Check out the companies making headlines midday
Lyft – Shares of ride hailing company Lyft fell nearly 3% as CNBC confirmed that the company’s chief operating officer Jon McNeill is leaving the company. Before working for Lyft, McNeill worked for Tesla.
Pfizer, Mylan – Pfizer fell more than 2% while Mylan climbed 13% after it was announced that Pfizer would combine its off-patent drug business with Mylan. The all-stock deal would create a U.S.-headquartered combined company that would sell Mylan’s EpiPen and Pfizer’s Viagra. The paired company would generate more than $20 billion in annual sales.
Chipotle – Shares of Chipotle rose over 3% after Goldman Sachs named the fast-food company as its favorite restaurant stock. The firm initiated coverage of Chipotle with a buy rating and a $1,000 price target, representing 28% upside for the stock, and added Chipotle to its conviction buy list. Goldman said digital sales will drive the next leg of the stocks rally.
Starbucks – Shares of Starbucks dropped about 1% after J.P. Morgan said the stock’s “upside from here is limited” and cut its rating on the company to neutral from overweight. Starbucks stock has climbed more than 90% in the past 12 months.
Boeing – One of the laggards of the Dow Jones industrial average, Boeing’s stock fell almost 1% after analysts at credit agencies Standard & Poor’s, Moody’s and Fitch released ratings that gave a cautious outlook on the aerospace giant’s debt due to the prolonged 737 Max crisis. S&P especially warned that “Boeing’s credit metrics will very likely deteriorate over the next few quarters.” Additionally, Ryanair CEO Michael O’Leary sounded off on Boeing during his company’s earnings conference call, saying that Ryanair may have to cut jobs if “Boeing don’t get their s— together pretty quickly with the regulator.”
Insperity — Shares of the human resources company plunged more than 21% after cutting full-year and third-quarter guidance to below what Wall Street was expecting. Higher health claims and lower-than-expected hiring at existing accounts for the second quarter added to pressure on the stock.
UPS – Shares of UPS fell 1.6% following a downgrade from Stifel. The firm lowered its rating to hold and maintained its $118 per share price target, saying it does not feel comfortable pushing the valuation multiple up enough to continue to recommend a buy. UPS pushed passed Stifel’s price target after its strong quarterly earnings last week.
Tower Semiconductor — The circuit manufacturer’s stock rallied nearly 9% after revenue, earnings and third-quarter guidance all topped analysts’ expectations for the second quarter. Tower Semiconductor highlighted its 11% organic growth from the prior quarter and forecast strong demand.
Beyond Meat – Shares of the meat alternative company fell more than 5% on Monday ahead of its first quarterly earnings report since its initial public offering in May. Since then, the stock has surged 794% and hit a record high of $239.71 last week. Nearly 44% of Beyond’s outstanding shares are being shorted, according to data from S3 Partners.
– CNBC’s Tom Franck and Kate Rooney contributed to this report.