About Us | Contact Us
July 25, 2014 11:55 AM EDT
Updated: Jul 24, 2014 7:17 AM EDT  

Cantor Morning News®




Today's Stories From Cantor Fitzgerald

 Dogukan Aksoy  (212) 610-2348

        Nick Cernero (212) 610-3629

        Thursday, July  24th   2014





o  U.S. stock-index futures advanced, signaling the Standard & Poor’s 500 Index will extend a record, as companies from Facebook Inc. to Gilead Sciences Inc. posted financial results that beat analysts’ estimates.-BBG

o  FX: Currency traders are betting the Federal Reserve has stolen a march against rival central banks on the road to higher interest rates.-BBG

o  GOLD: Gold fell for a third day in London, reaching a one-week low, as the outlook for an improving U.S. economy and stronger dollar reduced demand for a haven.-BBG

o  CRUDE: West Texas Intermediate declined after inventories of gasoline expanded for a third week in the U.S., the world’s largest oil consumer. Brent fell in London.-BBG

o  TREASURIES:Treasuries declined for a second day as reports showed euro-area manufacturing and services grew while a gauge of Chinese factory activity rose to an 18-month high in July, damping demand for the safest assets.-BBG

o   European Markets: FTSE100 +0.06%, DAX +0.48%, CAC40 +0.77%

o  European equity markets generally trade higher as earnings release took center stage, whilst macro-economic releases also provided some support.-SA

o   Asian Markets: Nikkei (0.29%), Hang Seng +0.71%, ShanghaiComposite +1.28%

o  Asian equity markets traded mixed Thursday. Big pickup today in action on both the economic and corporate calendars. Markets received an early tailwind from better-than-expected Chinese flash PMI figures, but many regional markets couldn't hold onto the early gains.-SA


o  Dimon, JPMorgan Board Wins Dismissal of Investor Madoff Suit: JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon and board members won dismissal of an investor lawsuit over $2.6 billion in penalties and settlements paid by the bank because of its relationship with convicted Ponzi scheme operator Bernard Madoff.-BBG

o  SEC Sends McGraw Hill Wells Notice Related to CMBS Graded by S&P: McGraw Hill Financial Inc. said it received a notice from the U.S. Securities and Exchange Commission that the regulator may seek an enforcement action tied to six commercial-mortgage backed securities that its Standard & Poor’s division graded in 2011.-BBG

o  Bombardier to Cut 1,800 Jobs Amid Struggle to Sell CSeries Jet: Bombardier Inc., struggling with development issues on its centerpiece CSeries jetliner, will slash about 1,800 jobs from its aerospace business and split the unit into three, in a move to cut costs and improve operations.-BBG

o  Wal-Mart Told by Delaware Court to Turn Over Bribery Probe Files: Wal-Mart Stores Inc. must hand over to investors internal documents about what directors and executives knew of alleged bribes tied to Mexican real-estate deals, the Delaware Supreme Court ruled.-BBG

o  Euro-Area PMI Surveys Signal Economic Activity Is Picking Up: Euro-area manufacturing and services activity strengthened in July in a sign that a recovery in the 18-nation region is gathering pace.-BBG

o  Unilever 2Q Underlying Sales Growth Misses Estimates-BBG

o  Reckitt Benckiser Said to Move Toward Spinoff of Suboxone Unit: Reckitt Benckiser Group Plc, the maker of Durex condoms, plans to spin off its pharmaceutical unit rather than sell it or pursue an initial public offering, according to four people with knowledge of the matter.-BBG

o  Netflix (NFLX) denies reports that it is in talks with Quickflix about strategic stake - The Australian

o  GOOG Google, Microsoft to initiate talks with EU about data protection ruling - FT



o   M&A

o  QRE Breitburn Energy Partners LP (BBEP) to acquire QR Energy, LP for ~$3.0B in unit-for-unit transaction

