Upgrades

• Sidoti & Co. changed the rating for FormFactor Inc (NASDAQ: FORM) from Neutral to Buy. For the fourth quarter, FormFactor had an EPS of $0.41, compared to year-ago quarter EPS of $0.31. The stock has a 52-week-high of $28.58 and a 52-week-low of $14.20. FormFactor’s stock last closed at $23.16 per share.

Downgrades

• Dougherty downgraded the stock for Palo Alto Networks Inc (NYSE: PANW) from Buy to Neutral. Palo Alto Networks earned $1.19 in the second quarter. The stock has a 52-week-high of $260.63 and a 52-week-low of $192.17. Palo Alto Networks’s stock last closed at $237.07 per share.
• MKM Partners downgraded the stock for Dine Brands Global Inc (NYSE: DIN) from Buy to Neutral. For the fourth quarter, Dine Brands Global had an EPS of $1.78, compared to year-ago quarter EPS of $1.70. The stock has a 52-week-high of $104.47 and a 52-week-low of $68.02. Dine Brands Global’s stock last closed at $96.34 per share.
• Compass Point changed the rating for E*TRADE Financial Corp (NASDAQ: ETFC) from Buy to Neutral. ETRADE Financial earned $0.84 in the fourth quarter, compared to $1.03 in the year-ago quarter. The stock has a 52-week-high of $57.30 and a 52-week-low of $34.68. ETRADE Financial’s stock last closed at $50.38 per share.

Initiations

• With a rating of Outperform, Credit Suisse initiated coverage on Reynolds Consumer Products Inc (NASDAQ: REYN). The price target is set at $34.00 for Reynolds Consumer. The stock has a 52-week-high of $31.99 and a 52-week-low of $27.10. Reynolds Consumer’s stock last closed at $30.22 per share.
• Benchmark initiated coverage on Ramaco Resources Inc (NASDAQ: METC) with a Buy rating. The price target for Ramaco Resources is set at $5.00. In the fourth quarter, Ramaco Resources showed an EPS of $0.05, compared to $0.08 from the year-ago quarter. The stock has a 52-week-high of $7.22 and a 52-week-low of $2.82. Ramaco Resources’s stock last closed at $2.84 per share.
• With a rating of Overweight, JP Morgan initiated coverage on Reynolds Consumer Products Inc (NASDAQ: REYN). The price target is set at $37.00 for Reynolds Consumer. The stock has a 52-week-high of $31.99 and a 52-week-low of $27.10. Reynolds Consumer’s stock last closed at $30.22 per share.
• Needham initiated coverage on Aurora Cannabis Inc (NYSE: ACB) with a Hold rating. The price target for Aurora Cannabis is set at $1.50. In the second quarter, Aurora Cannabis showed an EPS of ($0.19), compared to ($0.18) from the year-ago quarter. The stock has a 52-week-high

Shares of Salesforce.com (NYSE: CRM) dropped on Tuesday despite fourth-quarter earnings and sales beats as the company announced its CEO would step down.

Investors sold off the software vendors shares after its announcement that co-CEO Keith Block would step down. Marc Benioff was named chair and CEO.

The company reported earnings of 66 cents per share, beating Street estimates by more than a dime and up nearly 14% from the same quarter last year.

Sales came in at $4.85 billion, also beating analysts’ expectations of $4.75 billion, and up more than 34% over the same period a year ago.

Salesforce also raised its fiscal 2021 sales guidance from $21 billion to $21.1 billion.

The company also said it will acquire cloud and mobile software provider Vlocity for about $1.33 billion. The deal is expected to close in the second quarter of fiscal 2021, the company said.

Highlights

• 2020 Revenue of $17.1 Billion was up up 29% year-over-year in constant currency.
• Fourth quarter operating cash flow was $1.63 Billion, up 23% year-over-year.
• Raised first quarter of 2021 revenue guidance from $4.875 billion to $4.885 billion, up about 30% year-over-year.

“We are delighted to raise our revenue guidance for FY21 by $200 million to $21.1 billion at the high end of the range, while expanding our operating margin,” Benioff said in a statement. 

Stock Down

Salesforce’s stock was down about 1.6% in after-hours trading to $179.

