Here are the companies making headlines on Wall Street on Monday.
Eli Lilly – Shares of the drugmaker fell by more than 9% after a phase two trial for donanemab showed that the treatment slowed the progression of Alzheimer’s disease. Mizuho Securities said in a note that the results were “solid, not stunning.”
AMC Entertainment – Shares of the movie theater giant jumped 25.8% as it began reopening theaters in Los Angeles. AMC reopened two locations in the city on Monday, and plans to reopen the remaining 23 Los Angeles theaters by Friday. The company is hoping to have all of its locations across the state opened by Friday.
American Airlines, United Airlines, Delta Air Lines and Alaska Air Group – Shares of the major U.S. airlines jumped on Monday amid optimism about a return to normal travel amid vaccine rollout. Air travel over the weekend hit its highest level in more than a year and airlines are seeing increased bookings. Shares of American Airlines and United Airlines rose by 8.3% and 7.7%, respectively. Delta popped 2.3% and Alaska Air Group gained 5.8%.
MGM Resorts — The hotel and gaming stock rose about 5.1% after investment firm Jefferies upgraded MGM to buy from hold. The company cited an improving outlook for Las Vegas travel and the rise of online gambling as reasons for optimism.
Unity Software – Shares of Unity Software popped 3.8% after Goldman Sachs started covering the video game stock with a buy rating, calling it “a design platform for the masses.” The Wall Street firm slapped a $126 per share price target on Unity, representing nearly 20% upside from its opening price of $105.70 per share.
Gap – Shares of the retailer jumped 4.7% after Wells Fargo raised its target on the stock to a Street high of $40, or about 30% above where shares closed on Friday. The company “appears to be extremely well-positioned for market share gains this year, Athleta has meaningful runway for continued growth and Gap brand is showing green shoots in their brand-health initiatives,” Wells Fargo wrote in a note to clients.
NXP Semiconductors, Penn National Gaming – S&P Dow Jones Indices announced new additions to the S&P 500 on Friday, boosting shares of Penn National Gaming and NXP Semiconductors. The stocks rose 9% and 4.6%, respectively, on Monday.
GenMark Diagnostics – Shares of the diagnostics company jumped 30% after an announcement that Roche was buying GenMark in an all-cash deal worth $1.8 billion. The potential for a deal had previously been reported.