Hot Stocks: CAT, DISH upgrades; NKE price target cut; VYGR rallies on licensing deal
Russia's invasion of Ukraine has forced the reevaluation of many companies' prospects, given the new economic realities and the impact of higher commodity prices. Along those lines, Caterpillar (NYSE:CAT) rallied in Tuesday's midday trading, as an analyst raised their rating on the stock based on its potential value as an inflation hedge.
However, one Wall Street expert sees Nike (NYSE:NKE) as a potential loser in the aftermath of the European conflict. Cowen cut its price target on the stock, sparking an intraday slide.
Dish Network (NASDAQ:DISH) also moved on analyst commentary, rallying in the wake of an upgrade.
In other news, Voyager Therapeutics (NASDAQ:VYGR) staged a double-digit percentage advance after signing an option license agreement with Novartis (NYSE:NVS).
Caterpillar (CAT) jumped 8% in midday trading, boosted by a bullish take from Jefferies. Analyst Stephen Volkmann upgraded the construction equipment maker to Buy from Hold, saying the stock has historically offered a good inflation hedge.
Volkmann argued that the jump in commodity prices that has taken place since Russia's invasion of Ukraine will help fuel "a decade of reinvestment," a promising turn for CAT. Jefferies also raised its price target on the stock to $260 from its previous level of $215.
A positive analyst comment also gave a lift to Dish Network (DISH). Shares of the satellite TV provider advanced more than 6% following an upgrade from UBS.
While analyst John Hodulik acknowledged concerns about the firm's wireless business model, he raised his rating on DISH to Buy from Hold, citing its undervalued spectrum holdings.
Elsewhere in the market, Voyager Therapeutics (VYGR) showed midday strength, boosted by a license option agreement with Novartis (NVS). The deal, which covers adeno-associated virus capsids for gene therapy programs, will lead to a $54M upfront payment for VYGR. The partnership could be worth up to $1.7B, if all potential royalties and milestone payments take place.
Based on the deal, VYGR posted an intraday gain of 27%.
Nike (NKE) lost almost 2% in intraday trading amid concerns that the Russian attack on Ukraine would lead to suppressed demand, especially in Europe. Cowen lowered its price target on the stock to $144 from its prior mark of $192.
Along with the European sales pressure, analyst John Kernan pointed to the ongoing supply chain challenges the shoe and athletic apparel maker continues to face. In addition, the Cowen expert noted that higher commodity prices will also create a headwind.
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