Seadrill Ltd (NYSE:SDRL) is down 4% in pre-market trading following news that it is in talks with various firms to restructure loans and bonds worth $11 billion. The stock has fallen ~70 % y/y due to falling oil prices, curtailing demand for drilling and subsequently, equipment. As a result, bookings for the company have declined, presenting a challenge for Seadrill and many other drilling companies to repay its debt. According to a recent report, the agreement comprises of a debt-for-equity swap and issue of $1 billion + in new equity.
Additionally, oil prices fell yet again this morning due to diminished hopes that the upcoming OPEC meeting on April 17 in Doha will have any production-freeze news. On Friday, Saudi Arabia announced they would freeze production only if Iran agrees to as well. However, reported high outputs in March from both Iran and Russia represent a slim chance for a production freeze to occur.
According to TipRanks’ statistics, out of the 4 analysts who have rated the stock in the past 3 months, half are bearish and half remain neutral. The average 12-month price target for the stock is $5.75, marking an 83% upside from where shares last closed.
Tesla Motors Inc (NASDAQ:TSLA) is up more than 4% in pre-market trading following yesterday’s news that the newly released Model 3 has over 276,000 orders since it began taking orders Thursday. The reservations represent an estimated $111.6 backlog with an average model 3 price of $42,000. In comparison, Tesla generated $4 billion in global revenues last year. Some investors are worried that Tesla will not be able to keep up with demand due to previous production challenges, as the Model 3 is expected to ship in late 2017.
According to TipRanks, out of the 18 analysts who have rated the company in the past 3 months, 9 gave a Buy rating, 6 gave a Sell rating, and 3 remain on the sidelines. The average 12-month price target for the stock is $253, marking a 6% upside from where shares last closed.
Virgin America Inc (NASDAQ:VA) is up a whopping 38% in pre-market trading after Alaska Air Group Inc. announced this morning that they will buy the company, winning a bidding war against JetBlue Airways. The deal states that Alaska Airlines’ parent company will pay $57 per share for VA, representing a total value of $2.6 billion in equity. According to inside sources, Alaska Airlines won the bid due to balance sheet strengths, allowing it to secure funds for the acquisition more easily. The deal is expected to increase Alaska Airlines’ annual revenue by 27% and is set to close by January 1, 2017, representing the U.S.’s 5th largest airline.
According to TipRanks, out of the 3 analysts who have rated the company in the past 3 months, 2 gave a Sell rating while 1 remains on the sidelines. The average 12-month price target for the stock is $34.75, marking a 10% downside from where shares last closed.
Zafgen Inc (NASDAQ:ZFGN) is up close to 12% in pre-market trading after the company presenting positive Phase 3 data from its bestPWS study, involved in treating patients with Prader-Willi syndrome (PWS). PWS is the most known genetic cause of dangerous levels of obesity, characterized by unrealistic feelings of starvation which drives the patient to excessively eat and gain weight, known as hyperphagia. The study indicated that Beloranib, a MetAP2 inhibitor, significantly reduced fat mass and hyperphagia behaviors, the first drug of its kind to do both. The company plans to present the results to the FDA, along with other positive results from its phase 2 studies, in hopes to lift the clinical hold on beloranib IND which was set in December of 2015.
According to TipRanks, out of the 5 analysts who have rated the stock in the last 3 months, 2 are bullish while 3 remain on the sidelines. The average 12-month price target for the stock is $12.20, marking an 82% upside from where shares last closed.