Grayscale Investments, one of the most prominent names in digital asset management, has officially begun the process of becoming a publicly traded company. The firm confirmed this week that it confidentially submitted a draft registration statement with the U.S. Securities and Exchange Commission (SEC), signaling its intent to launch an initial public offering (IPO) later this year.
This move arrives amid a resurgence in the cryptocurrency market, with Bitcoin recently climbing above $120,000 for the first time. As institutional adoption deepens and lawmakers advance supportive legislation during what’s being called “Crypto Week” in Washington, the timing of Grayscale’s announcement aligns with a broader wave of investor enthusiasm and regulatory clarity.
Founded in 2013, Grayscale has grown into a cornerstone of the digital asset space. The firm currently manages more than $33 billion in assets and offers over 35 crypto investment products. Among its offerings is a spot Bitcoin ETF that allows investors to gain exposure to Bitcoin price movements without directly holding the underlying asset. This innovation has positioned Grayscale as a leader in connecting traditional investors to the crypto economy.
The decision to file confidentially allows Grayscale to maintain flexibility as it navigates the IPO process. This common strategy enables companies to engage with regulators and fine-tune their offering away from public scrutiny. However, by confirming the filing publicly, Grayscale also sends a clear message: the firm is ready to play on a larger stage.
The IPO comes on the heels of other major crypto firms moving toward public markets. Last month, stablecoin issuer Circle made a splash with a highly successful listing, and Gemini—backed by the Winklevoss twins—has also filed for its own debut. Grayscale’s move further underscores how digital asset firms are maturing beyond the early-adopter phase and entering mainstream finance.
Importantly, Grayscale has already left its mark on financial regulation. The firm played a critical role in paving the way for spot Bitcoin ETFs in the U.S., winning a significant court battle in 2023 that pressured the SEC to approve such products. While its own Grayscale Bitcoin Trust (GBTC) has since been overtaken in size by BlackRock’s lower-fee iShares Bitcoin Trust, Grayscale’s pioneering efforts have helped shape the entire category.
For investors, the potential IPO is not just about a new crypto stock hitting the market. It’s a signal of the asset class’s institutional credibility and long-term staying power. As more corporations and funds add Bitcoin and other digital assets to their balance sheets, and as Congress takes steps toward a clear regulatory framework, companies like Grayscale stand to benefit from both structural tailwinds and investor demand.
While no timeline has been finalized, industry expectations point to a public debut later this year, pending market conditions and regulatory approval. With its deep product suite, brand recognition, and early-mover advantage, Grayscale’s IPO could mark another key milestone in crypto’s journey from fringe finance to Wall Street fixture.
Welcome to a multi-part article series authored by leading cross-border M&A professionals from CBIZ, Greenberg Traurig LLP, Noble Capital Markets, and Pathfinder Advisors LLC. This series provides a comprehensive guide for middle-market and larger European companies and investors seeking strategic acquisitions in the U.S. across the manufacturing, distribution, logistics, business services, and retail sectors. It will illuminate the compelling market dynamics, operational advantages, and strategic imperatives driving these transatlantic deals now, while also offering practical insights on navigating the complexities of U.S. market entry, robust financial and operational due diligence, talent integration, and regulatory considerations. The series aims to equip company owners, corporate development executives, family offices, and private equity professionals with the knowledge to unlock significant value and establish a resilient U.S. presence.
In an era defined by rapid economic shifts and evolving global dynamics, European enterprises may now have unprecedented opportunities to look across the Atlantic for strategic growth opportunities. The U.S. market, with its vast scale and inherent resilience, could present a compelling landscape for inbound M&A. This first article in our series explores why the current climate favors European acquirers and how strategic U.S. acquisitions could unlock significant value and establish a robust, resilient long-term presence.
THE U.S. ECONOMIC LANDSCAPE: A MAGNET FOR GLOBAL CAPITAL
Several factors contribute to the U.S. market’s allure for European companies. Despite global uncertainties, theAmerican economy consistently demonstrates remarkable resilience and growth, driven by strong domestic demand and a vast consumer base.
For businesses in manufacturing, distribution, logistics, business services, and retail, this can translate into unparalleled opportunities for scaling operations and accessing a diverse, expansive customer demographic. Unlike other regions, the U.S. provides a stable and predictable economic environment, making it a potentially reliable destination for significant capital deployment. Indeed, while some regions have seen a decline in foreign direct investment (FDI), North America has seen an increase, partly due to the U.S. market’s enduring appeal.
