Research Market strategy
By Swissquote Analysts
Published on 01.11.2021
Morning news

Coke to Pay $5.6 Billion for Full Control of BodyArmor

Topic of the day

Coca-Cola Co. is buying full control of BodyArmor for $5.6 billion in a deal that values the sports drink brand at about $8 billion, according to people familiar with the matter, amping up a rivalry with Gatorade. Coke, which already owns 30% of BodyArmor, is buying the remaining 70% from the company’s founders and investors, as well as a group of professional athletes including the NBA’s James Harden and MLB’s Mike Trout who invested and helped market the drink. Gatorade still dominates the sports drink market, though BodyArmor sales have been climbing quickly. BodyArmor expects to generate about $1.4 billion in retail sales this year, according to some of the people familiar with the matter. BodyArmor’s sales were about $250 million in 2018 when Coke first invested in the startup. The BodyArmor transaction would be the largest brand acquisition in Coke’s history, eclipsing the $5.1 billion paid in 2018 for Costa Coffee, a foray into the coffee shop business.

Swiss stocks

The ups and downs on the Swiss stock market continued at the end of the week. The SMI lost 0.4 per cent to 12,108 points. Among the 20 SMI stocks, there were 13 price losers and 6 price winners, one share closed unchanged. 36.05 (previously: 34.38) million shares were traded. After better third quarter figures, Holcim went up by 0.2 percent. The company's increased EBIT forecast was below market expectations - but did not have a negative impact. Swiss Re gained 3.4 per cent and was thus the day's winner in the SMI. The group returned to profit in the first nine months of the year as it absorbed high losses from natural disasters and the ongoing impact of the pandemic. The Swiss reinsurer posted a net profit of $1.26 billion in the first nine months, compared with a net loss of $691 million in the same period last year. Clariant shares extended the previous day's 5 per cent gain, up 1.5 per cent to 19.26 francs, after strong third-quarter results. Positive analyst comments provided support here. UBS, for example, raised its price target to 20 from 18.50 francs. The "Neutral" rating was confirmed.

International markets


European equity markets ended Friday's session in mixed order as investors caught their breath after the previous day's rise and analysed a fresh batch of corporate results. The Stoxx Europe 600 index gained 0.1% to 475.6 points, taking its gains for the week to 0.8%. In Paris, the CAC 40 and SBF 120 gained 0.4% and 0.3% respectively on Friday. In Frankfurt, the DAX 40 was down less than 0.1%, while the FTSE 100 in London gave up 0.2%. Analysts noted that growth seems to be slowing in Germany, the largest economy in Europe, as it fails to keep pace with the likes of France and GDP remains 1% below prepandemic levels. BBVA's third-quarter earnings were robust and shares should react positively to the results, Renta 4 Banco equity-research analyst Nuria Alvarez said. The Spanish lender's net profit increased 23% compared with the same period last year to EUR1.4 billion, above consensus estimates as the bank booked lower provisions. Air France-KLM was trading higher on Friday after the Franco-Dutch airline posted a positive operating result in its third quarter and guided for positive earnings before interest, taxes, depreciation, and amortization in 2021. Air France-KLM said that news of the reopening of the U.S. borders for vaccinated European travelers, as well as the recent reopening of Singapore and Canada, boosted bookings. Daimler rose 1.8% in Frankfurt, after the automobile maker whose brands include Mercedes-Benz reported higher quarterly profit despite disruptions from the global chip shortage. Shares of Volvo Cars, the Swedish auto maker controlled by China’s Zhejiang Geely Holding, rose sharply Friday, closing the day 23% above their offering price when it started trading Friday in Stockholm.

United States

U.S. stocks capped their strongest month since November by shrugging off woes at two of the biggest companies in the stock market, Apple and Both companies warned investors Thursday afternoon that ongoing supply-chain disruptions were affecting their operations. Two giant companies gave negative signals, and stocks still continued to rise, showing the resilience of the bull market that began in the midst of a global pandemic. On Friday, all three major U.S. indexes ended at all-time highs, with the S&P 500 notching its 59th record close of the year. The benchmark index added 8.96 points, or 0.2%, Friday to end at 4605.38. For the month, it added 6.9%, the index’s largest percentage gain since last November. The technology-heavy Nasdaq Composite also notched its best performance since November, adding 7.3% for October. For the day, the index added 50.27 points, or 0.3%, to finish at 15498.39. The Dow Jones Industrial Average, meanwhile, gained 89.08 points, or 0.2%, Friday to end at 35819.56. For October, the index gained 5.8%, its best monthly showing since March. Apple shares lost $2.77, or 1.8%, to end at $149.80. shares declined by $74.14, or about 2.2%, to end at $3,372.43. Together, the companies account for nearly 10% of the S&P 500’s market capitalization. The U.S. stock market’s strong performance in October marks a sharp turnaround from September, when stocks fell as fears about issues ranging from inflation to China’s property market flared. On Friday, the two largest U.S. oil companies, Exxon Mobil and Chevron, reported their most profitable quarterly earnings since before the pandemic. Exxon gained 16 cents, or about 0.3%, to end at $64.47. Chevron added $1.37, or 1.2%, to finish at $114.49. Starbucks shares fell by $7.13, or 6.3%, to $106.07 after the coffee chain said its U.S. sales were strong, but the pandemic’s resurgence in China had dragged on revenue.


Stocks advanced in Asia early Monday, with Tokyo's benchmark up 2.6% after the ruling Liberal Democrats won a stronger than expected majority in an election Sunday. Japanese Prime Minister Fumio Kishida's coalition kept a comfortable majority in Sunday's parliamentary election despite losing some seats as his weeks-old government grapples with a coronavirus-battered economy and regional security challenges. The Chinese stock exchanges are showing a divided picture. While the Shanghai Composite is now up 0.1 per cent after initial losses, the Hang Seng Index dropped 0.9% as investor concerns over financial risks for property developers added to worries over the economic outlook. The Kospi gains 0.4% in Seoul.


The spread between 5-year and 30- year Treasury yields flattened further Friday to levels not seen since March 2020 with the Federal Reserve’s favoured inflation gauge holding well above the central bank’s 2% target but U.S. consumer sentiment still near the lowest levels since the pandemic began. The yield on the 10-year Treasury note ticked down to 1.550% from 1.579% on Thursday evening. The yield on the German Bund with the same maturity was -0.094%, down from -0.133% on Thursday evening.


LBBW raises Daimler target to EUR 100 (96) - Buy
Stifel lifts Kion target to EUR 120 (115) - Buy
NordLB increases MTU to Buy (Hold) - Target EUR 215 (225)

Produced by MBI Martin Brückner Infosource GmbH & Co. KG on behalf of Swissquote. All news is acquired with journalistic accuracy. No liability is assumed for delays or errors.