BABA | Morning News

MAY 21, 2015

US futures drift lower at this 7AM hour as investors await a plethora of economic data today including weekly jobless claims and PMI data. Later today we hear from two voting Fed members ahead of a speech by Janet Yellen on Friday.

NEWS:

  • ESLT: NICE: Elbit to buy cyber and intelligence division from NICE
  • CVS: OCR: CVS in advanced talks to buy Omnicare, reports Bloomberg
  • TSM:TSMC to manufacture fingerprint sensors for next iPhone, reports digitimes
  • QCOM:Qualcomm to step out of TSMC top-5 client list in 2H15, reports digitimes
  • TSLA: Tesla’s battery may hit $1 b faster than iPhone, reports the economictimes
  • D: announces public offering of 2.8M common shares
  • BLUE: announces positive LentiGlobin clinical data
  • INSY: top prescribers arrested on drug charges and healthcare fraud

ON THE ECONOMIC CALENDAR:

  • 8:30AM: Weekly Jobless Claims
  • 8:30AM: Chicago Fed National Activity Index
  • 9:45AM: PMI Manufacturing Index Flash
  • 9:45AM: Bloomberg Consumer Comfort Index
  • 10AM: Philly Fed Business Outlook
  • 10AM: Existing Home Sales
  • 10AM: Leading Indicators
  • 10:30AM: EIA Natural Gas Inventory
  • 11AM: Kansas City Fed Manufacturing Survey
  • 1:30PM: Fed Fisher speaks on euro-zone economy (voting member)
  • 4:30PM: Money Supply and Fed Balance Sheet
  • 7PM EST: Fed Williams speaks on central bank reform (voting member)

EARNINGS:

  • BBY: Q1 EPS of $0.37 beats by $0.08.Revenue of $8.56B beats by $100M: conference call 8AM EST
  • DLTR:Q1 EPS of $0.71 misses by $0.04.Revenue of $2.2B in-line:conference call 9AM EST

RECAP OF SOME NOTABLE EARNINGS FROM LAST NIGHT: 

  • YOKU: Q1 EPADS of -RMB2.49 misses by RMB0.24.Revenue of RMB1.06B beats by RMB30M: strong guidance
  • CRM:FQ1 EPS of $0.16 beats by $0.02.Revenue of $1.51B (+22.8% Y/Y) beats by $10M, strong guidance: free cast flow +60%
  • WSM: Q1 EPS of $0.48 beats by $0.03.Revenue of $1.03B beats by $20M
  • EGHT:FQ4 EPS of $0.05 beats by $0.01.Revenue of $43.53M beats by $0.4M
  • LB: Q1 EPS of $0.61 beats by $0.01.Revenue of $2.51B misses by $30M
  • BRKR: Q1 EPS of $0.14 beats by $0.04.Revenue of $353.5M misses by $16.26M: announces CFO leaving the company
  • NTAP: FQ4 EPS of $0.65 misses by $0.07.Revenue of $1.54B misses by $50M: cutting 500 jobs

SOME NOTABLE EARNINGS AFTER THE CLOSE TODAY:

ACXM, ARO, BRCD, GMAN, GPS, HPQ, INTU, JMEI, LGF, MRVL, NWY, OESX, ROST, TFM

ANALYSTS’ RATINGS CHANGES:

UPGRADES:

  • VOD: upgrade: reduce to neutral: Nomura
  • CHTR: upgrade: hold to buy: Wunderlich: $221
  • ILMN: upgrade: equal weight to overweight: Morgan Stanley: $162
  • SSYS: upgrade: market perform to outperform: Oppenheimer: $50

DOWNGRADES:

  • SFUN: downgrade: buy to hold: Brean Capital
  • JASO: downgrade: buy to neutral: Roth Capital: $9
  • NTAP: downgrade: equal weight to underweight: JP Morgan: $29
  • NTAP: downgrade: buy to hold: Cantor: $35
  • DDD: downgrade: outperform to perform: Oppenheimer
  • BRKR: downgrade: outperform to market perform: William Blair
  • BRKR: downgrade: buy to neutral: Mizuho: $22
  • SRPT: downgrade: buy to neutral: BofA/Merrill

INITIATIONS:

  • NKE: initiated: buy: Jefferies: $120
  • BABA: intiated: outperform: Bernstein: $137
  • ALKS: initiated: overweight: Barclays: $74
  • ESPR: initiated: overweight: Barclays: $150
  • ICPT: initiated: overweight: Barclays: $450
  • DYN: initiated: outperform: RBC Capital: $42
  • BURL: initiated: outperform: FBR Capital: $65

PRICE TARGET CHANGES:

  • TGT: pt raised from $85 to $87: Telsey
  • CRM: pt range raised from $75-80 to $90-95: Wells Fargo
  • CRM: pt raised from $80 to $85: UBS
  • SCOR: pt raised from $53 to $58: Telsey
  • MBLY: pt raised from $62 to $70: Citigroup
  • NFLX: pt raised from $584 to $722: Citigroup
  • YOKU: pt raised from $20 to $26: Brean Capital

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