o  NFLX Netflix denies reports that it is in talks with Quickflix about strategic stake - The Australian

o  GOOG Google "laughing" at idea that Spotify wants $10B or even $5B - Digital Music News

o  PCLN The Priceline Group completes OpenTable tender offer


o  IPO

o  IMDZ Immune Design 5M share IPO priced at $12/sh through Jefferies and Leerink

o  PFNX Pfenex 8.3M-share IPO priced at $6/share through William Blair and JMP Securities

o  ATRA Atara Biotherapeutics postpones 5M IPO due to receipt of ongoing clinical trial data - IFR Asia

o  TSQ Townsquare Media 8.3M-share IPO priced at $11/share through BofA, Jefferies, RBC, Guggenheim and Macquarie

o  XENT Intersect ENT 5.0M-share IPO priced at $11/share through JPMorgan and Piper Jaffray



o  MU Micron $1.15B offering of senior notes due 2025 prices at 5.50%

o  SLP Simulations Plus to acquire Cognigen Corp for $7.0M in cash, stock

o  GOV Government Properties Income Trust 13.5M-share secondary priced at $23.50/share through Citigroup, BofA Merrill Lynch and Morgan Stanley

o  ALCS ALCO Stores announces amendment to rights agreement

o  NYLD NRG Yield 10.5M share secondary priced at $54.00 through BofA, Citi and Morgan Stanley

o  INO Inovio Pharmaceuticals files $175M mixed securities shelf

o  JMP JMP Group files $100M mixed shelf

o  GOV Government Properties Income Trust announces 12M share secondary offering through Citigroup, BofA Merrill Lynch and Morgan Stanley


o  Cantor Research Highlight: TRIP-HOLD-$94- TRIP reported mixed 2Q results, with the top line showing an impressive 800bps sequential improvement to 29% Y/Y. That said, revenue came virtually in-line with consensus, showing that Street expectations already reflect an accelerating revenue growth trajectory for the business. Management also modestly lowered the EBITDA outlook to fund growth initiatives. While the success of "Instant book" feature offers potential for upside, we believe that its P&L impact will likely be limited in the near term until/unless TRIP manages to convince a major OTA to sign-up - something they've resisted so far. While we continue to be fans of the model and view TRIP as an indispensable piece of the travel ecosystem, we opt to move to the sidelines, as we believe that the stock currently reflects reasonable expectations for growth/margin improvement in 2014 and beyond. We're maintaining our $94 PT.-Naved Khan

o  Cantor Research Highlight: FB-BUY-$82- We're maintaining our BUY rating on FB on the back of strong 2Q:14 results with both revenue and NEPS comfortably exceeding consensus estimates. Despite tough Y/Y comps, mobile ad revenue surged well beyond expectations, driving the upside in the quarter. With sustained growth likely for 2014 and 2015 and guidance for cost/expenses growth lowered, we see further margin improvement over time. FB remains a 2014 top pick for us, given its position as the largest/most-engaged Internet platform offering personalized marketing at scale, the on-going shift to mobile, and as yet untapped monetization potential for Instagram and WhatsApp, all at a relatively compelling valuation still. We are adjusting our estimates and PT to $82 from $80/share.-Youssef Squali 

o  Cantor Research Highlight: FFIV-Buy-$134- Last night, F5 Networks reported much better-than-expected 3Q:FY14 results (ended June) and provided a strong 4Q:FY14 EPS outlook. As such, we are raising our estimates and increasing our 12-month price target to $134.00 (from $130.00). Within our IT-related coverage universe of companies for which we are modeling positive EPS this year, we are forecasting F5 to deliver the fastest sales growth in CY:14, at nearly 18%. As such, we believe F5 represents a stock with attractive growth prospects and trades at a reasonable valuation (i.e., 15x our CY:15 EPS estimate, ex-cash).-Brian White

