Market News & Analysis: November 22nd, 2024

Alimentation Couche-Tard Inc

• The company dismissed the possibility of a hostile takeover bid for Japan’s Seven & i. Chairman Alain Bouchard emphasized the intent to pursue an amicable deal. Discussions about raising the bid price continue, and regulatory approvals are expected to take six months if a deal is reached.

Apollo Global Management Inc

• Speculation arose over leadership changes as its chairman and CEO were linked to potential roles in the U.S. government under President-elect Donald Trump. Analysts discussed succession plans, with co-presidents Jim Zelter and Scott Kleinman among the likely candidates.

BJ’s Wholesale Club

• Target Price Update: Jefferies raised the target price for BJ’s to $110 (from $105), citing stronger-than-expected Q3 performance driven by traffic gains and margin expansion.

Bloom Energy

• Target Price Update: Jefferies raised the target price of Bloom to $22 (from $12), highlighting a deal to supply fuel cells to American Electric Power as a key driver.

Boeing Co

• The FAA plans a review board to address safety concerns regarding Boeing 737 MAX engines after incidents involving bird strikes. Separately, Boeing secured a $2.38 billion contract from the U.S. Air Force to build 15 KC-46A aerial refueling tankers.

BP plc

• BP and its partners announced a $7 billion investment in a carbon capture and gas field project in Indonesia, unlocking 3 trillion cubic feet of gas resources and aiming to reduce CO2 emissions.

Copart Inc

• Reported first-quarter revenue growth of 12.4% to $1.15 billion, beating estimates. Rising costs in vehicle repairs have boosted demand for Copart’s auction services, leading to improved margins.

Deere & Co

• Target Price Update: Jefferies raised the target price of John Deere to $510 (from $495) after Deere’s strong Q4 results, which included robust margins across all segments.

Echostar Corp

• DirecTV terminated its agreement to acquire Echostar’s satellite TV business, citing issues with a debt-exchange proposal.

Gap Inc

• Gap raised its annual sales forecast and beat Q3 earnings estimates. Shares rose after the company reported improved inventory management and stronger-than-expected holiday season sales.
• Target Price Update: JPMorgan raised the target price to $28 (from $26), reflecting solid Q3 performance.

GSK plc

• GSK’s RSV vaccine received approval in Japan for adults aged 50-59, broadening its usage. The approval adds to the company’s growing global footprint for the vaccine.

Intuit Inc

• Intuit lowered its Q2 revenue and profit forecast due to delays in TurboTax promotions but reaffirmed annual guidance for double-digit growth. Q1 results exceeded estimates.

Liberty Media Corp & Walt Disney Co

• Formula One, owned by Liberty Media, is negotiating a media rights renewal with ESPN. Talks are ongoing, but competition for rights could intensify if no deal is reached this year.

Merck & Co

• U.S. researchers linked the asthma drug Singulair to serious mental health side effects. The FDA previously added a black-box warning to the drug label, and new findings were presented at a toxicology meeting.

Morgan Stanley

• Opened a new Southeast Asia headquarters in Singapore, highlighting the city-state’s strategic importance as a financial hub.

NetApp Inc

• NetApp raised its fiscal 2025 revenue and profit forecast, driven by strong demand for data storage services, particularly from enterprises integrating AI into cloud platforms.

Ross Stores Inc

• Increased its annual profit outlook due to cost savings in freight and supply chains. However, it lowered Q4 earnings guidance due to slowing sales.
• Target Price Update: JPMorgan raised the target price of Ross to $173 (from $171), following better-than-expected Q3 earnings.

Viatris Inc

• The UK competition watchdog fined Viatris £1.5 million for management changes made without regulatory consent during a probe into a product rights deal.