Newsquawk Daily European Equity Opening News - 24th April 2024

24th April 2024

ASIA

APAC stocks gained as the region took impetus from the rally on Wall St where soft PMI data spurred a dovish reaction across asset classes. ASX 200 was led by gold miners after several quarterly production updates but with the advances in the index capped by firmer-than-expected CPI data. Nikkei 225 outperformed its peers and rose above the 38,000 level amid tech strength. Hang Seng and Shanghai Comp. conformed to the broad upbeat sentiment seen across the region amid tech strength in Hong Kong as SenseTime shares surged over 30% following the unveiling of its latest AI model. However, gains in the mainland were capped after the US Senate passed the Ukraine, Israel and Taiwan aid package which includes the threat to ban TikTok in the US.

EUROPEAN CLOSES

CLOSES: DAX: +1.58% at 17,861.20, FTSE 100: +0.26% at 8,021.67, CAC 40: +0.81% at 8,052.57, Euro Stoxx 50: +1.43% at 4,962.55, IBEX 35: +1.70% at 10,924.30, FTSE MIB: +1.89% at 33,863.22, SMI: +1.25% at 11,422.08.

SECTORS: IT 2.68%, Financials 1.53%, Healthcare 1.34%, Consumer Disc 1.33%, Telecoms 1.06%, Industrials 0.96%, Utilities 0.75%, Energy 0.15%, Consumer Stpl 0.07%, Materials -0.10%

FTSE 100

Standard Chartered (STAN LN) – Announced collaboration with Visa (V) to enhance cross-border payments; terms undisclosed. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Deutsche Boerse (DB1 GY) – Q1 (EUR): Net 497.6mln (exp. 462mln, prev. 473mln Y/Y), EBITDA 875.4mln (exp. 841mln, prev. 772mln Y/Y), Net Revenue 1.43bln (exp. 1.42bln, prev. 1.17bln Y/Y). Affirms outlook. (Newswires)

OTHER GERMAN COMPANIES

Evotec (EVT GY) – FY23 (EUR): Revenue 781.4mln (exp. 780mln, prev. 751.4mln Y/Y), Adj. EBITDA 66.4mln (exp. 70mln, prev. 101.7mln). Outlook 2024: Revenue expected to grow by a double-digit percentage. Appoints Dr Christian Wojczewski as CEO. (Newswires)

BROKER MOVES

CAC

Air Liquide (AI FP) – Q1 (EUR): Revenue 6.65bln (exp. 6.73bln). Is confident in its ability to further increase its op. margin and to deliver recurring net profit growth. (Newswires)

Eurofins (ERF FP) – Q1 (EUR): Revenue 1.65bln, +5% Y/Y. Remains confident in achieving objectives for the year. (Newswires)

Orange (ORA FP) – Q1 (EUR): Revenue 9.85bln (exp. 10.17bln, Co. consensus 9.76bln), EBITDAAL 2.41bln (Co. consensus 2.40bln). Figures exclude Spain. (Newswires)

Kering (KER FP) - Q1 2024 (EUR): Revenue 4.5bln (exp. 4.5bln), -10% on comparable basis, Gucci Sales 2.08bln, -18%. Sees H1 recurring operating income -40% to -45%. COMMENTARY: "Performance worsened considerably in Q1. While we had anticipated a challenging start to the year, sluggish market conditions, notably in China, and the strategic repositioning of certain of our Houses, starting with Gucci, exacerbated downward pressures on our topline." CFO sees polarisation of Chinese luxury market with more demand at high end and entry level. Bottega Veneta did very well in Q1, thanks to high-end positioning. Bottega Veneta raised prices by double digits on average and increased number of high-end clients. CFO said the Co. is determined to overcome current challenges; does not expect much better trend in Q2 for Gucci. Gucci is working on handbag strategy to regenerate offer. Sees more positive top line in second half due to more favourable comparisons and brand momentum. Executive said not expecting much better Gucci trends in Q2.. Balance sheet is healthy. Short-term focus is organic growth. (Kering IR/Newswires) Index Weightings: CAC (1.8%), Euro Stoxx 50 (0.9%), Stoxx 600 (0.3%)

