Software provider SolarWinds announced that it has released updates to its Orion platform products in response to the Supernova malware attack.
SolarWinds (SWI) released updates for all supported versions of its Orion platform products and a fix for customers on unsupported versions of these products. The company previously provided two hotfix updates on December 14 and 15, which contained security enhancements, including those designed to prevent certain versions of the Orion products from being attacked by the Supernova malware.
The company had previously announced that it has been made aware of a cyberattack that had impacted its Orion monitoring products which, if activated, could potentially allow an attacker to compromise the server on which the Orion products run.
SolarWinds also disclosed that the attack was likely the result of “a highly sophisticated, targeted and manual supply chain attack by an outside nation state”, though the company acknowledged that it had not independently verified the attacker’s identity. (See SWI stock analysis on TipRanks)
“Like other software companies, SolarWinds seeks to responsibly disclose vulnerabilities in its products to customers, while also mitigating the risk that bad actors seek to exploit those vulnerabilities, by releasing updates to their products before the company discloses the vulnerabilities,” the company said in a statement.
On Dec. 21, Truist Financial analyst Terry Tillman downgraded SolarWinds to Hold from Buy and lowered the price target to $14 (10% downside potential) from $26, citing a lack of visibility into potential business and financial model impacts related to the malware incidents.
Tillman pointed to the 40% loss in the stock’s value owing to the cyber attack news compared to the 5% median gain in his software coverage group.
The rest of the Street is cautiously optimistic on the stock's outlook. The Moderate Buy analyst consensus is based on 3 Buys, 3 Holds and 1 Sell. With shares down 15% year-to-date, the average price target of $20.86 implies upside potential of 33.9% from current levels.
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Magna International Inc. and LG Electronics have partnered up to form a venture to jointly produce electric vehicle (EV) components.
Specifically, Magna (MGA) said that the joint venture, tentatively called LG Magna e-Powertrain, will manufacture e-motors, inverters, on-board chargers and e-drive systems as automakers are shifting their focus to vehicle electrification. The companies did not disclose financial terms of the venture. According to a Reuters report the joint venture is valued at $1 billion.
The new company will capitalize on Magna’s expertise in electric powertrain systems, including software integration, and LG’s experience in component production for e-motors and inverters.
The move comes as the companies expect the market for e-motors, inverters and electric drive systems to significantly grow between now and 2030.
“This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio,” said Magna’s incoming CEO Swamy Kotagiri. “By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalize on the acceleration of the electrified powertrain market.”
The joint venture will include more than 1,000 employees located at LG locations in the US, South Korea and China. The transaction is expected to close in July of 2021, pending LG shareholder approval and regulatory approvals.
LG has already supplied electric vehicle components most notably for GM’s Chevrolet Bolt EV and Jaguar I-PACE, while Magna counts Volkswagen as one of its customers for car components.
Magna shares have had a good run recently, rallying more than 11% over the past month. The stock is now up 29% on a year-to-date basis. (See MGA stock analysis on TipRanks)
Credit Suisse analyst Dan Levy last month lifted the stock's price target to $74 from $67 and reiterated a Buy rating. The analyst believes that there are three avenues for Magna to gain traction and outperform, namely being a "hidden" play on EV, active safety offering/program wins, and through its use of free cash flow to fund growth.
From the rest of the Street, the stock scores a cautiously optimistic Moderate Buy analyst consensus. Following this year’s share rally, the average price target of $64.82, indicates 8.2% downside potential to current levels.
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Ardian has entered into a definitive agreement to buy pay service provider PRGX Global for $195 million in cash. PRGX shares rose 4.6% to $7.70 at the close on Thursday.
According to the terms of the deal, the private investment house will pay PRGX Global (PRGX) shareholders $7.71 per share in cash for each share of PRGSX's common stock representing a premium of 32.7% to the stock's volume-weighted average price for the 90 trading days preceding the announcement of the transaction.
The deal is led by Ardian’s North America Direct Buyouts team. Following the transaction, PRGX Global will operate as a privately-held company, pending approval from the board.
"We look forward to partnering with the Ardian team to accelerate the launch and delivery of our vision of source-to-pay as fully technology-enabled, accelerating speed to value for clients globally.” said PRGX CEO, Ron Stewart.
On Oct. 27, PRGX’s reported that its Q3 consolidated revenue declined by 1.8% to $41.5 million, beating the Street's estimates by $1.96 million. The company posted EPS of $0.13 compared to the net loss per share of $0.07 incurred in the year-ago period. (See PRGX stock analysis on TipRanks)
In reaction to the company's better-than-expected Q3 results, Barrington analyst Alexander Paris, on Oct. 28 raised the stock's price target from $8 to $9 and reiterated a Buy rating.
Paris said that the company posted stable core revenues "in these uncertain times" with expectations of continued expansion of adjusted EBITDA margins ahead.
From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 2 unanimous Buys. The average analyst price target of $9 implies upside potential of almost 17% to current levels. The share price has already gained 57% year-to-date.
