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11:04 a.m. Oct. 21, 2021 - By Tonya Garcia
McDonald's chances of adding the McPlant to the nationwide menu are 'fairly high,' says BTIGAnalysts at BTIG say although McDonald's Corp. "claims" to be testing the McPlant in eight restaurants, they think there's a "fairly high" chance that the plant-based sandwich will rollout out nationwide in 2022. "We believe interest in adding a plant-based meat option to menus is accelerating domestically at quick-service operators," analysts led by Peter Saleh said. "We believe that 2022 will be a pivotal year for plant-based meat in the QSR segment with many brands introducing the product or increasing their offering to further differentiate themselves from competitors." Analysts cite plant-based options at other fast-food chains, like the Impossible Whopper at Restaurant Brands International Inc. chain, Burger King. "In our view, many of the brands that are testing the offering will launch the product systemwide in effort to leverage national advertising to determine the true sales potential of the products." BTIG estimates that putting the McPlant on the menus at 13,000 McDonald's locations could add $200 million in revenue for Beyond Meat Inc. Like , BTIG think the eight test restaurants were chosen to determine the reception among a broad group of customers. BTIG rates Beyond Meat stock neutral, saying that while the company has strong brand awareness and consumers are adding plant-based meat alternatives to their diets, competition and weakness in the foodservice channel are hurting the business with prolonged COVID-19 disruption stalling a rebound as restaurants emphasize efficiency in the kitchen. Beyond Meat shares have fallen 13.7% for the year to date. McDonald's stock is up 12.6%. And the Dow Jones Industrial Average is up 16% for the period.
5:03 a.m. Oct. 11, 2021 - By Emily Bary
Zuora stock rallies after Needham upgradeShares of Zuora Inc. are up 3.4% in premarket trading Monday after Needham analyst Joshua Reilly assumed coverage of the software stock from a colleague and upgraded it to buy, setting a $24 price target. "We believe Zuora will accelerate billings growth thanks to changes to its go-to-market and product strategy," he wrote. Zuora saw 28% growth in subscription billings in its fiscal second quarter, up from 21% in the fiscal first quarter, which suggests to Reilly that the company is having success with recent changes it's enacted. "We believe key changes to the [go-to-market] organization including a partner first strategy and focus on 'strategic land and expand' are resonating with customers and leading to improved sales metrics," Reilly wrote. Zuora shares have gained 19.5% so far this year, as the S&P 500 has risen 16.9%.
6:00 a.m. Oct. 8, 2021 - By Tomi Kilgore
Sirius XM stock falls after J.P. Morgan analyst backs away from long-time bullish stanceShares of Sirius XM Holdings Inc. shed 2.0% in morning trading Friday, after J.P. Morgan analyst Sebastiano Petti backed away from his long-time bullish stance on the satellite radio company, citing expectations of slowing auto sales, , and rising expenditures related to satellite builds. Petti cut his rating to neutral, after being at overweight at least as long as since January 2019, while cutting his stock price target to $7 from $8. Following management comments at recent industry conferences, Petti said he raised his third-quarter self-pay net subscriber additions estimate to 400,000 from 315,000 on record second-quarter trial starts, low churn, rising penetration and higher digital-only subscriptions. However, he trimmed his 2021 self-pay net adds estimate to 1.10 million from 1.15 million and dropped his 2020 estimate to 750,000 from 1.05 million, saying the chip shortage is likely to become "more acute in coming quarters." The stock has lost 3.2% year to date, while the S&P 500 has gained 17.2%.
9:59 a.m. Oct. 4, 2021 - By Tomi Kilgore
3M stock hits 7-month low after J.P. Morgan downgradeShares of 3M Co. fell to a more than seven-month low before paring losses, after J.P. Morgan analyst Stephen Tusa downgraded the parent of Post-it and Scotch brands maker of N95 masks, citing a lack of fundamental direction and continued uncertainty regarding environmental liabilities. The stock was down 0.3% in afternoon trading, but was down as much as 1.6% at its intraday low of $173.78, the lowest price seen since Feb. 24. Tusa cut his rating to neutral, after being at overweight since Jan. 27, while trimming his price target to $210 from $215. "On the liability front, one could argue visibility is worse now than before, and the company's decision to report expenses in the segments, as opposed to breaking them out in corporate, is difficult to understand, while recent ear-plug suits are negative new news," Tusa wrote in a note to clients. " On the businesses, after a short bump on growth off of a bottom, the company is again missing big on margins on only a slight decline in sales and our historical concerns around an impaired business model here remain - economic recovery has not cured this problem, and companies that continually deliver big misses on only minor fundamental bumps are lower quality and deserve a discount." The stock has shed 11.9% over the past three months, while the Dow Jones Industrial Average has slipped 2.4%.
6:24 a.m. Oct. 4, 2021 - By Tonya Garcia
Chipotle's smoked brisket will be a hit, says UBSChipotle's Mexican Grill Inc.'s smoked brisket limited-time offer will be a hit, according to UBS analysts. "We anticipate solid demand for the just launched smoked brisket limited-time offer, which is priced at a 10% premium to steak and we could see a ~high-single digit sales mix based on historical launches and a favorable initial customer response based on our select store checks," analysts wrote. Chipotle announced it would add smoked brisket to the menu "We don't anticipate brisket will last as long as carne asada (went through end of Feb), but should drive incremental visits from existing customers & support new customer trial." Analysts also think workers will be a momentum driver, along with new menu items like quesadillas. "Chipotle appears positioned for elevated sales growth over the balance of '21 and long term given continued digital gains, loyalty expansion, new menu items, and a further recovery in dine-in traffic & throughput opportunities." UBS rates Chipotle stock buy and raised its price target to $2,100 from $1,850. Chipotle is scheduled to announce its third-quarter earnings on Oct. 21. Chipotle stock has rallied 30.8% for the year to date while the S&P 500 index is up 15.4% for the period.
