Streetbeat News

Acquisitions Mergers

ELKMF

EQX

Gold Road (OTCPK: ELKMF), an Australian gold producer, is considering acquiring a stake in Greenstone Gold Mines, a joint venture between Equinox Gold (AMEX:EQX) and Orion Resource Partners. This interest comes amid rising gold prices due to geopolitical tensions and inflation fears. However, Gold Road's recent operational challenges at its Gruyere mine, including production shortfalls and increased costs, have made investors wary, especially with rumors of the Greenstone acquisition's high cost potentially exceeding $650 million. Gold Road's share price fell 6.59% following the news.

Portfolio Pulse from Stjepan Kalinic

April 15, 2024 | 4:16 pm

ACN

Accenture Federal Services, a subsidiary of Accenture (NYSE:ACN), has announced its agreement to acquire Cognosante, a provider of digital transformation and cloud modernization solutions for various federal agencies. The acquisition aims to enhance Accenture Federal Services' offerings and capabilities in serving federal health, defense, intelligence, and civilian agencies. Cognosante, known for its technology expertise and exceptional program management, will bring over 1,500 employees to join Accenture Federal Services' team of more than 14,000. The completion of this acquisition is pending regulatory review and customary closing conditions, with the terms of the transaction undisclosed.

Portfolio Pulse from Benzinga Newsdesk

April 15, 2024 | 4:08 pm

TRNS

Transcat Inc (NASDAQ:TRNS) has acquired Becnel Rental Tools LLC for $50 million, aiming to boost its rental portfolio and expected margins. The deal, effective April 15, 2024, includes $32.5 million in company stock and $17.5 million in cash. Becnel, an ISO 9001:2015 certified provider of rental tools for oil well maintenance, will retain its staff and leadership under President Jason Becnel. Transcat anticipates the acquisition to enhance its offerings, profit margins, and EBITDA margins across its Service and Distribution segments, with an acquired EBITDA of approximately $5.8 million. As of December 23, 2023, Transcat reported $35.2 million in cash and equivalents. TRNS shares slightly declined by 0.09% to $110.19.

Portfolio Pulse from Shivani Kumaresan

April 15, 2024 | 4:04 pm

LGVN

MRNS

NMRA

RARE

SCHW

SNGX

SNPO

U.S. stocks traded higher with the Dow Jones gaining over 100 points. Charles Schwab Corporation reported a decline in Q1 2024 earnings but beat revenue estimates. Soligenix, Longeveron, and Snap One Holdings saw significant stock increases, while Marinus Pharmaceuticals, Neumora Therapeutics, and Ultragenyx Pharmaceutical experienced declines. Crude oil and gold prices fell, while silver and copper prices rose. European and Asian markets showed mixed results, with economic indicators like the NY Empire State Manufacturing Index and retail sales showing improvement.

Portfolio Pulse from Avi Kapoor

April 15, 2024 | 4:02 pm

ALAB

Astera Labs Inc (NASDAQ:ALAB), a semiconductor connectivity solutions provider, had a successful IPO, raising $700 million. Analysts from Needham and JPMorgan initiated coverage with positive ratings and a price target of $85, citing the company's market share growth, unique product suite, and potential in AI and cloud infrastructure. Despite high valuation, its industry-leading growth and margins are highlighted, with a serviceable addressable market expected to grow from $1 billion to $7 billion by 2027. Shares rose 5.37% to $76.64.

Portfolio Pulse from Priya Nigam

April 15, 2024 | 3:58 pm

EQIX

PRU

Equinix Inc (NASDAQ:EQIX) and PGIM Real Estate, part of Prudential Financial, Inc.'s (NYSE:PRU) asset management business, have formed a $600 million joint venture to develop and operate the first xScale data center in the U.S., located in Silicon Valley. This facility, SV12x, will offer over 28 MW of power capacity and marks the second joint venture between the two entities. The venture aims to expand the global xScale data center portfolio to over $8 billion and 725 MW of power capacity. PGIM Real Estate will hold an 80% equity interest, with Equinix owning the remaining 20%. EQIX shares dropped 1.71% to $751.00.

Portfolio Pulse from Shivani Kumaresan

April 15, 2024 | 3:35 pm

CSCO

Cisco Systems Inc (NASDAQ:CSCO) is poised for growth acceleration from 2025 onwards, driven by its $28 billion acquisition of Splunk, security sector growth, and AI advancements. BofA Securities upgraded Cisco's rating from Neutral to Buy, raising the price target from $55 to $60. The acquisition of Splunk is highlighted for offering 'great growth synergies,' and despite recent underperformance due to Networking weakness, the company's outlook is optimistic with expected market share gains in Ethernet-based AI buildouts.

Portfolio Pulse from Priya Nigam

April 15, 2024 | 3:19 pm

EQNR

EQT

NVIR

RSPG

EQT Corporation and Equinor ASA have entered into an asset sale agreement, where EQT will sell a 40% stake in its non-operated natural gas assets in Northeast Pennsylvania to Equinor for $500 million in cash and additional assets. The deal, expected to close in late Q2 2024, is part of EQT's divestiture program aimed at de-leveraging. The transaction is anticipated to bring over $1.1 billion in value to EQT, including synergies and development plan optimization. Following the news, shares of EQT and Equinor traded lower. Exposure to these stocks can also be gained through Invesco S&P 500 Equal Weight Energy ETF and Horizon Kinetics Energy And Remediation ETF.

Portfolio Pulse from Lekha Gupta

April 15, 2024 | 3:18 pm

ACRHF

CGC

Canopy Growth Corporation's shareholders approved the creation of a new class of exchangeable shares, facilitating the company's entry into the U.S. THC market. This strategic move is part of Canopy's USA strategy, aiming to capitalize on the U.S. cannabis market's expected growth to $50 billion by 2026. The approval allows Canopy USA to proceed with acquisitions of Acreage Holdings, Inc., Mountain High Products, LLC, Wana Wellness, LLC, The Cima Group, LLC, and Lemurian, Inc. CEO David Klein expressed optimism about cannabis being rescheduled to Schedule III, which would enhance cash flow for Canopy's U.S. assets by allowing business deductions.

Portfolio Pulse from Jelena Martinovic

April 15, 2024 | 3:15 pm

JPM

WFC

First quarter bank earnings for 2024 showed strong results from Wells Fargo, JPMorgan Chase, Citigroup, and Goldman Sachs, with most surpassing analyst estimates. Wells Fargo and Citigroup reported slight revenue increases and net income declines, while JPMorgan and Goldman Sachs saw significant profit and revenue growth, partly due to higher interest rates, larger loan balances, and a rebound in global M&A activity. Despite the positive results, banks provided conservative guidance due to potential macroeconomic and geopolitical uncertainties.

Portfolio Pulse from Upwallstreet

April 15, 2024 | 3:11 pm