Check out the companies making headlines before the bell. Dollar Tree — Shares of the discount retailer popped nearly 2% after JPMorgan upgraded them to overweight from neutral. The bank cited higher profitability and a larger total addressable market as potential tailwinds. American Airlines — The airline stock added 1.5% following an upgrade to buy from neutral at Citi. “North America’s network carriers’ diversified revenue streams and solid demand for premium cabin offerings appear to provide them with superior positioning in this post-pandemic environment,” wrote analyst Stephen Trent. Flywire — The fintech stock added 4% in light trading following an upgrade by Morgan Stanley to overweight. The bank said it is confident Flywire can sustain growth rates. Beam Therapeutics — Shares popped 5.5% after JPMorgan upgraded the biotech company to overweight from neutral. The bank acknowledged the stock’s trading price as an attractive entry point, especially given the company’s strong balance sheet, streamlined pipeline and BEAM-302 gene therapy which could take advantage of a $12 billion commercial opportunity. Zim Integrated Shipping Services — Shares of the international shipping company soared 9% following an upgrade to buy from hold at Jefferies. “ZIM’s high spot, high cost and high leverage platform was a major concern in a period of low freight rates, but it now provides substantial upside given the rise in spot rates,” wrote analyst Omar Nokta. Hershey — The chocolate stock added 1.4% following an upgrade to outperform from market perform at AllianceBernstein. As catalysts for the change, the investment firm cited tailwinds such as improving market share and volume trends, continued strong top-line growth and an attractive valuation. Warner Bros Discovery — Shares slid 1.6% after Wells Fargo downgraded the media and entertainment company to equal weight from overweight. Analyst Steven Cahall cited higher amortization, a less favorable M & A environment and ad migration as reasons for a flattening multiple. Albemarle — Shares of the chemical company fell about 1% after TD Cowen downgraded Albemarle to market perform from outperform. The investment firm said the company is dealing with uncertainty around cash flow and needs lithium prices to rebound. Builders FirstSource — The building materials manufacturer edged 2% higher following an upgrade to buy from neutral at Bank of America. “BLDR is the best positioned in our coverage for stronger single-family starts, potential increase in lumber prices and homebuilders’ shift to more value-add services,” analyst Rafe Jadrosich wrote in a note to clients. Bloom Energy — The green energy firm slid almost 6% after Bank of America downgraded its stock to underperform from neutral. As a reason for the change, analyst Julien Dumoulin-Smith cited expectations that revenues in 2023 to 2025 would be flat, versus previously accelerating. Koninklijke Philips — U.S.-listed shares of the Netherlands-based health technology company slid 6.9% after both earnings and revenue came in below the expectations of analysts polled by FactSet for the fourth quarter. The company also said it reached an agreement with the Food and Drug Administration over a ventilator recall. ZoomInfo Technologies — The software stock popped 5.5% after Bank of America analyst Koji Ikeda upgraded it to buy from neutral. “We believe it is a classic self-help story that is set to outperform,” the analyst wrote, underscoring the company’s revenue growth reacceleration and new AI products as potential catalysts. McGrath RentCorp — McGrath RentCorp shares jumped more than 9% after WillScot Mobile Mini, an equipment rental company, said it would buy the business-to-business rental company in a $3.8 billion cash-and-stock transaction. — CNBC’s Michelle Fox, Alexander Harring, Sarah Min and Jesse Pound contributed reporting.
