to Neutral... Nutrisystem (NTRI), down 4% after the stock was downgraded to Underperform at DA Davidson.
CRZO
Oct 15, 2018 | 05:22 EDT
Jefferies analyst Mark Lear upgraded Carrizo Oil & Gas to Buy and raised his price target for the shares to $28 from $27. The analyst cites valuation for the upgrade as he sees an attractive entry point following the recent pullback in the shares. He believes the stock's underperformance is nearing an end.