Sanofi (SAN FP) - Reportedly said to ask banks to pitch for USD 20bln OTC spin off, according to Bloomberg. (Newswires)

OTHER FRENCH COMPANIES

Covivo (COV FP) – Q1 (EUR): Revenue 154mln (prev. 154mln Y/Y), LFL 7.1% Y/Y. (Newswires)

Eiffage (FGR FP) - Agrees to acquire 100% of Germany’s Eqos; terms not disclosed. (Newswires)

BROKER MOVES

PAN EUROPE

ASM International (ASM NA) - Q1 2024 (EUR): Net 173mln (exp. 137mln), Revenue 639mln (exp. 638mln). Q2 Revenue view 660-700mln (exp. 640mln). Q1 Orders 698mln (exp. 662mln), "supported by healthy GAA 2nm orders, and a strong increase in memory orders, mainly for HBM-related DRAM applications". "Current traction confirms our expectation that the GAA migration is going to be a strong driver for ASM." Q1 Adj. gross profit margin increased to 52.9% from 51.1% Y/Y, "on the back of a generally positive mix, and in particular a continued strong contribution from China sales, which increased to a quarterly record." Order intake in power/analogue/wafer (excluding silicon carbide Epi) continued to be relatively low, reflecting the soft conditions in this market segment. OUTLOOK: While market conditions are still mixed in the first part of the year, expect recovery in wafer fab equipment (WFE) spending to gradually pick up speed in the remainder of the year. H2 Revenue growth view of 10% or more vs H1. Still expect sales from the Chinese market in the second half to be lower, but the decrease will be more moderate than we previously anticipated. Sales in advanced logic/foundry, mainly for GAA, and in the memory segment are expected to be higher in the second half. In part supported by previously announced new customer wins, still expects silicon carbide (SiC) Epi sales to increase by a meaningful double-digit percentage in 2024. However, this growth will be somewhat slower than expected at the start of the year, as some SiC customers have recently been pushing out new investments. Reaffirms FY25 Revenue target range of 3.0-3.6bln (exp. 3.48bln), driven by an expected rebound in the WFE market, including the move of GAA 2nm technology into high-volume manufacturing in 2025, and a further recovery in the memory markets. (ASM IR)

Auto Names - Tesla (TSLA) shares soared by over 13% in afterhours trading, despite missing on the top- and bottom-lines alongside the surprise negative FCF, as the EV maker said it plans to accelerate the launch of more affordable models. In APAC trade, Chinese automakers rose across the board.

Chip Names - Texas Instruments Inc (TXN) shares rose 7.7% afterhours as it beat earning expectations on the top and bottom lines.

CNH Industrial (CNHI IM) – Signed EUR 3.25bln committed revolving credit facility. (Newswires)

IMCD (IMCD NA) – Spain expanded its pharmaceuticals presence with acquisition of Cobpharma. (Newswires)

Recordati (REC IM) - CVC is reportedly exploring options for stake in Recordati, according to Bloomberg. (Newswires)

Steel Names - Steel Dynamics Inc (STLD) rose 3.4% afterhours after topping EPS, Net Income, and Adj. EBITDA expectations, although revenues slightly missed forecasts.

Telecom Italia (TIT IM) - EU antitrust regulators are said to be concerned about impact of KKR (KKR) and Telecom Italia deal on viability of wholesale market, according to Reuters sources. (Newswires)