Related Links:

Salesforce Raises 2020 Sales Guidance

Gainers

• Trans World Entertainment Corporation (NASDAQ: TWMC) shares jumped 50.9% to close at $5.28 on Friday after the company disclosed that its subsidiary etailz entered into a deal with Encina for $25 million 3-year secured revolving credit facility.
• Celldex Therapeutics, Inc. (NASDAQ: CLDX) gained 35.2% to close at $3.07. Cantor Fitzgerald initiated coverage on Celldex Therapeutics with an Overweight rating and a $8 price target.
• Ducommun Incorporated (NYSE: DCO) gained 33.1% to close at $56.95 after the company reported better-than-expected Q4 results. B. Riley upgraded Ducommun from Neutral to Buy and raised the price target from $55 to $60.
• Eldorado Gold Corp (NYSE: EGO) gained 32.1% to close at $9.93 after the company reported better-than-expected Q4 sales results. The company also issued FY20 gold production.
• Avadel Pharmaceuticals plc (NASDAQ: AVDL) shares surged 32% to close at $9.40 after the company reported a $65 million private placement with investors led by Vivo Capital, Avoro Capital Advisors, RTW Investments, Venrock Healthcare Capital Partners, Acuta Capital, and KVP Capital.
• Genprex, Inc. (NASDAQ: GNPX) gained 21.7% to close at $5.33.
• American Software, Inc. (NASDAQ: AMSWA) gained 20.8% to close at $19.20 following strong quarterly results. B. Riley upgraded American Software from Neutral to Buy and raised the price target from $18 to $19.5.
• IGM Biosciences, Inc. (NASDAQ: IGMS) rose 20.3% to close at $60.69.
• Dropbox, Inc. (NASDAQ: DBX) gained 20% to close at $22.45 after the company reported stronger-than-expected results for its fourth quarter and disclosed a $600 million buyback program.
• ToughBuilt Industries, Inc. (NASDAQ: TBLT) gained 18.6% to close at $0.2420 after surging more than 28% on Thursday.
• Oncolytics Biotech Inc. (NASDAQ: ONCY) rose 17.9% to close at $2.63.
• China Xiangtai Food Co., Ltd. (NASDAQ: PLIN) surged 17.8% to close at $3.04.
• National CineMedia, Inc. (NASDAQ: NCMI) surged 17.1% to close at $9.37 after the company reported better-than-expected Q4 EPS and sales results.
• California Resources Corporation (NYSE: CRC) shares rose 16.8% to close at $7.59. The company earlier announced exchange offers and subscriptions relating to $454M principal amount of new term loans and common stock warrants. The co. also reported production data from its Elk Hill unit.
• Microbot

PepsiCo, Inc. (NASDAQ: PEP) has announced that it will acquire Be & Cherry, a large Chinese snackmaker from Haoxiangni Health Food Co., Ltd.

What Happened

PepsiCo said in a statement released Sunday that it would purchase Hangzhou Haomusi Food Co. Ltd., also known as Be & Cherry, for $705 million from Haoxiangni.

Ram Krishnan, CEO of PepsiCo Greater China, said in a statement that Be & Cherry is “highly complementary” to Pepsi’s existing Chinese business due to its broad product portfolio, asset-light model, and a focus on e-commerce.

Haoqun Qiu, Chairman of Be & Cherry, said, “We are thrilled to be joining the PepsiCo family.” He added, “PepsiCo and Be & Cheery are jointly confident in the prospects for China’s snacks industry and share a commitment to invest in consumer-led and digitalized capabilities.” 

Why It Matters

PepsiCo has operated in China for nearly 40 years, and this transaction will allow them to become China’s “leading consumer-centric food and beverage company.”

The sale of Be & Cherry would allow Haoxiangni to focus on rural revitalization, agricultural products, and its jujube business. 

Hangzhou based Be & Cherry is considered to be one of the largest e-commerce snack companies in China and has revenues of nearly 5 billion yuan or $711.7 million as of 2019.

Price Action

PepsiCo shares traded 0.034% higher at $145.90 in the after-hours session on Friday. The shares had closed the regular session 0.48% higher at $145.85.

Haoxiangni shares traded 0.71% at $1.60 higher at press time in Shenzhen. 

