Morning News Recap (VRX, YUM, CMG, CP, GLW)
Valeant Pharmaceuticals Int (USA)(NYSE:VRX) trades higher as the Street comments on an upbeat analyst day, one that saw the drug developer raise its 2012 guidance to the high end of prior ranges. Jefferies (Buy) declares Valeant to be an “excellent,” albeit “controversial” investment, and is impressed with its guidance in light of the company’s 20%+ Euro exposure. Shares of VRX jumped 3.12% to $46.64.
Yum! Brands, Inc.(NYSE:YUM) Taco Bell continues to draw positive reviews for its new Cantine Bell menu. With words such as fresh, light, and crisp getting bandied around, the new initiative from the chain stands a chance to impact sales at Chipotle (CMG) – which up to now has had a field day redefining the fast-food gourmet Mexican niche. Yum Brands plans to spend $20M in TV and digital marketing to spread the word that there’s a new player in the game with its July 5 Cantina Bell launch just around the corner. Shares of YUM climbed 1.74% to $66.14.
Canadian Pacific Railway Limited (USA)(NYSE:CP) signs a multi-year deal with U.S. Silica (SLCA) to transport drilling sand from the company’s mine in Wisconsin. CP, which ships sand used in the fracking process to the North Dakota shale formation and crude oil out of the Bakken, says it will become the exclusive rail service provider at the Wisconsin mine.
Corning Incorporated(NYSE:GLW) isn’t getting a lift from an upgrade to Neutral from JPMorgan. The firm is encouraged by recent increases in LCD panel pricing, particularly for TV panels, and thinks customer inventories of LCD glass are likely to stabilize after recent reductions. Also, while admitting the demand environment for Corning’s glass is bleak, JPMorgan notes shares are trading at a price/book multiple last seen during the ’08 financial crisis.