Video slot machines at Caesars Palace in Las Vegas, Nevada.
George Rose | Getty Images
Check out the companies making headlines before the bell:
Caesars Entertainment — The casino operator’s stock surged more than 16% in the premarket after Caesars agreed to be bought out by Eldorado Resorts for $17.3 billion in cash and stock, including debt.
Dunkin’ Brands — An analyst at Wedbush upgraded Dunkin’ Brands to “outperform” from “neutral,” and raised his price target on the stock to $92 per share from $76 a share. The analyst said Dunkin’s same-store sales are at an inflection point “that is underappreciated by the Street.” Dunkin’ shares rose 1.3% to $80.55 per share.
Hostess Brands — Hostess Brands was upgraded to “buy” from “neutral” by an analyst at UBS. The analyst cited accelerating sales, the acquisition of a Chicago Bakery facility and strong free cash flow growth for the upgrade. Hostess shares climbed 1.4% in the premarket.
Deere — Jefferies upgraded the tractor maker to “buy” from “hold,” noting that a “tightened global crop supply demand balance and positive momentum in farmer net income support double-digit large equipment growth through 2020.” Deere shares rose 1.4%.
Spotify Technology — The music streaming service’s stock slid 3.6% after Evercore ISI downgraded it to “underperform” from “in line.” The firm also cut Spotify’s price target to $110 per share from $125 a share. “We simply do not see a path by which SPOT can generate the level of gross profit demanded by Street estimates over the medium-term,” Evercore ISI said.
International Paper — International Paper shares fell 1.2% after being downgraded by an analyst at Stephens to “equal weight” from “overweight.” The analyst said the downgrade reflects uncertainty around “containerboard pricing pronouncements.”
Alphabet — An analyst at MoffettNathanson trimmed his price target on the tech giant’s stock to $1,250 per share from $1,290 a share, citing a “growing lack of conviction that Google can maintain their historic 20%+ revenue growth.” Alphabet shares slipped 0.1% to around $1,123 per share before the bell.
United Technologies — United Technologies was upgraded to “outperform” from “market perform” by an analyst at Cowen. The analyst noted United’s proposed merger with Raytheon favors the Dow member, adding its decline since the deal’s announcement “offers a win-win for attractive standalone valuation or merger benefits.” United Technologies shares climbed 1.1%.
Electronic Arts — Stephens named the video game maker its “best idea in the space” ahead of the Apex Legends Season 2 release on July 2. The research firm said Fortnite’s popularity has “hit a lull,” giving EA an opportunity to “capture momentum” with its Season 2 release.
Disney — Pixar’s “Toy Story 4” hauled in $118 million in sales in its opening weekend, breaking a franchise record but falling short of expectations. Analysts had forecast the company would make at least $150 million in its first weekend.
—CNBC’s Michael Bloom contributed to this report.