1. Layoffs coming at Club holding Ford (F). The car maker is planning a new round of cuts of mostly U.S. salaried workers in the coming weeks, according to the Wall Street Journal, citing people familiar with the company’s plans. The number of layoffs is unknown, but the move is part of the company’s bigger cost-cutting plan as it shifts to producing more electric vehicles a plan we strongly endorse.
2. Chipotle (CMG) is one of the serial receivers of price-target bumps. KeyBanc is the latest Street firm to raise, going to $2,300 from $2,050 and maintaining its buy rating on shares. The analyst cites “tame” costs for chicken and avocado, sustained traffic momentum and pricing power, among other advantages.
3. Barclays raised its price target for Uber (UBER) stock to $57 from $45 and said it sees path to $70 in 2025. The firm says Uber is “running well ahead” of its 2024 goals, and expects an update to the long-term forecast early next year.
4. Darden (DRI) gets target lift at Barclays, to $177 from $173. The firm said the owner of Olive Garden and other restaurant chains modestly missed the consensus on its fiscal fourth-quarter results and provided a forecast that “prudently” assumes a slowing economy. Wedbush, Baird, Cowen, Stifel and Citi also raise PTs.
5. 3M (MMM) reached a $10.3 billion settlement with U.S. towns and cities over claims the company contaminated drinking water with so-called forever chemicals. Some say this isn’t the end, but it probably is. 3M said it will pay out the money over the next 13 years to help test and clean water supplies. Mizuho likes 3M after the settlement.
6. Shares of Club name Starbucks (SBUX) slipped 1.1% in the premarket after a union representing the coffee shop’s baristas said more than 150 stores across the U.S. will strike starting Friday over the company not allowing Pride month decor in its cafes.
7. Wells Fargo downgraded Under Armour (UA) to hold from buy after a new analyst took over coverage of the athletic clothing company. Price target dropped to $8 from $12. The analyst citied elevated inventory, a C-suite shuffle and overexposure to North America. Shares fell 3% in premarket trading.
8. CarMax (KMX) reported first-quarter EPS of $1.44 versus Street consensus of 79 cents strong margins for the used car retailer. Shares jumped 7% on the beat.
9. Wayfair (W) upgraded to hold from sell at MoffettNathanson, which said data strongly suggests the home furnishings retailer is seeing a “material benefit” from the recent bankruptcy of Bed Bath & Beyond. Wayfair shares were up 1% in the premarket.
10. Accenture (ACN) downgraded to hold from buy at TD Cowen. The analyst says “further deterioration in demand signals” at the consulting company is leading to incremental uncertainty, estimate risk and an unfavorable risk/reward on the shares. Accenture on Thursday reported quarterly beats on the top and bottom lines. Shares were off by 1.5% Friday morning.
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