In today’s briefing:
- Market Makers Flee Binance.US
- Target Corporation: What Is Its Biggest Competitive Advantage? – Key Drivers
- Confluent: Upgrade To OW On Consistent Execution And A Clear Path To Profitability. PT Raised To $37
- The Case for Oil // Farmer Sentiment continues to fall
- Deere & Company: Healthy Demand
- Heico Corporation: Acquisition of Wencor Group & Other Drivers
- Intercontinental Exchange Inc.: Noteworthy Success Of The Multi-Currency
- Lowe’s Companies Inc: Launch of Digital MVP Business Tools for Pros & Other Developments
- MariMed Opens First Ohio Dispensary
- Microchip Technology: Analog & Data Centre Business Upside Is Strong – Key Drivers
Market Makers Flee Binance.US
- Binance.US is bleeding. One week after the SEC lawsuit, market makers and traders have fled the exchange en masse.
- Liquidity, as measured by aggregated market depth for 17 tokens on the exchange, has fallen nearly 80% over the past week.
- On June 4, the day before the SEC lawsuit, market depth was $34mn. Today, market depth is just $7mn.
Target Corporation: What Is Its Biggest Competitive Advantage? – Key Drivers
- Target Corporation delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
- Target’s focus on building trust and delivering affordable products to consumers led to three consecutive years of traffic growth, with a 0.9% increase in comparable traffic in Q1.
- We give Target Corporation a ‘Buy’ rating with a revised target price.
Confluent: Upgrade To OW On Consistent Execution And A Clear Path To Profitability. PT Raised To $37
- Confluent (CFLT US), a high-growth data streaming vendor, will host Investor Day 2023 in New York City on June 13, 2023.
- Management will provide an update on the company’s vision and strategy. Confluent (CFLT US) shares traded up ~64% in 2023, outperforming the Nasdaq Composite, up ~27%.
- I expect CY24 revenue to exceed $1B, driven by efficient growth at a large scale, strong growth in the cloud segment, and rapid adoption of Apache Kafka.
The Case for Oil // Farmer Sentiment continues to fall
- Farmer Sentiment continues to fall Producer sentiment fell to its weakest reading since July 2022 as the Purdue University/CME Group Ag Economy Barometer declined 19 points to a reading of 104 in May.
- The Index of Future Expectations was down 22 points to a reading of 98 in May, while the Index of Current Conditions was down 13 points to a reading of 116.
- This month’s lower sentiment was fueled by drops in both of the barometer’s sub-indices and likely triggered by weakened crop prices, according to the University of Purdue.
Deere & Company: Healthy Demand
- Deere managed to exceed analyst expectations in terms of revenue as well as earnings.
- Revenues and net sales were up and price realization was positive.
- Deere viewed production and precision ag net revenue to rise.
Heico Corporation: Acquisition of Wencor Group & Other Drivers
- Heico delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat.
- The operating income of The Flight Support Group increased, reflecting the improved gross profit margin and net sales growth.
- The improved gross margin replicates higher net sales within Heico’s Specialty Products as well as Aftermarket Replacement Parts product lines.
Intercontinental Exchange Inc.: Noteworthy Success Of The Multi-Currency
- Intercontinental Exchange managed to exceed analyst expectations in terms of revenue as well as earnings.
- Their interest rate markets also saw volume rise in the first quarter due to increased hedging activity from central bank activities and banking concerns.
- Intercontinental Exchange also had significant volumes in its SONIA contract, up 12% from the previous year.
Lowe’s Companies Inc: Launch of Digital MVP Business Tools for Pros & Other Developments
- Lowe’s Companies delivered a positive result and managed an all-around beat in the last quarter.
- Through its MVPs Pro Rewards Program and its expanded assortment of Pro national brands, it continues to build momentum with the Pro.
- Despite the pressures, it is seen that the comparable Pro sales are a bit positive, with broad-based strength in several categories.
MariMed Opens First Ohio Dispensary
- MariMed opened a Thrive Wellness medical dispensary in Tiffin, Ohio. This is its first operational Ohio store, and MariMed now owns or manages 11 dispensaries in five states.
- Tiffin is in Seneca County, which has more than 54,000 residents and is home to almost 5,000 students at Tiffin University.
- MariMed’s dispensary is the only store in the Tiffin area. The closest competitor is 30 minutes away in Fremont, Ohio.
Microchip Technology: Analog & Data Centre Business Upside Is Strong – Key Drivers
- Microchip Technology had a strong quarter.
- Non-GAAP gross margin exceeded the company’s forecast by 171 basis points to an all-time high of 68.3% in the most recent quarter.
- Additionally, the non-GAAP operating margin, which increased by 292 basis points from the same quarter last year to an all-time high of 47.65%, came in just below the high end of their forecast.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