Gainers

• Harmony Gold Mining Co, Inc. (NYSE: HMY) stock increased by 11.3% to $4.61 during Monday’s pre-market session.
• Gold Fields, Inc. (NYSE: GFI) stock rose 8.1% to $8.07.
• Kinross Gold, Inc. (NYSE: KGC) shares surged 7.4% to $6.40. The most recent rating by Credit Suisse, on January 23, is at Neutral, with a price target of $5.25.
• Eldorado Gold, Inc. (NYSE: EGO) shares increased by 5.6% to $10.50. The most recent rating by Credit Suisse, on January 16, is at Underperform, with a price target of $7.50.
• Anglogold Ashanti, Inc. (NYSE: AU) shares increased by 5.6% to $23.36. According to the most recent rating by UBS, on February 06, the current rating is at Neutral.
• Endeavour Silver, Inc. (NYSE: EXK) stock moved upwards by 5.2% to $2.14.
• Barrick Gold, Inc. (NYSE: GOLD) stock moved upwards by 4.9% to $22.40. The most recent rating by Credit Suisse, on January 16, is at Outperform, with a price target of $22.00.
• Hecla Mining, Inc. (NYSE: HL) stock rose 4.9% to $3.45.
• Newmont, Inc. (NYSE: NEM) stock surged 4.2% to $51.50. The most recent rating by CIBC, on February 24, is at Outperformer, with a price target of $58.00.
• First Majestic Silver, Inc. (NYSE: AG) shares rose 3.6% to $10.32. The most recent rating by H.C. Wainwright, on February 20, is at Buy, with a price target of $12.00.
• Pan American Silver, Inc. (NASDAQ: PAAS) stock rose 3.2% to $26.02. According to the most recent rating by Canaccord Genuity, on February 21, the current rating is at Hold.
• Iamgold, Inc. (NYSE: IAG) shares surged 2.4% to $3.21.

Losers

• ArcelorMittal, Inc. (NYSE: MT) shares plummeted 7.4% to $15.03 during Monday’s pre-market session. The most recent rating by KeyBanc, on December 11, is at Overweight, with a price target of $22.00.
• Freeport-McMoRan, Inc. (NYSE: FCX) shares decreased by 6.0% to $11.23. The most recent rating by Credit Suisse, on January 14, is at Underperform, with a price target of $10.00.
• BHP Gr, Inc. (NYSE: BBL) shares fell 5.8% to $40.53.
• Rio Tinto, Inc. (NYSE: RIO) stock fell 5.5% to $51.60. According to the most recent rating by RBC Capital, on February 11, the current rating is at Underperform.
• BHP Group, Inc. (NYSE: BHP) stock decreased by 5.4% to $47.67.
• Israel Chemicals, Inc. (NYSE:

Zynga Inc (NASDAQ: ZNGA) has guided to 2020 bookings of $1.75 billion, which implies merely 6% growth excluding new games, according to KeyBanc Capital Markets.

The Zynga Analyst

Tyler Parker maintained an Overweight rating for Zynga with a price target of $18.50.

The Zynga Thesis

Zynga’s guidance for bookings growth appears conservative and the company has beaten initial guidance over the past three years, Parker said in the note.

Assuming live services generates the lion’s share of growth in 2020, with a contribution of only 5% coming from new games, the guidance seems conservative, given that Farmville 3, Puzzle Combat and Harry Potter are scheduled to be launched in the back half of 2020, the analyst said.

Excluding new games, the guidance implies only 6% growth in core games. This is conservative in view of the ongoing momentum with the Empires & Puzzles and Merge franchises, Parker said. He added that, even if Poker, Words with Friends and CSR do not generate any growth, growth in franchises other Empires & Puzzles and Merge will lend upside to the estimates.

Noting that the current consensus estimate is set marginally higher than the guidance, Parker raised his 2020 bookings estimate from $1.76 billion to $1.78 billion.

ZNGA Price Action

Shares of Zynga were down 1.75% to $7.00 at time of publication.

