American Airlines, Gap, Virgin Galactic, Peloton & more

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An airline employee walks past empty American Airlines check-in terminals at Ronald Reagan Washington National Airport in Arlington, Virginia, on May 12, 2020.

ANDREW CABALLERO-REYNOLDS

Check out the companies making headlines midday Monday:

American Airlines — American Airlines dropped more than 6% to become one of the biggest losers in the S&P 500 after the airline said it plans to secure $3.5 billion in new financing, to improve the airline’s liquidity as it grapples with travel restrictions caused by the coronavirus.

Gap — Shares of the retailer surged more than 5% after the stock received a double upgrade from Wells Fargo. The bank upgraded the stock to overweight from underweight, saying the market was undervaluing the company’s Athleta brand and that the stock was a “a highly compelling risk/reward” opportunity. Wells Fargo set a $19 per share price target on the stock, up from $8 previously.

Livongo Health — Livongo Health shares jumped more than 7% after a KeyBanc analyst hiked his price target on the company to $85 per share from $52. The analyst said regulatory relief on remote patient monitoring could “create a new ~$15B ‘greenfield’ opportunity for LVGO to sell its digital health services directly to hospitals and physicians serving Medicare populations.”

TripAdvisor — TripAdvisor dropped 3.8% after the company said it expects a “significantly negative” adjusted EBITDA for the second quarter. Citing the “the extraordinary circumstances related to the COVID-19 pandemic.” Overall, the company expects an adjusted EBITDA loss of about $85 million. That’s below a FactSet estimate of an $86.5 million loss.

Albemarle — A KeyBanc analyst downgraded the chemical company to underweight from sector weight, citing concerns over the “long-term overinvestment and commoditization of the lithium industry driven by China-based players” which means “new supply can come online quickly at low capital cost.”

Virgin Galactic — Virgin Galactic shares surged more than 9% after reaching a deal with NASA to train astronauts for trips to the International Space Station. Virgin Galactic will develop a “private orbital astronaut readiness program” under the agreement, which will be similar to the one needed to prepare space tourists.

Square — Shares of Square jumped nearly 7% after Barclays raised price target on the mobile-payment company to a Street high. The bank upped its 12-month price target to $115 from $90 on Monday, representing an 8% gain from current levels. Barclay said the resiliency of Square’s merchant base may be stronger than investors fear, while also noting that third-party data showed “continued improvement in small and medium-sized business sales.”

Sonos — The stock rallied 9% in midday trading to $13.11 per share after Citron Research published a report on the company and said it’s “dominating home audio in the new stay at home economy.” Citron, led by Andrew Left, said its price target on Sonos is $30, more than double where it closed on Friday at $11.94 per share. Citron also predicted that the time is right for Apple to finally consider buying Sonos outright.

Peloton — The exercise equipment maker gained more than 6% after Stifel raised its target on the stock to a Street high of $62, which implies a rally of 13.5% ahead. “We are incrementally positive on Peloton’s current momentum and long-term opportunity as the leader in the rapidly growing connected fitness category,” the firm said. Shares have gained more than 90% this year as the company benefited from consumers exercising at home.

Apple — Apple gained more than 1% higher after Cowen raised its target on the stock to $400 from $335. The new target is 13% above where the stock currently trades. The firm raised its iPhone shipment forecasts, and said the company is a defensive name that should continue to benefit from consumers working from home and engaging in distance learning.

American Express — The payments company fell 1% after UBS downgraded the stock to sell from neutral. The firm set a price target of $92 per share on the stock, nearly 9% below where it closed on Friday. The firm decreased the earnings multiple it was using to value the stock to 13 times earnings.

—CNBC’s Pippa Stevens, Yun Li, Jesse Pound, Michael Bloom and Tom Franck contributed to this report.

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