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Borr Drilling updated investors that it has been working actively with its creditors on a plan to bolster its cash buffers by $925 million over the next two years. Shares gained 1.4% at after-hours trading on Thursday.
Specifically, Borr Drilling (BORR) said that it has now secured support from its creditors for the two-year $925 million liquidity improvement plan, subject to the company successfully raising $40 million in new equity.
The company is working on the terms and conditions towards the closure of the new equity issue expected by the end of 2021. Borr Drilling said that it has already received strong support from its main shareholders towards for the new equity issue.
“Borr Drilling is very thankful for the support given by all the secured creditors and yards to strengthen the financial footing of the company. We consider this a great testimony to the quality of our people, assets, and operations who in turn deliver value to our customers”, said Borr Drilling CEO Patrick Schorn.
Shares of the drilling company have been hit hard and have lost 90% this year. (See BORR stock analysis on TipRanks)
On Nov. 30, Borr Drilling reported that its revenue declined by 42.4% to $59.2 million, missing analysts' estimates by $24.58 million. The company's Q3 net loss per share rose by 48% to $0.39, lagging the Street consensus by $0.08. The company said the revenue decline was impacted by a reduced number of active rigs due to contract cancellations and suspensions by operators, as well as pandemic-led costs.
Following the earnings release, Citigroup analyst J.B. Lowe reiterated a Hold rating on the stock, but lowered the price target from $1.10 to $0.9 (downside potential of 1.8%).
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XP Inc., a Brazil-based investment management company, announced that it has struck a deal to buy financial advisory company Riza M&A to enhance its corporate client services and offerings.
XP (XP) has not disclosed the terms of the deal. However, the company said that the deal is in-line with its strategy “to reinforce its Capital Markets ecosystem.” Riza’s partners, Marco Gonçalves and André Quaresma, will join XP’s M&A team as per the terms of the deal.
Pedro Mesquita, head of XP Investment Banking said, “There is a huge potential for development in the Brazilian Capital Market.” He added, “A talented and experienced M&A team completes the suite of products and services we can offer to our corporate clients. It is our commitment and focus to deliver the best value proposition to our clients.” (See XP stock analysis on TipRanks).
On Oct. 16, Merrill Lynch analyst Mario Pierry said that the company’s business model looked more resilient and fared better-than-expected during the coronavirus pandemic. Pierry noted that the company's assets under custody have been growing in the past few months.
The analyst, therefore, upgraded the stock to Hold from Sell and maintained a price target of $50 (20.9% upside potential). Shares have increased 7.4% year-to-date.
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Monmouth Real Estate Investment Corp. (MNR) on Dec. 24 announced the acquisition of a new 657,518 square foot industrial building located in the city of Locust Grove in Georgia, for a purchase price of $96.7 million.
Monmouth Real Estate Investment said that the purchased property is net-leased for 20 years to Home Depot (HD). The building is situated on 130 acres and has a land-to-building ratio of nearly nine times, with ample accretive growth potential, the company said.
“With the addition of this brand new facility near Atlanta, Monmouth’s weighted average building age is now 9.5 years. Through the acquisition of one high-quality asset at a time, we have more than doubled our portfolio size over the past five years," said Monmouth Real Estate CEO Michael P. Landy. "This transaction marks our second high-quality acquisition during the first quarter. Fiscal 2021 is off to a very strong start for Monmouth, and we are confident we are taking the right steps to extend our company’s long track record of profitable growth and value creation.” .
On Dec. 22, B. Riley Securities analyst Craig Kucera raised the stock's price target from $18 to $20 reiterated a Buy rating (15% upside potential).
The analyst's update came shortly after Blackwells Capital's all-cash offer of $18 per share to purchase the entire outstanding common stock of Monmouth.
Kucera views the offer price "as fair but certainly not a significant portfolio premium" for an industrial real estate investment trust of Monmouth's "quality relative to its peers."
Kucera believes the "Go-Shop" period may result in a higher offer for Monmouth. (See MNR stock analysis on TipRanks)
From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 3 Buys and 2 Holds. The average analyst price target of $17 implies downside potential of 2.3% to current levels. The share price has gained 20% on a year-to-date basis.
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MedMen Enterprises on Dec. 24 announced the cancellation of the remaining 815,295 class A super-voting shares held by co-founder Andrew Modlin effective Dec. 10, 2020. Shares closed 1% higher at the close on Thursday.
Simultaneously, the proxy granted by Modlin to MedMen Enterprises (MMNFF) co-founder and former CEO Benjamin Rose towards the voting of such shares also expired.
All the above came into effect under a purchase agreement on Jan. 30, 2020, when Rose decided to depart as the CEO and chairman effective Feb. 1, 2020.
The cannabis retailer now has only one class of outstanding shares, which are class B subordinate voting shares. (See MMNFF stock analysis on TipRanks)
On Dec. 12, Canaccord Genuity analyst Matt Bottomley reiterated a Sell rating on the stock, noting that MedMen's road to profitability is still uncertain given its more than $500 million of lease liabilities, notes payable and convertible debt.
