NIO - Hot Stocks: ORCL S CCL climb on upgrades; NDAQ falls on Adenza deal; NIO XPEV rise

2023-06-12 12:30:19 ET

The major market averages were higher during Monday's midday session on expectations that the Fed will hold off on raising interest rates at its policy meeting on Wednesday.

Tracking individual stocks, Oracle ( NYSE: ORCL ), SentinelOne ( NYSE: S ) and Carnival ( NYSE: CCL ) all increased following separate analyst upgrades.

Meanwhile, select EV stocks were in the spotlight. Nio ( NYSE: NIO ) advanced due to price cuts and XPeng ( NYSE: XPEV ) rose on large pre-orders for its upcoming G6.

In M&A news, Chinook Therapeutics ( NASDAQ: KDNY ) shares gained on Novartis ( NYSE: NVS ) deal whereas Nasdaq ( NASDAQ: NDAQ ) plunged after it announced the $10.5B acquisition of Adenza.

Gainers

Oracle ( ORCL ) shares rose as much as 5% after Wolfe Research upgraded the stock to Outperform and set a $130 price target. The upbeat assessment came ahead of the company's earnings announcement on Monday after the bell.

Analysts at the firm believe that its cloud business, in particular, will "become the engine that accelerates top and bottom line growth for the company over the next three years." The firm added that it expects Oracle ( ORCL ) to significantly increase market share from its current small base through the end of 2025, adding to its early mover advantage in Generative AI.

SentinelOne ( S ) stock surged about 7% after Morgan Stanley upgraded it to Over-Weight from Equal-Weight and raised its price target to $20 from $15.

“While recent execution missteps have shaken investor confidence, we think the intrinsic value of the asset is much higher than the market ascribes and see a compelling risk-reward with valuation now at a 50% discount to peers on a growth adjusted EV/Sales basis,” equity analysts Hamza Fodderwala and Keith Weiss concluded.

Carnival ( CCL ) shares increased 13% after J.P. Morgan upgraded it to Overweight from Neutral, citing a favorable risk/reward setup. "CCL has an opportunity to drive improved brand clarity and pricing power with increased advertising investment, and given a smaller capacity growth profile, this provides a faster pathway for management to focus on de-levering the balance sheet," noted analyst Matthew Boss.

Nio ( NIO ) shares rose 9% after the company announced a 30K yuan ($4.2K) price decrease for all models beginning June 12 and the end of free battery swaps for new purchasers.

XPeng ( XPEV ) stock surged more than 16% after it disclosed on a social media account that over 25K customers have pre-ordered its new G6 model in just three days, ahead of the official launch set for June 29.

Chinook Therapeutics ( KDNY ) shares skyrocketed more than 56% following a $3.5B takeover agreement with Novartis ( NVS ). Novartis ( NVS ) will buy Chinook ( KDNY ) for $40 per share plus $4 per share in cash if certain regulatory milestones related to its key product atrasentan, which is focused at IgA nephropathy, are met.

Decliners

Nasdaq ( NDAQ ) shares plunged about 12% after saying it agreed to buy Adenza from Thomas Bravo in a cash and stock deal valued at $10.5B . According to analysts, the acquisition multiple of 31x 2023 EBITDA seems unappealing.

To keep track of Wall Street's biggest winners and losers throughout the session, head over to Seeking Alpha's On The Move section .

More on the markets

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• S&P 500 Officially Enters Bull Market: Unstoppable Surge Or House Of Cards?
• What A Fed Rate Pause May Mean For Markets
• S&P 500 notches four-week win streak

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