7:06 a.m. Oct. 18, 2021
- By Emily Bary
Upstart stock drops after double downgradeShares of Upstart Holdings Inc. are off 3.6% in Monday morning trading after Bank of America analyst Nat Schindler downgraded the stock two notches, to underperform from buy, writing that he sees "little room for upside" with shares up roughly 800% on the year. The S&P 500 has gained about 19% so far in 2021. Schindler wrote that Upstart sees opportunity in the auto-lending market after having success with its artificial-intelligence-driven personal-loan business, though this new market comes with its own challenges. "Although auto loans represent a much larger [total addressable market], we also highlight the higher barriers to entry with more competitors and established, well-capitalized institutions," Schindler wrote. Upstart's current valuation embeds "premature optimism on Upstart's ability to take material shares in the auto-lending space," he continued. Schindler raised his price objective to $300 from $200 in his note to clients. Shares recently changed hands near $375.
5:52 a.m. Sept. 30, 2021
- By Claudia Assis
Virgin Galactic 'back on track' after FAA clearance, Jefferies saysVirgin Galactic Holdings Inc. is "back on track" after receiving Federal Aviation Administration clearance late Wednesday to restart its spaceflights, analysts at Jefferies said in a note Thursday. That "lifts an overhang for (Virgin Galactic), with focus shifting to Unity 23," the company's next flight, which has been postponed. "We continue to believe that commercial space tourism will be a flourishing industry, unlocking profitability and cash flow for Virgin Galactic," the analysts said. "Near-term challenges have been timing-related, rather than changing the trajectory of the revenue profile." Jefferies has a buy rating on the stock with a price target of $33, representing an upside of about 27% over Thursday prices. Virgin Galactic shares have gained nearly 9% so far this year, compared with gains of around 16% for the S&P 500 index.
3:52 a.m. Sept. 17, 2021
- By Emily Bary
Take-Two stock downgraded amid concerns about 'Grand Theft Auto' delayShares of Take-Two Interactive Software Inc. are off 1.1% in premarket trading Friday after BMO Capital Markets analyst Gerrick Johnson downgraded the stock to market perform from outperform. Johnson is concerned about Take-Two's plans to delay the release of its new "Grand Theft Auto" version by four months, which will push it out of the holiday window. "We believe it is very prudent to delay a game if it is not to the highest possible standard," Johnson wrote, noting that gaming companies can ruin potential "long-term" successes by rushing games out prematurely. "However, delays no longer seem to be an isolated event at TTWO and are happening with more frequency," he continued, citing a delay for "Red Dead Redemption 2" a few years back and for "Kerbal Space Program 2" more recently. "In the current environment, we think investor concerns around delays are heightened owing to the fact that video game consumption is high now, boosted by the COVID-19 pandemic, and there is plenty of skepticism that engagement might not be as strong as we emerge from COVID restrictions at some point in the future," Johnson wrote. He also said that Take-Two's multiple could "continue to come under pressure, mostly owing to exogenous events such as new Chinese gaming regulations and closer scrutiny of video game companies including content in 'Grand Theft Auto' releases owing to heightened ESG focus amongst institutional investors." Take-Two shares have lost 11% over the past three months as the S&P 500 has gained 6%.
2:30 a.m. Sept. 17, 2021
- By Steve Gelsi
Wedbush upgrades Silicon Valley Bank to outperformWedbush Securities analyst David J. Chiaverini on Friday upgraded SVB Financial Group to outperform from neutral and raised the bank's 12-month price target to $700 a share from $600 a share. Chiaverini said the parent company of Silicon Valley Bank is positioned to benefit from its favorable business mix as well as interest rate hikes from the U.S. Federal Reserve. "SIVB has reported several consecutive blowout quarters, driven by its emphasis on banking the innovation economy, especially the tech and life sciences industries, which have thrived throughout the pandemic," he said.
Wedbush Securities expects multiple rate hikes, which will potentially benefit the bank. It's also poised to gain from its acquisition of Boston Private as well as new hires in the technology banking space. Wedbush now expects three 25 basis point rate hikes each in late 2022 and 2023 from the Fed. Shares of SVB closed at $608.45 on Thursday, The stock has risen 57% so far this year, compared to an increase of 28% in the Financial Select SPDR Fund .
