Halister News

(Bloomberg) -- AbbVie added to conviction buy list by Goldman analyst Jami Rubin, citing Humira’s cash-flow possibilities and the company’s diversified late-stage pipeline.

• Shares gain 0.8% pre-market
• Recommends ABBV “unlock trapped value” by separating Humira from the rest of the business and returning cash to holders through a recurring Humira dividend or buyback
• Says ABBV trades at a discount due to looming competition from biosimilars, but Humira will still generate $60b in cash flow over the next 5 years
• Raises PT to $80 from $74
• ABBV has 9 buys, 12 holds, 1 sell, average PT $71: Bloomberg data
• NOTE: Feb. 17, AbbVie Boosts Share Buyback Program by $5b
  • Feb. 15, AbbVie Leukemia Drug Benefits Are Uncertain, U.K.’s NICE Says

(Bloomberg) -- Downgrades equity recommendation after ADRs reached target price of $21, TPCG analyst Florencia Mayorga Torres writes in note.

• Estimates Ebitda of $4.3b for 2017, Ebitda margin of 30%
• Growth to be driven by lower upstream costs and higher natural gas prices
• Maintains Buy recommendation on 2021, 2024, 2025; prefers 2024 bonds
  • Recommends holding ARS-linked bond due 2020 as FX inflows are seen capping ARS depreciation
• “While net leverage may go above the company’s target level of 1.5x throughout 2017, YPF will have the most conservative financial structure compared to LatAm peers”

(Bloomberg) -- Net change in employment seen at -5k in February vs +48.3k in January (forecast range -35k to +25k); average monthly change in 2016 was 19k.

• Canada’s unemployment rate seen at 6.8%, unchanged (forecast range 6.8% to 7%)

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

• Nonfarm Payrolls 200k; range 150k to 275k (89 estimates)
• • In January, employers added 227,000 workers, the most in four months, though wage growth slowed
• Private Payrolls 215k; range 155k to 276k (39 estimates)
• Manu Payrolls 10k; range 5k to 25k (22 estimates)
• Unemploy Rate 4.7%; range 4.6% to 4.8% (83 estimates)
• • Unemployment rate has been below 5 percent since May
• Hourly Earn 0.3% m/m; range 0.2% to 0.4% (65 estimates)
• Hourly Earn 2.8% y/y; range 2.6% to 2.9% (28 estimates)
• Avg. Weekly Hours 34.4; range 34.3 to 34.4 (33 estimates)
• • "Increased economic optimism seems to be coaxing individuals to enter the labor market, resulting in higher participation -- thus an increase in the unemployment rate to 4.8% in January. However, a rebound in household survey employment in February, which seems likely, could push the rate back to 4.7%:" Bloomberg Intelligence

BUDGET Report Due at 2:00 pm:

• Budget $-190b; range $-200b to $-140b (13 estimates)

(Bloomberg) -- ExxonMobil is said to have sounded out BP’s major shareholders to ascertain their interest in a potential takeover, the Evening Standard reports without saying where it got the information from.

• Speculation is that BP is worried that it may be vulnerable to an offer above 600p/share, equating to GBP120b: Evening Standard
• Chevron is said to be another potential interested party
• Adds that BP’s shareholders are thought to be unhappy with the current share price
• Article notes that Exxon and BP have several top holders in common, such as BlackRock and Vanguard
• BP shares trading 1.2% higher at 459.8p
• Note that the Telegraph market report noted BP takeover speculation

Economic Release Details: {INPIINDY Index ECOD}