Kornit Digital (KRNT) – $8B market cap; $62M ADV: We reiterate our buy recommendation on Kornit Digital as the stock reclaimed its 21-
DMA on above average volume and is trading close to its 52-week high. The recent public offering is expected to raise $293M, which would be
used for acquisitions, working capital, and capex. We expect the company to benefit from increased digital penetration in the global textile
industry due to its patented technologies. Consensus expects a sales CAGR of 47% and an EPS CAGR of 155% over FY20–
22E.
Author: admin
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 is in an Uptrend Under Pressure with two distribution days. The index pulled back sharply last week
and gapped down below its 50-DMA amid concerns over the new COVID-19 variant. - Historical precedents suggest market sell-off due to the threat of a new COVID wave tends to be very short-lived
and thus could offer opportunity to buy leading stocks retracing toward their short-term moving averages. - Short-term momentum in Cyclical and Tech continues to rise. Performance of Travel & Leisure on a 12-month
rolling period versus the Stoxx 600 is heading toward a decade low. - We removed Intesa Sanpaolo (ISP.IT; ISP:IM) from our European Focus List. The list comprises 45 names and
is over weighted toward Capital Equipment and Financials. - Actionable names include Coface (COFA.FR; COFA:FP),Vitrolife (VITR.SE; VITR:SS), Novo Nordisk (NON.DK;
NOVOB:DC), Infineon (IFXX.DE; IFX:GR), Sartorius (SRT3X.DE; SRT3:GR), and Nibe Industrier (NIBE.SE;
NIBEB:SS). - Stocks at support level (short-term moving averages) offering secondary entry point: Schneider Electric
(QT@F.FR; SU:FP), ASML (ASML.NL; ASML:NA), Puma (PUMX.DE; PUM:GR), Partners Group (PGHN.CH;
PGHN:SW), Pandora (OND.DK), Interpump (IP.IT; IP:IM),Halma (HLMA.GB; HLMA:LN),Interroll (INRN.CH;
INRN:SW),Richemont (CFR.CH; CFR:SW), EQT (EQT.SE; EQT:SS), and Straumann (STMN.CH; STMN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq retraced the entirety of Monday’s gains closing near the
lows of the session and below their respective 21-DMA. The next level of support is now the 50-DMA at 4,536 and 15,256, respectively.
The distribution day count increased to four and two, respectively, with one day expiring on the S&P 500 at the close today.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq jumped +1.3%, regaining all of Friday’s losses and closing
slightly below their respective 21-DMA (S&P 500: 4,669; Nasdaq:15,813). The distribution day count stands at three and one, respectively,
with one day expiring on the S&P 500 after the close tomorrow.
Won Europe Today
Yesterday,
- European markets closed in the green as fears over the omicron variant eased. The WHO has labeled the new
omicron strain a variant of concern. Doctors who spotted the new variant have reported that the symptoms seen so
far among the affected patients were mild. We recommend a patient approach to adding risk as we still need more
time to assess if volatility has subsided. - The Stoxx 600 closed in positive territory, climbing 0.7%, on above average volume. The index is trading below its
50-DMA and is 5% off highs. Most sectors closed positive with Oil and Gas up 2% to lead gains. Basic Resources
and Financial Services were up 1.9% and 1.7%, respectively. - Among major indices, France’s CAC is trading near its 50-DMA while Germany’s DAX and the U.K.’s FTSE are
trading near their 200-DMA. - Among the 17 indices we cover, Finland gained the most while Denmark was the major decliner. Denmark was
downgraded to an Uptrend Under Pressure after the index breached its 50-DMA. The average distribution day count
stands at 3.0. - Actionable names in the Focus List include Sartorius (SRT3X.DE; SRT3:GR), Dassault Systemes (DSY.FR;
DSY:FP), Halma (HLMA.GB; HLMA:LN), Sika (SIKA.CH; SIKA:SW), Partners Group Holding (PGHN.CH;
PGHN:SW), Rentokil Initial (RTO.GB; RTO:LN), Coface (COFA.FR; COFA:FP), Beneteau (CHBE.FR; BEN:FP),
Vitrolife (VITR.SE; VITR:SS), and Puma (PUMX.DE; PUM:GR).
