Pre-Market:Pre-Market
Pre-Market active stocks
Gainers
- Mynaric (NASDAQ:MYNA) shares soared as much as 16% after a contract with Northrop Grumman (NOC) was inked for the delivery of optical communication terminals under the U.S. Space Development Agency Tranche 2 Transport Layer-Alpha space vehicles program. The contract, valued at $33M, is slated to initiate paying milestones in early 2024 and continue until 2026.
- Xponential Fitness (NYSE:XPOF) shares increased around 7% following Stifel’s upgrade from hold to buy. Stifel feels the company’s value is too negative short-term sentiment, not major structural difficulties. Analyst Christopher O’Cull says that if shares continue at present levels, management might join with another investor to take the firm private. Stifel reassures that there are no anticipated difficulties from the SEC’s due diligence. The price objective is now set at $18, a 95% increase from the last closing price.
- Photronics (NASDAQ:PLAB) shares surged 4.1% after the semiconductor photomask producer exceeded quarterly sales projections by 8.2% year on year. It also anticipates sales in the following quarter to be approximately $221 million, as expected.
- Take-Two (NASDAQ:TTWO) shares climbed 3.4%, with the video game manufacturer slated to join the Nasdaq 100 index on December 18, presumably increasing investor interest.
- Airbnb (NASDAQ:ABNB) shares increased 1.3% after the vacation rental platform agreed to pay the Italian Revenue Agency more than $600 million to satisfy outstanding host income tax liabilities for the tax years 2017-2021.
- Netflix (NASDAQ:NFLX) shares climbed 0.2% after the streaming company disclosed viewing numbers for its entire repertoire in response to concerns over its perceived lack of transparency about how its films are viewed.
Losers
- Pfizer (NYSE:PFE) stock fell 6.8% after the company forecasted lower sales and profit in 2024, while raising its cost-cutting target by $500 million.
- Coherent (NYSE:COHR) shares slumped 3% after Morgan Stanley downgraded the stock from overweight to equal-weight. According to Analyst Meta Marshall, the current spike in stock performance has already integrated the prospective improvements from artificial intelligence and machine learning in the short future. Marshall highlighted a “lack of catalyst” for the future year, noting worries about macro and floating rate debt exposure. The price objective set at $45 suggests a 7.6% rise from the latest reported price.
- Southwest Airlines (NYSE:LUV) shares slumped 2.5% after the budget airline boosted its fourth-quarter fuel cost prediction, although anticipating unit revenue to climb to the upper half of its previous guidance range due to robust leisure demand.
- Tesla (NASDAQ:TSLA) shares dipped 1.1% after the electric vehicle company said that certain Model 3 purchases will lose a $7,500 federal tax credit.
- Ford (NYSE:F) shares declined 0.5% after BNP Paribas (OTC:BNPQY) downgraded the automaker to ‘neutral’ from ‘outperform,’ expecting little upside from present levels.
Stocks in focus
Pfizer (NYSE:PFE)
Pfizer (NYSE:PFE) was one of the most frequently traded stocks prior of the opening bell, falling more than 6%. Investors were underwhelmed by the healthcare giant’s upgraded outlook, which reflected the impact of the Seagen (SGEN) purchase. PFE estimates full-year sales of $58.5B to $61.5B in 2024, with SGEN contributing around $3.1B. Adjusted profits per share are now expected to range from $2.05 to $2.25. The consensus sales and profit projections are $63.18 billion and $3.17 per share, respectively. After receiving all necessary regulatory permissions, Pfizer (PFE) aims to finalize the deal on Thursday.
Mastercard (MA) and Visa (V)
Shares of Mastercard (MA) and Visa (V) received some attention in pre-market trade, with the former slightly higher and the latter marginally down. The UK Payment Systems Regulator proposed a regulation on Wednesday that would limit the interchange fees that the two businesses may collect on cross-border credit and debit card transactions. According to the regulator, MA and V “likely raised these fees to an unduly high level, at the expense of UK businesses.” Seeking Alpha reached out to the companies for comment, but they did not answer immediately.
Adobe (ADBE)
Adobe (ADBE) stock will be in the spotlight, as the creative software company is scheduled to publish its FQ4 2023 results after the closing bell. ADBE is expected to earn $4.14 per share on $5.02 billion in revenue. The business, well known for its graphics editor Photoshop, is expected to outperform expectations, aided by demand for its generative artificial intelligence (AI) features and recent pricing increases. Investors expect Adobe (ADBE) will provide conservative guidance and will be watching for remarks on topics such as the adoption of Firefly, ADBE’s AI tool for picture generation.
Hertz (HTZ)
Hertz (HTZ) shares fell roughly 2% before the market opened after Oppenheimer downgraded the firm to Perform from Outperform. The brokerage said it was exiting the auto rental firm because it believes next year would be a transition year for HTZ. Oppenheimer sees major continued obstacles to Hertz’s (HTZ) electric car program, as well as greater vehicle interest expenditure, as headwinds in 2024. HTZ’s EBITDA projection for 2024 has been reduced from $1.215B to $823M by the brokerage.
