Shares making the most important strikes noon: Finest Purchase, RH, Starbucks, Tenet Healthcare & extra
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Check out the companies making headlines in midday trading.
Best Buy — Shares of the retailer slipped 2.4% after Goldman Sachs downgraded the stock to sell from neutral. The investment firm said in a note to clients that Best Buy is “one of the best run retailers” but that the stock had a high valuation and recent sales growth would be hard to maintain.
RH — Shares of the home furnishings company fell 8% after the company warned that supply constraints would hurt the company during the fourth quarter. The company formerly known as Restoration Hardware did beat expectations for the third quarter, with $6.20 in adjusted earnings per share and $844.8 million in revenue. Analysts surveyed by Refinitiv had penciled in $5.30 per share and $837.1 million in revenue.
DoorDash — Shares of the food delivery service fell more than 5% following its strong market debut on Wednesday. DoorDash shares soared 85% on its first day of trading on the New York Stock Exchange.
Starbucks – Shares of the coffee chain jumped more than 4% after the company reaffirmed guidance supporting a “significant” rebound in 2021. The company is forecasting growth of at least 20% in fiscal 2022. Longer-term, Starbucks anticipates adjusted earnings per share rising between 10% and 12%.
Canada Goose — Shares of Canada Goose dropped 3.1% after a Goldman Sachs analyst downgraded the company to sell from neutral. The analyst said Canada Goose’s 27% jump since September is “unwarranted,” adding that “we observe mixed brand momentum indicators for the brand through November, which we expect to present a headwind to near- and medium-term growth.”
Tenet Healthcare — Shares of Tenet Healthcare jumped more than 16% after the healthcare service company said it has agreed to acquire a portfolio of up to 45 ambulatory surgery centers from SurgCenter Development for $1.1 billion in cash, plus the assumption of $18 million of debt. The deal is expected to close by the end of 2020.
Ciena — Shares of the networking systems company dropped more than 3% after missing analysts’ expectations for its fiscal fourth quarter earnings. Ciena reported earnings of 60 cents per share, below the 63 cents per share estimate, according to Refinitiv.
CSX – Shares of the railroad company slid more than 1% after Morgan Stanley downgraded CSX to an underweight rating. “The downgrade reflects valuation more than anything – our view on fundamentals has not materially changed,” the firm said in a note to clients. Morgan Stanley did, however, raise its target on the stock to $60 from $52.
— CNBC’s Pippa Stevens, Fred Imbert, Maggie Fitzgerald and Jesse Pound contributed reporting.
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