Won Europe Today
On Friday,
- European markets had a very weak day with all major indices breaking below their key moving averages. The weak
action can be partly attributed to the new COVID-19 variant “Omricon”, first detected in South Africa. Amid greater
volatility, we recommend investors to stay away from the markets and reduce their exposure in extended names. - The Stoxx 600 was downgraded to an Uptrend Under Pressure after it breached its 50-DMA on high volume. All the
sectors closed in negative territory with Industrial Goods, Travel & Leisure, Oil & Gas, and Banks leading the rout
while defensives like PCG (Personal Consumption Goods) performed relatively well. - Among other major indices, France’s CAC was also downgraded to an Uptrend Under Pressure after it breached
its 50-DMA and found support at its 100-DMA. Germany’s DAX broke below its 200-DMA. The U.K.’s FTSE was
also downgraded to an Uptrend Under Pressure after it breached below its 50-DMA and found support at its 200-
DMA. - 10 of the 17 indices that we cover in Europe recorded distribution days. The Stoxx 600, France, the Netherlands,
Norway, the U.K., and Italy were downgraded to an Uptrend Under Pressure. Luxembourg, Sweden, and Finland
were downgraded to a Confirmed Downtrend. - Sartorius (SRT3X.DE; SRT3:GR) has turned actionable after finding support at its 50-DMA. Other actionable
names in the Focus List include Dassault Systemes (DSY.FR; DSY:FP), Halma (HLMA.GB; HLMA:LN), Sika
(SIKA.CH; SIKA:SW), Partners Group Holding (PGHN.CH; PGHN:SW), Rentokil Initial (RTO.GB; RTO:LN), Coface
(COFA.FR; COFA:FP), Beneteau (CHBE.FR; BEN:FP), Vitrolife (VITR.SE; VITR:SS), and Puma (PUMX.DE;
PUM:GR).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back sharply last week, with both closing below
their respective 21-DMA. The next level of support is September highs at 4,545 and 15,403, respectively, which may also coincide with the
rising 50-DMA. The distribution day count remains low at three and one, respectively, with one day expiring on the S&P 500 this week.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq held support at their 21-DMA after pulling back to this
level earlier in the week. Support below the 21-DMA is at the September highs or the prior pivot at ~4,545 and 15,403, respectively,
which may also coincide with a rising 50-DMA. The distribution day count stands at three and two, respectively, with one day expiring on
the Nasdaq after the close.
Won Europe Today
Yesterday,
- European markets closed marginally in the green as markets monitored acute surge in COVID-19 cases which
prompted certain countries to implement new restrictions. We recommend a patient approach in adding risk and
reducing exposure in stocks that have broken logical levels of support. - The Stoxx 600 rose for the second straight day, climbing 0.4%, on average volume. The index is trading below its
21-DMA and is 2% off highs. Most sectors closed positive with Utilities rising 1.7% to lead the gains while Travel
and Leisure was down 1.2%. - Among major indices, France’s CAC is taking support at its 21-DMA while Germany’s DAX is below its 21-DMA.
The U.K.’s FTSE closed above its 10- and 21-DMA. - Among the 17 indices we cover, Finland gained the most while Luxembourg was the major decliner. We did not
change market status for any of the indices. The average distribution day count stands at 2.8. - Actionable names in the Focus List include Dassault Systemes (DSY.FR; DSY:FP), Halma (HLMA.GB; HLMA:LN),
Sika (SIKA.CH; SIKA:SW), Partners Group Holding (PGHN.CH; PGHN:SW), Rentokil Initial (RTO.GB; RTO:LN),
Coface (COFA.FR; COFA:FP), Beneteau (CHBE.FR; BEN:FP), Vitrolife (VITR.SE; VITR:SS), and Puma
(PUMX.DE; PUM:GR).
Won Europe Today
Yesterday,
- European markets closed mixed as investors monitored the rising cases of COVID-19 and economic data from the
region. As the major markets are testing their key moving averages, we recommend a patient approach and adding
strong names coming out of consolidation on good volume. - The Stoxx 600 gained 0.10% on higher volume after closing in the red for four consecutive days. The index is
trading below its 21-DMA and 2% off highs. On the sectoral front, Telecom stocks gained the most while Auto
stocks lost 1.4%. - Among the major indices, France’s CAC and Germany’s DAX closed in the red while the U.K.’s FTSE 100 closed in
the green. France’s CAC found support at its 21-DMA while Germany’s DAX and the U.K.’s FTSE 100 are trading
below their 21-DMA. - Of the 17 indices we cover, Belgium gained the most, while Ireland was the major loser. We did not change market
status for any of the indices. The average distribution day count is 3.24. - Actionable names in the Focus List include Halma (HLMA.GB; HLMA:LN), Sika (SIKA.CH; SIKA:SW), Partners
Group Holding (PGHN.CH; PGHN:SW), Rentokil Initial (RTO.GB; RTO:LN), Coface (COFA.FR; COFA:FP),
Beneteau (CHBE.FR; BEN:FP), Vitrolife (VITR.SE; VITR:SS), and Puma (PUMX.DE; PUM:GR)