Downgrades
Exane BNP Paribas has downgraded Ford to Neutral.
According to InvestingPro, Exane BNP Paribas downgraded Ford Motor (NYSE:F) from Outperform to Neutral with a price objective of $12.00.
According to earlier this week’s reports, Ford intends to cut manufacturing of its F-150 Lightning electric pickup truck in half by 2024, citing “changing market demand” as the cause. This move mirrors a larger industry trend of lowering electric car spending as sales growth has been less than predicted.
Wells Fargo has downgraded Johnson & Johnson.
Johnson & Johnson (NYSE:JNJ) has been downgraded to Equal Weight from Overweight, with a price objective of $163.00 (down from $170.00).
Next month, the corporation will disclose its Q4/23 profits. Street projections for EPS are $2.37 and sales are $21.01 billion.
Hertz Global has been laid off at Oppenheimer.
Hertz Global (NASDAQ:HTZ) shares dipped more than 1% in pre-market trading today after Oppenheimer reduced the company’s rating from Outperform to Perform.
Analysts predict that 2024 will be a pivotal year for Hertz. Multiple hurdles are expected for the corporation, including severe concerns with its EV project, greater car finance payments, and higher DPU. As a result, the expected EBITDA for 2024 has been decreased from $1.215 billion to $823 million.
Upgrades
At Truist, Microsoft began with a Buy rating.
Truist Securities launched coverage on Microsoft (NASDAQ:MSFT) with a Buy rating and a price objective of $600.00.
According to Truist’s study, despite Microsoft’s stock rising more than 50% in a year, compared to the S&P500’s 19% gain, there is still significant space for development.
Morgan Stanley invested in MSCI.
Morgan Stanley raised its rating on MSCI (NYSE:MSCI) to Overweight from Equalweight, with a price target of $600.00 (up from $526.00), noting an appealing entry position and recognizing the firm as the “most compelling long-term story” in the information services market.
Furthermore, MSCI is a new Morgan Stanley Top Pick because analysts feel that the upside is not completely priced in, underlining MSCI’s growth possibilities and defensive traits in the face of macroeconomic uncertainty.
Two additional enhancements
Ally Financial (NYSE:ALLY) shares gained around 1% in pre-market trading today after Morgan Stanley upgraded the firm to Equalweight from Underweight with a $31.00 price objective.
Radian Group (NYSE:RDN) was upgraded to Outperform from Market Perform by Keefe, Bruyette & Woods, with a price objective of $29.00.
WEEKLY EARNINGS CALENDAR
Wednesday, Dec 13
Adobe (ADBE), ABM Industries (ABM), Cognyte Software (CGNT), Nordson (NDSN), Photronics (PLAB), REV Group (REVG) KNOT Offshore Partners LP (KNOP), Ocean Power Technologies (OPTT).
Thursday, Dec 14
Costco Wholesale (COST), Jabil (JBL), Lennar LEN
Friday, Dec 15
Steel Dynamics, Darden Restaurants
For Details
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Airbnb suffers as a result of KeyBanc’s downgrade
Airbnb (NASDAQ:ABNB) shares were down nearly 3% in premarket trading Tuesday after KeyBanc downgraded the business from Overweight to Sector Weight.
Following the split, WK Kellogg began at Sell.
Following the conclusion of Kellogg Company’s (NYSE:K) spinoff of its North American cereal division into the WK Kellogg standalone entity, Goldman Sachs commenced coverage on WK Kellogg (NYSE:KLG) with a Sell rating and a price target of $11.00.
WK Kellogg’s stock dropped significantly on the first day after the spinoff, closing more than 9% down on Monday.
Nortfolk Southern and Bread Financial have been downgraded.
Norfolk Southern (NYSE:NSC) shares fell more than 2% on Monday after BofA Securities downgraded the firm to Neutral from Buy and reduced its price objective to $215.00 from $266.00, citing operational difficulties and excessive costs.
Bread Financial (NYSE:BFH) has been downgraded to Sell from Neutral by Goldman Sachs, with a $32 price target. As a result, shares dropped about 2% on Monday.
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ell suffers as a result of a downgrade by Barclays.
Dell Technologies (NYSE:DELL) shares tumbled 3% before the bell on Thursday after Barclays downgraded the firm to Underweight from Equalweight, with a $53.00 price target.
Cloudflare began at Underperform.
Cloudflare (NYSE:NET) has been added to BofA Securities’ coverage with an Underperform rating and a $52.00 price objective.
Crocs (NASDAQ:CROX) shares were down more than 2% in pre-market trading today after B.Riley downgraded the firm to Neutral from Buy and reduced its price objective to $101.00 from $125.00.
Verint Systems (NASDAQ:VRNT) was downgraded from Outperform to Perform by Oppenheimer.
Following the company’s announced Q2 EPS and sales misses, as well as dismal full-year forecasts, shares fell more than 17% pre-market today.