Halister News

(Bloomberg) -- Following are forecasts for today’s U.S. economic releases as compiled by Bloomberg News.

• GDP 1.2% q/q; range 0.9% to 1.5% (75 estimates)
• PCE 0.6% q/q; range 0.5% to 1.5% (16 estimates)
• GDP Price Index 2.2% q/q; range 2% to 2.2% (26 estimates)
• Core PCE Prices 2.1% q/q; range 2% to 2.1% (7 estimates)
• • “By the time the third revision to 1Q GDP hits the newswires, it is pretty old news -- the calendar will be two days away from 3Q. For that reason, do not expect any market-moving results in this release”: Bloomberg Intelligence
• Initial Claims 240k; range 226k to 250k (45 estimates)
• Cont. Claims 1935k; range 1930k to 1950k (7 estimates)
• • In the prior report, initial claims rose by 3,000 in the week ended June 17 to 241,000, still close to a four-decade low

(Bloomberg) -- Estacio remains a natural target for other education players and private equity investors interested in the sector, especially because the stock is below its fundamental value, Bradesco BBI says in report signed by Luciano Campos and Marcus Sena.

• Estacio’s stock could provide the best returns for investors, either because of returning back to fundamentals, or because the company can start receiving new bids
• In the case of Kroton, bank prefers to stay on the side lines until there’s more visibility about the trends regarding cash flow/Ebitda deterioration and recovery
• Brazilian post-secondary education market is still fragmented
  • Significant reduction of students financing program Fies since 2015 and, more recently, the more flexible regulation of distance learning should continue to foster consolidation
• Estacio shareholders should remain open to bids
• Kroton needs to refocus its M&A plans
  • Given the challenges post-Fies changes and upcoming competition in the distance learning segment, bank believes Kroton will use its strong balance sheet to consolidate other segments, such as the K-12 segment
• Bank mantains neutral rating for Kroton and outperform rating for Estacio

To contact the reporter on this story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net To contact the editors responsible for this story: Daniela Milanese at dmilanese@bloomberg.net Danielle Chaves