o  Cantor Research Highlight: LPL- HOLD- $13.50- Yesterday afternoon LPL provided an intra-day surprise by reporting 2Q:14 results with sales slightly above our estimate and EPS well above our projection, while the company's 3Q:14 outlook compares favorably with our estimate. LPL is hosting a conference call at 9:00PM ET. In our coverage universe, AU Optronics competes with LPL, and Corning supplies LCD glass to the panel maker.-Brian White

o  Cantor Research Highlight: APH-HOLD-$98.50- This morning, Amphenol delivered a strong 2Q:14 performance and held a constructive conference call this afternoon with more details around the company's 2014 outlook. On the back of this call, we are boosting our 2014 EPS estimate. Given our increased EPS estimates, we are raising our 12-month price target to $98.50 (from $97.00). That said, we believe upside in the stock price could be limited from current levels given that Amphenol already trades at a P/E of nearly 20x our CY:15 EPS projection.-Brian White

o  Cantor Research Highlight: EMC- BUY- $34- EMC delivered a stronger-than-average seasonal June quarter, slightly boosted its 2014 EPS outlook, and also announced plans to accelerate its stock repurchase program in 2014 to $3 billion from $2 billion. Overall, we believe the tone of EMC's call was constructive. Despite the significant underperformance in EMC's stock since this time in July 2011 (up 3% vs. a 48% rise for the S&P 500 Index), we view the company as a major innovator in the IT world and ultimately we believe this will be more accurately reflected in the company's valuation. At the same time, we believe pressure from Elliot Management has the potential to drive increased shareholder enhancement initiatives at EMC. Given this healthy quarter and growing pressure from investors, we believe EMC has more upside potential and we are raising our 12-month price target to $34.00 (from $30.50).-Brian White

o  ISSI Integrated Silicon initiates quarterly cash dividend

o  ANGI Angie's List downgraded to neutral from buy at Bank of America Merrill Lynch

o  QCOM Qualcomm downgraded to neutral from positive at Susquehanna

o  JAZ.SM Jazztel announces it will have 2.2M households passed with FTTH network by the end of July

o  SQNS Sequans Communications reports Q2

o  ANGI Angie's List downgraded to sector perform from outperform at RBC Capital

o  WCC Wesco International reports Q2

o  CCMP Cabot Micro reports Q3

o  RDWR Radware reports Q2

o  ANGI Angie's List downgraded to neutral from buy at Janney Capital

o  VDSI VASCO Data Security reports Q2

o  MU Micron $1.15B offering of senior notes due 2025 prices at 5.50%


o  Cantor Research Highlight: BDN- BDN's results highlight steady execution of a well-disclosed strategy, and 2Q performance falls right in line. Development progress was as expected, with no newly announced asset transactions. Although lifted slightly, FY:14 guidance assumptions remain unchanged--and the market may have been expecting some action on de-levering, of which there was little (stay tuned?). The co. continues to move forward with value creation and portfolio churn, although we view these activities as reflected in our ests. at this time.-David Toti

o  Cantor Research Highlight: SLG- SLG's results were as expected: noisy and full of transaction and refinancing activity. Importantly, metro-NYC fundamentals continue to exhibit healthy growth, while the suburbs show some signs of life. We remain optimistic about the potential for strong organic growth within the SL Green portfolio, despite the fact that this engine is often masked by the lumpy impacts of non-core activities.-David Toti

o  Cantor Research Highlight: AVB-HOLD-$146- Despite the headline beat, we view the 2Q print as likely to disappoint expectations; at the core, SSNOI was weak across the Northeast, some 57% of AvalonBay's footprint. While some markets remained strong (CA) and the development engine powered along, overall portfolio performance appears lackluster relative to the current implied cap rate of 4.7% and NAV premium of 21.0%; reiterate HOLD.-David Toti

