Bank of America downgrades Under Armour
Under Armour (UA) is in focus following a downgrade by Bank of America. The firm lowered its rating on the athletic retailer to underperform and cut its price target to $12 a share, implying the stock could fall about 25% from Friday’s close. Analyst Robert Ohmes noted a challenging environment for sales of athletic footwear and apparel in North America and said he expects Under Armour to lower its fourth-quarter guidance. The stock is down about 43.5% so far this year.
General Motors drops on bearish call by Goldman
Goldman Sachs downgraded General Motors (GM) to sell and slashed its price target on the stock to $32, implying shares could drop about 28% from Friday’s close. Analyst David Tamberrino and team expects the North American auto cycle to normalize over the next couple of years and predicted a “downward inflection in GM earnings.” General Motors stock was last trading down 2.4% at $43.58 a share.
Merck slides after pulling application for cancer drug in Europe
Merck (MRK) shares fell to their lowest level since May 2016 after the pharmaceutical giant pulled its application for its blockbuster cancer drug, Keytruda, in Europe. The drug brought in over $1 billion in sales for Merck in the third quarter. The decision, announced late Friday, surprised analysts and prompted three downgrades on the Street. Merck’s stock was last trading down 4.8% at $55.47 a share in intraday trading on Monday.
Three tech giants prepare to testify before Congress this week
Facebook (FB), Google (GOOGL) and Twitter (TWTR) are sending their general counsels to Capitol Hill this week to testify about Russia’s interference in the 2016 presidential election. The three tech giants will testify in front of the Senate Intelligence Committee Wednesday morning and before the House Intelligence Committee Wednesday afternoon.