In today’s briefing:
- BP’s Strategy Reset Stumbles as Dividend Cut, Oil & Gas Output Target Disappoints
- WEX Launches $750M Tender Offer with Odd-Lot Provision Amidst Share Price Decline and Strategic Stake Increase
- Zephyr Energy Plc (AIM: ZPHR): Key Paradox well test results expected in April
- VRA: 4Q Review: Fully Focused on the Core, Reiterate Buy, Lowering PT to $4
- Intel: A Better CEO that Understand that Intel Should Fix Its Own Problems, Not Compete with TSMC
- Ainos, Inc: ASE Collaboration Expands AI Nose Opportunity in Smart Manufacturing
- ACHV: 2Q:25 NDA Submission
BP’s Strategy Reset Stumbles as Dividend Cut, Oil & Gas Output Target Disappoints
- BP will increase oil and gas spending to USD 10 billion annually through 2027, comprising 66%-70% of total capex, while slashing renewable energy investments by over USD 5 billion.
- BP reduced its quarterly buybacks to USD 0.75–1 billion from USD 1.75 billion and lowered annual capex to USD 13–15 billion through 2027.
- Elliott Investment Management is reportedly dissatisfied with BP’s strategy reset, criticizing it for lacking urgency and ambition, potentially prompting further strategic adjustments from the company.
WEX Launches $750M Tender Offer with Odd-Lot Provision Amidst Share Price Decline and Strategic Stake Increase
- WEX launched a $750m tender offer to repurchase ~12% of shares at $148-$170/share, prioritizing odd lots.
- Impactive Capital increased its stake in WEX from 5.6% to 6.7%, purchasing at $154.75/share average.
- WEX is highly leveraged with net debt at 5x EBITDA, despite slowing growth and weak guidance.
Zephyr Energy Plc (AIM: ZPHR): Key Paradox well test results expected in April
- • FY24 sales volumes averaged 1,149 boe/d including 139 bbl/d of NGL.
- The NGL sales were higher than we were anticipating (~100 bbl/d) but FY24 production of 1,052 boe/d was impacted by downtime experienced in the Williston Basin in 4Q24 due to extreme weather in the area.
- 4Q24 net production was 829 boe/d (plus NGL that we estimate at 90-100 bbl/d).
VRA: 4Q Review: Fully Focused on the Core, Reiterate Buy, Lowering PT to $4
- We are lowering our projections and price target for Vera Bradley after the company reported lower than consensus 4QFY25 (January) projections, announced the sale of Pura Vida and provided initial FY26 guidance, which, even with the exclusion of Pura Vida, demonstrates the return to prominence for Vera Bradley will be a longer than expected undertaking.
- That said, with a cash rich balance sheet, signs of positives in the direct channel and management quickly reacting to customer commentary, we believe the company has the ability (and financial resources) to switch the customer base and register compelling returns.
- As such, we are reiterating our Buy rating, but, in a bow to what will be another rebuilding year in FY26 cutting out price target to $4 (from $5.50).
Intel: A Better CEO that Understand that Intel Should Fix Its Own Problems, Not Compete with TSMC
- The return of Mr. Tan as CEO suggests that spinning off or selling Intel Foundry will accelerate, Intel’s focus should improve.
- It probably also means scaling down considerably Intel manufacturing plans and outsourcing more to TSMC. If you can’t beat them, join them.
- Now is not a good time to buy Semiconductor stocks. It will take a couple of years to fix Intel’s problems. TSMC will benefit.
Ainos, Inc: ASE Collaboration Expands AI Nose Opportunity in Smart Manufacturing
- Broadens AI Nose partnership with leading semiconductor company.
- Ainos entered a strategic collaboration with Advanced Semiconductor Engineering (ASE) to integrate AI Nose into ASE’s semiconductor packaging and testing smart factories.
- AI Nose should further enhance ASE’s fully automated, smart manufacturing facilities with improved air monitoring, AI- predictive maintenance and efficiency, process optimization, and better environmental sustainability.
ACHV: 2Q:25 NDA Submission
- Achieve Life Sciences is developing cytisinicline for use as a smoking cessation treatment in the United States and rest of world.
- Topline results from ORCA-2 were reported in April 2022 and for ORCA-3 in May 2023.
- Results exceeded expectations on safety & efficacy parameters.
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