Newsquawk Daily European Equity Opening News - 27th November 2024

ASIA

APAC stocks were mixed following a somewhat similar performance stateside where the S&P 500 and DJIA posted fresh record highs but the small-cap Russell 2000 underperformed amid higher yields owing to Trump's recent tariff threat. ASX 200 traded higher with strength in gold, consumer discretionary, tech and financial stocks, while mixed data releases also provided some encouragement as monthly CPI printed softer-than-expected, whilst the trimmed mean metric rose and Q3 Construction Work Done topped forecasts. Nikkei 225 underperformed amid a firmer currency and with money markets leaning towards a hike by the BoJ next month. Hang Seng and Shanghai Comp were positive albeit with gains capped by a lack of major catalysts and as Industrial Profits data continued to show a double-digit percentage drop Y/Y for October although was not as steep as the prior month's decline.

EUROPEAN CLOSES

BOURSES: DAX: -0.52% at 19,305, FTSE 100: -0.40% at 8,259, CAC 40: -0.87% at 7,195, Euro Stoxx 50: -0.79% at 4,762, AEX: -0.48% at 875, IBEX 35: -0.80% at 11,618, FTSE MIB: -0.78% at 33,168, SMI: -0.41% at 11,630, PSI: -0.36% at 6,415.

SECTORS: Telecoms -0.04%, Healthcare -0.05%, Consumer Disc -0.35%, Consumer Stpl -0.44%, Utilities -0.62%, Industrials -0.67%, Financials -0.75%, IT -0.85%, Energy -1.22%, Materials -1.58%.

FTSE 100

Gambling Names - Government has confirmed that bookmakers and casinos will have to fund NHS services to tackle problem gambling, after the approval of the prior gov'ts plans. (Guardian)

Indicative Quarterly Review, FTSE 100 - Additions: Alliance Witan (ALW LN), Games Workshop Group (GAW LN) & St James’s Place (STJ LN). Deletions: B&M European Value Retail (BME LN), Frasers Group (FRAS LN) & Vistry Group (VYT LN). (LSEG)

Rolls-Royce (RR/ LN) - Secured a USD 695.3mln US Navy contract for sustainment and support of AE1107C engines for MV-22, CV-22, and CMV-22 aircraft. (Newswires)

OTHER UK COMPANIES

Aston Martin (AML LN) - Maintains previously communicated mid-term guidance for FY27/28. FY24 adj. EBITDA guidance at 270-280mln (prev. 305.9mln), due to delivery delays in the Valiant model weighing on margins. Announces a Retail Offer for the subscription of new ordinary shares, minimum subscription of GBP 250 in the Retail Offer; to issue new shares and debt totalling GBP 210mln. (Newswires)

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Aroundtown (AT1 GY) - 9-month (EUR): Net Rental Income 883mln (prev. 895mln), adj. EBITDA 758mln (prev. 748mln), Net -154mln. FY24 guidance confirmed at the upper-end of the range. (Newswires)

BROKER MOVES

CAC

Safran (SAF FP) - US FAA will not require immediate 737 MAX engine action following on from bird-strike incidents, board decided the issue of smoke entering craft after engine bird-strike does not warrant immediate action. (Newswires)

TotalEnergies (TTE FP) - CEO says they are not exiting Adani Green. Have plenty of options in its portfolio to meet renewable targets. (Newswires)

OTHER FRENCH COMPANIES

Teleperformance (TEP FP) - Acquisition of ZP Better Together, for USD 490mln. Will be EPS accretive from year 1. Transaction expected to close early-2025. (Newswires)

BROKER MOVES

Arkema (AKE FP) upgraded to Buy from Neutral at Citi

PAN EUROPE

Banco BPM (BAMI IM)/UniCredit (UCG IM) - Italian Foreign Minister says the offer is a sign of vitality for the sector, politics should not be involved. Elsewhere, Banco BPM has appointed Edoardo Galetti as its new CRM. (Newswires)

BBVA (BBVA SM)/Sabadell (SAB SM) - European Commission Director-General for Competition has concluded its review of the transaction without raising any objections. (Newswires)

Saipem (SPM IM) - Secured a share of circa. USD 1bln as part of a USD 1.2bln consortium for an EPCI contract from BP (BP/ LN). (Newswires)

BROKER MOVES

EDP (EDP PL) downgraded to Hold from Buy at Jefferies

SMI

Novartis (NOVN SW) - Kisqali® receives European Commission approval: based on results from the pivotal Phase III NATALEE trial, which included a broad patient population with HR+/HER2- stage II and III EBC, including those with node-negative disease2. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Equinor (EQNR NO) upgraded to Buy from Hold at Berenberg