Legally and regulatorily, the U.S. provides a stable and transparent system, which is a major draw for European companies. It features strong intellectual property (IP) protections, generally favorable employer-friendly laws in most states, and a robust legal system that supports contract enforcement.
Beyond tolerance, the U.S. actively encourages FDI, recognizing its role in economic development and job creation, making it a highly attractive destination for European capital.
Adding to these draws, the U.S. labor market is generally more operationally flexible compared to many European economies. It features less pervasive unionization, fewer statutory time-off mandates, and largely defined contribution pension structures, all of which may help streamline post-acquisition integration and cost management for European acquirers.
COMPELLING VALUATION DYNAMICS & DEAL STRUCTURES: A BUYER’S WINDOW OF OPPORTUNITY
Recent market adjustments have tempered the soaring valuations seen in previous years, creating a more balanced and favorable buyer’s market. In 2024, average middle market M&A valuations eased to 9.4x EV/EBITDA, down from 9.6x in 2023.
While the median EBITDA multiple also dropped, signaling continued buyer selectivity, the share of deals closing at 10.0x EBITDA or higher rebounded significantly. This suggests that while overall valuations have stabilized, high-quality assets, particularly in service-focused areas, continue to attract strong competition and premium pricing. At the same time, the average enterprise value of targets increased, indicating a strategic shift towards larger, more synergistic acquisitions.
This environment is supported by a constructive lending landscape. Private credit has grown, taking a permanent share of the corporate lending market and offering flexible financing solutions.
Adding to this buyer-favorable backdrop, the U.S. Dollar has lost over 13% of its value against the Euro this year, potentially boosting the valuation case for European acquirers as a stronger Euro effectively discounts U.S. acquisitions by the same margin.
Despite some recent volatility in the middle market debt environment due to factors like credit downgrades and persistent high-yield spreads, optimism about private equity dealmaking remains high. This continued demand, alongside improving macroeconomic conditions, makes the market increasingly conducive to transactions.
Moreover, understanding the nuances of U.S. deal structures—from asset versus stock purchases to the strategic use of earn-outs—is key to optimizing transaction outcomes and aligning interests.
STRATEGIC SUPPLY CHAIN RECONFIGURATION: LOCALIZING FOR RESILIENCE AND OPERATIONAL ADVANTAGE
Global events have clearly highlighted the vulnerabilities of extended supply chains. For many European firms, enhancing supply chain resilience has become a top strategic priority.
While U.S. manufacturing output “barely increased” in 2024, indicating a lag between investment announcements and operational capacity coming online, this may create an opportunity for M&A. Acquiring existing U.S. companies could offer an immediate and impactful solution for nearshoring or reshoring production and distribution capabilities, circumventing these lags and accelerating market entry.
Establishing a U.S. footprint can directly impact lead times, reduces international transportation costs, and mitigates exposure to geopolitical disruptions and tariffs.
European firms are increasingly seeking U.S. acquisitions to create “tariff-proof” manufacturing and supply chains. Imagine a European manufacturer of specialized industrial components acquiring a U.S. distributor with strategically located warehouses; this not only ensures closer proximity to end-customers but could also help build a more secure and efficient North American supply network, providing diversification away from global reliance.
A WELCOMING POLICY ENVIRONMENT: INCENTIVES FOR FOREIGN INVESTMENT AND GROWTH
The U.S. government has adopted a supportive stance towards domestic investment, offering substantial incentives that can indirectly benefit foreign acquirers. Initiatives like the Inflation Reduction Act (IRA) and CHIPS Act, while often associated with specific high-tech manufacturing, create a broader environment that could favor industrial growth.
The CHIPS Act, for example, not only boosts semiconductor production but also strongly encourages supply chain diversification and risk mitigation across related industries. While some specific tax credits might face adjustments, certain benefits of the IRA are expected to remain intact, continuing to make U.S. investment attractive.
This supportive policy environment, combined with a stable regulatory landscape compared to other global jurisdictions, could further de-risk direct foreign investment. The U.S. actively encourages FDI, recognizing its role in economic development and job creation, making it a highly attractive destination for European capital.
Beyond direct governmental initiatives, the U.S. tax environment offers key advantages that may enhance its appeal for cross-border M&A.
U.S. tax law broadly allows for the amortization of goodwill and other intangible assets in the case of asset acquisitions. Moreover, in certain circumstances, transactions structured as stock acquisitions can be treated as asset acquisitions for income tax purposes with the appropriate election, allowing buyers to obtain assets with a “stepped up” tax basis, alongside the benefit of intangible asset amortization.