10:02 a.m. Aug. 31, 2021
- By Emily Bary
Virgin Galactic stock surges amid bullish view of space-tourism opportunityShares of Virgin Galactic Holdings Inc. are up 11.7% in Tuesday afternoon trading after Jefferies analyst Greg Konrad weighed in with an upbeat view of the prospects for space tourism and Virgin Galactic's positioning in that market. He initiated coverage of the stock with a buy rating and $33 price target. Konrad is encouraged by consumer interest in space as well as "a recovering economy that is experiencing rapid GDP growth and wealth," which could help drive a bigger market for Virgin Galactic's "premium offering." He sees space tourism as potentially a $120 billion market, and one that could drive Virgin Galactic to deliver $1.7 billion in annual revenue by 2030. Konrad's consumer survey of more than 200 people with a disclosed net worth above $1 million found strong awareness of the Virgin Galactic brand. Among respondents, 37% were interested in traveling to space, with about 30% of them willing to spend more than 5% of their net worth to do so and 10% willing to spend upwards of 10%. Virgin Galactic shares have gained 58.4% over the past 12 months as the S&P 500 has risen 28.9%.
3:57 a.m. July 13, 2021
- By Emily Bary
EA stock gains after upgrade at BMO Capital MarketsShares of Electronic Arts Inc. are up 1.1% in premarket trading Tuesday after BMO Capital Markets analyst Gerrick Johnson upgraded the stock to outperform from market perform and raised his price target to $168 from $150. Johnson expects that the video-game industry will fare better than expected exiting the pandemic, while lockdowns in some international markets could continue giving the company an engagement boost. He notes that EA's "Apex Legends" game seems to be performing "significantly better" than he had anticipated, with positive feedback for the new "Arenas" mode in season 9 that has helped the game increase its viewership on the Twitch platform. In addition, EA is "making significant progress in addressing its deficiency in the mobile space," Johnson wrote, pointing to recent acquisitions of Glu Mobile and Playdemic. Shares have declined 0.5% over the past three months as the S&P 500 has added 5.9%.
3:20 a.m. June 29, 2021
- By Barbara Kollmeyer
Tesla price target cut 10% at UBS, which cites slowing China demand momentumUBS on Tuesday cut its share price on Tesla to $660 from $730, citing "several negative" factors. Analyst Patrick Hummel said while their latest consumer survey of electric vehicles (EV) was "solid across the board for Tesla, momentum in the quarters ahead is more likely in favor of competitors with a busier launch pipeline." China stood out as a worry for Hummel, who rates Tesla at neutral. "Our key concern shorter-term is that Tesla's demand momentum in China is slowing, and our checks on the ground suggest that BEVs (battery electric vehicles) from domestic brands are gaining further ground vs. Tesla, which may trigger additional pricing action by Tesla and consequently lower gross margins," he told clients in a note. The analyst said delays to the Model Y launch in Europe, Full Self-Driving (FSD) rollout and the next-generation 4680 battery in Fremont will also weigh on sentiment. To get to a better share performance, Tesla needs "new hard evidence" about its lead on the side of software/FSD. Shares of Tesla slipped 0.5% in premarket trading and are down 2.4% year to date. Also in the EV space, UBS lifted its price target on Ford to $16 from $13, and GM to $79 from $75. Those companies are rated neutral and buy, respectively.
2:33 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%.
2:49 a.m. March 11, 2021
- By Ciara Linnane
Aurora Cannabis reiterated as underperform by Jefferies after filing to issue $1 billion of securitiesJefferies reiterated its underperform rating on the stock of Aurora Cannabis Inc. on Thursday, after the company filed a shelf registration with the Securities and Exchange Commission to issue up to $1 billion of securities. "We had recently flagged the need for additional capital for a US push and therefore, given how critical the US is, this announcement should be viewed as welcome," analyst Owen Bennett wrote in a note to clients. "What it does confirm, however, is the disconnect between the Aurora, and broader Canadian, valuations and reality. The current multiple already arguably reflects some degree of US success, but that success has to be won first." Bennett had written recently that Aurora needed more cash to compete in the U.S. CBD space, never mind the U.S. THC space, and said he expected institutional investors would avoid the stock in favor of U.S. multi-state operators, given the growing expectations of reforms of the U.S.' strict cannabis laws. "We would suggest that this $1bn shelf, viewed alongside a recent $2bn shelf announced by Canopy , confirms the task at hand for Canadian operators to be able to establish a strong US foothold," he wrote. "We would also note here that Canopy already has a cash balance of C$825mn. While Aurora had a cash balance of C$565mn as end of Q2, it has debt of C$187.6mn due <12 months, and another C$144mn 1-3 years." Aurora shares were up 2.3% premarket, but have fallen 4.4% in the last 12 months through Wednesday, while the Cannabis ETF has gained 151% and the S&P 500 has gained 42%.