o  STBZ State Bank Financial reports Q2

o  DFT DuPont Fabros Technology reports Q2

o  FAF First American Financial reports Q2

o  LAZ Lazard reports Q2

o  NDAQ Nasdaq OMX Group reports Q2

o  PSEC Prospect Capital increases revolving credit facility commitments to $877.5M

o  SEIC SEI Investments upgraded to outperform from market perform at Keefe, Bruyette & Woods

o  NPBC National Penn Bancshares reports Q2

o  CSH Cash America reports Q2

o  SLM SLM Corp discloses receipt of additional civil investigative demand in May from CFPB

o  CLI Mack-Cali Realty reports Q2

o  CBF Capital Bank Financial reports Q2

o  UCBI United Community Banks reports Q2

o  IXAS Zuid-Oost selected BY Rijkswaterstaat as preferred bidder for the public-private-partnership project A9 Gaasperdammerweg

o  CONE CyrusOne initiated equal-weight at Barclays


o  Cantor Research Highlight: VAR- BUY- $93- We reiterate our BUY rating and $93 price target on VAR despite another uneven quarter marked by sluggish U.S. system sales and higher-than-expected SG&A. We remain bullish on the long-term story for the following reasons: 1) the U.S. market is due for a rebound, in our view, driven by an improving reimbursement environment that we think will kickstart a new replacement cycle; 2) continued strength in the high-margin service and software business; 3) further momentum in emerging markets, particularly Latin America and China; and 4) sustainable double-digit growth in Imaging. While Proton remains dilutive for now, this business remains a long-term call option that may become meaningful in 2016. In the meantime, we are encouraged by a return to margin leverage in 2015 and an unwavering commitment to share repurchases.-Jeremy Feffer

o  Cantor Research Highlight: ISRG-HOLD-$465- We reiterate our HOLD rating but raise our price target to $465 from $420 as ISRG appears to be turning a corner. While challenges still abound for at least the next 2-3 quarters, the new product cycle (led by the impressive Xi launch) and improving volume trends should help keep a floor under the stock, in our view. However, given the ongoing risks associated with U.S. gynecology as well as continued capacity slack, we remain cautious on the story in the near/intermediate term, especially with the company having almost fully exhausted its share repurchase authorization.-Jeremy Feffer

o  AGEN Agenus reports Q2

o  SIAL Sigma-Aldrich reports Q2

o  BSX Boston Scientific reports Q2

o  ABC AmerisourceBergen reports Q3

o  NURO NeuroMetrix reports Q2

o  DGX Quest Diagnostics reports Q2

o  IVC Invacare announces CEO & President Gerald Blouch to retire, effective 31-Jul

o  SRPT Sarepta Therapeutics SVP and Chief Scientific Officer terminated from position

o  IVC Invacare reports Q2

o  LLY Eli Lilly reports Q2

o  ALXN Alexion Pharmaceuticals reports Q2

o  THRX Theravance downgraded to neutral from buy at Bank of America Merrill Lynch

o  HNT Health Net upgraded to buy from underperform at Bank of America Merrill Lynch

o  ALXN Alexion announces EMA has accepted Marketing Authorization Application for asfotase alfa

o  AGEN Agenus notes GSK submits malaria vaccine candidate for review in EU

o  QSII Quality Systems reports Q1

o  HSP Hospira's biosimilar Retacrit effective, well tolerated in management of chemotherapy-induced anemia in patients with solid tumors, lymphoma and myeloma

o  PFNX Pfenex 8.3M-share IPO priced at $6/share through William Blair and JMP Securities

o  CRMD CorMedix initiated buy at Roth Capital

o  GILD Gilead Sciences agrees to expand access to tenofovir alafenamide (TAF) for Medicines Patent Pool

o  BMY Bristol-Myers Ono Pharmaceutical to collaborate on immuno-oncology in Japan, South Korea, Taiwan

o  ATRA Atara Biotherapeutics postpones 5M IPO due to receipt of ongoing clinical trial data - IFR Asia