Importantly for European acquirers, the U.S. maintains a wide treaty network with Europe. This network may enable the efficient repatriation of after-tax earnings with favorable withholding tax rates, further making the U.S. an attractive destination for international expansion.
SECTOR-SPECIFIC READINESS: RIPE OPPORTUNITIES ACROSS INDUSTRIES
Beyond macroeconomic factors, the U.S. market may offer significant opportunities in specific sectors. In manufacturing, there is a strong push for modernization and efficiency, that could make established U.S. facilities ripe for European investment and technological enhancement.
The fragmented nature of the U.S. distribution and logistics sectors may present opportunities for consolidation, allowing European players to build scalable networks. Indeed, recent trends show a noticeable uptick in European buyers seeking to expand their U.S. footprint, often driven by a desire to mitigate tariff impacts.
Business services and retail, driven by a dynamic consumer base and rapid technological adoption, offer avenues for market expansion and digital transformation. For example, a European logistics firm might acquire several regional U.S. trucking companies to quickly establish a national network, leveraging existing customer relationships and infrastructure and benefiting from the observed M&A activity in logistics, where cross-border deals accounted for 44% in 2024.
CONCLUSION: POSITIONING FOR ENDURING SUCCESS IN THE U.S.
The combination of attractive valuations, a resilient market, strategic supply chain needs, and a supportive policy environment may create a window of opportunity for European companies.
Proactive engagement in U.S. M&A now is not just about growth; it is about building long-term resilience and securing a dominant position in a critical global market.
Our next article, “Expanding Your Footprint: Strategic Opportunities in U.S. Manufacturing, Distribution & Logistics,” will delve deeper into the specific operational and technological advantages awaiting European acquirers in these core industrial sectors.
ABOUT THE AUTHORS:
Nico Pronk is Managing Partner, CEO, and Head of Investment Banking at Noble Capital Markets. Nico has over 35 years of experience working with IPOs, Secondary Offerings, Private Placements and Mergers and Acquisitions including complex cross-border transactions. During his career he has served as Director or Advisor to numerous privately held and publicly traded companies.
Bruce C. Rosetto is a Senior Partner and Shareholder at Greenberg Traurig LLP and represents private and public companies, private equity funds, hedge funds, investment banks, and entrepreneurial clients in a wide variety of industries. He has broad experience in domestic and international mergers and acquisitions, raising capital, securities work, private placement financings, corporate governance, alternate assets, and projects qualifying for investment under the EB-5 Entrepreneur Investment Visa Program. He also forms private equity funds and family offices and represents affiliated portfolio companies.
Fred Campos is a Managing Director atCBIZ with more than 20 years of experience in accounting and finance and more than 300 executed buy-side and sell-side M&A engagements. Prior to joining CBIZ, Fred founded and led a boutique advisory services firm focused on mergers and acquisitions and exit readiness. Earlier in his career, he was part of the cross-border practice at Ernst & Young (EY) where he assisted EY’s global clients on cross-border deals. Fred also established and led the regional transaction advisory services practice for a global top tier public accounting firm.
Mark Chaves, Managing Director with CBIZ, assists companies with domestic and international tax planning and structuring, mergers and acquisitions, and business reorganizations. Mark has focused his career on working with multinational corporations to manage cross-border direct and indirect tax issues, foreign tax credit and repatriation planning, reorganization of expatriate and inpatriate tax matters, and ASC 740 reporting. Additionally, Mark assists individuals with international estate planning, inbound tax structuring of investments in U.S. real property, and pre-immigration planning as well as with cross-border tax issues and filings for FINCEN compliance.
Matthew (Matt) Podowitz is the founder and Principal Consultant of Pathfinder Advisors LLC, bringing experience on 400+ global M&A engagements to his clients. Matt specializes in the critical operational and technology aspects of M&A transactions, providing due diligence, carve-out, integration, and value creation services. Leveraging his perspective as a dual US/EU citizen, he provides seamless support for cross-border M&A transactions through every step of the transaction lifecycle in both markets. His background includes leadership roles at firms like Ernst & Young, Grant Thornton, and CFGI.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and fields transformative, affordable technology, platforms, and systems for United States National Security related customers, allies, and commercial enterprises. Kratos is changing the way breakthrough technologies for these industries are rapidly brought to market through proven commercial and venture capital backed approaches, including proactive research, and streamlined development processes. At Kratos, affordability is a technology, and we specialize in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training and combat systems and next generation turbo jet and turbo fan engine development. For more information go to www.kratosdefense.com.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Directive. Building on President Trump’s June 6th Executive Order to Unleash American Drone Dominance, this past week Defense Secretary Hegseth signed a memo removing restrictive policies on drone innovation. By leveraging savings from DOGE, the DOD will help power a technological leapfrog and bolster the U.S. drone industry by approving hundreds of made-in-America drone products for purchase by the military. These goals play right into Kratos’ wheelhouse, in our view.
