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4:46 a.m. June 11, 2021 - By Tomi Kilgore
Vertex Pharmaceuticals stock tumbles to pace S&P 500 losers after disappointing drug trial dataShares of Vertex Pharmaceuticals Inc. tumbled 13.8% in premarket trading Friday, enough to pace the S&P 500's early decliners, after the biotechnology company released what was seen as disappointing data on its treatment for people with alpha-1 antitrypsin deficiency (AATD), which can lead to liver and lung disease. The stock was on track to open at the lowest price seen during regular-session hours since October 2019. The company said late Thursday that , showing a mean increase of 2.2 to 2.3 micromolar fAAT levels across the dose groups compared with placebo. Analyst Cory Kasimov at J.P. Morgan reiterated his overweight rating but cut his stock price target to $245 from $279, saying the trials results were "clearly" a setback. "Management is adamant that this is actually a step in the right direction for the program," Kasimov wrote. "We doubt [Wall Street] will agree." Stifel Nicolaus's Paul Matteis cut his stock price target to $244 from $277: "The announcement of modest AAT increases for VX-864, despite what looked like great data in animals, makes it difficult for us to garner conviction that futures compounds will perform materially better." The stock has lost 8.3% year to date, while the S&P 500 has climbed 12.9%.
4:21 a.m. June 4, 2021 - By Tomi Kilgore
Apple stock on track for longest weekly losing streak in more than 2 1/2 yearsShares of Apple Inc. edged up 0.3% in premarket trading Friday, but remained on track to suffer a sixth-straight weekly loss, ahead of the technology giant's Worldwide Developers Conference (WWDC) next week. That would be the longest such loss streak since the eight-week stretch through the week ended Nov. 23, 2018. The stock needs to gain 0.9% Friday, to at least $124.61, to snap the weekly loss streak. The stock has lost 8.0% during the current streak through Thursday, and has lost 13.7% since the Jan. 26 record close of $143.16. In comparison, the Dow Jones Industrial Average has run up 11.8% since Jan. 26. Apple has been , in which "Fortnight" maker Epic Games Inc. filed an antitrust lawsuit citing monopolistic practices by Apple's App Store. Separately, Wedbush analyst Dan Ives said in a recent note to clients that Apple will likely introduce a new Mac product at Monday's WWDC, as well as iOS upgrades and software enhancements.
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%.
3:49 a.m. March 19, 2021 - By Tomi Kilgore
Idera Pharmaceuticals stock plunges after disappointing trial results, prompting analyst downgradeShares of Idera Pharmaceuticals Inc. plummeted 63.3% in active trading to pace all premarket decliners, after the immunotherapy company said the ILLUMINATE-301 pivotal registration trial of its treatment of patients with anti-PD-1 refractory advanced melanoma failed to meet its primary endpoint of objective response rate. Trading volume spiked to 6.0 million shares ahead of the open, compared with the full-day average of about 1.1 million shares over the past 30 days. The company said it is evaluating its next steps regarding continuation of the trial, toward its endpoint of overall survival. "We are surprised and disappointed that the response data from ILLUMINATE-301 do not lead us to an accelerated path to a new and much-needed treatment option for these patients," said Chief Executive Vincent Milano. J.P. Morgan analyst Matthew Bannon followed by downgrading Idera to neutral from overweight, saying the trial results has led to "significantly more uncertainty on several fronts." Through Thursday, the stock had rallied 22.6% over the past three months, while the iShares Nasdaq Biotechnology ETF has slipped 1.6% and the S&P 500 has gained 5.6%.
3:33 a.m. March 17, 2021 - By Tomi Kilgore
Virgin Galactic gets a bullish endorsement from Truist analyst, with the price target implying a 54% gainVirgin Galactic Holdings Inc. has a new top bull on Wall Street, after Truist analyst Michael Ciarmoli started coverage of the spaceflight company Wednesday with a buy rating and $50 stock price target. Ciarmoli's target is now the highest of the 10 analysts surveyed by FactSet, and well above the average target of $38.50. His target is 53.8% above Tuesday's stock closing price of $32.51. The stock fell 3.0% in premarket trading, after dropping 6.6% on Tuesday to snap a 5-day win streak. "We see several near-term catalysts for the shares as the company demonstrates its capabilities through a series of testing activities planned during 2021, and believe that once commercial operations commence (likely in our view in early 2022), demand will significantly exceed supply, providing the company with pricing leverage and enabling margin accretion as the company scales its operations," Ciarmoli wrote in a note to clients. "Ultimately we believe [Virgin Galactic] can capture at least 50% of the global space tourism [total available market (TAM)] by 2030." The stock has soared 156.8% over the past 12 months, while the S&P 500 has advanced 56.7%.
