HALISTER1: Ulta Beauty Tumbles After Edward Jones Sees High Valuation

Ulta Beauty Tumbles After Edward Jones Sees High Valuation

(Bloomberg) -- Ulta Beauty fell as much as 3.6% after Edward Jones earlier downgraded the stock to hold from buy with valuation above historical averages, analyst Brian Yarbrough said in a telephone interview.
  • His call is unrelated to short-term earnings; management is solid, still likes the company
  • "The stock has done extremely, extremely well, but it’s one of the most expensive stocks in retail"
  • Growth stocks have come under Amazon pressure, and at some point Ulta Beauty comp. sales are no longer going to be rising 15% or 16%, he said; "I don’t know if that’s really factored in for the Street"
  • Upside is limited with the huge run in the stock
  • NOTE: April 28, Retailers Likely to See Margins Contract Further: Morgan Stanley
    • Ulta Beauty has 14 buys, 10 holds, no sells; avg PT $306 
    • ULTA to report 1Q results May 25 post-mkt
To contact the reporter on this story: Christiana Sciaudone in New York at csciaudone@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Brad Olesen

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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ULTA US (Ulta Beauty Inc)

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Brian Yarbrough (Edward Jones)

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UUID: 7947283

HALISTER: GE Says 2018 EPS Goal at High End of Expectations; Shares Drop

GE Says 2018 EPS Goal at High End of Expectations; Shares Drop

(Bloomberg) -- General Electric drops sharply as CEO Jeff Immelt starts presenting at the EPG conference; in slides for the conference, GE says its 2018 EPS goal of $2 is at "high end of expectations where markets are today."
  • Says hitting goals will require additional cost contingencies
  • Expects 2018 to be in line with GE’s goals of 3%-5% organic growth and 100bps of margin improvement
  • Sees more than $1b cost out in 2018
  • GE falls as much as 1.3%
  • NOTE: May 19, PREVIEW EPG CONFERENCE: Activist ’Crosshairs’ Among Industrials
To contact the reporter on this story: Esha Dey in New York at edey@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Sebastian Silva

Alert: HALISTER
Source: BFW (Bloomberg First Word)

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GE US (General Electric Co)

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Jeffrey Immelt (General Electric Co)

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UUID: 7947283

HALISTER: Linde Confirms Agreement in Principle With Praxair

Linde Confirms Agreement in Principle With Praxair

(Bloomberg) -- Linde, Praxair reached deal in principle on business combination agreement governing a planned merger of equals.
  • Conclusion of the agreement and execution of the transaction are subject to approval by the board of directors of Praxair as well as the management board and supervisory board of Linde
  • There is no assurance that a transaction will be consummated
  • Other conditions for the transaction are:
    • Approval by the shareholders meeting of Praxair with the required majority
    • Acceptance of the holding company’s public exchange offer by presumably a minimum of 75% of the outstanding Linde shares
    • Clearance of the transaction by the competent regulatory authorities
Link to Statement:Link

Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
LIN GR (Linde AG)
PX US (Praxair Inc)

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UUID: 7947283