New Focus. The directive focuses on three key areas: strengthening the U.S. drone manufacturing base, arming combat units with a variety of low-cost drones, and ensuring those combat units are well-trained on how to use them. Kratos has been expanding its drone production capabilities, which the recent capital raise will turbocharge. Its drone technology is proven and available today, and the Company is the leader in providing target drones to the military.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
First quarter financial results. For the first quarter of fiscal year (FY) 2026, AZZ reported adjusted net income of $53.8 million or $1.78 per share compared to $44.0 million or $1.46 per share during the prior year period and our estimate of $50.1 million or $1.66 per share. Compared to the first quarter of FY 2025, sales increased 2.1% to $422.0 million. Adjusted EBITDA increased 13.1% to $106.4 million, representing 25.2% of sales compared to 22.8% of sales during the prior year period.
Updating estimates. We have increased our FY 2026 EBITDA and EPS estimates to $388.3 million and $6.00, respectively, from $381.7 million and $5.83. In FY 2026, our estimates reflect average gross margins of 30.0% and 20.3% for the Metal Coatings and Precoat Metals segments, respectively. Moreover, we have published our estimates for 2027 through 2031 in the back of this report. Our forward estimates reflect an average 30.5% gross margin as a percentage of sales for the Metal Coatings segment, compared to the prior average of 28.0%. The average gross margin as a percentage of sales for the Precoat Metals business is unchanged at 20.3%.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Zimmer Biomet (NYSE: ZBH), one of the world’s leading medical technology companies, announced a definitive agreement to acquire Monogram Technologies (NASDAQ: MGRM), a fast-growing robotics innovator, in a strategic move that could redefine the future of orthopedic surgery. The $177 million all-cash deal includes an upfront payment of $4.04 per share and a potential additional $12.37 per share via a non-tradeable contingent value right (CVR), contingent on milestones through 2030.
The acquisition marks a major milestone in Zimmer Biomet’s mission to deliver a next-generation surgical robotics platform. Monogram brings proprietary semi- and fully autonomous robotic systems designed for total knee arthroplasty (TKA), bolstered by FDA clearance in early 2025. The deal also positions Zimmer Biomet to be the first company in orthopedics to offer a fully autonomous surgical robot—a potential game-changer in an increasingly tech-driven sector.
Zimmer Biomet’s existing ROSA® Robotics platform already leads in imageless robotics and is nearing 2,000 global installations. By integrating Monogram’s AI-driven, CT-based surgical systems, the company expands its portfolio to address varying surgeon preferences—manual, semi-autonomous, or fully autonomous—and across different anatomical procedures.
This acquisition gives Zimmer Biomet a first-mover advantage in the race for orthopedic robotics innovation. With Monogram’s platform, the company aims to deliver safer, more efficient surgeries and drive adoption across hospitals and ambulatory surgery centers (ASCs) seeking digital and robotic enhancements.
Monogram’s technology complements Zimmer Biomet’s current development pipeline, including ROSA Knee with OptimiZe, ROSA Posterior Hip, and ROSA Shoulder—key components of its multi-year plan to remain the global leader in orthopedic robotics.
Financially, the acquisition is expected to be neutral to Zimmer Biomet’s adjusted earnings per share through 2027 and accretive thereafter. Management projects high-single-digit returns on invested capital by year five, fueled by accelerated robotic knee adoption, greater share of wallet, and broader customer reach in the U.S. and internationally.
Tariffs and broader market volatility have weighed on the healthcare sector in 2025, but Zimmer Biomet’s move signals a long-term, innovation-led growth strategy. By enhancing its robotics suite, the company is positioning itself to capture demand in one of the fastest-growing medtech segments.
With regulatory approval and Monogram shareholder consent still pending, the merger is expected to close later this year. Once complete, Zimmer Biomet will be uniquely positioned with the industry’s most flexible and comprehensive orthopedic robotics ecosystem.
This acquisition isn’t just a strategic bolt-on; it’s a forward-looking bet on where surgery is headed—autonomous, data-driven, and personalized. For investors seeking exposure to the convergence of AI, robotics, and healthcare, Zimmer Biomet’s expanding portfolio offers a compelling case for long-term value creation.
