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On Wednesday, the stock market gave up some ground, reacting negatively to concerns about the weak growth of the Chinese economy and poor earnings results of large US companies. However, when looking at the main benchmarks, the declines were relatively modest, showing the general confidence investors seem to have about the market situation. In addition, some good news for key companies contributed to the rise of some stocks. hexo (NYSEMKT: HEXO), Smart and final shops (NYSE: SFS), and Ericsson (NASDAQ: ERIC) were among the most successful. Here's why they did so well.
HEXO receives praise from B de A
HEXO shares rose more than 11% after the Canadian cannabis company scored well on Bank of America / Merrill Lynch analysts. Analysts gave HEXO a purchase note and a price target of $ 10 per share, calling it a "best choice of cannabis" and suggesting that its valuation is relatively attractive compared to its peers in the US market. marijuana. B of A / Merrill also highlighted the innovative spirit of HEXO and its desire to make future partnerships a vital asset. With a stable supply of cannabis, shareholders hope that HEXO will be able to make the most of marijuana growing opportunities both in the country. Canada and around the world.
Source of the image: HEXO.
Smart & Final makes a deal
Smart & Final stores saw their stock rise by 20% after the discount retailer accepted an offer from a private investor. Funds associated with Apollo Global Management offered to pay $ 6.50 per share in cash for Smart & Final, bringing the total value of $ 1.1 billion to the vendor of value-based foods and commodities. Smart & Final CEO David Hirz said he expects the company "to benefit from Apollo's strategic directions, which will help us accelerate our existing strategy in an industrial environment." dynamic". Given that the stock has struggled in recent years, the acquisition represents an interesting exit for the shareholders of Smart & Final, who will now be able to pass from a mediocre investment.
Ericsson receives a warm welcome
Finally, Ericsson shares jumped 7%. The mobile communications equipment maker said first-quarter adjusted revenue in 2019 was up 7 percent over the previous year's level, citing the strength of the North American market. Ericsson also reversed the year-ago loss with solid earnings, and CEO Borje Ekholm highlighted the company's strategy of leveraging the deployment of 5G technology to contribute to its recent success. With the outlook for 5G taking off in the United States and around the world in the coming years, Ericsson seems to be moving in the right direction.
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