4:01 a.m. Oct. 1, 2021 - By Tonya Garcia
Dollar Tree will sell higher priced items but costs are a concernDollar Tree Inc. was downgraded to sector weight from overweight at KeyBanc Capital Markets as analysts express concern over higher supply chain and labor costs. Retailers across the board have been impacted by bottlenecks at the ports, factory shutdowns overseas and other challenges across the supply chain. Dollar Tree said during its most recent earnings that one of its ships was delayed for after a crew member tested positive for COVID. KeyBanc also says Dollar Tree will soon face the risk from comparisons with results boosted by stimulus checks. "We applaud the ongoing evolution of Dollar Tree's multi-price strategy, and see it as a powerful tool to improve sales and margins over the next 5-10 years," wrote analysts led by Bradley Thomas. "However, we believe the announcement comes as a surprise following years of commitment to the $1 price point and seems more of a reaction to rising inflationary pressures." Dollar Tree stock soared then closed down 4.8% on Thursday. Shares are down 11.4% for the year to date while the S&P 500 index is up 14.7% for the period.
4:04 a.m. Sept. 20, 2021 - By Steve Gelsi
Cantor Fitzgerald cuts Canopy Growth price target on lower salesCanopy Growth Corp. analyst Pablo Zuanic on Monday cut his 12-month price target on Canopy Growth Corp. , to C$21 from C$30.50 on a lower sales outlook for the Canadian cannabis company amid price pressure in the business. Zuanic reiterated a neutral rating on the stock and said he expects September quarterly sales to fall to C$135 million, compared to the analyst consensus of C$156 million. "We agree that Canopy Growth, under CEO David Klein, has made significant strides [by] cutting costs, refocusing the business, building a U.S. ecosystem for growth now in CBD/consumer packaged goods and in THC in the future upon federal permissibility," he said. While the company will benefit from a full quarter of its recently acquired Supreme Cannabis business, it will be offset by a low teens decline in the base domestic cannabis business, he said. Canopy is attempting a pivot away from value-price cannabis, but results so far are mixed, he said. Shares of Canopy Growth are down 40% so far this year, compared to an 8.6% rise by the Cannabis ETF . Shares of Canopy Growth dipped 1.5% in pre-market trades.
4:27 a.m. Sept. 9, 2021 - By Steve Gelsi
MKM Partners cuts Boston Beer price target on profit warningMKM Partners on Thursday reiterated its neutral rating and cut its price target to $530 a share from $804 a share for Boston Beer Co. . Shares of the brewer dropped 8.8% in pre-market trades Thursday, after the company and lowered its 2021 earnings view to below its previous estimate of $18 to $22 a share. MKM Partners analyst Bill Kirk said the firm expects shares of Boston Beer to remain weak. "Until new innovation replaces the growth from Truly [hard seltzer], it will be difficult for investors to get excited," Kirk said. "We expect sharp negative seasonality following this Labor Day weekend and the inventory glut to require product destruction and/or sharp discounts to resolve." MKM Partners said it needs to see a seltzer recovery or new Boston Beer innovation opportunities to recommend owning the stock. Boston Beer stock is down 44% year to date, while the S&P 500 is up about 20%.
6:21 a.m. Sept. 7, 2021 - By Steve Gelsi
Greenlane shares rise as analyst green lights the stock as a buyGreenlane Holdings Inc. shares are up about 3% on Tuesday after the Boca Raton, Fla.-based maker of packaging, rolling papers, glass products and grinders for cannabis was initiated with a buy rating and $6 price target by Alliance Global Partners. The ratings move comes after the company completed its acquisition of KushCo Holdings Inc. on Sept. 1. Alliance Global analyst Aaron Grey said the combined company is positioned to capitalize on growth in the cannabis business. Greenlane is currently trading at about 1.1 times estimated calendar 2022 sales, well below other ancillary players. Greenlane stock is down 29% this year compared to a 19.8% gain by the Cannabis ETF and a declined of 10% by the AdvisorShares Pure US Cannabis ETF .
10:36 a.m. Sept. 2, 2021 - By Tomi Kilgore
Smith & Wesson stock tumbles after sales miss, Wedbush sees pressure for the rest of the yearShares of Smith & Wesson Brands Inc. tumbled 11.5% in afternoon trading Thursday, after the gun maker reported , but revenue came up short. After five straight quarters of record revenue, as the company benefited from COVID-19-related lockdowns, Chief Executive Mark Smith said although firearms demand remained "very strong," the company did witness "a return to normal summer seasonality" during the quarter. Analyst James Hardiman at Wedbush reiterated his neutral rating but cut his stock price target to $24 from $28. "Despite positive near-term earnings dynamics, investors have made it clear that they perceive [Smith & Wesson] to be a major pandemic beneficiary, which puts downward pressure on the stock over the course of 2021," Hardiman wrote in a note to clients. The stock has rallied 24.0% year to date, while the S&P 500 has advanced 20.6%.
