Market Today: Boeing Soars on Upgraded Price Target, GameStop Rallies Ahead of Earnings

Improved confidence in the supply chain’s ability to support strong demand in the aircraft industry has led to a positive outlook for Boeing (BA, Financial). RBC Capital Markets analyst Ken Herbert has increased the price target for Boeing to $275, citing the growing demand and the stock's improving sentiment. With forecasts of $5.5B in free cash flow for 2024 and potentially $8.5B in 2025, Boeing is showing signs of a strong financial future, especially when compared to the $3.5–4B generated this year. Herbert noted that Boeing has shifted from being "tradable but not investable" to a company with better visibility in free cash flow growth, which could lead to an expansion of multiples.

Ahead of its earnings report next week, GameStop (GME, Financial) experienced a significant rally, with shares jumping 11.05%. Investors are preparing for the videogame retailer's financial update, which is expected to show revenue of $1.1B and an EPS loss of $0.08. This will be the first earnings report since Ryan Cohen took over as CEO, and analysts are speculating on potential strategic moves, including investments in cloud gaming and virtual reality, as well as partnerships within the gaming industry. Despite recent losses, there is optimism that Cohen's expertise could help GameStop navigate the evolving gaming landscape.

US Steel (X, Financial) saw its shares rise by 1.8% amid reports that several parties, including Cleveland-Cliffs (CLF, Financial) and ArcelorMittal (MT, Financial), are expected to make offers for the steelmaker. With final bids due soon, the sale process is anticipated to continue through the following week, with potential interest from other bidders such as Nucor (NUE, Financial) and Steel Dynamics (STLD, Financial).

Farfetch (FTCH, Financial) shares soared by 25% following reports that founder Jose Neves is considering taking the luxury fashion site private. With discussions involving bankers and top shareholders like Richemont (CFRHF, Financial), an announcement could be imminent. Despite a significant drop in share price since its public debut, Farfetch is scheduled to announce Q3 earnings, and the potential privatization has sparked investor interest.

Intuit (INTU, Financial) released its Q1 results, surpassing expectations with Non-GAAP EPS of $2.47 and revenue of $3B. The company has reiterated its full fiscal year 2024 guidance, projecting revenue growth of 11 to 12 percent and an increase in GAAP operating income of approximately 15 to 18 percent. Intuit's strong performance and positive outlook reflect its solid position in the market.

Illumina (ILMN, Financial) has received interest from parties looking to buy or invest in its Grail cancer test detection unit. Following a directive from EU regulators to divest the unit, Illumina is preparing to file a Form 10 to facilitate discussions with potential buyers, which could include an outright sale.

Crown Castle (CCI, Financial) is reportedly exploring the sale of its fiber business, which could be valued between $11 billion and $15 billion. Amid pressure from activist investor Elliott, the company's shares have risen as potential buyers, including companies and private equity firms, show interest in the fiber network market.

Redfin (RDFN, Financial) introduced a new housing price index, the Redfin Home Price Index (RHPI), which showed a 1% month-over-month increase in home prices. The RHPI aims to provide a more current measure of U.S. home prices, with the latest data indicating a 6.1% year-on-year increase.

Merck (MRK, Financial) announced a 5.5% increase in its quarterly dividend, raising it to $0.77 per share. This move reflects the company's commitment to providing value to its shareholders and its confidence in sustained financial performance.

Diamond Offshore Drilling (DO, Financial) received an Overweight rating from Capital One, with a $20 price target. The analyst sees potential for the company to benefit from a tightening market for harsh environment semis and anticipates positive free cash flow in 2024, making it an attractive investment or acquisition target.

Tesla (TSLA, Financial) is set to enter the electric pickup market with the launch of the Cybertruck. The company has scheduled a delivery event to distribute the first batch of these highly-anticipated EV pickups. The Cybertruck will compete with other electric models in the lucrative full-size pickup truck market.

A liquefied natural gas tanker incident at an export terminal in Australia, operated by ConocoPhillips (COP, Financial) and co-owned by Origin Energy (OGFGF, Financial), may disrupt shipments and affect global LNG prices as the Northern Hemisphere winter approaches.

AtriCure (ATRC, Financial) maintained its buy rating from Needham despite Medtronic’s (MDT, Financial) launch of a competing product. Needham believes AtriCure’s AtriClip has a strong track record and market penetration, which could mitigate the impact of Medtronic’s new release.

Piper Sandler's chief investment strategist Michael Kantrowitz advised investors to focus on high-quality, profitable companies to navigate macro volatility and uncertainty. He set a year-end 2023 S&P 500 price target of 3,800, noting the significant influence of major tech stocks on the index's performance.

Microsoft (MSFT, Financial) is expected to continue its strong performance in cloud computing and artificial intelligence, according to Tigress Financial. The firm raised its price target on Microsoft, citing the company's growth in Azure and AI products as key drivers.

Coherus BioSciences (CHRS, Financial) announced the pricing of its cancer drug, Loqtorzi, at a discount compared to Merck's (MRK, Financial) Keytruda. The competitive pricing strategy could position Loqtorzi favorably in the market for nasopharyngeal carcinoma treatment.

Workday (WDAY, Financial) reported Q3 earnings that exceeded expectations, with Non-GAAP EPS of $1.53 and revenue of $1.87B. The company also raised its fiscal 2024 subscription revenue guidance, reflecting its strong business momentum and market adoption of its cloud solutions.

PDD (PDD, Financial) shares rose after the company reported third-quarter results that surpassed estimates, with significant year-over-year growth in earnings and revenues. The performance of the Chinese e-commerce giant was bolstered by its online marketing services and transaction services.

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