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Putin vows to crush ‘armed mutiny’ after mercenaries seize southern Russian city
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© Reuters. FILE PHOTO: Founder of Wagner private mercenary group Yevgeny Prigozhin leaves a cemetery before the funeral of a Russian military blogger who was killed in a bomb attack in a St Petersburg cafe, in Moscow, Russia, April 8, 2023. REUTERS/Yulia Morozova/Fi
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ROSTOV-ON-DON, Russia (Reuters) -Russian President Vladimir Putin vowed to crush an armed mutiny after the private army of mercenary boss Yevgeny Prigozhin seized control of a southern city as part of an attempt to oust the military leadership. In Russia’s first armed insurrection since the Chechen wars decades ago, heavily armed fighters from Prigozhin’s Wagner militia were in control of the streets of Rostov-on-Don, a city of more than a million people close to the border with Ukraine. Prigozhin, whose private army fought the bloodiest battles in Ukraine even as he feuded for months with the top brass, said he had captured the headquarters of Russia’s Southern Military District after leading his forces into Russia from Ukraine. In Rostov, which serves as the main rear logistical hub for Russia’s entire invasion force, residents milled about, filming on mobile phones, as Wagner fighters in armoured vehicles and huge battle tanks took up positions in the city centre. One tank was wedged between stucco buildings with posters advertising the circus. Another had “Siberia” daubed in red paint across the front, a clear statement of intent to sweep across the breadth of Russia. A Russian security source told Reuters that Wagner fighters had also seized military facilities in the city of Voronezh, further north on the road towards Moscow, where the governor said operations were under way to put down the mutiny. Reuters could not independently confirm the situation there. In Moscow, there was an increased security presence on the streets. Red Square was blocked off by metal barriers. “Excessive ambitions and vested interests have led to treason,” Putin said in a televised address. “It is a blow to Russia, to our people. And our actions to defend the Fatherland against such a threat will be harsh.” “All those who deliberately stepped on the path of betrayal, who prepared an armed insurrection, who took the path of blackmail and terrorist methods, will suffer inevitable punishment, will answer both to the law and to our people.” A defiant Prigozhin swiftly replied that he and his men had no intention of turning themselves in. “The president makes a deep mistake when he talks about treason. We are patriots of our motherland, we fought and are fighting for it,” Prigozh said in an audio message. “We don’t want the country to continue to live in corruption and deceit.” In a series of hectic messages overnight, Prigozhin demanded Defence Minister Sergei Shoigu and the chief of the general staff Valery Gerasimov come to see him in Rostov. Western capitals said they were closely following the situation in nuclear-armed Russia. The White House said President Joe Biden was briefed. “This represents the most significant challenge to the Russian state in recent times,” Britain’s defence ministry said. “Over the coming hours, the loyalty of Russia’s security forces, and especially the Russian National Guard, will be key to how this crisis plays out.” Prigozhin, a former convict and long-time ally of Putin, leads a private army that includes thousands of former prisoners recruited from Russian jails. His men took on the fiercest fighting of the 16-month Ukraine war, including the protracted battle for the eastern city of Bakhmut. He railed for months against the regular army’s top brass, accusing generals of incompetence and of withholding ammunition from his fighters. This month, he defied orders to sign a contract placing his troops under Defence Ministry command. ALLEGED AIR STRIKE He launched the apparent mutiny on Friday after alleging that the military had killed a large number of his fighters in an air strike. The Defence Ministry denied it. “Those who destroyed our lads, who destroyed the lives of many tens of thousands of Russian soldiers, will be punished. I ask that no one offer resistance…,” Prigozhin said. “There are 25,000 of us and we are going to figure out why chaos is happening in the country,” he said, promising to destroy any checkpoints or air forces that got in Wagner’s way. He later said his men had been involved in clashes with regular soldiers and had shot down a helicopter. Russia’s FSB security service opened a criminal case against Prigozhin for armed mutiny and said his