Nokian Tyres (TYRES FH) downgraded to Underweight from Neutral at JPMorgan

Volvo (VOLVB SS) upgraded to Overweight from Neutral at JPMorgan

US

CLOSES: SPX +0.57% at 6,022, NDX +0.57% at 20,923, DJIA +0.28% at 44,861, RUT -0.73% at 2,424

Dell Technologies (DELL) - Shares slipped 11.3% afterhours following soft guidance. Q3 adj. EPS 2.15 (exp. 2.06), Q3 revenue USD 24.37bln (exp. 24.67bln). Q3 infrastructure solutions net revenue USD 11.37bln (exp. 11.34bln), servers and networking revenue USD 7.36bln (exp. 7.53bln), storage revenue USD 4.00bln (exp. 3.83bln), consumer revenue USD 1.99bln (exp. 2.02bln). Expects strength in server business to continue, and expects multiple tailwinds that support growth in FY26. Sees Q4 EPS between 2.40-2.60 (exp. 2.64), and sees Q4 revenue between USD 24-25bln (exp. 25.6bln). Sees FY25 EPS at 7.81 (exp. 7.86).

HP Inc (HPQ) - Shares slid 7.4% afterhours on soft guidance. Q4 adj. EPS 0.93 (exp. 0.93), Q4 revenue USD 14.06bln (exp. 13.99bln). Q4 Personal systems revenue USD 9.59bln (exp. 9.74bln), Q4 printing revenue USD 4.45bln (exp. 4.25bln). Sees Q1 FY25 adj. EPS between 0.70-0.76 (exp. 0.86); sees FY adj. EPS between 3.45-3.75 (exp. 3.60), and FY free cash flow between USD 3.2-3.6bln.

Autodesk (ADSK) - Shares fell 8% afterhours post-earnings, CFO announcement. Q3 adj. EPS 2.17 (exp. 2.12), Q3 revenue USD 1.57bln (exp. 1.56bln). Q3 Subscription revenue USD 1.46bln (exp. 1.46bln), Q3 billings USD 1.54bln (exp. 1.5bln). Sees Q4 revenue between USD 1.62-1.64bln (exp. 1.62bln). Sees FY25 adj. EPS between 8.29-8.35, (exp. 8.28, prev. saw 8.18-8.31), and sees FY25 revenue between USD 6.12-6.13bln (exp. 6.11bln); FY billings seen between USD 5.90-5.98bln (exp. 5.73bln). Announced Janesh Moorjani as new CFO; Moorjani most recently served as CFO and COO of Elastic (ESTC).

CrowdStrike (CRWD) - Shares fell 5.7% afterhours on soft guidance. Q3 adj. EPS 0.93 (exp. 0.81), Q3 revenue USD 1.01bln (exp. 0.98bln). Q3 subscription revenue USD 962.7mln (exp. 934.3mln). Said it surpassed USD 4bln in ending ARR in the quarter. Sees Q4 adj. EPS between 0.84-0.86 (exp. 0.87); sees FY adj. EPS between USD 3.74-3.76 (exp. 3.61-3.65).

Workday (WDAY) - Shares fell 10% afterhours following soft guidance. Q3 adj. EPS 1.89 (exp. 1.76), Q3 revenue USD 2.16bln (exp. 2.13bln). Q3 subscription revenue USD 1.96bln (exp. 1.96bln). Q3 backlog USD 22.19bln (exp. 21.93bln). Sees Q4 subscription revenue at USD 2.03bln (exp. 2.04bln); sees FY subscription revenue at USD 7.70bln (prev. saw 7.70-7.73bln).

EV Makers, BYD (BYDDY) - BYD has instructed its suppliers to accept price cuts of 10% starting in January 2025, signalling its preparation for an intensifying price war in China's electric vehicle market, Bloomberg reports.

Apple (AAPL), Alphabet (GOOG) - Apple's growth in the global smartphone market has been minimal in 2024, with iPhone sales increasing by just 0.4%, despite a 6.2% overall rise in smartphone shipments, Bloomberg reported citing IDC. Android competitors, particularly in China and emerging markets, are gaining ground, while Apple maintains its profit lead with iPhones averaging over USD 1,000, far above the USD 295 for Android devices.

AMD (AMD) - DigiTimes reports that recent speculation has suggested that AMD may develop an AI processor (APU/NPU) for mobile devices, leveraging its GPU expertise to compete in handset chips. However, the publication said industry insiders remain sceptical about AMD's entry into the mobile market.

27 Nov 2024 - 06:55- Research Sheet- Source: Newsquawk