Reuters Insider - U.S. Morning Call: Citizens' IPO; Home Depot data breach

Citizens Financial (Delaware)

24/09/2014 13:55

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 http://insider.thomsonreuters.com/link.html?cn=share&cid=1302450&shareToken=MzpiZGU5YTRlNi1kZTRjLTQ2NzQtYTU5My1lYzIwYTk0ODQ5N2Y%3D&playerName=ReutersNews 
                                                                       
 Source:             Thomson Reuters                                   
                                                                       
 Description:        Royal Bank of Scotland priced Citizen Financial's 
                     IPO at $21.50 a share. That's below the expected  
                     range of $23 to $25 a share. Meanwhile Home       
                     Depot's data breach continues to unfold.          
 
 
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Transcript (May be auto-generated)

 It was the biggest bank offering in over a decade, raking in $3 million and the 
second biggest IPO this year after Alibaba raised $25 billion in the largest 
ever US debut. But Citizens Financial failed to live up to the hype of what it 
could have been, pricing below its expected range at $21.50. Royal Bank of 
Scotland, which owns Citizens, had originally planned to sell shares between $23
and $25 but had to pull back due to uncertainty over whether the bank could hit 
its profit targets. But there could be another factor at play here. Analysts say
the appetite for financial stocks has been pretty lackluster compared to other 
sectors. Profits have soared but revenue has come under pressure from lower 
interest rates and rules that restrict consumer fees. Citizens is expected to 
begin trading on the New York Stock Exchange today under the symbol CFG. Let's 
move on to some other stocks to watch, kicking things off with Bed, Bath & 
Beyond. Revenue topped estimates as more discounts helped attract shoppers to 
its stores. The retailer also managed to beat profit estimates though a 
promotional environment has been putting pressure on margins in recent quarters 
– we've heard that a lot. Shares right now are up 7% in the premarket. 
SunTrust Robinson and Canaccord raising their price targets on the stock. 

Up next is Walgreen. Reuters sources say the drugstore chain operator is looking
to sell a majority stake in its infusion service business and a deal could value
that division at around $1.5 billion. Walgreen is currently the largest US 
provider of home infusion services which are used for medical conditions such as
bleeding disorders and serious infections. Walgreen shares are up 8% this year. 
And it looks like the data breach at Home Depot is triggering fraudulent 
transactions across the country, that's according to the Wall Street Journal. 
The transactions are reportedly popping up after crooks used stolen credit card 
information to shop for electronics and groceries. Some 56 million credit cards 
may have been exposed in this data breach, Home Depot says, making it much 
larger than the 40 million cards breached during Target's hack attack last year.
Home Depot shares are up 11% this year. 

And finally, look for an earnings report from KB Home before the market opens. 
Analysts looking for a rise in profit and revenue from a year ago. New home 
sales data is due out this morning. That number is expected to edge up from the 
prior month. Turning to markets, looks like the tide is turned, at least for 
this morning. US stock futures pointing to a positive open after taking hits on 
Monday and Tuesday. The US Treasury benchmark 10-year note now hovering around 
2.54%, a slight increase in its yield from Tuesday. And oil is still slipping as
big supplies and weak economic data from Europe push prices down. That is it for
your Wednesday Morning Call. You can follow us on Twitter @ReutersInsider and 
watch more videos at www.reuters.com. I'm Lisa Bernhard, this is Reuters