statements were “calls for the start of an armed civil conflict on Russian territory”. MILITARY CONVOY At about 2 a.m. (2300 GMT), Prigozhin posted a message on the Telegram app saying his forces were in Rostov and ready to “go all the way” against the top brass and destroy anyone who stood in their way. At about 5 a.m. (0200 GMT), the administration of the Voronezh region, on the M-4 motorway between Rostov and Moscow, said on Telegram that a military convoy was on the highway and urged residents to avoid using it. Unverified footage posted on social media showed a convoy of assorted military vehicles, including at least one tank and one armoured vehicle on flatbed trucks. It was not clear where they were, or whether the covered trucks in the convoy contained fighters. Some of the vehicles were flying the Russian flag. Prigozhin denied that he was trying to stage a military coup. He said he had led his fighters out of Ukraine to Rostov, where a video posted by a pro-Wagner Telegram channel showed him, seemingly relaxed, conversing with two generals at the Southern Military District headquarters. “We have arrived here, we want to receive the chief of the general staff and Shoigu. Unless they come, we’ll be here, we’ll blockade the city of Rostov and head for Moscow,” he said in the video. Army Lieutenant-General Vladimir Alekseyev issued a video appeal asking Prigozhin to reconsider his actions. “Only the president has the right to appoint the top leadership of the armed forces, and you are trying to encroach on his authority,” he said. An unverified video on a Telegram channel close to Wagner showed the purported scene of an air strike against Wagner forces. It showed a forest where small fires were burning and trees appeared to have been broken by force. There appeared to be one body, but no more direct evidence of any attack.
It carried the caption: “A missile attack was launched on the camps of PMC (Private Military Company) Wagner. Many victims. According to eyewitnesses, the strike was delivered from the rear, that is, it was delivered by the military of the Russian Ministry of Defence.” The Defence Ministry said the allegation was false.
On Friday, Argus increased its stock price target on Rithm Capital Corp. (NYSE: RITM) to $13.00, up from the previous $12.00, while reaffirming its Buy rating on the stock. The firm highlighted the company’s ongoing transformation and expansion efforts as the rationale behind the revised target price.
Rithm Capital, which rebranded from New Residential Investment Corp. in August 2022, has since transitioned to internal management after previously being managed by Fortress Investment Group. This change is part of a broader transformation of the company’s business model initiated following the financial crisis in late March 2020.
The company has been actively growing its mortgage servicing operations and seizing new debt-related investment opportunities. In its expansion efforts, Rithm Capital has acquired a 50% interest in GreenBarn Investment Group, a commercial real estate equity and debt investment management firm.
Further bolstering its portfolio, Rithm Capital has also made significant acquisitions, including purchasing $1.4 billion worth of Marcus consumer loans from Goldman Sachs for $145 million. Moreover, the company has completed the acquisition of Computershare Mortgage Services Inc. and its affiliates, including Specialized Loan Servicing LLC (SLS), for an approximate total of $720 million.
Completing its notable transactions, Rithm Capital finalized the acquisition of the $33 billion alternative asset manager Sculptor Capital Management (NYSE:) in the fourth quarter of 2023. These strategic moves have contributed to the firm’s positive outlook on Rithm Capital’s stock and its increased price target.
InvestingPro Insights
In light of Argus’s stock recent price target increase for Rithm Capital Corp. (NYSE: RITM), InvestingPro data further supports the optimistic outlook. Rithm Capital’s market capitalization stands at a robust $5.55 billion, while maintaining an attractive P/E ratio of 7.41, indicating that the stock may be undervalued relative to its earnings.
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The company’s significant dividend yield of 8.73% as of the last recorded date, coupled with a history of maintaining dividend payments for 12 consecutive years, reflects a strong commitment to shareholder returns.
InvestingPro Tips suggest that while analysts have revised earnings downwards for the upcoming period, the company’s stock price movements have been quite volatile, trading near its 52-week high. This could present opportunities for investors looking for value plays with substantial dividend income.
