OPCH and CEG rallied on potential multibillion-dollar agreements, while CTVA gained after a JPMorgan upgrade and NKE fell on a sharp Berenberg downgrade.
- Constellation Energy gained over 3% as Google parent Alphabet reportedly neared a deal worth at least $1 billion to buy nuclear power for its data centers.
- Corteva rose around 3.3% after JPMorgan upgraded the stock to Overweight, calling the crop chemicals business undervalued after its seed business spin-off.
- Nike fell about 1.3% after Berenberg downgraded it to Sell and slashed its price target to $27.50 from $49.
Option Care Health (OPCH), Constellation Energy (CEG) and Corteva (CTVA) were among the stocks moving higher in premarket trading on Tuesday on takeover reports and analyst upgrades, while Nike (NKE) fell after Berenberg downgraded the stock to ‘Sell’ and lowered its price target.
Option Care Health Gains On Buyout Talks
Option Care Health (OPCH) shares jumped about 24% in premarket trading after a report said McKesson (MCK) and private equity firm Clayton Dubilier & Rice were nearing a buyout worth more than $5 billion, including debt.
Option Care is in advanced talks following a joint bid, with a deal potentially coming as soon as Tuesday. However, no agreement has been signed, and the talks could still fall apart.
Under the terms being discussed, Clayton Dubilier & Rice would own 51% of the company through a joint venture, while McKesson would hold the remaining 49%. McKesson would also have the right to buy CD&R’s stake at a later date.
Constellation Energy Rises On Google Power Deal
Constellation Energy (CEG) rose more than 3% in premarket trading after Google (GOOG, GOOGL) and Constellation announced a long-term nuclear power partnership. Under a 20-year agreement, Google will support 890 MW of new nuclear capacity across Constellation’s plants in Illinois, Pennsylvania and New Jersey. The project involves more than $4.3 billion of new investment by Constellation.
The companies also signed a 15-year agreement covering another 2,700 MW from Constellation’s existing PJM fleet.
Constellation will also use Google Cloud and Gemini Enterprise under a five-year technology partnership focused on using AI to improve power generation, grid reliability and infrastructure.
Corteva Jumps After JPMorgan Upgrade
Corteva (CTVA) gained about 3.3% in premarket trading after JPMorgan upgraded the stock to Overweight from Neutral following the spinout of its seed business.
JPMorgan said the remaining crop chemicals business is undervalued at its current share price. The firm set a $19 price target and said a “high-quality” crop chemicals company could be worth about 10 times 2027 EBITDA, or $21 per share, excluding environmental liabilities.
Nike Falls After Berenberg Downgrade
Nike (NKE) fell 1.3% in premarket trading after Berenberg downgraded the stock to ‘Sell’ from ‘Hold’ and cut its price target to $27.50 from $49.
Berenberg said Nike appears to have accepted a smaller role in sportswear. While its performance business continues to work, the firm said its larger, less-differentiated sportswear category continued to struggle in fiscal Q1, according to TheFly.
Berenberg said this contributed to Nikze’s forecast for a high single-digit percentage decline in fiscal 2027 sales and added that the market structure has shifted against the company. Berenberg expects Nike’s revenue to remain under pressure through fiscal 2028.
OPCH, CEG, CTVA, NKE Stocks: Stocktwits Retail Sentiment
On Stocktwits, retail sentiment for OPCH, CTVA and NKE was ‘extremely bullish,’ while message volume was ‘extremely high’ for all three stocks at the time of writing.
Retail sentiment for CEG remained ‘extremely bullish,’ unchanged over the past 24 hours, while message volume was ‘high.’
OPCH stock is down more than 28% year-to-date, while CEG shares have fallen nearly 27%, CTVA is down around 82%, and NKE has declined around 44% over the same period.
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