Stock Market & Ratings Roundup for December 14th

Top Stock News

1. US Regulator Probes Banks’ Climate Risk Planning:
   • The U.S. Treasury Department’s Office of the Comptroller of the Currency (OCC) has conducted its first climate risk assessment on more than two dozen banks.
   • This assessment lays the groundwork for increased scrutiny of Wall Street’s accounting for climate-related threats.
   • The move indicates a growing emphasis on evaluating and managing climate risks in the financial sector.
2. Amazon Wins $270 Million Tax Fight:
   • Amazon has won a legal battle against the European Union regarding a $273 million back taxes payment to Luxembourg.
   • The ruling marks a setback for the EU’s antitrust chief Margrethe Vestager’s efforts to crack down on favorable tax deals for multinational companies.
3. Elon Musk and SEC Court Face-Off:
   • The U.S. Securities and Exchange Commission (SEC) is seeking Elon Musk’s testimony in court regarding the $44 billion takeover of Twitter.
   • This legal battle adds to previous SEC-Musk interactions, highlighting ongoing regulatory scrutiny over Musk’s communications and business activities.
4. Guggenheim Oil and Gas Bankers Move to Moelis:
   • Six oil and gas bankers who previously worked at Citigroup moved to Guggenheim Securities but are now leaving for Moelis & Co.
   • This move suggests a dynamic environment in the oil and gas banking sector, with bankers seeking opportunities in different firms.
5. Big Tobacco’s Transition Under Fire – WHO Targets Vaping:
   • Tobacco companies, including Philip Morris International and British American Tobacco, are facing challenges as the World Health Organization (WHO) targets vaping.
   • If tobacco alternatives are subjected to the same rules as cigarettes, it could have significant implications for companies shifting to new nicotine products.
6. Adobe Faces Regulatory Scrutiny:
   • Adobe Inc. discloses regulatory scrutiny over its subscription models.
   • The company has been cooperating with the Federal Trade Commission (FTC) since June 2022, and the matter could result in significant monetary costs or penalties.
7. Nordson Corp Beats Estimates:
   • Nordson Corp, a dispensing equipment maker, surpasses Wall Street estimates for fourth-quarter profit.
   • The company’s industrial precision solutions segment contributes to the strong performance, with a 14% YoY growth in sales.
8. Santander’s Asset Management Arm to Buy BNP Paribas’ Operation in Mexico:
   • Grupo Santander’s asset management arm acquires BNP Paribas’ asset management operation in Mexico, aiming to strengthen its institutional investor business.
9. Pembina to Buy Enbridge’s Interests in Joint Ventures:
   • Pembina Pipeline announces a $3.1 billion deal to buy Enbridge’s interests in the Alliance Pipeline, Aux Sable, and NRGreen joint ventures.
10. Equinor to Buy Shell’s Stake in Linnorm Gas Discovery:
    • Norway’s Equinor agrees to acquire Shell’s stake in the Linnorm gas discovery in the Norwegian Sea, increasing its ownership to 50%.
11. VinaCapital Considers Sale of SkyX Solar:
    • Vietnamese investment management firm VinaCapital is contemplating the sale of SkyX Solar, a solar rooftop power developer valued at over $100 million.

