Software provider SolarWinds announced that it has released updates to its Orion platform products in response to the Supernova malware attack.
SolarWinds (SWI) released updates for all supported versions of its Orion platform products and a fix for customers on unsupported versions of these products. The company previously provided two hotfix updates on December 14 and 15, which contained security enhancements, including those designed to prevent certain versions of the Orion products from being attacked by the Supernova malware.
The company had previously announced that it has been made aware of a cyberattack that had impacted its Orion monitoring products which, if activated, could potentially allow an attacker to compromise the server on which the Orion products run.
SolarWinds also disclosed that the attack was likely the result of “a highly sophisticated, targeted and manual supply chain attack by an outside nation state”, though the company acknowledged that it had not independently verified the attacker’s identity. (See SWI stock analysis on TipRanks)
“Like other software companies, SolarWinds seeks to responsibly disclose vulnerabilities in its products to customers, while also mitigating the risk that bad actors seek to exploit those vulnerabilities, by releasing updates to their products before the company discloses the vulnerabilities,” the company said in a statement.
On Dec. 21, Truist Financial analyst Terry Tillman downgraded SolarWinds to Hold from Buy and lowered the price target to $14 (10% downside potential) from $26, citing a lack of visibility into potential business and financial model impacts related to the malware incidents.
Tillman pointed to the 40% loss in the stock’s value owing to the cyber attack news compared to the 5% median gain in his software coverage group.
The rest of the Street is cautiously optimistic on the stock's outlook. The Moderate Buy analyst consensus is based on 3 Buys, 3 Holds and 1 Sell. With shares down 15% year-to-date, the average price target of $20.86 implies upside potential of 33.9% from current levels.
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Magna International Inc. and LG Electronics have partnered up to form a venture to jointly produce electric vehicle (EV) components.
Specifically, Magna (MGA) said that the joint venture, tentatively called LG Magna e-Powertrain, will manufacture e-motors, inverters, on-board chargers and e-drive systems as automakers are shifting their focus to vehicle electrification. The companies did not disclose financial terms of the venture. According to a Reuters report the joint venture is valued at $1 billion.
The new company will capitalize on Magna’s expertise in electric powertrain systems, including software integration, and LG’s experience in component production for e-motors and inverters.
The move comes as the companies expect the market for e-motors, inverters and electric drive systems to significantly grow between now and 2030.
“This partnership fully aligns with our strategy of being at the forefront of electrification and supporting automakers with a diverse and world-class portfolio,” said Magna’s incoming CEO Swamy Kotagiri. “By combining our strengths, we expect to gain investment efficiency and speed to market with synergies to achieve more, all while continuing to capitalize on the acceleration of the electrified powertrain market.”
The joint venture will include more than 1,000 employees located at LG locations in the US, South Korea and China. The transaction is expected to close in July of 2021, pending LG shareholder approval and regulatory approvals.
LG has already supplied electric vehicle components most notably for GM’s Chevrolet Bolt EV and Jaguar I-PACE, while Magna counts Volkswagen as one of its customers for car components.
Magna shares have had a good run recently, rallying more than 11% over the past month. The stock is now up 29% on a year-to-date basis. (See MGA stock analysis on TipRanks)
Credit Suisse analyst Dan Levy last month lifted the stock's price target to $74 from $67 and reiterated a Buy rating. The analyst believes that there are three avenues for Magna to gain traction and outperform, namely being a "hidden" play on EV, active safety offering/program wins, and through its use of free cash flow to fund growth.
From the rest of the Street, the stock scores a cautiously optimistic Moderate Buy analyst consensus. Following this year’s share rally, the average price target of $64.82, indicates 8.2% downside potential to current levels.
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Ardian has entered into a definitive agreement to buy pay service provider PRGX Global for $195 million in cash. PRGX shares rose 4.6% to $7.70 at the close on Thursday.
According to the terms of the deal, the private investment house will pay PRGX Global (PRGX) shareholders $7.71 per share in cash for each share of PRGSX's common stock representing a premium of 32.7% to the stock's volume-weighted average price for the 90 trading days preceding the announcement of the transaction.
The deal is led by Ardian’s North America Direct Buyouts team. Following the transaction, PRGX Global will operate as a privately-held company, pending approval from the board.
"We look forward to partnering with the Ardian team to accelerate the launch and delivery of our vision of source-to-pay as fully technology-enabled, accelerating speed to value for clients globally.” said PRGX CEO, Ron Stewart.
On Oct. 27, PRGX’s reported that its Q3 consolidated revenue declined by 1.8% to $41.5 million, beating the Street's estimates by $1.96 million. The company posted EPS of $0.13 compared to the net loss per share of $0.07 incurred in the year-ago period. (See PRGX stock analysis on TipRanks)
In reaction to the company's better-than-expected Q3 results, Barrington analyst Alexander Paris, on Oct. 28 raised the stock's price target from $8 to $9 and reiterated a Buy rating.
Paris said that the company posted stable core revenues "in these uncertain times" with expectations of continued expansion of adjusted EBITDA margins ahead.
From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy based on 2 unanimous Buys. The average analyst price target of $9 implies upside potential of almost 17% to current levels. The share price has already gained 57% year-to-date.
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Borr Drilling updated investors that it has been working actively with its creditors on a plan to bolster its cash buffers by $925 million over the next two years. Shares gained 1.4% at after-hours trading on Thursday.
Specifically, Borr Drilling (BORR) said that it has now secured support from its creditors for the two-year $925 million liquidity improvement plan, subject to the company successfully raising $40 million in new equity.
The company is working on the terms and conditions towards the closure of the new equity issue expected by the end of 2021. Borr Drilling said that it has already received strong support from its main shareholders towards for the new equity issue.
“Borr Drilling is very thankful for the support given by all the secured creditors and yards to strengthen the financial footing of the company. We consider this a great testimony to the quality of our people, assets, and operations who in turn deliver value to our customers”, said Borr Drilling CEO Patrick Schorn.
Shares of the drilling company have been hit hard and have lost 90% this year. (See BORR stock analysis on TipRanks)
On Nov. 30, Borr Drilling reported that its revenue declined by 42.4% to $59.2 million, missing analysts' estimates by $24.58 million. The company's Q3 net loss per share rose by 48% to $0.39, lagging the Street consensus by $0.08. The company said the revenue decline was impacted by a reduced number of active rigs due to contract cancellations and suspensions by operators, as well as pandemic-led costs.
Following the earnings release, Citigroup analyst J.B. Lowe reiterated a Hold rating on the stock, but lowered the price target from $1.10 to $0.9 (downside potential of 1.8%).
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