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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
On Friday, JPMorgan upheld its Overweight rating on CK Infrastructure Holdings (1038:HK) (OTC: CKISY) with a consistent price target of HK$50.00. The firm’s analysis was based on a review of the company’s financial year 2023 results and current operating trends. Adjustments were made to the earnings forecasts for the years 2024 and 2025, with a slight reduction for 2024 by 2% and an increase for 2025 by 2%. These revisions take into account the influence of regulatory changes, inflation, and fluctuating exchange rates on the company’s regulated assets, particularly in the United Kingdom, Australia, and other regions.
The updated model reflects the latest developments and anticipates the potential financial impact on CK Infrastructure. The firm has decided to roll forward its price target to June 2025, while maintaining the previous target of HK$50. The Overweight rating suggests that JPMorgan continues to view the stock favorably in comparison to the sector average.
CK Infrastructure Holdings, which operates a diversified portfolio of infrastructure businesses, has been assessed for its performance and outlook in light of various external factors. The company’s exposure to regulatory resets and economic conditions in different geographies necessitates a nuanced understanding of its earnings potential.
The revised earnings estimates are a direct result of the firm’s comprehensive evaluation of the company’s regulated assets. These assets, which are subject to oversight by regulatory bodies, can be affected by policy changes and economic shifts, such as inflation and currency exchange rates.
JPMorgan’s reaffirmation of the Overweight rating indicates confidence in CK Infrastructure’s ability to navigate the complexities of its operating environment. The price target of HK$50 remains unchanged, signaling the firm’s belief in the company’s value proposition and its prospects for the future.
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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
On Friday, Argus maintained a Buy rating on Ashland Inc . (NYSE: NYSE:) and increased the stock’s price target to $118 from $109. This adjustment suggests a potential total return of approximately 21%, including dividends, based on the current share prices.
The specialty chemicals and additives provider has experienced underwhelming operational and financial performance over recent quarters, including the second quarter of 2024. This was attributed to slower economic growth in key regions such as China, Europe, and parts of Asia. These areas faced challenges due to soft customer demand and ongoing inventory destocking by suppliers, which adversely affected Ashland’s revenue and profit margins.
Despite these challenges, there have been positive signs in the last quarter indicating a shift in market conditions. Ashland’s management has reported a gradual increase in demand across most of the company’s end markets.
According to Argus, this improvement is a result of the destocking cycle nearing its end and customer demand beginning to rise, which are seen as favorable trends for Ashland’s future growth.
The revised stock price target reflects the analyst’s confidence in Ashland’s recovery trajectory as the market dynamics that previously hindered the company’s performance are starting to reverse. The upward revision in the price target is based on the expectation of a continued recovery in customer demand patterns and the conclusion of inventory destocking.
Investors and market watchers will be monitoring Ashland’s progress closely, as the company aims to capitalize on the improving demand in its various markets and work towards delivering value to its shareholders.
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InvestingPro Insights
As Argus maintains a positive outlook on Ashland Inc. (NYSE: ASH), highlighting the potential for a 21% total return, InvestingPro data provides additional insights into the company’s financial health and market performance.
Ashland’s management’s aggressive share buyback strategy and a high shareholder yield are noteworthy, as noted by InvestingPro Tips. Furthermore, the company’s consistent dividend growth, with dividends raised for five consecutive years and maintained for 54 years, underscores its commitment to shareholder returns.
From a market perspective, Ashland’s stock is trading near its 52-week high, with analysts predicting profitability for the year. The company’s strong liquidity position, with liquid assets surpassing short-term obligations, is reassuring for investors.
Key financial metrics include a market capitalization of $4.98 billion, a P/E ratio of 26.25, and a dividend yield of 1.64%. Despite a decline in revenue growth over the last twelve months, the stock has experienced a significant price uptick, with a 29.41% total return over the last six months.
For those considering a deeper analysis of Ashland, InvestingPro offers additional insights. There are currently 11 more InvestingPro Tips available for Ashland Inc., which can be accessed by visiting https://www.investing.com/pro/ASH. To enhance your investing strategy with these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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