In an unexpected fiscal twist, the U.S. Treasury reported a $27 billion surplus in June — the first time in years the federal government has posted black ink for this particular month. Driving the surprise? A surge in customs duties fueled by newly imposed tariffs under President Donald Trump’s aggressive trade agenda.
The surplus, while modest compared to the year’s broader budget picture, stands in stark contrast to the $316 billion deficit recorded in May. More importantly, it signals how tariff policy is beginning to influence federal revenues in meaningful ways, even as concerns about growing debt and interest costs remain front and center.
The most striking data point from the report was the $27 billion in customs duties collected during June — a 301% increase compared to June 2024. The revenue bump is largely attributed to Trump’s across-the-board 10% tariffs enacted in April, along with a broader set of reciprocal tariffs targeting specific trade partners.
So far this fiscal year, tariff collections have reached $113 billion, an 86% increase year-over-year. These revenues are helping to temporarily offset the impact of broader fiscal challenges, including persistently high debt servicing costs and increased spending in select areas.
This spike in duties comes as negotiations continue with several of America’s largest trading partners. While some sectors — particularly manufacturing and agriculture — have expressed concern about long-term consequences, the short-term impact on federal finances is undeniable.
The June surplus wasn’t only about tariffs. Total federal receipts rose 13% year-over-year, while outlays declined by 7%. Adjusted for calendar shifts, the month would have otherwise shown a $70 billion deficit — still an improvement, but a reminder that structural deficits remain.
Year-to-date, government receipts are up 7%, outpacing the 6% growth in spending. However, the fiscal year deficit still stands at $1.34 trillion with three months remaining, reflecting broader trends that include rising entitlement costs and major legislative spending.
Despite the June surplus, one area of spending continues to cast a long shadow: interest on the national debt. Net interest payments reached $84 billion in June — higher than any other spending category except Social Security. For the fiscal year so far, the U.S. has paid $749 billion in net interest, with projections pointing toward a staggering $1.2 trillion in interest payments by year-end.
These figures highlight the growing burden of servicing the nation’s $36 trillion debt, especially as Treasury yields remain elevated. While Trump has pressured the Federal Reserve to cut interest rates — a move that would help reduce the cost of borrowing — Chair Jerome Powell has signaled caution, particularly given the potential inflationary effects of the new tariffs.
The June surplus provides a rare moment of good news for Washington’s balance sheet, but it may not signal a lasting trend. Much of the improvement stems from one-time revenue boosts and calendar effects. Long-term fiscal stability will still depend on broader policy decisions around spending, entitlement reform, and economic growth.
That said, the recent uptick in tariff-related revenues highlights how trade policy — often viewed primarily through an economic or geopolitical lens — can play an important role in shaping government finances.
If tariff collections continue to surge, they may provide more than just leverage in trade talks — they could also help bridge some of the budget gap. But as with all policy tools, the question remains: at what cost?
Silver prices surged to their highest level since 2011 this week, fueled by rising premiums in the U.S., tight physical supply in London, and increasing industrial demand. The white metal climbed as high as $37.59 per ounce in the spot market, with U.S. futures contracts pushing toward $38.46—an unusually large gap that signals growing pressure in the global silver supply chain.
This recent rally underscores silver’s unique status as both a monetary asset and a critical industrial material, especially in sectors tied to clean energy. Up more than 27% year-to-date, silver has begun to outpace gold and other precious metals, attracting the attention of traders, long-term investors, and industrial buyers alike.
One of the more telling developments this week is the growing dislocation between the London spot price and U.S. futures contracts. Typically, such discrepancies are short-lived as traders use arbitrage to align prices. But this time, the gap is persisting—indicating logistical constraints and a tightening supply chain.
The root of this premium appears to stem from earlier in the year, when U.S. tariff threats on silver imports spurred a surge in futures prices. That sparked a rush to secure physical metal for delivery to New York’s COMEX warehouses. While the White House later confirmed that bullion would not be exempt from tariffs, the resulting outflow drained accessible inventories.
According to Daniel Ghali of TD Securities, the silver floating in the market is now at record lows. LBMA silver’s free-float has reached its lowest levels in recorded history, with analysts emphasizing that a physical squeeze may be necessary to rebalance the market.
Another warning sign: borrowing costs for silver in London have surged. The one-month implied lease rate jumped to an annualized 4.5% on Friday—well above its usual near-zero levels. This is a clear indicator that silver in London is becoming harder to access, particularly for short sellers and industrial users that rely on short-term lending of physical silver.
