Greatest Purchase, RH, Starbucks, Tenet Healthcare & extra
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Check out the companies that are making headlines in midday trading.
Best Buy – The retailer’s shares fell 2.4% after Goldman Sachs downgraded the stock to sell it from neutral. The firm said in a note to clients that Best Buy was “one of the best-run retailers,” but the stock was valued highly and recent sales growth was difficult to sustain.
RH – The furniture company’s shares fell 8% after the company warned that delivery bottlenecks would hurt the company in the fourth quarter. The company formerly known as Restoration Hardware exceeded expectations for the third quarter with adjusted earnings per share of $ 6.20 and revenue of $ 844.8 million. Analysts polled by Refinitiv had estimated $ 5.30 per share and revenue of $ 837.1 million.
DoorDash – The grocery delivery service stocks fell more than 5% after making its strong market debut on Wednesday. DoorDash stock rose 85% on its first day of trading on the New York Stock Exchange.
Starbucks – The coffee chain’s shares rose more than 4% after the company reiterated guidance for a “significant” rebound in 2021. The company is forecasting growth of at least 20% for the 2022 financial year. In the long term, Starbucks expects adjusted earnings per share to increase between 10% and 12%.
Canada Goose – Canada Goose stocks fell 3.1% after a Goldman Sachs analyst downgraded the company to sell from neutral. The analyst said Canada Goose’s 27% increase since September was “not justified,” adding that “we are seeing mixed brand momentum indicators for the brand through November that we expect to match short- and medium-term growth Offering headwind “.
Tenet Healthcare – Tenet Healthcare shares rose more than 16% after the healthcare services company agreed to sell a portfolio of up to 45 outpatient surgery centers from SurgCenter Development for $ 1.1 billion in cash plus the acquisition of $ 18 million. To acquire USD debt. The deal is expected to close in late 2020.
Ciena – The network systems company’s shares fell more than 3% after falling short of analysts’ expectations for fiscal fourth quarter earnings. According to Refinitiv, Ciena reported earnings of 60 cents per share, which is below the estimate of 63 cents per share.
CSX – The railroad company’s shares fell more than 1% after Morgan Stanley downgraded the CSX to an underweight rating. “The downgrade mainly reflects the valuation – our view of the fundamentals has not changed much,” the company said in a statement to customers. However, Morgan Stanley raised its target for the stock from $ 52 to $ 60.
– CNBC’s Pippa Stevens, Fred Imbert, Maggie Fitzgerald and Jesse Pound contributed to the coverage.
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