7:44 a.m. Aug. 20, 2021 - By Tonya Garcia
Ross Stores gave second-half guidance that was too conservative, says Wells Fargo , like its off-price competitor , reported second-quarter earnings and sales that beat consensus. But Ross Stores offered guidance below expectations, driving shares down 3.7% in Friday trading. Wells Fargo says the outlook doesn't match the better-than-expected results the company announced late Thursday. "We get it, 2H has headwinds-but we view this 2H outlook as a tad overly conservative following such a strong 2Q-not an atypical approach for this management team," wrote analysts led by Ike Boruchow. Wells Fargo rates Ross Stores stock overweight with a $135 price target. Ross is guiding for third-quarter same-store sales growth of 5% to 7% and earnings per share in the range of $0.61 to $0.69. The FactSet consensus is for same-store sales growth of 9.9% and EPS of 81 cents. And for the fiscal year, Ross' outlook is for EPS in the range of $4.20 to $4.38 and same-store sales growth of 10% to 11%. The FactSet consensus is for EPS of $4.48 and a same-store sales increase of 17.9%. Credit Suisse says the company has an "unwavering dedication to its conservative/value-leader narrative" and "struck a conservative tone" during its earnings report. Ross stock has slipped 0.7% for the year to date while the S&P 500 index has added 18% for the period.
8:05 a.m. Aug. 11, 2021 - By Ciara Linnane
Moderna shares slide 16% after bearish BofA note, putting them on track for biggest percentage decline since May 2020Moderna Inc. shares tumbled 16% Wednesday to put them on track for their biggest percentage decline since May of 2020, according to Dow Jones data. The stock has now fallen for four of the past five days and has lost more than 20% in a two-day period. On Tuesday, BofA analyst Geoff Meacham published a bearish note on the company that questioned its valuation after its market cap grew to almost $200 billion, putting it ahead of far more established drug companies like the 40-year-old Amgen , currently valued at about $129.3 billion, and the 130-year old Merck , valued at about $189.7 billion. According to Meachem's analysis, it should be about 75% below its current price. While Moderna's COVID-19 vaccine has been a major contributor to its market cap, to justify $200 billion in value, one would have to assume two things: Moderna would deliver 1 billion to 1.5 billion doses of its COVID-19 vaccine each year through 2038; and its entire pipeline will be 100% successful. That currently involves four programs in Phase 2 trials, 10 Phase 1 programs and eight preclinical programs not yet in human testing, for total peak sales of $30 billion. Moderna's recent revenue has come to about $7 billion in the past four quarters. Shares have gained 266% in the year to date, while the SPDR S&P Biotech ETF has fallen 11% and the S&P 500 has gained 18%.
4:01 a.m. Aug. 10, 2021 - By Ciara Linnane
SmileDirectClub downgraded by JP Morgan after disappointing Q2 earnings; shares heading toward 16-month lowJP Morgan downgraded teledentistry company SmileDirectClub Inc. to underweight from neutral on Tuesday, after the company posted a wider-than-expected second-quarter loss and weighed down by an April cyberattack and the impact of the pandemic. The stock was down 15% premarket and was headed toward a 16-month low. "The quarter was obviously disappointing, especially given that management guided for 2Q almost halfway through," analysts led by Robbie Marcus wrote in a note to clients. "While we can debate extensively how impactful the macroeconomics were to SDC specifically, they are seeing significant headwinds to the business as well as higher customer acquisition costs." Given how much has to go right for the company to reach the middle to upper end of its guidance range for 2021 revenue of $750 million to $800 million -- or a 14% to 22% increase -- JP Morgan expects a number closer to the bottom end should be the midpoint of that range. Analysts are expecting growth to come in closer to 5% in the third quarter ad 12% in the fourth quarter, a growth rate only seen in the third quarte of last year off of depressed pandemic lows. "Given the impaired near-term revenue trajectory, and what could be structurally higher costs, we see better opportunities in our coverage universe and are downgrading to Underweight," said the note. The analysts lowered their stock price target to $5 from $10. Shares have fallen 44% in the year to date, while the S&P 500 has gained 18%.
6:05 a.m. July 26, 2021 - By Tonya Garcia
Lowe's downgraded on housing sector declines and possible back-to-work slowdownLowe's Cos. shares shed 2.8% in early Monday trading after the home improvement retailer was downgraded to neutral from outperform at Wedbush. Analysts cut the price target to $210 from $225. Wedbush cites weakness in the housing sector in its note, saying that existing home sales dollar turnover has peaked with minimal growth forecast for 2022. Less affordability and limited supply are also putting the squeeze on sales. "Accordingly, very tough comparisons could result in mid-single-digit decline average comps for Home Depot and Lowe's for the next four quarters (vs. consensus for low-single-digit decline), and very low single-digit comps from 2Q-4Q22 (vs. consensus mid-single-digit increase) in our base case scenario analysis," the note said. Analysts maintained their neutral rating on Home Depot Inc. Wedbush analysts led by Seth Basham also say homeowners have been making renovations to accommodate work-from-home lifestyles. "Should companies require employees to work at the office full-time when the pandemic ends, this spending could slow," the note said. Lowe's stock has gained 21.6% for the year to date while the S&P 500 index is up 17.5% for the period.
4:26 a.m. July 23, 2021 - By Tomi Kilgore
More homes for sale will see price declines in coming weeks, Redfin saidReal estate brokerage Redfin Corp. said Friday that it expects more homes for sale will suffer price declines in the coming weeks, as supply starts to pile up and pending sales continue to decline. "Just as buyers are pulling back, more listings are hitting the market," said Redfin Chief Economist Daryl Fairweather. "I'm optimistic this will create conditions for a little bit of rain in this inventory drought. A homeowner who is thinking of selling to buy again is going to have a much easier time now than they would have back in March." Pending home sales for the four-week period ending July 18 were up 9% from the year-ago period, Redfin said, but that was the smallest increase since the four-week period ending June 28, 2020. The company said 55% of homes sold above list price during the period, up from 29% a year ago, but Redfin said that measure is "plateauing," as it has been at 54%-55% since the four-week period ending June 27. The SPDR S&P Homebuilders ETF has lost 3.2% over the past three months, while the S&P 500 has gained 4.5%.