4:14 a.m. Feb. 24, 2021
- By Tonya Garcia
American Eagle shares upgraded as Aerie brand heads for $2 billionAmerican Eagle Outfitters Inc. was upgraded to outperform from market perform at Cowen, sending shares up 2.4% in Wednesday premarket trading. Cowen raised its price target to $31 from $25. Analysts expect stock upside as the Aerie underwear and loungewear brand doubles, heading to $2 billion in revenue in the next three years. Cowen says Aerie is poised for growth thanks to e-commerce momentum and new store openings. Meanwhile, the American Eagle brand is closing stores, with analysts modeling 190 store closures by fiscal 2023. Mall traffic declines and "assortment missteps" could weigh on the business. But there are reasons to be optimistic. "Our view is that American Eagle is winning in the teen apparel space," Cowen said. "We believe American Eagle's commitment to offering a strong value proposition: compelling fashion [and] high-quality apparel-plus-lifestyle brand are key positives." American Eagle shares have soared more than 81% over the past year while the benchmark S&P 500index has gained 20.3% for the period.
9:58 a.m. Feb. 5, 2021
- By Tomi Kilgore
Hexcel stock falls after credit rating cut to 'junk' status at S&P Global RatingsShares of Hexcel Corp. fell 0.8% in afternoon trading Friday, after the credit of the maker of materials used for commercial aerospace and space and defense industries was downgraded into "junk" territory, with potential for further downgrades. S&P Global Ratings , the credit rating agency's highest speculative-grade rating, from BBB-, while the outlook remained negative. S&P said Hexcel's credit metrics are likely to remain weak through 2021 because of the COVID-19 pandemic, as demand for Hexcel's products has been significantly affected by the reduced rebuild rates across all platforms at original equipment manufacturers Boeing Co. and Airbus S.E. . "[D]ue to its position early on in the supply chain, Hexcel has seen a faster and more pronounced drop in its demand because its customers are choosing to use their existing inventory to preserve cash," S&P said. "We expect this destocking to continue into the second quarter of 2021." Boeing credit is rated BBB-, which is S&P's lowest investment grade rating, and Airbus credit is rated A. Meanwhile, S&P rival Moody's Investors Service rates Hexcel credit at Baa3, which is Moody's lowest investment grade rating. Hexcel's stock has tumbled 36.6% over the past 12 months, while the S&P 500 has gained 16.5%.
4:04 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%.
3:35 a.m. Jan. 14, 2021
- By Tomi Kilgore
FuelCell Energy stock sinks after J.P. Morgan analyst turns bearish, saying it's 'richly valued'Shares of FuelCell Energy Inc. sank 7.1% in premarket trading Thursday, after J.P. Morgan analyst Paul Coster turned bearish on the alternative energy company, suggesting the stock should be worth about half of its latest closing price. Coster cut his rating to underweight from neutral and established a $10 stock price target, which is 47.8% below Wednesday's close of $19.14. Coster likes the company, as he says it has a "strong backlog and a strengthened balance sheet." He says FuelCell's optionality likes in the versatility of its molten-carbonate technology in industrial applications, and he is anticipating a "breakout contract" in the industrial, chemical or energy sector. The problem is, Coster said he thinks the stock is "richly valued" at current levels. The stock had soared 80.4% amid a seven-day win streak to close Wednesday at the highest price since June 2018. Separately, Coster started fellow alternative energy company Plug Power Inc. with a neutral rating, saying that while the stock is his top pick in the hydrogen space, FuelCell's stock has skyrocketed nearly eight-fold (up 687.7%) over the past three months through Wednesday, while the S&P 500 has tacked on 9.2%.
2:13 a.m. Jan. 14, 2021
- By Tomi Kilgore
Plug Power stock set to snap long win streak after J.P. Morgan says it is 'fully valued'Shares of Plug Power Inc. dropped 6.0% in premarket trading Thursday, putting them in danger of snapping a , after J.P. Morgan analyst Paul Coster initiated a price target at a 14% discount. Coster started coverage of Plug Power at neutral with a price target of $60, after the stock closed Wednesday at $69.50, . Coster said Plug Power is a "first- and fast-mover in the hydrogen fuel cell space with proven technology to pursue a massive market opportunity," and could grow sales to more than $1.2 billion by 2024. "This is our top pick in the hydrogen space, but [the stock is] fully-valued in our view," Coster wrote. The stock has more than doubled (up 116.0%) amid a seven-session win streak through Wednesday, which was the longest win streak since November 2019. The stock has skyrocketed four-fold (up 301.7%) over the past three months, while the S&P 500 has gained 9.2% the past three months.