Shares of Fisker (FSR) popped on Friday, closing nearly 9% higher, after cutting its production targets in a bid to improve liquidity. The EV maker also said it is in talks with automakers to sell emission credits in the US.
Norfolk Southern (NSC) shares closed 4% higher after Bank of America upgraded the stock from "Neutral" to "Buy," saying the railroad company has made "progress on service and volume recapture."
UiPath (PATH) shares soared, closing more than 26% higher, after releasing third-quarter results that beat analyst estimates and issuing upbeat annual recurring revenue guidance.
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JOSH LIPTON: All right. Let's take a look at some trending tickers now. Fisker trimming its production guidance in order to prioritize liquidity. It's part of the list of business updates released by the auto company. So this one was interesting. Fisker in nice pop today, of course. Listen, put that in context, the stock has been hammered, Julie. But the news is that the EV startup, they're going to sharpen their focus on operation, their words. Business update we're getting here, they reduced December production to prioritize liquidity, they say, to unlock over 300 million of working capital.
Also, adjusting production guidance to just over 10,000 units for 2023. And they say they are in advanced stages, Julie, of discussions with several automakers for a strategic partnerships. So a nice pop today.
JULIE HYMAN: And one of the other things apparently they're talking about with major automakers is to sell their greenhouse gas emission credits, which is also interesting there and presumably another reason the stock went up. But to your point, I mean, the context here is really important. The stock is down more than 90% from its record high where it was in early 2021.
This was a dSPAC, that's how it came public through a SPAC combination. And just to remind our viewers, SPACs when they start trading start trading at 10. So that's the reference price that you can think about when you think about SPACs, although some of them go much higher and then come much lower. So Fisker, even though it's up a lot today, is trading at $1.72. So that just tells you about where we have come.
JOSH LIPTON: Down about 75% this year to your point. And you just pull back the chart from the record in 2021, not pretty.
JULIE HYMAN: Yes. Let's talk about another mover today. That was Norfolk Southern. The stock getting a boost after Bank of America upgraded it to buy from neutral. The analysts are saying that progress on service and volume recapture has been happening here for the company, that carloads are trending above target, that they're doing well year-to-date, that sequential service has now been outperforming. And they, the analysts that is over at Bank of America, are going to be meeting with Norfolk Southern next week in Atlanta. And they're going to be gathering some more information at that point.
JOSH LIPTON: Yeah. It was interesting, the analysts saying they have shown-- the company has shown faster service gains than they expected after those two network outages, including that derailment, of course, earlier this year, Julie, in East Palestine, Ohio. The frequency of incidents has caused us increasing concern, they tell their clients, yet the speed of improvements suggests improved resiliency, they say. And they take their target to 248.
JULIE HYMAN: Yeah. And I mean, to your point, this was a company that had a lot of troubles because of that derailment. The stock is still down about 10% year-to-date as they have sort of struggled to come back from this. But at the same time, analysts are still not entirely convinced. There are 16 buys and 15 holds. So it still looks like the folks are kind of split as to whether they can come back. But call Bank of America now in that buy camp.
And UiPath shares, those are skyrocketing after the company topped estimates on the top and bottom line in the third quarter. The automation software company also reporting an upbeat outlook for annual recurring revenue. And the Street really seemed to be reassured by all of these numbers here. And that's why we saw it really shoot higher here. It's had a pretty good year-to-date for the company. And analysts are saying that expectations weren't necessarily high coming into this. So that accounts for some of that outsized reaction.
JOSH LIPTON: You know, Evercore's Kirk Materne weighed into. And Kirk is a very smart guy, covers the enterprise, said the results are strong, upbeat outlook, says the company is executing well in what Kirk called a choppy macro environment, says the next leg higher, he told his clients, is going to depend on 2025 guidance.
And just looking at his rating here, he's in line on the stock. So on the sidelines, though, he did-- he did raise his target at '24.
JULIE HYMAN: Yeah. A couple other things I just wanted to mention here, I was just quickly looking at the short interest on the stock, which looks like it's around 10% of float, kind of high-ish. So you do wonder if there's a short squeeze element to that big outsized gain here today. And the other thing I wanted to mention is, as I said, the stock is higher year-to-date. It's about doubled.
But if you look at the five-year chart of this thing, it is a very different story. It is down sharply over the past five years. So this year has been a bit of a comeback story. I'm just going to quickly look up the five-year number here. Over the past five years, it's down more than 50%.