8:43 a.m. March 1, 2021 - By Tomi Kilgore
Cree stock surges after BofA says buy the chip maker that's 'turbocharging EVs'Shares of Cree Inc. surged 3.1% in midday trading Monday, after BofA Securities analyst Vivek Arya recommended investors buy, saying the special semiconductor materials maker is "turbocharging EVs" (electric vehicles). Arya initiated coverage of Cree with a buy rating and $140 stock price target, which is well above the Feb. 11 record closing price of $128.28. Arya said he sees Cree as a "critical enabler" in the transformation of the silicon-based, roughly $45 billion power chip market towards next-generation SiC/GaN, or wide band-gap (WBG) materials. Arya noted that power converters based on SiC are lighter and smaller, with 10-times the switching efficiency and three-times the power density of silicon. "Cree's Wolfspeed business is a global leader with 60%+ share in substrates for Silicon Carbide (SiC) -- the next-gen material driving efficient power conversion in battery powered EVs and charging infrastructure," Arya wrote in a note to clients. "Separately, Cree's exposure to Gallium Nitride (GaN) materials/devices also provides strong growth in 5G base station and industrial markets." The stock has soared 30.3% over the past three months, while the PHLX Semiconductor Index has climbed 16.1% and the S&P 500 has gained 6.5%.
8:41 a.m. Feb. 18, 2021 - By Tomi Kilgore
Seagate Technology's stock surges toward a record after double upgrade at BofAShares of Seagate Technology PLC jumped 2.1% toward a record high in midday trading Thursday, to buck the selloff in its technology peers and the broader stock market, after BofA Securities analyst Wamsi Mohan swung to bullish from bearish on the data storage company, citing the nearing of an "inflection" in revenue trajectory and industry profitability. Mohan raised his rating to buy from underperform, while lifting his stock price target to $90 from $54. He said he expects capacity additions to moderate, pricing to normalize and mass capacity hard-disk drives (HDD) to drive improvement in revenue, mix and margins. Among other reasons for his about-face on Seagate, he expects a transition to becoming a pure-play cloud story, with continued strong demand from cloud-service providers. "Years of preemptively adding capacity in anticipation of demand depressed HDD prices as [Seagate] and [Western Digital Corp.] competed for market share," Mohan wrote in a note to clients. "At its upcoming analyst day, we expect [Seagate] to communicate a more disciplined approach to CapEx given recognition that the industry historically has grappled with excess capacity." Seagate's stock gains come as the SPDR Technology Select Sector ETF slid 1.2% and the S&P 500 shed 0.8%.
3:55 a.m. Feb. 12, 2021 - By Jaimy Lee
SVB Leerink, J.P. Morgan downgrade Amicus stock after Phase 3 data for rare disease drug comes outShares of Amicus Therapeutics Inc. were down 23.1% in premarket trading on Friday, the day after the company said an experimental rare disease drug failed to perform better than the standard of care in a late-stage trial. The investigational drug, AT-GAA, is a treatment for Pompe disease, a rare, genetic disease that causes severe muscle weakness. The standard of care is Sanofi's Lumizyme, which was approved back in 2010. Though Amicus said it still plans to submit AT-GAA to the Food and Drug Administration for approval in the second quarter of 2021, analysts were concerned about the drug's performance in the pivotal Phase 3 clinical trial. SVB Leerink on Friday downgraded the stock to market perform from outperform. "This situation strikes us as reminiscent of the long and arduous path to approval for FOLD's one commercial product Amigal, which also missed its primary endpoint but was ultimately approved," SVB's Joseph Schwartz wrote in a note to investors. J.P. Morgan also downgraded the stock to neutral from overweight. "Certainly, overall, this is a disappointing outcome," analysts there wrote. "That said, we do not view AT-GAA as a 'zero' by any means." Shares of Amicus have gained 67.8% over the past 12 months, while the broader S&P 500 is up 16.6%.
