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Fly News Breaks for September 18, 2019
PM, MO
Sep 18, 2019 | 07:08 EDT
Citi analyst Adam Spielman believes a merger between Philip Morris (PM) and Altria Group (MO) is getting more probable. If shareholder pressure was going to cause the managements to cancel the deal talks, we probably would have heard by now, Spielman tells investors in a research note. Juul is unlikely to be a big part of the merger, so the crackdown on e-vapor flavors will not make much of a difference to the merger, adds the analyst. He believes that if there's a "plain vanilla merger," the emphasis will be on the potential profit from new products in the U.S. However, there are "significant weaknesses to this argument," says Spielman.
News For PM;MO From the Last 2 Days
MO
Oct 18, 2019 | 11:12 EDT
Check out today's top analyst calls from around Wall Street, compiled by The Fly. MORGAN STANLEY CUTS... To see the rest of the story go to thefly.com. See Story Here
MO
Oct 18, 2019 | 10:06 EDT
Catch up on today's top five analyst upgrades with this list compiled by The Fly: 1. Altria Group (MO) upgraded to Neutral from Sell at Citi with analyst Adam Spielman saying he now expects "less bad" cigarette volumes next year. 2. Snap (SNAP) upgraded to Buy from Neutral at BofA/Merrill with analyst Justin Post saying the stock has sold off despite "solid" industry and advertising spend channel checks. 3. Chipotle (CMG) upgraded to Neutral from Underperform at BofA/Merrill with analyst Gregory Francort saying he expects the company to generate better comps and margins over the near term given its "strong" sales momentum and normalizing avocado prices, even though he is "struggling" with the valuation on the stock. 4. Republic Services (RSG) upgraded to Buy from Neutral at BofA/Merrill with analyst Michael Feniger calling the stock "a more balanced way" to gain exposure to the theme of higher disposal pricing than peer Waste Management (WM), which he downgraded this morning. 5. Waste Connections (WCN) upgraded to Overweight from Sector Weight at KeyBanc with analyst Sean Eastman saying he expects Waste Connections to report an in-line Q3, and sees 2019 guidance remaining intact. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
MO
Oct 18, 2019 | 06:27 EDT
Citi analyst Adam Spielman upgraded Altria Group to Neutral from Sell with a price target of $46, up from $45. The stock closed Thursday up 77c to $44.28. The analyst now expects "less bad" cigarette volumes next year. Electronic vapor usage will fall due to the negative publicity around vaping and the imminent flavor ban, which will help cigarettes, Spielman tells investors in a research note. Further, with Altria shares below his price target, the analyst no longer thinks the stock looks expensive relative to overseas peers. With that said, Spielman still expects the short-term news flow, both on FDA regulation and earnings, "to be difficult."
MO
Oct 18, 2019 | 04:58 EDT
Stifel analyst Andrew Carter upgraded Cronos Group (CRON) to Buy from Hold with a price target of C$14.00, down from C$16.50. The analyst Cronos is "unconstrained" in its ability to invest towards a $200B global opportunity with C$2B in cash on hand the resources of Altria Group (MO), Carter tells investors in a research note titled "Crowning a New King in the North." The analyst believes Cronos will show an "enhanced revenue growth profile" that leverages the distribution capabilities of Altria to build its U.S. CBD business and demonstrate "break-through product potential" in the Canadian vapor segment. Given the company's "advantaged and enhanced position," investors should buy Cronos shares following their recent pullback, says Carter.
MO
Oct 18, 2019 | 04:53 EDT
Citi analyst Adam Spielman upgraded Altria Group to Neutral from Sell.
MO
Oct 17, 2019 | 16:33 EDT
The S&P 500 closed just below the 3,000 level as the latest round of earnings reports were mostly positive and a Brexit deal was reached between the EU and U. K... To see the rest of the story go to thefly.com. See Story Here
MO
Oct 17, 2019 | 16:05 EDT
CNBC's David Faber reported via Twitter, "I am hearing a "decent sized" ownership stake in the embattled private company Juul Labs just traded at $90 a share. This summer those same shares were changing hands at $300 on the secondary market when July's value was roughly $38b." Altria Group (MO) invested $12.8B for a 35% stake in Juul Labs, valuing the company at $38B.
MO, PM
Oct 17, 2019 | 09:56 EDT
Philip Morris (PM) said on its Q3 earnings conference call that "there were a lot of questions" from shareholders as to whether a merger with Altria (MO) would make sense.
PM
Oct 17, 2019 | 09:16 EDT
UP AFTER EARNINGS: Netflix (NFLX), up 7%... Morgan Stanley (MS), up 4%... KeyCorp (KEY), up 2%... Phillip Morris (PM), up 1.5%... Dover (DOV), up 1%. DOWN AFTER EARNINGS: IBM (IBM), down 6%... Union Pacific (UNP), down 2%... Textron (TXT), down 6%... Chart Industries (GTLS), down 6%. ALSO LOWER: Cheesecake Factory (CAKE), down 2% after Raymond James analyst Brian Vaccaro downgraded shares to Market Perform from Outperform, citing his view that lower near-term comp visibility and a below-Street 2020 EPS estimate offset his favorable outlook of its recently acquired growth concepts and the stock's reasonable valuation.
PM
Oct 16, 2019 | 13:19 EDT
Notable companies reporting before tomorrow's open, with earnings consensus, include Philip Morris (PM), consensus $1.36... Honeywell (HON), consensus $2.01... Union Pacific (UNP), consensus $2.30... Morgan Stanley (MS), consensus $1.11... BB&T (BBT), consensus $1.03... SunTrust Banks (STI), consensus $1.41... PPG Industries (PPG), consensus $1.61... M&T Bank (MTB), consensus $3.57... KeyCorp (KEY), consensus 46c... Genuine Parts (GPC), consensus $1.47... Dover (DOV), consensus $1.51... Textron (TXT), consensus 85c.