In today’s briefing:
- Estée Lauder: Activist Buzz & Takeover Speculations – What’s Next For The Cosmetics Giant?
- Liquid Universe of European Ordinary and Preferred Shares: January’25 Report
- Smithfield Foods (SFD) : Peeking at the Prospectus of an Upcoming Q1 IPO
- [Earnings Preview] Halliburton Expected to Post Subdued Q4 Results on Tepid Upstream Activity
- Venture Global (VG): Rich Valuation Marks Questions About Being Already Priced for Perfection
- PFIZER INC. Equity Research Flash Note – December 13, 2024
- JPM – 4Q24 Results Show Continued Strength in Core Income, Rising Non-Accruals Well Covered by LLR
- Beta Bionic, Inc. (BBNX) – Medical Device Company Targeting the Insulin Market Prepares for Q1 IPO
- [Pre Earnings Options Flash] Schlumberger’s OI PCR Indicates Neutral Sentiment Ahead of Q4 Results
Estée Lauder: Activist Buzz & Takeover Speculations – What’s Next For The Cosmetics Giant?
- Estée Lauder Companies, a titan in the global cosmetics industry, has recently found itself at the epicenter of takeover and activist speculation.
- Reports have reignited discussions about potential acquisition interest and the involvement of activist investors.
- Betaville’s “uncooked” alert suggested renewed whispers of a takeover, while past rumors linked activist investor Nelson Peltz to Estée Lauder, although significant hurdles persist given the family’s control over the company.
Liquid Universe of European Ordinary and Preferred Shares: January’25 Report
- Since mid-December, share-price spreads have generally tightened across European liquid universe of ordinary and preferred shares (8 have widened, 11 tightened) with few changes in the trends.
- Telecom Italia savers are trading at 18.5% premium to ords; Handelsbanken B at 32.4% premium to A. The discount of Grifols B has tightened, some await a comeback from Brookfield.
- Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols SA, Media-for-Europe. Recommended trades long ordinary / short preferred shares: Henkel, Roche, SSAB Svenska Stal, Telecom Italia.
Smithfield Foods (SFD) : Peeking at the Prospectus of an Upcoming Q1 IPO
- American food giant with $14 billion in sales to go public in Q1
- Company is a spin-off from WH Group which acquired Smithfield in 2013
- Breaking down key points of the initial prospectus which was filed on January 6th
[Earnings Preview] Halliburton Expected to Post Subdued Q4 Results on Tepid Upstream Activity
- Halliburton’s revenue is projected to decline 1.7% YoY, with EPS down 18.6%, driven by subdued upstream activity induced by oil price volatility and weak global demand.
- Halliburton expects a 1%-3% QoQ revenue decline, and a 75-125 bps margin drop in its Completion and Production segment for Q4.
- In contrast, revenue from its Drilling and Evaluation (D&E) segment is forecasted to grow between 0% to 2%, with margins flat or improving by up to 50 bps.
Venture Global (VG): Rich Valuation Marks Questions About Being Already Priced for Perfection
- Largest Cash Raise for a company since July 2024 marking important event for Equity Capital Markets to start the calendar year
- Rising and volatile natural gas prices combined with rich valuation nearly prices company to perfection
- Deal color for potential price sensitive IPOs is crucial in determining near-term performance
PFIZER INC. Equity Research Flash Note – December 13, 2024
- Our estimations for FY 2024 annual revenue range at around $62,766 million and for FY 2025 at around $63,080 million.
- The company’s annual revenue was $58,496 million in 2023 compared to $100,330 million in 2022, post- ing a significant decrease by 41.7%.
- Pfizer’s gross profit for FY 2023 was $33,542 million, decreased by 49.1% compared to $65,986 million for the corresponding period of 2022.
JPM – 4Q24 Results Show Continued Strength in Core Income, Rising Non-Accruals Well Covered by LLR
- The 4Q24 results from JPM are strong with net profit up 50% YoY and 9% QoQ
- The bank shows almost no deposit growth YoY but there is reasonable loan growth
- While non-accrual loans are rising, JPM holds substantially and rising LLR for these
Beta Bionic, Inc. (BBNX) – Medical Device Company Targeting the Insulin Market Prepares for Q1 IPO
- ILet Bionic Pancreas Device autonomously determine every insulin dose without requiring a user to count carbohydrate intake
- Revenue for the nine months ended September 30, 2024 was $44.7 million, more than 3.5x that of their annual revenue of $12.0 million for the year ended December 31, 2023.
- We anticipate this company to set terms (share size, price range) in the next week for a late January / early February debut.
[Pre Earnings Options Flash] Schlumberger’s OI PCR Indicates Neutral Sentiment Ahead of Q4 Results
- Schlumberger will report its Q4 earnings on 17/Jan, with revenue and EPS projected to rise sequentially and annually. Analysts hold a bullish outlook despite macroeconomic challenges.
- Schlumberger’s OI PCR at 0.70, signalling neutral sentiment, with an 80% IV percentile indicating high volatility.
- For the 17/Jan expiry, SLB’s OI shows calls concentrated at strikes 45, 47.5, and 50, while puts dominate at 37.5, 40, and 42.5, with lower put OI at key levels.
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