Much of London’s silver is held by exchange-traded funds (ETFs), which are not easily available for lending. Bloomberg data shows a 1.1 million ounce inflow into silver-backed ETFs on Thursday alone. While this is good news for long-term investors, it exacerbates near-term scarcity for traders seeking physical delivery.
Silver’s recent surge is also being driven by robust demand from both sides of its identity: as a safe-haven asset and as an industrial input. Its role in clean energy—especially in photovoltaic solar panels—has elevated silver’s strategic importance. According to the Silver Institute, the market is now in its fifth consecutive annual deficit.
As the world pushes further into renewable energy technologies, demand for silver in solar, EVs, and advanced electronics is expected to accelerate.
With inventory levels falling, premiums rising, and industrial demand growing, silver’s bullish outlook appears to be more than a short-term spike. If market dislocations persist and supply tightness continues, silver could enter a new phase of price discovery—driven as much by fundamentals as by financial flows.
Investors would be wise to watch the $40 level as the next psychological milestone. And if the physical squeeze intensifies, we may be entering a new era for this historically underappreciated metal.
U.S. airline stocks took flight on Thursday after Delta Air Lines (NYSE: DAL) posted quarterly earnings that beat expectations, signaling a potential rebound for a sector that’s struggled amid tariff-related uncertainty and shifting consumer behavior.
Delta’s upbeat results ignited a broad rally, with shares of American Airlines (AAL) and United Airlines (UAL) surging more than 11%, and Southwest Airlines (LUV) and Alaska Air (ALK) climbing over 5% and 8%, respectively. The rally comes after months of cautious sentiment in the travel sector, with many carriers pulling back 2025 forecasts in response to global economic uncertainty and weaker forward bookings.
Delta’s Q2 results provided a much-needed dose of optimism. The company reported adjusted revenue of $15.5 billion and earnings per share (EPS) of $2.10—narrowly beating Wall Street expectations. Operating income hit $2 billion, with a 13.2% margin, slightly below last year’s 14.7% but still robust in a challenging environment.
Crucially, Delta said booking activity had stabilized, offering reassurance that passenger demand is holding steady despite consumer jitters related to trade policy. Premium ticket revenue rose 5% year over year, and loyalty program revenue climbed 8%—a strong sign that high-value travelers remain engaged.
Delta’s CEO Ed Bastian struck an optimistic tone, stating, “As we look to the second half of our centennial year, we remain focused on executing our strategic priorities and managing the levers within our control to deliver strong earnings and cash flow.”
The momentum quickly spread across the industry. Investors appeared encouraged that Delta’s success could be a bellwether for other major carriers, all of which are slated to report earnings in the next two weeks. With oil prices down significantly—a critical cost input for airlines—there is growing belief that airlines could outperform expectations in the second half of the year.
Delta reported an 11% year-over-year drop in fuel expenses, driven by a 14% reduction in its per-gallon price. That trend is expected to benefit peers like United, American, and Southwest as they release their financials.
Deutsche Bank analysts noted that United and American are both poised to beat consensus earnings, with regional and niche carriers like Sun Country (SNCY) and SkyWest (SKYW) also showing potential for outperformance.
After a rough start to the year marked by economic headwinds, regulatory uncertainty, and supply chain pressures, Thursday’s surge in airline stocks may signal the start of a recovery phase. While risks remain—including volatile energy prices, evolving travel patterns, and the impact of trade policies—Delta’s performance shows that airlines with diversified revenue streams and efficient operations can still thrive.
Investors will be watching closely as earnings from other carriers roll in. If they echo Delta’s results and reintroduce full-year guidance, it could further boost confidence in the sector—and signal clear skies ahead for airline investors
Bitcoin has once again captured the spotlight after smashing through the $112,000 mark this week—its first all-time high since May 2025. This milestone solidifies the cryptocurrency’s remarkable comeback and affirms its growing relevance in mainstream finance. As of Thursday morning, BTCUSD is trading slightly below its record, consolidating gains while traders and investors alike look ahead to what’s next.
The digital asset’s latest rally is driven by a combination of favorable technicals, strengthening institutional demand, and a more constructive policy environment in the U.S. That’s an increasingly powerful trifecta in a year where markets have otherwise been defined by policy uncertainty and choppy economic data.
Technically, Bitcoin has broken above the top of a descending channel it’s been trading in since late May. This kind of breakout is often viewed as a bullish continuation signal, suggesting the uptrend that started earlier in the year may still have room to run.
