In today’s briefing:
- US Fresh Sell Levels
- Tyro Payments Rejects Potentia’s Proposal. MCB Accepts
- Bilibili: Profitability Sinks and Top Line Growth to Further Drop with Cost Controls
- Intuit Inc: Value Proposition
- Palo Alto Networks: The NGFW Palo Alto Networks Cloud & Other Drivers
- SunPower Corporation: The IKEA Collaboration & Other Major Drivers
- CrowdStrike Holdings: Increasing Cybercrime & Ransomware Upside & Other Drivers
- Tyler Technologies: Recent Acquisitions
US Fresh Sell Levels
- US bounce in line off of SPX 3,900 support. Index trendline resistances will offer fresh sell points with NDX our top short pick in the US.
- RTY was our long pick off of 1,775 support, to trade a bounce toward trendline and will then turn bearish again.
- NDX 12,500 zone the fresh short area. DAX and weaker Asia still a high conviction short group.
Tyro Payments Rejects Potentia’s Proposal. MCB Accepts
- Tyro Payments (TYR AU) has rejected a proposal from a Potentia-led consortium at A$1.27/share, by way of a Scheme.
- Mike Cannon-Brookes’ Grok Ventures, holding 12.5% and Tyro’s largest shareholder, has backed the Offer.
- Tyro’s board considered the proposal to be materially below Tyro’s fundamental value and highly opportunistic. Tyro’s share price was down 66% ytd prior to Potentia’s approach.
Bilibili: Profitability Sinks and Top Line Growth to Further Drop with Cost Controls
- Bilibili reported 2Q2022 results yesterday. Revenue grew 9.2% YoY to RMB4.91bn (in-line with consensus), however, it declined 2.9% YoY sequentially driven by YoY decrease in revenue from mobile games.
- Operating losses for the quarter further widened to RMB2.2bn (vs consensus RMB2.1bn) which accounted for 44.6% of revenues compared to 33.8% in the same period a year ago.
- Bilibili Inc (BILI US) has taken several measure to improve its deteriorating profitability including headcount reduction, S&M cost cuts and close down of unprofitable businesses.
Intuit Inc: Value Proposition
- Intuit had a strong quarter and delivered an all-around beat while continuing its focus on small businesses and customers.
- It delivered strong margins and strong growth in the quarter.
- There was a rise in the volatility in personal loans and various personal loan partners tightened the undertaking, but with volume from the other partners, Intuit was able to offset this negative impact.
Palo Alto Networks: The NGFW Palo Alto Networks Cloud & Other Drivers
- Palo Alto Networks’ management has continued to make significant investments to transform the company and take advantage of the rapidly growing and large market opportunity in cybersecurity.
- Palo Alto Networks is looking to grab a large chunk of market share and become a leader in the firewall market.
- We provide the stock of Palo Alto Networks with a ‘Hold’ rating with a revision in the target price.
SunPower Corporation: The IKEA Collaboration & Other Major Drivers
- SunPower delivered a strong set of in Q2 surpassing Wall Street expectations on all counts.
- These elements increase customer motivation to add rooftop solar while also giving the residential solar sector greater price power than in recent memory.
- Furthermore, SunPower renewed its agreement with Dream Finders Homes in Colorado in the new home market and extended its arrangement with KB Homes internationally.
CrowdStrike Holdings: Increasing Cybercrime & Ransomware Upside & Other Drivers
- CrowdStrike saw its quarterly revenue exceed the $500 million threshold for the first time in the last quarter and delivered an all-around beat.
- For the second consecutive quarter, gross retention increased to a new high, and dollar-based net retention soared to its highest point in seven quarters.
- In the quarter, the public sector also became stronger, fueled by record-breaking success in U.S. federal and international government agencies.
Tyler Technologies: Recent Acquisitions
- Tyler Technologies is benefitting from positive trends in the environment of the public sector market as its demo activities, and RPF continue to trend positively.
- The company leveraged successful cross-selling efforts and multi-suite wins to deliver a solid quarter with revenues and earnings surpassing Wall Street expectations.
- Overall, we provide the stock of Tyler Technologies with a ‘Hold’ rating with a revision in the target price.
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