EU News Digest Latest News & Updates
Johannes Eisele | AFP | Getty Images
Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE)
Check out the companies making headlines midday Monday:
Kraft Heinz — Shares of Kraft Heinz rose 3.4 percent after Morgan Stanley upgraded the food producer to equal weight from underweight. The bank noted that prior concerns like a dividend cut and an earnings shortfall have now been priced into the stock after its recent plunge.
Bed Bath & Beyond — Shares of Bed Bath & Beyond dropped nearly 5 percent after Barclays downgraded the housewares retailer to underweight from equal weight. The bank said it is increasingly disappointed with the results of the company’s efforts to implement a broad restructuring. Barclays also lowered its price target for the stock to $13 from $15.
Amazon — Shares of the e-commerce juggernaut rose about 1.5 percent in midday trading after Evercore ISI analyst Anthony DiClemente’s said the stock still looks undervalued. The analyst said investors should rely less on Amazon’s revenue projections and more on its gross profits going forward.
AT&T — AT&T stock fell 1.62 percent after WarnerMedia announced a new organizational model and leadership team Monday in hopes of advancing its content development. The Wall Street Journal reported that “significant layoffs” are expected as part of the reorganization.
Children’s Place — Shares of Children’s Place tanked nearly 10 percent after the children’s clothing retailer reported disappointing earnings for the fourth quarter. The company posted earnings of $1.10 per share last quarter, well below the $2.10 FactSet consensus estimate. Revenue also missed forecasts, while the company’s full year earnings outlook is also significantly below Street forecasts.
Applied Materials — Applied Materials shares rallied nearly 4 percent Monday after Stifel said the semiconductor equipment manufacturer has one of the most attractive return outlooks of any of its buy-rated companies over the next 12 months. The brokerage’s analysts see 36 percent upside for shares from Friday’s close.
McDonald’s — McDonald’s shares fell about 2 percent Monday after Cleveland Research said the restaurant chain is underperforming first-quarter same-store sales expectations. Darden Restaurants also underperformed the S&P 500, down 0.7 percent.
Salesforce.com — Shares of the cloud software company slid more than 4 percent in midday trading as investors await the release of its earnings report after the closing bell Monday. Analysts surveyed by FactSet expect Salesforce to earn 55 cents a share in the fourth quarter on revenue of $3.56 billion.
— CNBC’s Thomas Franck contributed to this report