o  XENT Intersect ENT 5.0M-share IPO priced at $11/share through JPMorgan and Piper Jaffray

o  ECTE 30% holder Platinum Management demands to inspect Echo Therapeutics's books

o  MSA Mine Safety reports Q2


o  EQM EQT Midstream Partners reports Q2

o  BWEN Broadwind Energy announces $34M in new tower orders

o  EQT EQT Corp reports Q2

o  BBEP BreitBurn Energy reports Q2

o  QRE QR Energy LP reports preliminary Q2

o  ROYT Pacific Coast Oil Trust downgraded to market perform from outperform at Wells Fargo

o  DO Diamond Offshore reports Q2

o  PTEN Patterson-UTI reports Q2

o  DO Diamond Offshore declares special cash dividend

o  WFT Weatherford International Plc reports Q2

o  NYLD NRG Yield 10.5M share secondary priced at $54.00 through BofA, Citi and Morgan Stanley

o  OKE ONEOK, Inc increases quarterly dividend by 2.7%

o  NWE NorthWestern reports Q2


o  FCX Freeport-McMoRan downgraded to neutral from buy at Bank of America Merrill Lynch

o  BMS Bemis reports Q2

o  POT Potash reports Q2

o  PRLB Proto Labs reports Q2

o  PX Praxair downgraded to market perform from outperform at William Blair

o  URRE Navajo Nation Council rescinds committee resolution, nullifying subcommittee discussions with Uranium Resources

o  DEL Deltic Timber reports Q2

o  CLF Cliffs Natural Resources reports Q2

o  TIS Orchids Paper Products Company reports Q2

o  KALU Kaiser Aluminum reports Q2

o  CLW Clearwater Paper reports Q2


o  JAH Jarden reports Q2

o  UA Under Armour reports Q2

o  ETH Ethan Allen reports Q4

o  ETH Ethan Allen appoints interim CFO Corey Whitely as permanent CFO; effective immediately

o  TILE Interface reports Q2

o  UFI Unifi reports Q4

o  SKX Skechers USA reports Q2

o  HBI Hanesbrands reports Q2

o  RCKY Rocky Brands reports Q2

o  HSY Hershey reports Q2

o  PEP PepsiCo upgraded to buy from hold at Stifel Nicolaus

o  CVGW Calavo Growers initiated buy at Lake Street

o  USTR United Stationers reports Q2

o  GLGLF GLG Life Tech Corp. announces supply agreement with undisclosed company

o  IPAR Inter Parfums reports revenue from ongoing brands

o  GPI Group 1 Auto reports Q2

o  IMS IMS Health Holdings reports Q2

o  TDY Teledyne Technologies reports Q2

o  SCHL Scholastic Corp reports Q4

o  IQNT Inteliquent reports Q2

o  HZO MarineMax reports Q3

o  WMAR West Marine reports Q2

o  TAL TAL International downgraded to underperform from neutral at Bank of America Merrill Lynch

o  CRI Carter Holdings reports Q2

o  DNKN Dunkin’ Brands reports Q2

o  BCO Brink's reports Q2

o  CKEC Carmike Cinemas upgraded to buy from hold at Topeka Capital Markets


o  F Ford reports Q2

o  DAN Dana Holding Corp reports Q2

o  JBLU JetBlue Airways reports Q2

o  SFL Ship Finance confirms its agreed sale of three VLCCs to an unrelated third party

o  KNX Knight Transportation guides Q3

o  CMRE Costamare reports Q2

o  CVTI Covenant Transportation Group reports Q2

o  ALGT Allegiant Travel reports Q2


o  HOT Starwood Hotels reports Q2

o  PENN Penn National Gaming reports Q2

o  WYN Wyndham Worldwide reports Q2


DISCLAIMER: Prepared by staff of Cantor Fitzgerald & Co. (“Cantor”) and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient’s organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal. ***All eco data from Bloomberg and DJ]





Download File