Momentum indicators such as the Relative Strength Index (RSI) remain strong but not yet overbought, implying the rally could continue without immediate risk of a pullback. A widely used forecasting technique known as the measuring principle places Bitcoin’s next major upside target near $146,400, suggesting a potential 30% gain from current levels.
Fundamentally, Bitcoin’s breakout is underpinned by a steady stream of positive developments. Notably, more corporations have begun adding Bitcoin to their balance sheets—signaling long-term belief in its value as a hedge or store of wealth. Meanwhile, lawmakers in Washington are making progress on bipartisan crypto legislation aimed at providing regulatory clarity, particularly around digital asset custody and taxation.
Additionally, the rise of spot Bitcoin ETFs continues to attract institutional money that might otherwise avoid crypto exchanges. While trading volumes on platforms like Coinbase remain muted, demand through custodial services and ETFs is on the rise—a sign that “quiet accumulation” is likely underway.
Bitcoin is up nearly 19% year-to-date, a performance that puts it in line with top-performing tech stocks like Microsoft and Nvidia. For many investors, this reinforces the asset’s appeal as a digital growth play with asymmetric upside potential.
While the medium- and long-term outlook remains bullish, investors should keep an eye on near-term support. The$107,000level, just under the breakout trendline and 50-day moving average, could serve as the first key floor during any pullbacks.
A break below that might open the door for a retest of the psychological$100,000 level, which coincides with a dense area of price action from late 2024 and early 2025.
Bitcoin’s new all-time high marks more than just a number—it reflects growing maturity in the asset class. Whether you’re a long-term believer or a tactical trader, the setup ahead presents both opportunity and risk. But for now, Bitcoin’s breakout confirms what many in the crypto space have long expected: the next chapter of mainstream adoption is already underway.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
R&D Day Highlighted Science, Current Trials, Future Indications. We attended the Eledon R&D Day on July 9 to hear and evaluate the progress in tegoprubart development. The presentations focused on the current clinical indications in renal transplantation, islet cell transplantation, xenotransplants, and plans for liver and other solid organ transplants. Conference presentation dates for upcoming data announcements were also announced.
Phase 1b Data Update Is Planned For August. The Phase 1b open-label trial has been expanded to enroll up to 36 patients, an increase from the original 9 patients. Data is scheduled for presentation at the World Transplant Congress on August 9, 2025. Previous data presentations have included 13 patients. We expect to see follow-up data from more patients treated longer, with data from additional patients beyond the initial 12-month trial duration.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
FY 2026 first quarter financial results. AZZ reported adjusted net income of $53.8 million or $1.78 per share compared to $44.0 million or $1.46 per share during the prior year period. We had forecast adjusted net income of $50.1 million or $1.66 per share. Compared to the first quarter of FY 2025, sales increased 2.1% to $422.0 million. Adjusted EBITDA increased 13.1% to $106.4 million, representing 25.2% of sales compared to 22.8% of sales during the prior year period. We had projected adjusted EBITDA of $99.5 million.
Meaningful debt reduction. Cash from operations during the fiscal first quarter amounted to $314.8 million, including proceeds of $273.2 million received from AVAIL’s sale of the Electrical Products Group. Following debt reduction of $285.4 million, AZZ ended the quarter with a net leverage ratio of 1.7x TTM adjusted EBITDA. As of May 31, long-term debt, gross was $614.9 million compared to $900.3 million on February 28. Net of unamortized debt issuance costs, long-term debt was $569.8 million on May 31 compared to $852.4 million on February 28.
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Middle market companies often sit in a unique sweet spot: large enough to scale and access capital markets, yet small enough to maintain agility and entrepreneurial drive. For investors looking beyond the mega-cap names, these companies can offer strong growth potential and underappreciated value. However, one area where their size shows is in their vulnerability to policy shocks—particularly tariffs.
With the recent news of proposed pharmaceutical import tariffs as high as 200%, there is renewed focus on how U.S. trade and economic policy can affect publicly traded middle market firms. While much of the attention gravitates toward household names in the S&P 500, it is often middle market companies that feel the effects of these shocks most acutely—both in risk and in opportunity.
Why Middle Market Companies Are More Sensitive to Policy Changes
Unlike large-cap multinational corporations, which tend to have well-diversified supply chains and extensive legal and lobbying infrastructure, many mid-sized public companies operate with leaner operations and more concentrated supplier networks. A sudden 25% or 200% tariff on an input or finished product can dramatically alter their cost structure or compress margins.
