Check out the companies making headlines in premarket trading.
CarMax – Shares of the used car dealer slid 4.8% after JPMorgan downgraded to underweight, said investors are not fully priced in the company’s environmental risks and hope for recovery appears “premature.” CarMax fell 53% in 2022 but is up 18% since disappointing quarterly results in December.
Salesforce – The software giant fell about 3% after Bernstein downgraded the stock to market underperform, saying it was in “growth purgatory” and could have trouble getting out of it. This comes a week after the company announced plans to cut staff. Shares could drop another 20%, according to Bernstein.
Coinbase – Shares of the crypto services provider fell about 3% after a downgrade from Bank of America, which said the consensus estimate on Coinbase was “too high” given the current crypto outlook. It comes a day after the company announced a second round of layoffs involving about 950 jobs, from a fifth of the company. Coinbase shares are down 86% in 2022 as macro conditions and scandals drag down the crypto market.
Tesla – Tesla shares rose 2% after the EV maker registered in the state of Texas to develop an electric vehicle factory in Austin this year. Separately, Goldman Sachs also named the stock as a top pick for 2023.
Levi Strauss & Co – Shares of the apparel company fell 2.2% after Citi downgraded the stock to neutral from buy. The company cited a weaker denim trend that could pressure the company in the short to medium term.
The invention of Warner Bros – Guggenheim upgraded the media company to buy from neutral on Wednesday, citing risk/reward and an interesting narrative for the first half of the year. Warner Bros. Discovery rose 1.75% in premarket, after Tuesday’s 8% gain.
Brother Tol – Shares of the homebuilder rose almost 2% after Bank of America upgraded Toll Brothers to buy from neutral, noting: “TOL will face additional headwinds from incentives and mix shifts over the year, but this will be offset by the tailwinds of lower input costs, especially wood. .”
Wells Fargo – Wells Fargo is reducing its footprint in the mortgage market as the bank manages regulatory pressure and the impact of higher rates on homes. The company was once the nation’s largest mortgage lender. It will now restrict home loans to customers and borrowers from minority communities. Shares are up less than 1% premarket.
Southwest Airlines – Susquehanna downgraded the airline to neutral from positive, citing an operational meltdown during the recent winter storm. Southwest lost 1.55% in the premarket.
Walt Disney – Disney changed its pricing policy in domestic theme parks, making some modifications to the reservation and ticketing system, as well as annual pass membership benefits, to make it easier for loyal customers. Shares are up less than 1% premarket.
– CNBC’s Samantha Subin, Michelle Fox, Jesse Pound and Alex Harring contributed reporting