Live Markets: Low crowding + earnings surprise = share rally

Svenska Cellulosa Aktiebolaget SCA

23/01/2024 10:46

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    LOW CROWDING + EARNINGS SURPRISE = SHARE RALLY
    As today's drop in Logitech  LOGN.S  shares shows, positioning is key in shaping share price
reaction to earnings. 
    The Swiss computer peripherals maker had risen 36% in the past three months and its guidance
hike was arguably already baked in, sparking profit taking.
    To anticipate possible outsized moves, Citi has looked at investor positioning levels going
into the numbers.
    Shares with low crowding scores and buy or neutral ratings are candidates for positive
reactions, while sell-offs could be in store for those with high crowding and sell ratings.
    For this week, Citi anticipates positive surprises from Sartorius  SATG.DE , Svenska
Cellulosa  SCAb.ST  and Telia  TELIA.ST , which are all relatively uncrowded.
    It sees negative surprises from relatively crowded Epiroc  EPIRa.ST  and Nokia  NOKIA.HE .
    Citi had expected a positive surprise from Logitech but its crowding score was relatively
high at 60%.  
    
    (Danilo Masoni)
    ***** 
 
    
    FOR TUESDAY'S OTHER LIVE MARKETS POSTS:
    UTILITIES AND REAL ESTATE WEIGH ON STOXX CLICK HERE     
    BOJ STRUGGLES WITH A DEFLATIONARY STATE OF MIND CLICK HERE