10:48 a.m. July 15, 2021 - By Tomi Kilgore
Cardiovascular Systems stock drops after CMS proposes payment cuts, but Needham says buy on weaknessShares of Cardiovascular Systems Inc. , a medical device company focused on treatments for vascular and coronary disease, tumbled 10.2% in afternoon trading, and has dropped 18.1% amid a four-day losing streak. Needham analyst Mike Matson noted that the Centers for Medicare & Medicaid Services' (CMS) for 2022 includes cuts of about 22% to office-based lab (OBL) payments for peripheral atherectomy. He expects medical societies to oppose to the fee schedule changes. "We do not expect this to have much, if any, impact on [Cardiovascular Systems] even if the cuts happen," Matson said, because he believes the proposed codes leave plenty of profit for the OBL, OBLs account for only about one-fifth of the company's overall sales and the company continued to see strong growth in its OBL business last year even though there were high single-digit cuts to OBL payments. "We are buyers on weakness," Matson said, as he reiterated his buy rating and $50 stock price target. The stock has plunged 19.6% year to date, while the S&P 500 has advanced 15.7%.
9:47 a.m. July 6, 2021 - By Tomi Kilgore
Monday.com stock rallies to new high after bullish analyst callsShares of Monday.com Ltd. rallied 5.6% toward a new high, after a number of Wall Street analysts started coverage of the Israel-based software platform company with bullish ratings. The stock, which went public on June 10, has now run up 35.4% since closing at $178.87 on the first day of trading, compared with the Renaissance IPO ETF's 3.3% gain and the S&P 500's 1.9% rise over the same time. Of the 10 analysts surveyed by FactSet who cover Monday.com, eight have the equivalent of buy ratings while two have the equivalent of hold ratings. The average price target of $263.33 is 69.9% above the IPO price of $155, and 8.8% above current levels. Analyst David Hynes at Canaccord Genuity, who initiated the stock at buy with a $275 stock price target, said he's "confident" that collaborative work management is a "huge category" that has the potential to support several large businesses, and Monday.com is a vendor that is "spending aggressively to establish initial beachheads and then has the architectural foundation that makes for easy expansion." Meanwhile, J.P. Morgan's Mark Murphy, who started the stock at neutral with a $245 stock price target, said that while the company is among the fastest growing software companies, as its Work OS platform is "highly differentiating," it is invoking "huge operating losses" to generate growth, with sales and marketing spending reaching 112% of last year's revenue.
6:12 a.m. June 17, 2021 - By Emily Bary
Nvidia price target boosted to Street high of $854 at JefferiesShares of Nvidia Corp. are up 2.8% in Thursday morning trading after Jefferies analyst Mark Lipacis boosted his price target on the stock to $854 from $740. The new target is the highest listed on FactSet. Lipacis is more upbeat about Nvidia's prospects following a recent conversation with the company's chief financial officer, Colette Kress, which highlighted the potential for software licensing in the data center. "While software is mostly embedded within hardware sales today, enterprise AI software in the data center can potentially be licensed similarly to how VMware licenses its system software," Lipacis wrote. He noted that Kress said that it was possible for the company to break out software sales as a revenue line item once it becomes a meaningful portion of the business. Lipacis also relayed Nvidia's expectation that its Arm acquisition will close in the early part of 2022. "Nvidia plans to help ARM build its model beyond just mobile by bringing ARM to the data center, automotive and IoT [Internet of Things] markets," he wrote. "These progressions for ARM are viewed as not something ARM can do as effectively as a stand-alone company." Nvidia shares have gained 37% over the past three months as the S&P 500 has risen 6%.
3:06 a.m. June 15, 2021 - By Ciara Linnane
Hexo stock price target cut by Stifel and AGP after earnings disappoint, but pending deals are viewed as positiveStifel analysts reiterated their hold rating on shares of Canadian cannabis company Hexo Corp. on Tuesday and lowered their price target to C$7.50 ($6.15) from C$10.00, after disappointing earnings led them to a "more cautious approach" to the stock. The report released Monday was similar to results from peers, most of whom have seen sequential and year-over-year declines in revenue in their latest quarter, said analysts led by W. Andrew Carter. "But the underperformance related to specific company issues in Quebec where HEXO's supply chain limitations drove the weaker sales performance," Carter wrote in a note to clients. "Up until F3Q21, HEXO's consistent sales growth while rationalizing its cost structure has differentiated the company." Hexo will likely be an a different position next year, after a flurry of M&A activity this year, but "the magnitude of the underperformance drives scrutiny for the core business and the ability to realize value from over C$1.1 billion deployed towards M&A," said the note. Hexo posted Hexo announced its in late May with news that it is acquiring privately held Redecan for C$925 million in cash and stock. That comes after the February news of the purchase of Zenabis Global Inc. for C$235 million in stock, and earlier in May, it announced the acquisition of 48North Cannabis Corp. for C$50 million in stock. Alliance Global Partners analysts also lowered their stock price target, to C$12 from C$14, but reiterated a buy rating given the pending deal closures. Hexo shares were not active premarket, but have gained 68% in the year to date, while the Cannabis ETF has gained 40% and the S&P 500 has gained 13%.
8:10 a.m. June 14, 2021 - By Claudia Assis
Tesla price target cut to $812 by CanaccordAnalysts at Canaccord Genuity on Monday cut their price target on Tesla Inc. shares to $812, from $974, on disappointment that the electric-car maker , which would be the sedan's top trim. Tesla last week l in an effort to breathe new life into the sales of the sedan, which has not changed much in its nearly 10-year existence. The "Plaid Plus" trim "was reportedly going to be the first to feature the new 4680 (battery) cell design. This signals to us the new cell format isn't ready for production just yet, and cell production capacity constraints for energy storage products like Powerwall remain," the Canaccord analysts said. "Coupling this with macro near-term uncertainty surrounding inflation and Fed policy causing a sector rotation out of growth and into value names, leads us to our PT reduction." The $812 target implies a 31% upside to Monday's stock price. Tesla shares have lost 12% this year, contrasting with gains around 13% for the S&P 500 index.