BROKER MOVES

Akzo Nobel (AKZA NA) upgraded to Neutral from Underweight at JP Morgan

Randstad (RAND NA) upgraded to Hold from Underperform at Jefferies

SMI

Roche (ROG SW) - Q1 (CHF) Group Sales 14.40bln (exp. 14.56bln); confirms 2024 outlook; expects further increase in dividend in CHF. Excluding COVID-19-related products, sales increased by 7%. Going forward, there will be no further material impact of COVID-19 sales decline. Pharmaceuticals Division base business grew by 7%, driven by strong sales of medicines to treat severe diseases, such as Vabysmo (eye diseases), Phesgo (breast cancer), Ocrevus (multiple sclerosis), Polivy (blood cancer) and Hemlibra (haemophilia A). Divisional sales growth was 2%, reflecting the impact of the expected decline in sales of the COVID-19 medicine Ronapreve. (Roche IR/Newswires) Index Weightings: SMI (15.2% - third largest), Stoxx 600 (1.6%)

Novartis (NOVN SW) – Co. and medicines for malaria venture announce positive efficacy and safety data for a novel treatment for babies <5kg with malaria. (Newswires)

Temenos (TEMN SW) – Q1 (USD): EPS 0.73 (prev. 0.69 Y/Y), EBIT 72.9mln (exp. 73mln), Revenue 229.9mln (prev. 226.5mln Y/Y). Appoints Jean-Pierre Brulance CEO, effective May 1st. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Swiss Prime (SPSN SW) upgraded to Buy from Neutral at UBS

UBS (UBSG SW) downgraded to Neutral from Buy at Citi

SCANDINAVIA

Aker BP (AKERBP NO) – Q1 (USD): Net 531mln (exp. 448.9mln), Revenue 3.08bln (exp. 3.05bln). (Newswires)

Billeraud (BILL SS) – Q1 (SEK): EPS 1.26 (exp. 0.96), Sales 10.42bln (exp. 10.05bln). (Newswires)

DSV (DSV DC) – Q1 (DKK): Net Income 2.46bln (exp. 2.67bln), Adj. EBIT 3.64bln (exp. 3.77bln). Outlook FY: Adj. EBIT 15-17bln. (Newswires)

Kone (KNEBV FH) – Q1 (EUR): Sales 2.56bln (exp. 2.54bln), Adj. EBIT 262.4mln (exp. 262mln). Outlook FY: Adj. EBIT margin 11.5-12.3%. (Newswires)

Handelsbanken (SHBA SS) – Q1 (SEK): Net 6.6bln (exp. 6.7bln), Op. 8.27bln (exp. 9.23bln), NII 11.6bln (exp. 12bln), Revenue 15.3bln (exp. 15.4bln). (Newswires)

Nordic Semiconductor (NOD NO) – Q1 (USD): Revenue 74mln (exp. 76.7mln), EBITDA -23mln (exp. -18.1mln). (Newswires)

SEB (SEBA SS) - Q1 (SEK): Net Income 9.5bln (exp. 8.89bln), NII 11.76bln (exp. 12.04bln). (Newswires)

Storebrand (SKT NO) – Q1 (NOK): EPS 2.09 (exp. 1.49), Net Income 1.08bln (exp. 672mln). (Newswires)

SSAB (SSABB SS) – Q1 (SEK): Revenue 27.14bln (exp. 27.66bln), EBIT 3.15mln. Compared with first quarter of 2024, Co. special steel’s shipments are assessed to be higher during the second quarter, whereas prices are expected be somewhat lower. (Newswires)

Volvo (VOLVCARB SS) – Q1 (SEK): Revenue 93.9bln (exp. 99.4bln), Adj. Op. Income 6.8mln (prev. 6.3mln Y/Y), Fully EV sales 21% (prev. 18% Y/Y). Outlook 2024: From 2026 onwards expects to deliver strong cash flows. Expects demand to remain robust in coming quarters and in line with guidance. In Q1 total Chinese passenger car market increase by 16%, BEV +19%. (Newswires)

BROKER MOVES

Kojamo (KOJAMO FH) upgraded to Overweight from Neutral at JP Morgan

US

CLOSES: SPX +1.20% at 5,070, NDX +1.51% at 17,471, DJIA +0.69% at 38,503, RUT +1.79% at 2,002.

