24 August – FDA Gives Pfizer a Boost | Pushpay Makes an Acquisition

24 August 2021

Global markets were higher overnight, as US markets (S&P 500 +0.8%) closed just shy of fresh record highs.

A bounce back in the oil price saw energy stocks outperform the market, while technology stocks continue to gain renewed momentum.

Shares of vaccine makers were stronger after the FDA granted full approval for the two-dose Pfizer-BioNTech vaccine for Covid-19, with Pfizer shares up +2.4%, its rival partner BioNTech’s stock jumped +9.5% and Moderna climbed +7.5%. Trillium Therapeutics soared +188% on news that it’ll be acquired by Pfizer.

European Markets were up overnight (The Stoxx 600 index, +0.7%) as a rebound in commodity prices saw European Miners and Energy companies outperform

Pushpay (PPH:NZX / PPH:ASX)

Pushpay shares have traded higher after yesterday announcing its is acquiring Resi, a Church streaming business for $150m – mainly funded with cash. The acquisition looks to expand Pushpay’s product offering and improve cross-selling synergy with Resi Media currently servicing 3,900 customers (of which 2,700 are currently non-Pushpay customers) and 70% of the 100 largest US churches. The acquisition is consistent with PPH's strategy of being the pre-eminent service supplier to the faith sector.

Pushpay shares have underperformed over the last 12 months or so (since their initial covid surge) but we maintain a positive view. We see PPH as a reasonably priced tech company with strong growth potential over the medium-term and remain BUY rated.

Australia & New Zealand Market Movers

The Australian market was up yesterday (ASX 200 index +0.4%) as a strong lead from Wall street rubbed off on the Aussie market, with tech stocks performing well.

Major miners mostly struggled despite the iron ore prices ending higher after a month long self-off. Lynas shares firmed up +3.5% after receiving an extension on a deadline set by the Malaysian government to find a permanent home for it slow-level radioactive waste. 

G8 Education shares slipped -5.7%, despite delivering a sound first half result, after flagging the current business faces further downside risk with the current lockdowns in NSW and Melbourne forcing centres to close.
Likewise NIB Holdings reported  turnaround result but guiding current lockdown restrictions will further encourage private health insurance participation throughout Australia and New Zealand sending the stock down -11%.
Ooh Media shares fell -4.6% yesterday despite delivering a solid turn around result for the first half of the 2021 financial year as the current lockdowns are setting up for challenging third quarter. 

The New Zealand market was up on Monday (NZX 50 index, +1.0%), as markets maintained positive tone.

Z Energy led the market higher soaring +14.1% after receiving a $3.78 per share takeover bid form Ampol. 

Mainfreight was up +5% to new all-time highs as logistic company remained operational as an essential service during the NZ lockdown, and its shares were added to a major global index. Pacific Edged rose +6.3% to also reach a new all-time highs with investors piling heavily into stocks "immune" to the lockdown.

Freightways shares were flat despite delivering a solid result which was mostly priced in, hitting prior guidance with management not providing outlook forecasts. 

3 Things Markets will be Watching this Week

  1. ​Local corporate earnings is underway. Major names reporting this week include Chorus, Freightways, Boral, Oil Search, Scentre Group, Summerset, Afterpay, Wisetech Global, Meridian, SkyCity, Flight Centre, Link Administration, Next DC, Qantas, Qube Logistics, Ramsay Health Care, Woolworths, Air NZ, A2 Milk and Wesfarmers.
  2. ​COVID & Lockdown updates are front & centre on both sides of the Tasman. 
  3. Globally, economic events this week include US 2nd Quarter GDP data, manufacturing data across Europe and Australia, and the latest retail sales prints in Australia and NZ.
Global markets were higher overnight, as US markets (S&P 500 +0.8%) closed just shy of fresh record highs.

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