"The company continues to operate with a cash balance that is still razor thin compared to its potential capital needs with the prospect of future material dilution still a very real risk for the company," Bottomley wrote in a note to investors. "We believe MMEN’s need for near-term financing points to continued material dilution given its current share price."
From the rest of the Street, the stock scores an analyst consensus of a Moderate Sell based on 1 Hold and 1 Sell. With shares down 76% year-to-date, the average analyst price target of $0.12 implies downside potential of 8.5% to current levels.
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Constellation Brands has received the long-awaited consent order from the US Federal Trade Commission (FTC) to divest some of its wine and spirits portfolio to California-based E. & J. Gallo Winery. The deal is likely to close in early January of 2021.
Constellation Brands (STZ) said that the divestment includes “a portion of Constellation’s wine and spirits portfolio principally priced at $11 retail and below, including certain related facilities located in California, New York, and Washington state.”
The alcohol beverage company had first announced the $1.7 billion deal in April 2019, but revised it twice in December 2019 and then in May 2020 to address concerns raised by the FTC. In May 2020, the deal price was reduced to $1.03 billion, of which “$250 million is an earnout if brand performance provisions are met over a two-year period after closing,” the company said.
Separately, the FTC has now also approved Constellation’s deals to sell the Paul Masson Grande Amber Brandy brand to Sazerac and to offload some of the brands from its grape juice concentrate business to Vie-Del Company. In addition, the FTC has also cleared the sale of Constellation’s Nobilo wine brand to Gallo. (See STZ stock analysis on TipRanks)
On Dec. 23, MKM Partners analyst William Kirk maintained a Sell rating on the stock with a price target of $154 (28.6% downside potential). The analyst said that “Following the sale of Ballast Point (Dec 2019), Constellation does not have scale in Craft Beer. Remaining brands like Funky Buddha (2017 acquisition) and Four Corners are sub-scale and respective tap rooms have likely struggled.”
Unlike Kirk, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 9 Buys, 3 Holds and 1 Sell. The average price target stands at $222.46 and implies upside potential of about 3.1% to current levels. Shares have climbed 13.7% year-to-date.
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Home Depot has completed the acquisition of HD Supply Holdings for an enterprise value of about $8 billion. With the completion of the deal, HD Supply has now become a wholly-owned subsidiary of Home Depot.
Home Depot (HD) announced the acquisition of the national distributor of MRO (maintenance, repair and operations) products to multifamily and hospitality end markets last month. The home improvement retailer had spun-off HD Supply in 2007.
“The combination of the two businesses will enable us to better serve both existing and new MRO customers, and I look forward to the value this acquisition will bring to our associates, customers and shareholders,” Home Depot’s CEO Craig Menear said. (See HD stock analysis on TipRanks)
On Nov. 17, Wells Fargo analyst Zachary Fadem reiterated a Buy rating on the stock and a price target of $310 (14.4% upside potential). In a note to investors, Fadem said, “HD [is] a LT (long-term) winner with offensive/defensive characteristics, accelerating share gains, and ample financial flexibility.”
Commenting on the HD Supply deal in a report on Nov. 16, Fadem noted that the transaction would “accelerate HD’s strategic initiatives to better serve Professional customers, broaden its ability to provide job site delivery (via HDS’s logistics capabilities), and enhance HD’s existing MRO/Interline capabilities.”
Most of the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 11 Buys and 3 Holds. The average price target stands at $309.57 and implies upside potential of about 14.2% to current levels. Shares have gained 24.1% year-to-date.
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Scorpio Bulkers has inked a deal with an unaffiliated third party to sell its Ultramax bulk carrier, SBI Phoebe, for about $17.7 million. The shipping company expects to deliver the vessels in the first quarter of 2021. Shares closed 2.3% higher on Thursday.
Scorpio Bulkers (SALT) has already sold eight vessels and has agreed to sell 17 more vessels. The transactions are expected to close in the first half of 2021. Further, the company said that it “intends to sell its 24 remaining wholly-owned or finance leased drybulk vessels (including 7 Kamsarmax vessels and 17 Ultramax vessels) during 2021.”
On Dec. 20, Scorpio Bulkers said that the company plans to fully exit the dry bulk sector in 2021 and switch its investments to next-generation wind turbine installation vessels.
Back in October, Scorpio Bulkers reported a loss of $1.45 per share in the third quarter, compared to analysts’ expectations for a loss of $1.21. Meanwhile, its revenues of $46.7 million beat the Street's estimates of about $45 million. (See SALT stock analysis on TipRanks)
Following the 3Q results, B. Riley Securities analyst Liam Burke lowered the price target from $35 to $30 (71.6% upside potential), but reiterated a Buy rating on the stock. Burke noted that the gap between Scorpio Bulkers’ share price and net asset value is narrowing “through opportunistic asset sales.”
Shares have plunged 72.6% on a year-to-date basis, but the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 4 unanimous Buys. That's with an average price target of $23, which implies upside potential of about 31.6% to current levels. .
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