5:04 a.m. Jan. 29, 2021 - By Tomi Kilgore
Tesla stock gets second $1,000+ price target, from Argus ResearchThere are now two Wall Street analysts that have targets for Tesla Inc.'s stock of more than $1,000, after Argus Research's Bill Selesky boosted his target by 30% in the wake of the electric vehicle (EV) market leader's . The stock fell 0.6% in premarket trading Friday, after losing 5.4% over the past two days. Selesky reiterated his buy rating and raised his price target to $1,010 from $777. That would make him the second-most bullish on Tesla, of the 37 analysts surveyed by FactSet, behind only Oppenheimer's Colin Rusch, . Selesky said he expects EVs to account for an increasingly larger portion of auto sales, as lower costs for battery packs makes them more affordable to the average car buyer, and Tesla is the "undisputed leader" in the EV space. "We also believe that Tesla is well positioned to expand in the Chinese market and further believe that the incoming Biden Administration will offer rebates and new tax incentives to encourage consumers to buy EVs, which we think favors Tesla versus all the rest," Selesky wrote in a note to clients. The stock has soared 103.4% over the past 30 days through Thursday, while the S&P 500 has gained 14.4%.
10:11 a.m. Jan. 15, 2021 - By Tomi Kilgore
3D Systems stock pulls back from a near 6-year high after J.P. Morgan analyst turns bearishShares of 3D Systems Corp. tumbled 11% in afternoon trading Friday, after J.P. Morgan analyst Paul Coster turned bearish on the 3D printing company, citing an "unfavorable" risk-versus-reward profile at current prices. The stock has skyrocketed more than four-fold (up 329.7%) over the past three months, to close Thursday at the highest price since April 2015, while the S&P 500 has gained 8.5%. Coster cut his rating to underweight from neutral, but raised his price target to $18, which is 37% below current levels, from $14. He said a strong rebound in the economy will raise activity levels in 3D printing, especially in the auto and aerospace markets, and in the elective surgery and dental markets once the pandemic passes, but he said that view is likely already priced into the stock. He also downgraded fellow 3D printer maker Stratasys Ltd. to underweight from neutral, and the stock fell 2.4% after closing Thursday at the highest price since July 2015.
10:20 a.m. Dec. 23, 2020 - By Tomi Kilgore
FuelCell's stock soars toward matching longest win streak in nearly 7 yearsShares of FuelCell Energy Inc. soared 19.8% on heavy volume toward a more than 2-year high in afternoon trading Wednesday, amid continued optimism surrounding COVID-19 aid deal Congress passed this week, which included provisions for fuel cell technologies. Trading volume swelled to 139.5 million shares, compared with the full-day average of about 88.0 million shares. FuelCell's stock has now rallied for a 7th-straight session, and has charged up 67.1% during that stretch. The current streak matches two other 7-day win streaks seen this year, including one that ended Nov. 23 and the other than ended June 8; those were the longest win streaks since the 8-day stretch of gains ended Feb. 18, 2014. As part of the aid deal, Congress extended the 26% investment tax credit (ITC) for fuel cells for two years, while existing law calls for the ITC to fall to 22% in 2021 and to 10% in 2022, as Raymond James analyst Pavel Molchanov explained. FuelCell's stock, which is on track for the highest close since October 2018, has skyrocketed 477.3% over the past three months, while the S&P 500 has gained 14.5%.
4:19 a.m. Dec. 14, 2020 - By Tomi Kilgore
XPeng's stock surges after bullish call from Deutsche Bank analystShares of XPeng Inc. surged 3.4% in premarket trading Monday, after Deutsche Bank analyst Edison Yu's bullish call on the China-based electric vehicle maker. Yu started coverage of XPeng with a buy rating and $58 stock price target, which is 30.9% above Friday's closing price of $44.31. He said Yu was part of the "Fab Four" China-based EV makers, which also include Nio Inc. , Li Auto Inc. and WM Motor Technology Group Co. Ltd., that represent an emerging class of auto makers backed by large technology companies and local governments looking to disrupt the auto industry. "[W]e believe our thesis has been playing out both on the ground as sales and brand awareness grow, and in the capital markets where all four companies have seen their valuations rise considerably," Yu wrote in a note to clients. "Along with Tesla , we believe these automakers are increasingly destined to conquer the Chinese auto market, supported by an investor base who is eagerly willing to support this endeavor, leading us to expect multiple winners in the new EV world order." XPeng's stock has soared 116.4% over the past three months, while the S&P 500 has gained 8.3%.
1:49 p.m. Nov. 24, 2020 - By Carly Tripp
Why these 5 U.S. cities will bounce back from COVID-19 faster and stronger How to measure a solid post-pandemic real estate investment How to measure a solid post-pandemic real estate investment.
