Investor attention shifted toward companies benefiting from mergers and acquisition activity and rising demand for cybersecurity solutions.
- Instacart shares hit a record high amid reports of a potential DoorDash acquisition.
- Range Resources shares hit an 11-year high after EQT agreed to acquire the company in a $12.8 billion deal.
- Wedbush raised its price target on Rubrik to $150 and added the company to its Best Ideas List.
Instacart (CART), Range Resources Corp. (RRC) and Rubrik Inc. (RBRK) hit fresh 52-week highs on Monday as takeover speculation, EQT’s proposed $50 billion-plus merger with Range and a bullish analyst take for Rubrik fueled investor interest.
Instacart and Rubrik stocks gained 7% and 3%, respectively, while Range Resources stock surged over 17%.
Instacart Gains On Potential Acquisition Interest
Instacart stock surged to a record high of $62 after reports of a possible sale brought attention to the online grocery delivery company. DoorDash (DASH) is reportedly in advanced discussions to acquire the company. Potential transaction estimates place Instacart’s valuation between $16 billion and $17 billion, equivalent to approximately $65 per share at the midpoint.
Citizens raised its price target to $65 from $60 and kept an ‘Outperform’ rating. Analyst Andrew Boone said a deal could help the companies cut costs, combine their loyalty programs, and expand into international markets. He also cited growing competition in the grocery industry and a favorable regulatory environment as factors that could make a deal more likely.
On Stocktwits, retail sentiment around the stock remained ‘extremely bullish’.
Range Resources Jumps On EQT Merger Agreement
Range Resources stock reached an eleven-year high of $53.65 after EQT Corp. (EQT) agreed to acquire the natural gas producer in an all-stock transaction. Under the agreement, Range shareholders will receive 0.987 EQT shares for each Range share they own. The stock consideration values the equity portion of the deal at approximately $12.8 billion. The combined business would have an enterprise value exceeding $50 billion.
The companies expect the transaction to create a leading North American natural gas producer, with net output above 9 billion cubic feet equivalent per day and more than 3 million net acres supporting over 30 years of drilling inventory. Retail sentiment around the stock jumped to ‘extremely bullish’ from ‘neutral’.
Rubrik Advances As Wedbush Raises Price Target
Rubrik stock reached an all-time high of $136.19 as Wall Street expressed confidence in its data protection and cyber recovery business. Wedbush increased its price target to $150 from $120, reiterated an ‘Outperform’ rating, and added the company to its Best Ideas List. The new price target implies a 12% upside from the stock’s last close.
The firm pointed to Rubrik’s growing market share and strong demand for its cybersecurity products. As companies face more ransomware attacks and move to the cloud, demand for security software is driving data protection.
So far this year, CART, RBRK and RRC stocks have gained between 35% and 74%.
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