• CFRA downgrades Wells Fargo to hold from buy
    on May 18, 2022 at 11:40 am

    CFRA Research analyst Ken Leon on Tuesday downgraded Wells Fargo & Co. to hold from buy and cut the firm's price target on the stock to $49 from $53 a share. "We think the transformation of WFC is likely to take longer and limit the upside potential to share price performance," Leon said in a research note. Leon reiterated his 2023 earnings target of $4.70 a share, which is below the consensus view of $5.21 a share in a FactSet survey. "Our more cautious 2023 earnings forecasts assumes a slower U.S. economy, moderate loan volume growth, and higher net interest income for the bank," Leon said. In another setback for the stock, Warren Buffett's Berkshire Hathaway has sold its remaining shares of Wells Fargo and revealed a $3 billion stake in Citigroup , according to filings. Wells Fargo shares have fallen 8.9% in 2022, compared to a drop of 14.2% by the S&P 500 and a loss of 14.9% by the Financial Select Sector SPDR ETF .Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

  • Cresco Labs net loss widens as revenue climbs past estimates
    on May 18, 2022 at 11:23 am

    Cresco Labs Inc. said Wednesday its first-quarter loss widened to $23.68 million from $11.91 million in the year-ago quarter. The Chicago-based cannabis company's revenue increased by 20% to $214 million. First-quarter adjusted Ebitda rose 45% to $51 million. Cresco Labs did not provide an earnings per share figure. Analysts expected Cresco Labs to break even in the first quarter on revenue of $211.4 million, according to a FactSet Survey. Cresco Labs ended the quarter with $179 million of cash. During the quarter, it opened three stores in Florida and one in Pennsylvania to bring its total retail footprint up to 50 stores. On May 16, Cresco Labs reached the expiration date of the 30-day waiting period for the Hart Scott Rodino waiting period under federal law for its $2 billion all-stock acquisition of Columbia Care. Shares of Cresco Labs are down 41.5% so far in 2022, compared to a drop of 45.5% by the AdvisorShares Pure US Cannabis ETF .Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

  • Surf Air Mobility to go public via merger with SPAC Tuscan Holdings and acquire Southern Airways
    on May 18, 2022 at 11:20 am

    Surf Air Mobility said Wednesday it has entered an agreement to go public by merging with special-purpose acquisition corporation Tuscan Holdings Corp. II in a deal with an enterprise value of $1.42 billion. Surf Air, which provides a regional air mobility platform with scheduled flights and on-demand charter flights, has also agreed to acquire Southern Airways Corp. and expects that deal to close concurrently with the SPAC merger. Southern Airways is an operator of passenger Cessna Grand Caravans and has more than 300,000 customers across 39 cities conducting more than 60,000 flights in 2021, the company said in a statement. That deal is expected to expand Surf Air's air mobility platform nationwide and its founder and CEO Stan Little will serve as president. Surf Air has also signed an MOU with Signature Aviation, which it says is the world's biggest private aviation terminal operator, to market and scale sustainable aviation fuel and co-develop technology for electrified aircraft charging infrastructure. Surf Air is expected to receive up to $467 million in gross proceeds from investors that include iHeartMedia, and Partners For Growth, and a committed equity line from Global Emerging Markets, as well as from Tuscan's cash in trust. Surf Air's existing investors include IVP, NEA, Anthem Ventures, Plus Capital, Base Ventures, Bill Woodward, Thor Björgólfsson, Jo Bamford, and other venture and private investors. The deal is expected to close in the second half and the combined company is expected to generate pro forma revenue of $100 million in 2022. The deal "positions SAM to be a leader in the electrification of commercial aviation, providing it with resources necessary to bring electrified powertrain technology to market and expanding and electrifying regional consumer scheduled and charter flight services," said the statement. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

  • Target's stock sinks toward worst day since Black Monday
    on May 18, 2022 at 11:16 am

    Shares of Target Corp. are suffering a black Wednesday, as they are plunging toward their worst one-day performance in 35 years. The stock is shedding 21.6% in premarket trading, after the discount retailer reported a big fiscal first-quarter profit miss. If the stock ends the regular session down that much, it would be the biggest percentage decline since it plummeted 32.96% on Oct. 19, 1987, which is known on Wall Street at Black Monday because the Dow Jones Industrial Average's crashed 22.6%. Target's bad day follows the 11.4% drop in rival Walmart Inc.'s stock on Tuesday, which was the biggest selloff since Oct. 16, 1987, also in the wake of disappointing earnings. Over the past 12 months, Target's stock has gained 4.3% through Tuesday, while Walmart shares have shed 7.4% and the S&P 500 has eased 0.9%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

  • Analog Devices stock rallies after profit and revenue beats, upbeat earnings outlook
    on May 18, 2022 at 11:12 am

    Shares of Analog Devices Inc. rose 2.6% in premarket trading Wednesday, after the semiconductor company reported fiscal second-quarter profit and record revenue that rose above expectations, and provided an upbeat third-quarter outlook. Net income for the quarter to April 30 rose to $783.3 million, or $1.49 a share, from $422.9 million, or $1.14 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.40 beat the FactSet consensus of $2.11. Revenue grew 78.9% to a record $2.97 billion, above the FactSet consensus of $2.84 billion. Cost of sales growth outpaced revenue growth, rising 95.8% to $1.03 billion as gross margin contracted to 65.4% from 68.4%. "Despite increasing geopolitical uncertainty and ongoing supply chain disruptions, we enter the second half from a position of strength with increased capacity and continued bookings momentum," said Chief Executive Vincent Roche. For the third quarter, the company expects adjusted EPS of $2.42, plus or minus 10 cents, compared with the FactSet consensus of $2.17. The stock has slipped 6.8% year to date through Tuesday, while the PHLX Semiconductor Index has tumbled 22.3% and the S&P 500 has dropped 14.2%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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