For example, a middle market pharmaceutical manufacturer importing active ingredients from Asia might not have the domestic sourcing flexibility or pricing power of a top-tier player. Similarly, industrial firms relying on imported steel or semiconductors could find themselves needing to adjust production timelines or renegotiate customer contracts quickly.
Navigating Through the Volatility
Yet these challenges often breed innovation. One strength of middle market firms is their ability to pivot faster than larger peers. When tariffs shift the economics of a product line, smaller public companies often respond with strategic sourcing, nearshoring, or product reengineering at speeds larger bureaucracies struggle to match.
Investors should pay close attention to management’s ability to communicate and execute these adjustments. Companies that respond proactively to tariffs may emerge stronger, with improved operational resilience and competitive differentiation.
A Hidden Advantage: Domestic Focus
Interestingly, many middle market stocks have a geographic advantage when it comes to tariffs. Firms that focus primarily on domestic customers or rely on U.S.-based production may see relatively limited impact from import duties. In fact, some could benefit as competitors with overseas exposure face higher costs or delays.
This potential insulation is particularly relevant in sectors like building materials, specialty manufacturing, and consumer services—all areas where middle market companies often shine.
Long-Term Opportunities for Investors
For long-term investors, the key is to identify which middle market companies are not just reacting, but adapting and innovating in the face of policy changes. These firms may offer compelling upside potential when the dust settles.
Policy shocks like tariffs are not going away. But they don’t necessarily have to derail performance. In many cases, they can highlight hidden strengths—operational flexibility, strategic focus, and leadership that can thrive in uncertainty.
In an era of shifting policy, these resilient middle market growth stocks can be some of the most rewarding investments in the public markets.
The Federal Reserve is positioning for interest rate cuts in 2025, but internal divisions over timing and magnitude are creating uncertainty that savvy investors can capitalize on. Recent FOMC meeting minutes reveal a central bank walking a tightrope between economic resilience and emerging warning signs. With rates held at 4.25% to 4.5% for the fourth consecutive meeting, Fed officials acknowledge that “most participants assessed that some reduction” would be appropriate before year-end. The drivers are clear: job growth is moderating, consumer spending is weakening, and policymakers believe tariff-related inflation pressures will prove “temporary and modest.”
However, the timeline remains contentious. Some officials floated cuts as early as July’s meeting, while others advocate waiting until 2026. This split reflects conflicting economic signals that make the Fed’s job increasingly complex. The data tells a nuanced story—June’s job growth of 147,000 exceeded expectations, pushing unemployment down to 4.1%, yet consumer spending declined for two consecutive months, and retail sales dropped 0.9% in May, suggesting Americans are pulling back on discretionary purchases. President Trump’s evolving tariff strategy adds another layer of complexity, with fresh threats of 200% duties on pharmaceuticals and shifting trade negotiations creating policy uncertainty, though recent data shows tariffs haven’t significantly impacted consumer prices.
For investors focused on publicly traded middle market companies, this rate environment represents both challenge and opportunity. These firms—typically valued between $100 million and $3 billion—occupy a strategic sweet spot between agile private companies and rate-insulated mega-caps. Middle market companies are particularly sensitive to interest rate changes because they rely more heavily on traditional debt financing for growth, face direct impacts on borrowing costs and capital allocation decisions, and trade at valuation multiples that respond quickly to rate expectations.
If aggressive rate cuts materialize, middle market stocks could experience significant multiple expansion. Lower debt servicing costs would boost margins while improved investor sentiment drives capital toward growth-oriented sectors like technology, manufacturing, and specialty services. Conversely, if cuts are delayed or modest, capital costs remain elevated, pressuring margins and slowing expansion plans. In this scenario, companies with fortress balance sheets and disciplined cash management will outperform leveraged peers.
Despite internal disagreements, the Fed’s message is clear: they’re ready to act when data justifies it. This creates a compelling setup for investors willing to position ahead of the eventual pivot. Middle market stocks with strong fundamentals appear particularly attractive, as rates normalize and these companies could benefit from renewed investor appetite for undervalued growth stories, improved access to capital markets, and enhanced M&A activity as strategic buyers regain confidence.
The Fed’s cautious approach to rate cuts reflects genuine economic uncertainty, but history suggests that patient investors who position during periods of policy transition often capture the most upside. For middle market investors, the current environment offers a rare opportunity to acquire quality companies at reasonable valuations before the market fully prices in lower rates. The key is identifying businesses with strong competitive positions, manageable debt loads, and clear paths to growth once monetary conditions ease. The spotlight is about to return to middle market stocks—the question is whether investors will be ready.
