Tuesday Morning’s Market Insights: GoPro Inc (GPRO), American Airlines Group Inc (AAL), Yamana Gold Inc. (USA ) (AUY), Altria Group Inc (MO)
GoPro Inc (NASDAQ:GPRO) is down 1.30% in pre-market trading following yesterday’s news that the action camera company is under investigation by a law firm. Bottini & Bottini is pursuing legal action against GoPro on behalf of investors who purchased its stock between June 26, 2014, and January 13, 2015, on the accusation that GoPro disseminated misleading statements surrounding the company’s IPO. The law firm is exploring if the information connected to the IPO omitted required information, specifically a clause disclosing information about competition and pricing pressures. GoPro’s stock took off after its IPO and more than doubled in less than a week on the market. Shares have fallen since as investors worry about competition and fears that the company may be a one-hit wonder. According to the 18 analysts polled by TipRanks in the last 3 months, 13 are bullish on the company and 5 are staying on the sidelines. The average 12-month price target is $67.57, marking a 137% potential upside from where shares last closed.
American Airlines Group Inc (NASDAQ:AAL) slipped 1.28% in pre-market trading to $43.28 after the airline was downgraded by Evercore ISI from Buy to Hold. The analyst attributes the downgrade to fare competition with other carriers, specifically budget airlines such as Virgin and Southwest. Although the airlines industry has been reaping the benefits of record low oil prices over the last year, the analyst fears that oil prices have bottomed out. Consequently, the impending rising prices will strain the profit margins of fuel costs next year. According to the 8 analysts polled by TipRanks over the last 3 months, 6 are bullish on AAL and 2 are staying on the sidelines. The average 12-month price target for the stock is $56, marking a 27% upside from where the stock last closed.
Yamana Gold Inc. (USA ) (NYSE:AUY) fell 1.32% in pre-market trading to $2.24 as the price of gold slipped down from its recent highs due to new data highlighting weak demand in China coupled with profit-taking from the recent gold rally. Gold was falling last month on speculation that the Fed would increase interest rates. Now, data from China indicates that demand has fallen in the country, consequently having a negative impact on prices. According to the 4 analysts recently polled by TipRanks, 3 are bullish on the gold company while one is staying on the sidelines. The average 12-month price target for the stock is $2.74, marking a 21% potential upside from current levels.
Altria Group Inc (NYSE:MO) jumped slightly in pre-market trading; up 0.52% to $57.76 since the cigarette company is a major shareholder of SABMiller, which just agreed to a takeover by AB InBev. Altria, which owns about 27% of the beer company, announced that it is pleased with the deal. SABMiller agreed to be taken over in a deal worth more than $100 billion, making it the largest acquisition ever in the beer industry. However, fans of the deal must brace themselves for a stringent antitrust review as the combined company would control about 70% of the beer market in the United States. Last month, Cowen analyst Vivien Azer voiced her bullishness on Altria, citing that the takeover deal would benefit the company because the Altria’s cigarette prices have been historically linked to growth at SABMiller. Azer explained, “MO has tended to take less cigarette pricing in years where SABMiller’s equity income growth provided an outsized benefit to EPS growth, such that the company required a lesser pricing benefit to achieve their targeted 7-9% EPS growth.”
Click here to see Vivien Azer’s past ratings and performance history