1. Trending News Headines:

   • The European Court of Justice rules in favor of Amazon in a tax-related case.
   • Apple’s stock reaches a record high following a Wall Street rally after the Federal Reserve signals lower borrowing costs in 2024.
   • Bank of America’s executive Keith Banks announces retirement.
   • Berkshire Hathaway acquires nearly 10.5 million shares of Occidental Petroleum for about $588.7 million.
   • WHO urges governments to apply tobacco-style controls to vapes, impacting big tobacco firms.
   • Canadian Natural Resources expects production increase in 2024.
   • Carrier Global sells its global commercial refrigeration business to Haier for $775 million.
   • Cedar Fair’s investor raises concerns about the lack of shareholder say in the planned $8 billion merger with Six Flags.
   • Cenovus Energy forecasts higher capital expenditure in 2024.
   • GM’s Cruise robotaxi unit dismisses key people amid an ongoing safety investigation.
   • Jumia Technologies to close its food delivery business in all seven countries.
   • Marathon Petroleum’s Galveston Bay Refinery in Texas City faces a fire.
   • Mattel plans to make a live-action feature film based on its “American Girl” doll line.
   • Medtronic’s PulseSelect Pulsed Field Ablation system receives FDA approval.
   • Moderna and Merck’s experimental cancer vaccine shows positive results.
   • Moelis & Co hires six oil and gas bankers from Guggenheim Securities.
   • Nasdaq resolves a system issue affecting stock orders for over 50 clients.
   • Occidental Petroleum’s debt pay-off plan related to CrownRock acquisition.
   • PDD Holdings files a lawsuit against Shein over alleged “Mafia-style intimidation.”
   • Shell acquires the remaining 20% working interest in the Kaikias field in the U.S. Gulf of Mexico.
   • Stellantis and Tesla impacted by France’s revised rules on consumer cash incentives for electric cars.
   • UBS Group and Credit Suisse Securities settle SEC charges for over $10 million.
   • Veon’s Kyivstar network in Ukraine faces a major cyber attack.
   • Vir Biotechnology announces workforce reduction and facility closures.
   • Woodside Energy and Santos unlikely to announce a proposed $52 billion tie-up until at least February.
   • BP cuts over $40 million in remuneration from former CEO Bernard Looney.
   • Vivendi considers splitting up some activities into entities listed on the stock market.
   • Glencore to publish an updated climate action transition plan in March 2024.
   • The Federal Reserve leaves interest rates unchanged, signaling a likely end to historic tightening.
   • The U.S. House of Representatives authorizes an ongoing impeachment inquiry into President Joe Biden.
   • The Bank of England is expected to keep interest rates at a 15-year high.
   • France’s revamped rules on consumer cash incentives for electric car purchases favor vehicles made in France and Europe.
   • UBS Group and two affiliated firms agree to pay over $10 million to settle SEC charges.
   • Ukraine’s Kyivstar begins restoring voice services after a major cyber attack.
   • Vir Biotechnology cuts about 12% of its workforce and closes some facilities.
   • TMX Group acquires an around 78% stake in VettaFi Holdings for $848 million.
   • Cenovus Energy expects higher capital spending in 2024.
   • The Federal Reserve leaves interest rates unchanged.
   • The U.S. House of Representatives authorizes an ongoing impeachment inquiry into President Joe Biden.
   • The Bank of England is expected to keep interest rates at a 15-year high.
   • BP cuts over $40 million in remuneration from former CEO Bernard Looney.
   • Vivendi considers splitting up some activities into entities listed on the stock market.
   • Glencore will publish an updated climate action transition plan in March 2024.

Top Analyst Ratings

1. Adobe Inc:
   • Change: Jefferies raised the target price from $660 to $700.
   • Reason: Driven by Adobe’s strong fourth-quarter results and share buybacks.
2. Apartment Income REIT Corp:
   • Change: Truist Securities reduced the target price from $44 to $40.
   • Reason: Based on considerations of discounted cash flow and conservative same-store growth projections.
3. Centene Corp:
   • Change: Stephens increased the target price from $85 to $87.
   • Reason: Reflecting confidence in Centene’s strategic execution of its value creation program and efficient management through industry challenges.
4. Goldman Sachs:
   • Change: Wells Fargo raised the target price from $390 to $393.
   • Reason: Driven by revised estimates and anticipation of higher comparisons (comps) in the upcoming quarter.
5. JPMorgan Chase & Co:
   • Change: Wells Fargo raised the target price from $185 to $200.
   • Reason: Citing expectations of improved earnings in the coming quarters.
6. Dollarama Inc:
   • Target Price Increase: The National Bank of Canada raised the target price for Dollarama Inc from C$104 to C$108.
   • Reasoning: This adjustment was made following Dollarama’s strong third-quarter results and an upward revision in sales guidance. The positive performance and outlook likely reflect the company’s robust business operations and growth prospects.
7. Eldorado Gold Corp:
   • Target Price Increase: National Bank of Canada increased the target price for Eldorado Gold Corp from C$19 to C$21.
   • Reasoning: The rationale behind this adjustment is the acknowledgment of Eldorado Gold Corp’s significant production growth potential anticipated over the coming years. The positive outlook is likely tied to the company’s strategic initiatives, exploration activities, or favorable market conditions for the gold sector.
8. TFI International Inc:
   • Target Price Increase: National Bank of Canada adjusted the target price for TFI International Inc from C$178 to C$183.
   • Reasoning: This change is attributed to the expected growth in the freight market and an improved earnings forecast for the coming year. The positive assessment may be based on TFI International Inc’s operational efficiency, market positioning, or other factors contributing to its positive outlook in the transportation and logistics sector.