Mutual Fund Investors Back from Long Weekend

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Mutual Fund Investors Back from Long Weekend

Sep 02, 2014

Mutual Fund investors are returning to the markets this Tuesday morning with a bit of a positive bias as the month of September ushers in new money flows, potential global concerns, and everything else that investors tend to fixate on. This morning is filled with bullish analyst calls, more news of deals, positive drug trial updates, and more!

Deal Headlines as M&A Continues


Elsewhere, a big merger in the cruise industry is underway as Norwegian Cruise Lines (NCLH) shares are up nearly 15% in early trading following news of the cruise operator announcing a deal to buy luxury cruise-line company Prestige Cruises International Inc in a $3.03 billion deal, including debt. The cash-and-stock deal will be immediately positive for the bottom line, which is also pleasing to Wall Street’s eyes.

Finally, a big $2.5 Billion tech deal is being announced as Compuware (CPWR) and Thoma Bravo jointly announced that Compuware has entered into a definitive agreement to be acquired by the private equity investment firm. The company counts more than 7,100 companies using its technology management performance services.


Positive Drug Updates Lifting Big Pharma & Biotech Shares


Headlining this morning’s big biotech news is Regeneron Pharmaceuticals (REGN), where shares are up nearly 5% or $17. The company, in collaboration with Sanofi (SNY), announced study results from its experimental cholesterol-lowering drug that showed its drug halved the number of heart attacks and strokes in a clinical trial.

The drug targeting a protein known as PCSK9 would be the first of its kind to suggesting reduced cardiovascular risk from PCSK9 inhibitors. The ongoing drug study is expected to conclude early next year, but researchers said the early sign of efficacy was clearly positive.


Wall Street’s Bullish Calls Continue


Tesla (TSLA) shares are also feeling the momentum as Stifel Nicolaus put a $400 price target on the company citing the company’s ever-growing moat around the EV market.

Gap Inc. (GPS) has been named a top retail pick by a Sterne Agee analyst, with its price target being bumped to $52 on the back of what will be easy comps, and company-specific initiatives.

Asset-management giant Waddell & Reed (WDR) saw its price target raised to $64 a share from Jefferies Co. this company. The analyst points to recent flow trends having improved and is favorable on management’s long-term investment performance track record. Coupled with a reasonable valuation (13 times 2015 estimates), a higher stock price would seem to make sense.


Will September Be Its Normal Tough Month for Mutual Fund Investors?


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