Market Analysis: Sept 5th, 2025

Alaska Air Group Inc said it is converting part of its outstanding order for Boeing 787 jets to the larger 787-10 variant, reflecting its post-Hawaiian integration strategy to meet growing demand on high-traffic Pacific routes. The airline currently operates four Boeing 787-9 Dreamliners and about 243 Boeing 737 aircraft.

Applovin Corp had its target price raised by Jefferies to $615 from $560, citing a fourth-quarter e-commerce advertising inflection and supply expansion into non-gaming apps as key growth drivers.

Bank of Montreal had its target price raised by CIBC to C$180 from C$173, supported by earnings upside from lower credit losses, improving U.S. results, and a positive outlook for U.S. investment banking.

BILL Holdings Inc saw its shares climb after activist investor Starboard Value disclosed an 8.5% stake and announced plans to launch a boardroom challenge to push for strategic changes, following a steep stock price decline.

Broadcom Inc shares jumped in premarket trading after unveiling a $10 billion AI chip order from a new customer, fueling optimism about its custom chip strategy, while CEO Hock Tan confirmed he would stay at the helm for at least five more years. Speculation has risen that OpenAI is the unnamed customer. Separately, Jefferies raised its target price on Broadcom to $350 from $315 on the back of the order-driven revenue boost.

Cadence Design Systems Inc announced it will acquire the design and engineering business of Sweden’s Hexagon AB for $3.16 billion, paying 70% in cash and the remainder in stock. The deal will broaden Cadence’s customer base across aerospace, automotive, and industrial sectors, with completion expected in Q1 2026.

Colgate-Palmolive Co faces pressure in India as rival Dabur launched a nationalist campaign urging consumers to shun American toothpaste brands. Prime Minister Narendra Modi reiterated his call to support “Swadeshi” goods, challenging Colgate’s 43% market share in India’s toothpaste market.

Copart Inc reported fourth-quarter profit above analyst expectations, driven by strong performance in its high-margin services business that offset weakness in its vehicles unit. Despite the earnings beat, shares fell in after-hours trading.

Kimberly-Clark Corp had its target price raised by JP Morgan to $144 from $138, reflecting updated assumptions after the International Family Care and Professional segment’s shift to discontinued operations.

Kratos Defense and Security Solutions Inc is positioned to benefit as President Donald Trump prepares to reinterpret a decades-old arms control treaty, enabling the international sale of advanced military drones. The new policy could unlock sales of over 100 MQ-9 drones to Saudi Arabia as part of a broader $142 billion arms deal.

Lululemon Athletica Inc had its target price cut by Piper Sandler to $165 from $200, citing weak U.S. sales, tariffs, and struggles in its Casual segment.

Starbucks Corp has received bids valuing its China business at up to $5 billion as it moves forward with plans to sell a stake in the unit. The sale comes amid stiff local competition and slowing Chinese economic growth, though Starbucks continues to report strong international sales.

Tesla Inc shares rose in premarket trading after the board sought investor approval for CEO Elon Musk’s 2025 compensation package and shareholders requested authorization for an investment in Musk’s AI startup xAI. The package, worth roughly $29 billion in restricted stock, is designed to retain Musk through at least 2030 as Tesla pivots to an AI-first strategy.