Photo by Rob Hampson on Unsplash

Gainers

• ToughBuilt Industries, Inc. (NASDAQ: TBLT) shares moved upwards by 10.3% to $0.23 during Friday’s pre-market session. The most recent rating by Maxim Group, on February 05, is at Buy, with a price target of $0.50.
• Deere, Inc. (NYSE: DE) stock moved upwards by 6.3% to $176.29. The most recent rating by BMO Capital, on December 02, is at Outperform, with a price target of $180.00.
• Ballard Power Systems, Inc. (NASDAQ: BLDP) shares surged 3.2% to $13.20.
• Plug Power, Inc. (NASDAQ: PLUG) stock moved upwards by 1.6% to $5.60. The most recent rating by B. Riley, on November 25, is at Buy, with a price target of $6.00.

Losers

• BlueLinx Hldgs, Inc. (NYSE: BXC) stock decreased by 28.4% to $13.98 during Friday’s pre-market session. The most recent rating by B. Riley FBR, on February 04, is at Buy, with a price target of $17.00.
• Virgin Galactic Holdings, Inc. (NYSE: SPCE) shares declined 4.5% to $35.37. The most recent rating by Morgan Stanley, on December 09, is at Overweight, with a price target of $22.00.

Gainers

• Trans World Entertainment Corporation (NASDAQ: TWMC) shares climbed 120.5% to $7.72 after the company disclosed that its subsidiary etailz entered into a deal with Encina for $25 million 3-year secured revolving credit facility.
• Celldex Therapeutics, Inc. (NASDAQ: CLDX) fell 39.8% to $3.1744. Cantor Fitzgerald initiated coverage on Celldex Therapeutics with an Overweight rating and a $8 price target.
• TSR, Inc. (NASDAQ: TSRI) gained 36.2% to $8.17.
• DPW Holdings Inc (NYSE: DPW) shares jumped 31.8% to $2.03 after the company announced its global defense business, Gresham Worldwide Inc., has received a $1.4 million order from a leading defense and aerospace customer.
• Avadel Pharmaceuticals plc (NASDAQ: AVDL) shares climbed 30.4% to $9.28 after the company reported a $65 million private placement with investors led by Vivo Capital, Avoro Capital Advisors, RTW Investments, Venrock Healthcare Capital Partners, Acuta Capital, and KVP Capital.
• ToughBuilt Industries, Inc. (NASDAQ: TBLT) jumped 30.4% to $0.2660 after surging more than 28% on Thursday.
• Dropbox, Inc. (NASDAQ: DBX) rose 21.1% to $22.66 after the company reported stronger-than-expected results for its fourth quarter and disclosed a $600 million buyback program.
• Ducommun Incorporated (NYSE: DCO) rose 20.7% to $51.64 after the company reported better-than-expected Q4 results. B. Riley upgraded Ducommun from Neutral to Buy and raised the price target from $55 to $60.
• Eldorado Gold Corp (NYSE: EGO) gained 20.3% to $9.20 after the company reported better-than-expected Q4 sales results. The company also issued FY20 gold production.
• Baudax Bio, Inc. (NASDAQ: BXRX) shares rose 20.1% to $9.49 after the company announced it has received FDA approval for ANJESO, the management of moderate to severe pain.
• Sprouts Farmers Market, Inc. (NASDAQ: SFM) climbed 15.4% to $18.52 after the company reported upbeat Q4 results. Bernstein upgraded Sprouts Farmers Market from Market Perform to Outperform.
• National CineMedia, Inc. (NASDAQ: NCMI) gained 15% to $9.19 after the company reported better-than-expected Q4 EPS and sales results.
• Surface Oncology, Inc. (NASDAQ: SURF) jumped 13.7% to $4.1375.
• Universal Electronics Inc. (NASDAQ: UEIC) rose 13.4% to $51.00 after reporting upbeat Q4 earnings.
• Zix Corporation (NASDAQ: ZIXI) surged 13% to $8.99 after the company reported better-than-expected Q4 earnings.
• Inpixon (NASDAQ:

RealReal Inc (NASDAQ: REAL) is scheduled to report fourth-quarter results after the closing bell on Feb 25. Street estimates for the quarter appear conservative, given the company’s continued revenue strength and margin expansion, according to Raymond James.

The Analyst

Raymond James’ Aaron Kessler upgraded RealReal from Market Perform to Outperform while establishing a price target of $21.

The Thesis

RealReal’s near-term fundamental trends seem positive and the company could report fourth-quarter revenue at $94 million, representing 51% year-on-year growth and beating the Street’s expectation of $91 million, Kessler said in the note.