5:52 a.m. June 9, 2021 - By Tonya Garcia
Wendy's stock run-up prompts analyst downgrade but breakfast is driving growth Wendy's Co. shares were downgraded to hold from buy at Stifel after shares rocketed 25.9% on Tuesday, but analysts say sales from the breakfast menu are growing, aided by a 10% year-over-year increased marketing spend and "the habitual nature of breakfast usage." Wendy's launched its latest breakfast offering in March 2020. "Thus far, the company has seen encouraging data that indicates the morning daypart has contributed to an overall increase in consumer frequency without cannibalizing occasions in the core business," Stifel said. "The company will likely start using menu innovation in 2022 as an additional lever to drive new and existing users to the daypart." Stifel quotes Wendy's executives, who say that reaching a 10% mix for the breakfast menu by 2022 is "very realistic." And analysts say that "the company's future growth profile is compelling." Stifel maintained its $25 price target. Wendy's stock soared for seemingly a variety of reasons unrelated to breakfast, including, perhaps, . Wendy's shares fell 7.3% in early Wednesday trading, and have gained 22% for the year to date. The S&P 500 index is up 12.7% for 2021 so far.
5:15 a.m. June 9, 2021 - By Tonya Garcia
Colgate-Palmolive is following in the footsteps of Pepsi and P&G to a 'mega-cap turnaround'Colgate-Palmolive Co. was upgraded to outperform at Credit Suisse with analysts highlighting 6% growth on a two-year compound annual growth rate (CAGR) basis, twice the rate of the year prior to the pandemic. Shares are down 3% for the year to date with concerns about a category slowdown and commodity headwinds, but analysts say the company is actually on an upward path. The S&P 500 index has gained 12.5% for 2021 so far. "In recent years we have observed notable mega-cap turnarounds, such as P&G and Pepsi Beverages. We think Colgate is next," Credit Suisse wrote, noting that a turnaround is usually preceded by big brand investment. Colgate's advertising spend is heading towards $2 billion annually, or 12% of sales, the highest rate in two decades. "As such, Colgate's sales were accelerating prior to the pandemic and the company is gaining share in more category-country combinations since 2015, including 10 of the top 12 toothpaste markets in 2020," analysts said. And Colgate's pet food company Hill's promises to give the business a boost as pet ownership during COVID soared. Credit Suisse raised its price target to $95 from $80.
4:14 a.m. June 8, 2021 - By Tomi Kilgore
Tesla stock rallies after data showing sales in China rebounded in MayShares of Tesla Inc. rallied 2.9% in premarket trading Tuesday, putting them on track for a third-straight gain, after data out of China showed a rebound in the electric vehicle maker's sales last month. The China Passenger Car Association said overnight that sales of passenger cars in May rose 1% from a year ago to 1.62 million vehicles, while sales of EVs soared 177% to 185,000. Tesla sold , up from 11,671 in April. Tesla also exported 11,527 made-in-Shanghai EVs in May. Wedbush analyst Dan Ives said the numbers suggest Tesla has handled the in China well, as demand rebounded well ahead of expectations. "We believe starting in the month of June Tesla will be on a 300k run-rate for deliveries in China as the growth story appears back on track in this linchpin region despite the skeptics and haters piling on from the month of April, which we continue to view as an anomaly rather than the norm," Ives wrote in a note to clients. He affirmed his outperform rating and $1,000 stock price target. Tesla's stock has gained 7.5% over the past three months through Monday, but has lost 14.3% year to date, while the S&P 500 has climbed 10.6% the past three months and advanced 12.5% this year.
6:38 a.m. May 27, 2021 - By Tomi Kilgore
Ford Motor stock surge toward near 6-year high after RBC analyst raises rating, boosts price targetShares of Ford Motor Co. kept rallying Thursday toward a near six-year high, after RBC Capital analyst Joseph Spak turned bullish, citing more confidence in the automaker's financial targets and on the belief that is likely a "watershed" moment for the company and the industry. Spak raised his rating to outperform, after being at sector perform for at least the past three years, while raising his stock price target to $17 from $13. The stock climbed 6.0% in morning trading, after running up 8.5% on Wednesday in the wake of the company's commitment to make electric vehicle sales 40% of global sales by 2030. The F-150 Lightning "not only protects its golden goose, but expands the F-150 franchise opportunity via unique features like Intelligent Backup Power," Spak wrote in a note to clients. "Ford already very strong on commercial fleet, but now offering a more compelling product via electrification and connectivity that could increase its share in this profitable segment." Ford's stock, which is on track for the highest close since December 2015, has run up 67.7% year to date through Wednesday, while shares of rival General Motors Co. have climbed 44.8% and the S&P 500 has gained 12.1%.
10:38 a.m. May 20, 2021 - By Tomi Kilgore
Foot Locker's stock extends pullback from 4-year high ahead of earnings reportShares of Foot Locker Inc. dropped 4.2% in afternoon trading, and were headed for a third straight loss, ahead of the athletic shoe and accessories retailer's fiscal first-quarter report. The stock has now slid 10.2% since closing Monday at a four-year high of $65.82. The company is scheduled to report quarterly results before Friday's opening bell, with the FactSet consensus estimates for earnings per share of $1.12, net sales of $1.90 billion and same-store sales growth of 53.7%. The stock has declined on the day earnings were reported the past two quarters by and average of 6.9%, and after six of the past eight reports, by an average of 10.0%, according to FactSet data. The stock gained an average of 4.7% the two times it rose after earnings. Foot Locker's stock has rallied 46.1% year to date, while the SPDR S&P Retail ETF has climbed 41.2% and the S&P 500 has gained 10.8%.
6:19 a.m. May 13, 2021 - By Tomi Kilgore
Apple stock bounces back above the 200-day moving average, like it did 13 months agoShares of Apple Inc. rallied 2.4% in morning trading Thursday, to bounce back above the 200-day moving average (DMA), one day after closing below the widely watched technical level . The stock was trading recently at $125.72, after closing Wednesday $122.77, while the 200-DMA rose to $123.12 from $122.96. J.P. Morgan analyst Samik Chatterjee reiterated the overweight rating he's had on the stock for at least nearly four years, citing data showing April iPhone sales in China were better than usual seasonal trends, pointing to continued market share gains. The last time Apple's stock spent time below the 200-DMA was during the post-pandemic lows of late-March to early-April last year. At that time, the stock's first close below the 200-DMA was March 16; the stock bounced 4.4% the next day to close back above it, then closed back below it for the next six sessions, and for the next 10 of 13 sessions. The stock has lost 7.1% over the past three months, while the Nasdaq 100 has declined 4.3% and the Dow Jones Industrial Average has gained 8.2%.
6:14 a.m. May 7, 2021 - By Jaimy Lee
FDA advisory committee votes 10-8 in favor of ChemoCentryx's experimental drug; stock is downShares of ChemoCentryx Inc. tumbled 61.7% in trading on Friday, the day after a Food and Drug Administration advisory committee voted 10-8 that the benefits of the company's experimental autoimmune drug, avacopan, outweigh the risks. The mixed response from committee members followed critical words from the FDA earlier this week . The company's stock this week was downgraded by Raymond James and Stifel Nicolaus, among others. Raymond James analyst Steven Seedhouse told investors that while he downgraded the stock to outperform, from strong buy, he still predicts a FDA approval by July 7 and a future blockbuster in avacopan, which is being evaluated as a treatment for anti-neutrophil cytoplasmic auto-antibody-associated vasculitis. "We're actually not changing our unadjusted avacopan estimates (~$1.9B peak unadjusted U.S. sales), only our probability of success (now at 50% vs. 100% prior)," he wrote. "Yes, we're calling this a pure coin flip between now and July 7." ChemoCentryx's stock is down 54.4% for the year, while the broader S&P 500 is up 11.8%.
4:44 a.m. May 7, 2021 - By Jaimy Lee
SVB Leerink upgrades Epizyme, citing sales potential for lymphoma drugShares of Epizyme Inc. were up 11.0% in premarket trading on Friday after SVB Leerink upgraded the company's stock to outperform, from market perform, citing Tazverik's potential opportunity in the follicular lymphoma market. Analyst Andrew Berens told investors that the drug's potential as a "maintenance" therapy could represent a "significant upside to current valuation." (Maintenance treatments can be used to prevent relapses of some cancers.) Berens said he had previously estimated the drug could generate $252 million in sales in 2030; now he sees the potential for $854 million in sales, including sales from both treatment and maintenance prescriptions. The Food and Drug Administration as a therapy for relapsed or refractory follicular lymphoma in June of last year. Epizyme's stock is down 37.3% for the year, while the S&P 500 is up 11.8%.
4:41 a.m. May 7, 2021 - By Ciara Linnane
Tilray shares soar 10% premarket after Jefferies upgrades to buy, says Aphria merger 'the perfect match'Jefferies upgraded shares of the new Tilray Inc. to buy from underperform on Friday, and said the recent merger of the company with rival Aphria Inc. was "the perfect match." Analyst Owen Bennett raised his price target to $23 from $4.77. "In Canada, a leading portfolio of brands, supported (by) an efficient cost structure," the analyst wrote in a note to clients. "In Europe, the market is now picking up, while Tilray's scale and Aphria's unique German positioning make it perfectly suited to succeed. And in the US, the combined company's broader consumer goods portfolio and strong balance sheet supports excellent optionality around both US THC and CBD." Bennett is expected pro-forma fiscal 2020 to fiscal 2024 combined sales growing 33% to leave fiscal 2024 sales at $1.7 billion, compared with average major Canadian licensed producers of $482 million and major U.S. multi-state operators of $1.6 billion. Tilray shares were up 10% premarket and have gained 71% in the year to date, while the Cannabis ETF has gained 36% and the S&P 500 has gained 11.9%.
4:26 a.m. May 4, 2021 - By Tomi Kilgore
Coinbase stock price target raised at Mizuho, but analyst still 'skeptical' about prospectsShares of Coinbase Global Inc. fell 1.2% in premarket trading Tuesday, to extend its recent weakness, as Mizuho analyst Dan Dolev raised his price target but said he remained "skeptical" about the medium-term prospects given heavy reliance on retail commissions. Dolev raised his price target to $315 from $285, but kept his rating at neutral. "Over time, COIN's fees may face downward pressure from competing platforms following the footsteps of zero-commission stock trading," Dolev wrote in a note to clients. "This is because platforms like PayPal and Cash App primarily use crypto trading as engagement tools." Dolev noted that retail trading commissions represent 80% of sales. The stock, , has declined on 10 of the 13 trading sessions since then through Monday, to close Monday 10.3% below the April 14 closing price of $328.28. Over the same time, bitcoin had declined 8.8% and the S&P 500 had gained 1.6%.
4:32 a.m. April 15, 2021 - By Tonya Garcia
American Eagle Outfitters shares jump as Q1 revenue approaches $1 billionAmerican Eagle Outfitters Inc. stock rose nearly 5% in Thursday premarket trading after the retailer's first-quarter business update showed revenue that is "on track" to exceed $1 billion. "Demand has accelerated across the American Eagle and Aerie brands, generating strong margins, higher full-priced selling and reduced promotions," the company said. The FactSet sales consensus is for $974 million. American Eagle is scheduled to report first-quarter earnings on May 1. BMO Capital Markets expects the momentum to continue into the second quarter. "[T]ighter industrywide inventory, coupled with stronger consumer demand, bolstered by stimulus is presenting a trifecta yielding a surge in spending power at a time when demand is already outstripping supply," analysts wrote in a note. BMO rates American Eagle market perform with a $36 price target, up from $26. American Eagle stock has rallied 64.3% for the year to date while the S&P 500 index has gained 9.8% for the period.
8:51 a.m. April 14, 2021 - By Tomi Kilgore
Harley-Davidson stock climbs after BofA kicks off coverage with a buy ratingShares of Harley-Davidson Inc. rallied 1.0% in midday trading Wednesday, but pared earlier gains of as much as 5.3%, after BofA Securities analyst Robert Ohmes took a bullish stance on the motorcycle maker, citing signs of accelerating brand momentum after a year of aggressively managing supply. Ohmes initiated coverage of HOG with a buy rating and stock price target of $55, which implies a 33% gain from current levels. He sees a "significant market share opportunity in Europe" following the company's launch of its , and believes the launch of electric motorcycles will help HOG target younger customers in the U.S. and drive growth in China and Europe. Ohmes also noted that pricing for used motorcycles has improved as supply was worked down, and with the implementation of a that brought customers into "a cleaner new and used market that should support pricing," sales of motorcycle parts and better margins for dealers. The stock has rallied 12.8% year to date and more than doubled (up 114%) over the past 12 months, while the S&P 500 has advanced 10.4% this year and 45.7% the past year.
7:40 a.m. April 14, 2021 - By Tonya Garcia
E.L.F. Beauty sees 70% point-of-sale increase heading into April with help from Grammy-winning artist Alicia KeysE.L.F. Beauty Inc. saw a 70% point-of-sale jump in the four weeks ending April 4, according to IRI data presented in a D.A. Davidson note. D.A. Davidson increased its E.L.F. Beauty price target to $34 from $27, maintaining its buy stock rating. Analysts attributed the sales increase to marketing programs, stimulus checks and easier comps. Analysts also say that , the beauty brand E.L.F. launched in collaboration with Grammy-winning artist Alicia Keys during the third quarter, was a contributor. Keys Soulcare items are on Ulta Beauty Inc. shelves as well as in stores around the world and online. Beauty and personal care sales rose 16% in 2020 with consumers turning to do-it-yourself products and techniques during COVID-19, according to NielsenIQ data. African Americans and Latinos have been experimenting and spending "substantially more" than other racial groups, according to NielsenIQ. "The sharp rise in Black-owned beauty brands has allowed African Americans to discover an entirely new world of products that are specifically geared towards them and their at-home needs, further fueling consumers' newfound preference for natural beauty and DIY self care," the report said. "Hispanic and African American consumers have a track record of far out-spending other ethnic groups when it comes to beauty and personal care, and we can expect multicultural consumers to fuel cosmetics growth into 2021 as they look for products that enhance their natural beauty rather than mask it." E.L.F. Beauty stock was up 2.3% in Wednesday trading, and has gained 14.7% for the year to date, outpacing the S&P 500 index , which is up 10.3% for 2021 so far. Also see:
5:04 a.m. April 12, 2021 - By Tomi Kilgore
GameStop stock falls toward 6th straight decline after Ascendiant analyst downgrades to sellShares of GameStop Corp. fell 0.7% in premarket trading Monday, which puts them in danger of a sixth straight loss, after Ascendiant Capital analyst Edward Woo turned bearish on the videogame retailer, citing a "hazy" 2021 outlook despite strong new consoles launches. Woo cut his rating to sell after being at hold since June 2019. He lowered his stock price target to $10, which is 94% below Friday's closing price of $158.36, from $12, which makes him the most bearish of the seven analysts surveyed by FactSet. Woo said he remains "very concerned" about the long-term prospects for its video game business, "especially once hardware sales temper as the installed base matures. He also commented on the frenzied trading surrounding the meme stock. He said the stock's big rally over the past several months -- it's up 740.6% year to date through Friday -- is due to "wild investor optimism" about the company's prospects and valuation and "a humungous short squeeze," helped by the to the company's board. "Due to the popularity of GameStop on Reddit chat boards and with Robinhood retail investors, GameStop shares appears to no longer trade on traditional fundamental valuations or metrics, but on retail investors sentiment, hope, momentum, and the powers of crowds," Woo wrote in a note to clients. "This makes short term price movement forecasts nearly impossible...but we believe that over the long run GameStop's current elevated share prices will come back down to match its current weak results and outlook." The stock has lost 17.3% amid a five-day losing streak through Friday, while the S&P 500 gained 2.7% last week.
