Before the bell, take a look at the businesses that are in the news.
Dollar Tree: Following a move by JPMorgan from neutral to overweight, the discount retailer’s shares saw a nearly 2% increase. The bank listed two possible tailwinds: a larger total addressable market and higher profitability.
American Airlines: After Citi upgraded the airline to buy from neutral, the shares increased by 1.5%. Analyst Stephen Trent stated, “The network carriers in North America seem to have a better position in this post-pandemic environment because of their diverse revenue streams and strong demand for premium cabin offerings.”
Flywire: After being upgraded to overweight by Morgan Stanley, the fintech company had a 4% increase in light trading. According to the bank, Flywire can continue to develop at its current rate.
Beam Therapeutics: After JPMorgan upgraded the biotech business from neutral to overweight, shares of the company surged 5.5%. The company’s robust cash sheet, simplified pipeline, and potential $12 billion commercial opportunity with BEAM-302 gene therapy made the bank recognise the stock’s trading price as an appealing entry point.
Zim Integrated Shipping Services: After an upgrade to buy from hold at Jefferies, shares of the global shipping company surged by 9%. According to analyst Omar Nokta, “ZIM’s high spot, high cost, and high leverage platform was a major concern in a period of low freight rates, but given the rise in spot rates, it now provides substantial upside.”
Hershey: After an upgrade to outperform from market perform at AllianceBernstein, the chocolate stock gained 1.4%. The investment firm pointed to favourable factors including steady top-line growth, improved market share and volume trends, and a competitive value as drivers of the shift.
Warner Bros. Discovery: Wells Fargo downgraded the media and entertainment company from overweight to equal weight, causing shares to fall 1.6%. Higher amortisation, an unfavourable M&A climate, and ad migration, according to analyst Steven Cahall, are the causes of a flattening multiple.
Albemarle: Following TD Cowen’s reduction of Albemarle from outperform to market perform, the chemical company’s shares dropped by roughly 1%. According to the investment business, the company is facing cash flow uncertainties and is waiting for a recovery in lithium prices.
FirstSource Builders — The building materials company saw a 2% increase when Bank of America upgraded its buy rating from neutral. Analyst Rafe Jadrosich stated in a note to clients that BLDR is “the best positioned in our coverage for stronger single-family starts, potential increase in timber prices, and homebuilders’ shift to more value-add services.”
Bloom Energy: The green energy company’s stock fell nearly 6% after Bank of America downgraded it from neutral to underperform. Analyst Julien Dumoulin-Smith gave the prediction that revenues will be flat between 2023 and 2025 as the basis for the change, instead of previously growing.
Koninklijke Philips: After the Netherlands-based health technology company’s fourth-quarter results and revenue fell short of FactSet’s polled analysts’ estimates, its U.S.-listed shares fell 6.9%. A deal regarding a ventilator recall was also announced by the business to the Food and Drug Administration.
Technologies ZoomInfo — After Bank of America analyst Koji Ikeda raised the software stock to buy from neutral, it surged 5.5%. The analyst highlighted the company’s revenue growth reacceleration and new AI products as potential catalysts in writing, saying, “We believe it is a classic self-help story that is set to outperform.”
McGrath RentCorp: Following news that equipment rental provider WillScot Mobile Mini will acquire the business-to-business rental company for $3.8 billion in cash and stock, McGrath RentCorp’s shares surged by more than 9%.
Source (CNBC)
