text: Stock in Focus: Invocare (IVC.ASX)
  Funeral Operator InvoCare (IVC) surged +35% yesterday after it received a takeover bid. InvoCare has received an unsolicited, preliminary, non-binding indicative offer from Singapore-based company Blue Eternal and private equity firm TPG Asia to acquire 100% of its issued shares for $12.65 cash per share. This comes after the two have acquired 17.8% stake in the company so far.
  The takeover appears attractive given the stock was sold-down heavily following a weak full year earnings for the 2022 financial year.
  Given the tough time Invocare has had over recent year, we believe this would be an opportune time for investors to take profit and now we downgrade the stock from Buy down to Neutral.
  New Zealand Market Movers
  The New Zealand market (NZX50) was flat on an another quiet day of trade.
  Turners Automotive the only one with notable news flow rose +4.2%, after revealing it expects to achieve record gross profit for the 2023 financial year (+$44m from an expected +$43m). Despite a weakening used car market the company continues to expand market share while enjoying stable margins – neutral-rated for now, we note the overall trend for motor sales is DOWN.
  Pushpay shares were up +7% on light trade, as investors taking a punt on the possibility of a higher takeover offer.
  Australia Market Movers
  The Australian Market (ASX200, +0.5%) after the Reserve Bank of Australia (RBA) revealed its 10th consecutive rate hike, lifting the cash rate by 25 basis points to a decade high of 3.6%.
  The move was widely expected, with commentary appearing less hawkish than in the previous announcement which excited markets – suggesting room for 2-3 more 25-point hikes, but possibly spaced out and data dependent.
  US Market Movers
  S&P 500 fell -1.53% after Powell said that he’s prepared to return to bigger rate hikes. The market had been pricing in a 25 bps rate hike – now the odds suggest a 65% chance that the next hike is 50 bps. We’ve long been saying that rates need to be higher for longer, so we don’t think Powell’s commentry should come as much surprise. We advise holding a good amount of cash “dry powder” to spend where opportunity presents itself.
  Some thoughts on the erstwhile Paramount (MTV/Paramount/Viacom owner). It’s the cheapest way to play content by a country mile – it trades at just 14x earnings and owns touchstone content – everything from Top Gun to Yellowstone. And yet we’ve avoided it because of an unclear management plan – news out this week confirms why. The company has rebuffed several +$3B offers for the TV network Showtime, which it owns. Showtime is a pretty small part of the business – it makes shows like Billions. $3B is a good offer. Especially given Paramount’s entire market capitalisation sits around ~$15B. So what gives? Poor management can ruin good value…preference still given to Warner Brothers Discovery (buy) and Disney (buy).
  What Markets will be Watching this Week
  Reserve Bank of Australia (RBA) interest rate decision
  Bank of Canada (BoC) interest rate decision
  US Non-Farm Payrolls
  Bank of Japan (BoJ) interest rate decision