3:36 a.m. Nov. 11, 2020 - By Tomi Kilgore
Five Prime's stock rockets over 350% after positive trial results from cancer treatment, analyst upgradeShares of Five Prime Therapeutics Inc. blasted 353% higher on heavy volume toward a three-year high in premarket trading Wednesday, after the company said its treatment for gastric cancer met all three of its efficacy endpoints from Phase 2 trial. Trading volume ballooned to 2.9 million shares, compared with the full-day average of about 659,000 shares. "These results bring us one step closer to the first potential targeted therapy for advanced gastric cancer in over a decade," said Five Prime Chief Medical Officer Helen Collins in a statement late Tuesday. She said she "looks forward to discussing next steps with health authorities worldwide." J.P. Morgan analyst Eric Joseph followed on Wednesday by upgrading Five Prime to neutral from underweight, saying the results were an "upside surprise to our low held expectations." The stock has climbed 16.3% year to date through Tuesday, while the iShares Nasdaq Biotechnology ETF has advanced 14.3% and the S&P 500 has gained 9.7%.
6:11 a.m. Nov. 5, 2020 - By Tomi Kilgore
Bluebird bio's stock plunges after submission delay of sickle cell disease treatmentShares of Bluebird bio Inc. traded 15.1% into the red in morning trading Thursday, after the gene therapy company pushed back the U.S. submission for approval of its sickle cell disease treatment LentiGlobin to late-2022 from the second half of 2021. The stock was headed toward the lowest close since April 15. Regarding LentiGlobin, the company said late Wednesday the submission delay comes after the Food and Drug Administration requested the use of drug product manufactured from sickle cell disease patient cells in addition to healthy donors, to demonstrate drug product comparability. J.P. Morgan analyst Cory Kasimov kept his rating at overweight but slashed his price target to $76 from $140, saying LentiGlobin in sickle cell disease is "arguably the most important value driver" for Bluebird. "Although there is no change in our view on the clinical profile (it's hard to argue that the data to date has been anything short of impressive), these manufacturing related setbacks are getting old, painful and further call into question the company's ability to execute," Kasimov wrote in a note to clients. BMO Capital's Matthew Luchini downgraded Bluebird to market perform, saying the delay has put the company's execution issues "to the breaking point." The stock has tumbled 43.3% year to date, while the iShares Nasdaq Biotechnology ETF has climbed 16.0% and the S&P 500 has rallied 8.9%.
9:20 a.m. Nov. 3, 2020 - By Victor Reklaitis
Here are the Senate races to watch, as Democrats battle to take control from Republicans Democrats need a net gain of 4 seats to take control of the Senate — or just 3 seats if Joe Biden wins the presidential raceIf Democrats take control of the U.S. Senate, that could shake up key sectors such as tech, health care, finance and energy — especially if today’s election brings a “blue wave” that puts Joe Biden in the White House.
9:03 a.m. Oct. 30, 2020 - By Tomi Kilgore
Bellicum Pharmaceuticals to cut 79% of staff after disappointing trial data, stock suffering record plungeShares of Bellicum Pharmaceuticals Inc. plunged 35.1% in midday trading Friday, putting them on track for their biggest-ever one-day drop, after the clinical stage biopharmaceutical company said it was slashing its workforce by 79% as part of a restructuring, following from a trial of its pancreatic cancer treatment. The interim trial results of BPX-601 were "encouraging" in terms of safety and GoCAR-T cell activation, but clinically meaningful efficacy was not observed. "We have concluded that Bellicum must reduce spending on preclinical programs and shift its resources to enable achievement of meaningful milestones in the clinic," said Chief Executive Rick Fair. The company said it was cutting its staff to 14 employees from 68 by the end of 2020. Ladenburg Thalmann analyst Wangzhi Li followed by downgrading Bellicum to neutral from buy, writing in a note to clients that the interim trial results "raises questions on a key intended function of GoCART technology and significantly increases uncertainty on its outlook." The stock has tumbled 70.3% year to date, while the iShares Nasdaq Biotechnology ETF has gained 8.1% and the S&P 500 has tacked on 1.0%.
4:54 p.m. Oct. 22, 2020 - By Victor Reklaitis
Tonight’s presidential debate looks like the last-chance saloon for Trump, analysts say Betting markets and swing-state polls keep favoring Democratic challenger Joe BidenIt’s the last-chance saloon for President Donald Trump if he wants to turn around the polling trends in the White House race, according to some political analysts.