8:19 a.m. April 5, 2021 - By Tomi Kilgore
Lamb Weston stock rallies after BofA analyst said it's time to buy, ahead of earnings reportShares of Lamb Weston Holdings Inc. hiked up 2.4% in midday trading Monday, after BofA Securities analyst Bryan Spillane recommended investors buy ahead of earnings, as the frozen potato products seller is set to approach pre-COVID levels amid pent-up consumer demand for eating out. Spillane raised his rating to buy from neutral, while lifting his stock price target to $100 from $84. His target now tops the list of highest targets of the 8 analysts surveyed by FactSet. "Overall restaurant demand is improving and we are seeing positive signals across quick serve restaurants (QSR) and foodservice operators that could drive margin-accretive revenue growth for [Lamb Weston] heading into FY22," Spillane wrote in a note to clients. He said food distributors are adding staff in anticipation of a strong rebound in foodservice sales, which are set to accelerate at demand improves. The company is expected to report fiscal third-quarter results before Wednesday's opening bell. In fiscal second quarter ended Nov. 29, foodservice sales fell 21% from a year ago while total sales fell 12%. The stock has edged up 1.5% year to date, while the S&P 500 has gained 8.6%.
6:30 a.m. March 30, 2021 - By Emily Bary
Roku stock gains after upgrade at TruistTruist Securities analyst Matthew Thornton upgraded Roku Inc. shares to buy from hold Tuesday, arguing that the stock's valuation is more "tenable" now and that the company has attractive opportunities ahead in advertising. He lowered his price target to $367 from $480 but said that Roku has pulled back to its two-year average on the basis of enterprise value to sales, helping make the stock more approachable from a valuation perspective. Thornton sees the potential for gross-profit upside in Roku's platform business with a model that is above the consensus view on that metric for the first and second quarters of 2021, as well as the whole of 2021 and 2022. Thinking more long term, he's also excited about the opportunities that could exist in e-commerce tie-ins that would let customers use their stored card credentials to buy items that they saw in shows or sporting events they watched through the Roku platform. "We think ecommerce is a next-leg opportunity (TV advertising is the current-leg) and do not believe it is on most investors' radars yet," Thornton wrote. Roku shares are up 1.7% in Tuesday morning trading. They've lost 10% over the past three months as the S&P 500 has gained 6%.
8:58 a.m. March 18, 2021 - By Tonya Garcia
Clorox sales decline sharply year-over-year after COVID-19 spike Clorox Co. was downgraded to neutral from buy at D.A. Davidson after IRI data shows a 10.8% point-of-sale decline in the four weeks leading up to March 7. Analysts led by Linda Bolton Weiser attribute the decrease to the "start of hard COVID-driven prior-year comps, which get even more difficult next month (+75%)." D.A. Davidson cut its price target to $189 from $234. "Most noteworthy were the double-digit declines in Clorox's three biggest Health & Wellness categories: (1) cleaners were -24.3% year-over-year vs. +8.5% in February; (2) bleach was -17.8% vs. +17.9% in February; and (3) wipes were -54.3% vs. +27.8% in February, with the category decelerating to -34.9% from +67.0% in February," the note said. Clorox shares sank 4.1% after the downgrade, and are down 4.8% for the last year. The benchmark S&P 500 index is up nearly 65% over the past 12 months.
2:02 a.m. March 16, 2021 - By Steve Goldstein
Coca-Cola started at buy with $65 price target at RedburnCoca-Cola was started at buy at U.K. broker Redburn with a $65 price target, which said the beverage giant offers exposure to the brand owner and the bottling system, which is an outsourced production model of around 225 bottlers. The next decade will bring 5.5% organic sales growth (50bp ahead of consensus), and 7% organic operating income growth, which is in line with consensus. There is upside optionality from a successful pivot into the alcohol and coffee categories and from refranchising margin-dilutive company-owned bottling assets, the brokerage added. A worst-case result from the Internal Revenue Service case over transfer pricing would lower its price target by $6.
2:27 a.m. March 15, 2021 - By Steve Goldstein
Stellantis climbs as Deutsche Bank initiates coverage at buyShares of automaker Stellantis rose 3% to €15.02 in Milan as Deutsche Bank started coverage at buy with a €20 price target. Analyst Tim Rokossa says the merger of PSA and FCA will make it the fourth-largest automaker by sales, and that CEO Carlos Tavares is in an ideal position to combine the two companies' strengths. "Stellantis is a clear buy, in our view, due to the reasons for which investors traditionally chase auto stocks: earnings and cash flow momentum. Its lack of BEV product focus will limit the multiple that the market is willing to pay for, in our view," he added.
3:47 a.m. March 10, 2021 - By Ciara Linnane
Canadian cannabis company Sundial initiated as neutral at Cantor after rally Cantor Fitzgerald initiated coverage of Canadian cannabis company Sundial Growers Inc. on Wednesday with a neutral rating after a retail investor-fueled rally pushed the stock up 21 times from its late-October bottom of 14 cents to its recent Feb. 10 peak of $2.95. "Thus, even though fundamentals have remained mixed, with an ongoing market-share loss according to the latest scanner data, and despite a 3Q20 reported net sales decline of 36% seq (-54% YoY), the run-up in the share price enabled the company to raise equity and convert warrants and debt," analyst Pablo Zuanic wrote in a note to investors. That has boosted the penny stock's cash holdings to an estimated C$700 million ($553.5 million) at end February from about C$26 million at the end of September, he wrote. "In an industry that is quickly consolidating, this puts the company in a good position to acquire smaller companies that have developed solid niches in parts of the Canadian market or overseas," said the note. "We believe that SNDL is on the lookout for opportunities and that this may itself trigger defensive M&A action among other companies (we see the recent HEXO+Zenabis (N) merger as one example)." However, given the stock's valuation and the volatility in its share price, Zuanic is not recommending investors take an active position. The stock is trading at 43 times enterprise value to current sales, which is far above its peer group average. The analyst assigned Sundial a 12-month price target of $1.15, compared with its current price of $1.39 at Tuesday's close. Sundial has had a checkered history and The stock has gained 31% in the last 12 months, while the Cannabis ETF has gained 138% and the S&P 500 has gained 41%.
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