SECTORS: Communication Services +1.86%, Technology +1.71%, Industrials +1.40%, Health +1.25%, Consumer Discretionary +1.18%, Real Estate +0.87%, Financials +0.68%, Energy +0.53%, Utilities +0.49%, Consumer Staples +0.15%, Materials -0.84%.

Apple (AAPL) - Co. has cut its 2024 Vision Pro shipments to 400–450k units (vs. market consensus of 700–800k units or more), according to TF International Securities Analyst Ming Chi Kuo. (Newswires)

IBM (IBM) - Co. reportedly nears a deal for HashiCorp (HCP), according to WSJ. (WSJ)

Steel Dynamics Inc (STLD) - Q1 2024 (USD): EPS 3.67 (exp. 3.51), Revenue 4.69bln (exp. 4.74bln). EBIT 750.975mln (exp. 745.8mln). Net income 587.5mln (exp. 559.4mln). Adj. EBITDA 879mln (exp. 861.6mln). SALES BREAKDOWN: Steel 3.37bln (exp. 3.39bln). Steel fabrication 447.2mln (exp. 462mln). Metals recycling 569.5mln (exp. 539.7mln). Other products 311.1mln (exp. 312.5mln). SHIPMENTS: Ferrous 1.45mln tonnes (exp. 529,780). Nonferrous 289.44mln lbs (exp. 278.82mln lbs). Steel fabrication 143,842 T (exp. 145,252 T). (Steel Dynamics IR) Shares rose 3.4% after-hours

Tesla Inc (TSLA) - Q1 2024 (USD): Adj. EPS 0.45 (exp. 0.51), Revenue 21.30bln (exp. 22.15bln). FCF -2.53bln (exp. +653.6mln). Co. still forecasts a ‘notably lower’ volume growth rate for 2024 and experienced numerous challenges in Q1, from the Red Sea conflict and the arson attack at Gigafactory Berlin. The vehicle volume growth rate in 2024 may be notably lower than the growth rate achieved in 2023. Co. flagged new vehicles including more affordable models, and said updated future vehicle line-up to accelerate the launch of new models ahead of the previously communicated start of production in H2 2025. Co. will continue to increase core AI infrastructure capacity in the coming months. Produced over 1,000 Cybertrucks in a single week in April, and remains committed to company-wide cost reduction. Tesla said it expects new model production to start in early 2025 if not late this year. CEO Musk said the robotaxi is called 'Cybercab'. Co. is in talks with one major automaker regarding licensing FSD. Taneja said negative free cash flow in Q1 due to a mismatch in production and deliveries and AI expenditure, added expects inventory build to reverse in Q2. (Tesla IR) Tesla's Investor Relations head announced his resignation. (WSJ) Shares rose 13.3% after-hours on optimism of the launch of cheaper models sooner than previously communicated.

Texas Instruments Inc (TXN) - Q1 2024 (USD): EPS 1.20 (exp. 1.07), Revenue 3.66bln (exp. 3.61bln). Sees Q2 EPS USD 1.05-1.25 (exp. 1.16). Sees Q2 revenue USD 3.65bln-3.95bln (exp. 3.78bln). Texas Instruments executive said industrial market was down 25% Y/Y in Q1 and automotive market was down by lower single digit percentage Y/Y in Q1, while personal electronics market was up by a single-digit percentage Y/Y. (PR Newswire) Shares rose 7.7% after-hours

Visa Inc (V) - Q2 2024 (USD): Adj. EPS 2.51 (exp. 2.44), Revenue 8.7bln (exp. 8.63bln). KEY METRICS: Payments volume at constant currency +8% (exp. +7.99%). Cross-border volumes at constant currency +16% (exp. +14.8%). Total Visa processed transactions 55.5bln (exp. 54.91bln). Total operating expenses 3.42bln (exp. 2.89bln). GUIDANCE: Guides Q3 net revenue growth low double-digit. Affirms FY24 revenue low double-digit. (Visa IR) Shares rose 2.2% after-hours

24 Apr 2024 - 06:58- MetalsResearch Sheet- Source: Newsquawk