4:15 a.m. Oct. 6, 2020 - By Jaimy Lee
SVB Leerink analysts predict $1 billion in peak sales of Regeneron's experimental COVID-19 treatmentSVB Leerink analysts predict that Regeneron Pharmaceuticals Inc.'s experimental antibody cocktail for COVID-19 patients will soon receive regulatory authorization and could generate peak sales of more than $1 billion in 2021. The drug, REGN-COV2, is a type of antibody-based treatment aimed at people with mild to moderate forms of the disease. It is still being tested in clinical trials but gained mainstream attention after President Donald Trump's physician last week early in the course of his COVID-19 treatment on a compassionate use basis. Regeneron's stock was down 0.5% in premarket trading on Tuesday. "We do expect the approval to occur within days and anticipate significant uptake in the remainder of the year, particularly as COVID resurges in all but the most isolated and socially distanced countries, states, towns, and communities," SVB Leerink analyst Geoffrey Porges told investors on Monday. (Porges later clarifies in the note that he believes the drug will receive an emergency use authorization, not a full approval, from the Food and Drug Administration.) He also expects the company to price REGN-COV2 at $3,000 per vial, to Gilead Sciences Inc.'s remdesivir, another COVID-19 treatment that received authorization in May. Regeneron's stock is up 61.1% so far this year, while the S&P 500 has gained 5.5%.
8:28 a.m. Oct. 5, 2020 - By Tomi Kilgore
Crispr's stock shoots up after bullish call from BofA Securities analystShares of Crispr Therapeutics AG shot up 7.9% in midday trading Monday, after a bullish call from BofA Securities analyst Geoff Meacham, who suggested a target that was 28% above current levels and 9.3% above the Aug. 19 record close of $100.64. Meacham started coverage of genome-editing technology company with a buy rating and $110 price target, saying he believes the Crispr's technology platform has generated a "de-risked potentially best-in-class curative therapy for transfusion-dependent beta-thalassemia (TDT) and sickle cell disease (SCD), as well as a trio of next-generation autologous CAR-Ts." He said the company's Hemoglobinopathy program will have additional de-risking data in December, "leading to clarity on the path to market," and the CAR-T programs offer "significant upside potential." The stock has run up 41% year to date, while the iShares Nasdaq Biotechnology ETF has climbed 15.5% and the S&P 500 has gained 5.1%.
3:56 a.m. Sept. 26, 2020 - By Philip van Doorn
Weekend reads: Your money or your pickup truck Also, a retirement quiz, clean energy stocks and where to liveAlso, a retirement quiz, clean energy stocks and where to live.
4:10 a.m. Sept. 23, 2020 - By Tomi Kilgore
Tesla's stock falls, but Oppenheimer's Rusch says buy on weaknessShares of Tesla Inc. took a 5.8% premarket hit Wednesday, after investors apparently , but Oppenheimer analyst Colin Rusch was more upbeat, saying he would be "buyers on any near-term weakness." Rusch reiterated the outperform rating he's had on the stock for at least the past two years and kept his price target at $451. He said Tesla outlined a "robust reimagining of battery design, manufacturing and performance," including targeting a $25,000 vehicle in three years and a 20-times capacity increase by 2030. Rusch also noted that Tesla's 30% to 40% delivery growth guidance for 2020 is above consensus estimates. "We are impressed with the ambition of the endeavor and believe this roadmap charts ongoing technology and cost leadership for [Tesla] enabling sales into the entire LDV market," Rusch wrote in a note to clients. "While limited details may weigh on shares, we would be buyers on any near-term weakness." Tesla's stock has more than doubled (up 111.7%) over the past three months through Tuesday, while the S&P 500 has gained 5.9%.
4:26 a.m. Sept. 22, 2020 - By Jaimy Lee
Analysts question Illumina's plans to buy cancer-detection company GrailShares of Illumina Inc. were down 0.2% in premarket trading on Tuesday, the day after the stock dropped 8.6% and it confirmed plans to buy cancer-detection company Grail Inc. for $8 billion in cash and stock. Analysts have been critical of the deal; Stifel called the acquisition "massively dilutive," SVP Leerink's Puneet Souda said the deal will be "viewed as the ultimate move or one of the most costly endeavors in the company's history," and J.P. Morgan downgraded the stock to neutral from overweight. "We find it hard to get excited about the acquisition, especially considering that ILMN was already positioned to participate from Grail's ramp," J.P. Morgan analysts wrote in a note to investors on Monday. Illumina already owns a 14.5% stake in Grail, which is developing blood tests that can detect cancer. While the potential to use blood tests to detect cancer could radically shake up the cancer detection market, none of Grail's products have been approved by the Food and Drug Administration, and the company is still spending largely on research and development. Grail had $260 million in operating expenses in 2019, with the majority going to R&D, according to Souda. The deal is expected to close in the second half of next year. Illumina's stock is down 18.5% so far this year, while the S&P 500 is up 1.5%.