He expects RealReal to post gross merchandise volume of $301 million, up 38% year-on-yea, and net merchandise volume of $217 million, translating to 41% growth.

The analyst cited SimilarWeb traffic data, which indicates a 74% increase in total web visits in December. He added that there could be upside to the fourth-quarter estimate for total buyers, which is at 540,000.

A recent consumer survey by Raymond James showed that RealReal’s brand awareness has almost doubled, which “should continue to drive solid customer/revenue growth as well as more efficient marketing spend,” Kessler wrote.

The analyst also said that the resale market’s trend of shifting online bodes well for RealReal, as it is the leader in the luxury segment.

Price Action

Shares of RealReal were up 6.14% to $15.56 at time of publication Friday.

Related Links

DA Davidson Says The RealReal Will ‘Dominate Digital Consignment Space’

Benzinga’s Top Upgrades, Downgrades For December 19, 2019

Photo by Breno Assis on Unsplash

Here’s a roundup of top developments in the biotech space over the last 24 hours.

Scaling The Peaks

(Biotech Stocks Hitting 52-week highs on Feb. 19)

• Adverum Biotechnologies Inc (NASDAQ: ADVM)
• Akebia Therapeutics Inc (NASDAQ: AKBA)
• Anavex Life Sciences Corp (NASDAQ: AVXL)
• Arcus Biosciences Inc (NYSE: RCUS)
• Ascendis Pharma A/S (NASDAQ: ASND)
• AVITA MED LTD/S ADR (NASDAQ: RCEL)(reacted to its half-yearly results)
• Bio-Rad Laboratories, Inc. Class A (NYSE: BIO)
• Calithera Biosciences Inc (NASDAQ: CALA)
• ChemoCentryx Inc (NASDAQ: CCXI)
• Cue Biopharma Inc (NASDAQ: CUE)(said its therapeutic Immuno-STAT platform will be featured in a Merck & Co., Inc.’s (NYSE: MRK) presentation at the Antigen Specific Immune Tolerance Drug Development Summit)
• DexCom, Inc. (NASDAQ: DXCM)
• Fate Therapeutics Inc (NASDAQ: FATE)
• Fulgent Genetics Inc (NASDAQ: FLGT)
• GALAPAGOS NV/S ADR (NASDAQ: GLPG)
• GENMAB A/S/S ADR (NASDAQ: GMAB)(reacted to its quarterly and full-year results)
• Grifols SA – ADR ADR Class B (NASDAQ: GRFS)
• Insulet Corporation (NASDAQ: PODD)
• Intuitive Surgical, Inc. (NASDAQ: ISRG)
• Leap Therapeutics Inc (NASDAQ: LPTX)
• Medpace Holdings Inc (NASDAQ: MEDP)
• Mersana Therapeutics Inc (NASDAQ: MRSN)
• Minerva Neurosciences Inc (NASDAQ: NERV)
• Momenta Pharmaceuticals, Inc. (NASDAQ: MNTA)
• Nevro Corp (NYSE: NVRO)
• Penumbra Inc (NYSE: PEN)
• Pacira Biosciences Inc (NASDAQ: PCRX)
• PTC Therapeutics, Inc. (NASDAQ: PTCT)
• Quest Diagnostics Inc (NYSE: DGX)
• Repligen Corporation (NASDAQ: RGEN)
• Repro-Med Systems, Inc. (NASDAQ: KRMD)
• ResMed Inc. (NYSE: RMD)
• Soligenix, Inc. (NASDAQ: SNGX)
• Syneos Health Inc (NASDAQ: SYNH)
• Tandem Diabetes Care Inc (NASDAQ: TNDM)
• TELA Bio Inc (NASDAQ: TELA)
• Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)
• Viela Bio Inc (NASDAQ: VIE)
• Zai Lab Ltd (NASDAQ: ZLAB)
• Zimmer Biomet Holdings Inc (NYSE: ZBH)

Down In The Dumps

(Biotech Stocks Hitting 52-week lows on Feb. 19)

• AcelRx Pharmaceuticals Inc (NASDAQ: ACRX)
• CASI Pharmaceuticals Inc (NASDAQ: CASI)
• GenMark Diagnostics, Inc (NASDAQ: