In today’s briefing:
- Choice Hotels International Inc. – Major Drivers
- [ETP 2024/34] Oil Slips on Weak Economic Indicators in US & China; Nat Gas Battles Oversupply
- Hilton Grand Vacations Inc.: Strengthening of Japanese Yen and Impact on Hawaiian Market & Other Major Drivers
- Capri Holdings Limited: Expansion of Direct-to-Consumer Channels and E-Commerce! – Major Drivers
- QNRX: Assessing QRX003 For Multiple Conditions Opening International Netherton Syndrome Clinical Sites
- Under Armour Inc.: An Enhanced Retail Strategy and SKU Optimization To Catalyze Growth! – Major Drivers
- Teck Resources (TECK US): The New Purish Copper Play In Town
- TENX: 100 Million Capital Raise
- CarGurus Inc.: These Are The 4 Biggest Challenges In Its Path! – Major Drivers
- ARWR: Two Obesity Assets to Enter the Clinic in 2025
Choice Hotels International Inc. – Major Drivers
- Choice Hotels International has portrayed a strong growth trajectory in its latest quarterly result, evidenced by a significant increase in adjusted EBITDA and EPS.
- The company raised its full-year adjusted EPS guidance, reflecting confidence in its financial outlook and operational strategy.
- Central to its growth strategy is the expansion of its portfolio of revenue-intense hotels.
[ETP 2024/34] Oil Slips on Weak Economic Indicators in US & China; Nat Gas Battles Oversupply
- For the week ending 16/Aug, US crude inventories dropped by 4.6 mb, exceeding the expected 2 mb drawdown. Gasoline and distillate stocks also declined, surpassing analyst expectations.
- US natural gas inventories rise 35 bcf for the week ending 16/Aug, exceeding analyst expectations of a 26 bcf buildup. Inventories are 12.6% above the 5-year seasonal average.
- UBS cut its target prices on Halliburton and Schlumberger but raised it for ExxonMobil and Occidental. Jefferies lowered its target price on Chevron.
Hilton Grand Vacations Inc.: Strengthening of Japanese Yen and Impact on Hawaiian Market & Other Major Drivers
- Hilton Grand Vacations reported its second-quarter earnings for 2024, revealing mixed results that indicate both challenges and strategic advancements.
- The quarter’s financials showcased a slowdown in some areas, notably impacted by global economic pressures and internal execution hurdles, leading to the company adjusting its full year guidance downward.
- Despite these setbacks, the company’s strategic moves, such as the integration of acquisitions and a restructuring of its sales and marketing operations, suggest forward-thinking adjustments aimed at strengthening its market position.
Capri Holdings Limited: Expansion of Direct-to-Consumer Channels and E-Commerce! – Major Drivers
- Capri Holdings Limited recently reported its earnings for the fourth quarter and full fiscal year of 2023.
- The company saw a revenue increase in high single digits and a mid-single digit rise in earnings per share on a 52- week constant currency basis.
- Despite not fully meeting initial expectations, there were significant areas of performance strength.
QNRX: Assessing QRX003 For Multiple Conditions Opening International Netherton Syndrome Clinical Sites
- With a strategy to design products to treat multiple indications, QNRX intends to study QRX003 for several conditions & build a database supporting its efficacy and safety as a treatment for a range of dermatological conditions.
- The company plans to begin a clinical study of QRX003 in Peeling Skin Syndrome (PSS), a rare autosomal disease that has no approved treatment.
- By developing its assets for multiple indications, QNRX aims to increase the potential for an expedited regulatory pathway, attain economies of scale on R&D, sales & marketing and other costs and potentially broaden the target market if/when commercial sales launch.
Under Armour Inc.: An Enhanced Retail Strategy and SKU Optimization To Catalyze Growth! – Major Drivers
- Under Armour’s first quarter fiscal 2025 earnings reflected a blend of strategic advancement and lingering challenges.
- With Kevin Plank at the helm, the company appears focused on fortifying its branding, signifying a pivot towards a clearer segmentation of their market and a concerted effort to enhance product value rather than volume.
- Starting with the positive aspects, Under Armour has delineated a path to refine its identity as an athletic brand through its “Protect This House” strategy, aiming to invigorate its connection with athletes and consumers globally.
Teck Resources (TECK US): The New Purish Copper Play In Town
- After selling its coking coal business to Glencore Plc (GLEN LN), Teck Resources (TECK US) has pivoted to copper as its primary growth driver.
- The 7.3 bn CAD cash (20% of Mkt cap) received from the sale of the coal business stake is being used for buybacks, debt repayment, and growth opportunities.
- The stock is cheap on an EV-EBITDA basis at 7.5x, but we are not too fond of the business’s low ROCE.
TENX: 100 Million Capital Raise
- Tenax has licensed the calcium sensitizer/K-ATP activator levosimendan and is pursuing approval for an indication in Group 2 Pulmonary Hypertension in the US and Canada.
- The drug has been approved in over 60 countries with 35 published trials supporting its safety and efficacy and has over 1 million patient exposures.
- In January 2018 Tenax announced a new indication for Levo and met with the FDA to confirm trial design.
CarGurus Inc.: These Are The 4 Biggest Challenges In Its Path! – Major Drivers
- CarGurus, Inc. delivered a mixed yet fundamentally strong performance in its second quarter of 2024, reflecting a robust narrative of growth and strategic enhancements paired with the typical challenges inherent in rapidly expanding and diversifying market operations.
- The management effectively articulated their strategic intentions, focusing on driving value through innovation in their service offerings and deepening market penetration, particularly within robustly growing sectors like digital transactions and international expansion.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
ARWR: Two Obesity Assets to Enter the Clinic in 2025
- On August 8, 2024, Arrowhead Pharmaceuticals, Inc. (ARWR) announced financial results for the third quarter of fiscal year 2024 that ended June 30, 2024 and provided a business update.
- Arrowhead recently presented preclinical data on ARO-INHBE and introduced ARO-ALK7 at its summer seminar on obesity/metabolic disorders.
- We anticipate both programs entering the clinic in 2025.
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