2:08 a.m. Sept. 14, 2020 - By Philip van Doorn
Did you miss out on Tesla’s big run? There are still good alternatives to play the electric-car revolution There’s money to be made from industry suppliers and even from some old manufacturersInvestors are pouring money into pure-play electric-vehicle stocks, but there’s money to be made from industry suppliers and even from some old manufacturers who are about to jump into the electric market.
4:27 a.m. Sept. 12, 2020 - By Philip van Doorn
Weekend reads: Seeking a retirement ‘utopia’ Also, Joe Biden’s 401(k) plan, plus investing in electric cars — beyond TeslaAlso, Joe Biden’s 401(k) plan, plus investing in electric cars — beyond Tesla
4:20 a.m. Sept. 8, 2020 - By Jaimy Lee
SVB analysts downgrade Moderna's stock, citing 'competitive pressure' from other COVID vaccine developersAnalysts at SVB Leerink downgraded shares of Moderna Inc. to underperform from market perform, citing growing "competitive pressure" from other developers of COVID-19 vaccines. Shares of Moderna were down 7.3% in premarket trading on Tuesday. The analysts said it's still likely that the Moderna's coronavirus vaccine candidate will be authorized by the Food and Drug Administration in the fourth quarter of this year "but speed to market has fallen behind competitors." Unlike other drugmakers developing experimental COVID-19 vaccines, such as Johnson & Johnson and Pfizer Inc. , Moderna does not have any other approved products to buffer the company's revenue-earning potential. Moderna's stock has soared 220.0% so far this year, while the S&P 500 has gained 6.0%.
3:54 a.m. Sept. 8, 2020 - By Tomi Kilgore
Nio gets bullish endorsement from Deutsche Bank, but stock fallsNio Inc. got a bullish endorsement Tuesday from Deutsche Bank analyst Edison Yu, but the China-based electric vehicle maker's stock fell 3.9% in premarket trading amid a selloff in shares of other EV makers and the broader stock market. Yu initiated coverage of Nio with a buy rating and $24 stock price target, which 33.5% above Friday's closing price of $17.98. He sees Nio as the leader of an emerging class of China-based automakers backed by large, well capitalized technology giants and local governments, which he refers to the "Fab Four": Nio, XPeng Inc. , Li Auto Inc. and WM Motor. He said he believes all four can "co-exist" with U.S.-based rival Tesla Inc. , as there is still "plenty of room to capture market share" away from traditional internal-combustion-engine (ICE) automakers. "With the China EV market already the world's largest and now inflecting upward after the recent downturn, we believe NIO is well positioned to take share in the premium segment, having put major emphasis on post purchase customer service, alleviating charging anxiety, and developing a robust software/AI centric vehicle ecosystem," Yu wrote in a note to clients. Shares of Xpeng fell 1.8% ahead of the open, Li Auto lost 4.4% and , while futures for the S&P 500 dropped 1.0%.
7:27 a.m. Aug. 17, 2020 - By Tomi Kilgore
GM's stock rallies as Deutsche Bank pushes for EV spinoffShares of General Motors Co. rallied 3.1% in morning trading Monday, putting them on track for a 2-month closing high, after Deutsche Bank analyst Emmanuel Rosner put the automaker on the firm's "Catalyst Call Buy List," citing the potential for an electric-vehicle spinoff. Rosner noted that during GM's conference call with analysts after the second-quarter earnings report on July 29, GM Chief Executive Mary Barra responded to his question about a potential spinoff by saying that GM was evaluating that option. Rosner believes an EV spinoff would force the market to recognize its EV technology and upcoming vehicle lineup, "unlock considerable shareholder value, give the new entity access to cheap capital and provide the new entity with the ability to attract high-caliber talent. He said an evaluation of potential valuation outcomes could value GM's stock between $28 to up to $93, which represents a decline of 2.5% to a more than tripling (up 224%) from current levels. The stock has lost 21.6% year to date, while shares of rival Ford Motor Co. have dropped 25.8% and EV-maker Tesla Inc.'s stock has rocketed fourfold (up 322.6%), and the S&P 500 has gained 4.8%.
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