On Monday, rumors swirled over Hershey Company (HSY) attracting a bidder. Mondelez (MDLZ) is reportedly exploring a takeover, sending HSY stock up by 10.85%.
Hershey’s trading range of $175 to over $205 yesterday will give Mondelez an idea of how much it must bid. The confectioner trades at a P/E of 22.3 times, comparable to that of Mondelez stock. However, the latter’s share price slumped since September. Management is under pressure to consolidate its business to achieve growth.
Among the stocks on sale, Omnicom (OMC) lost 10.25% after markets digested its Interpublic (IPG) buyout. It will pay for IPG in a stock-for-stock transaction, hurting OMC shareholders. The two largest names merging will shake up the sector. Trade OMC stock, knowing that it may cut its dividend.
Comcast (CMCSA) lost 9.5% after warning that broadband subscribers will fall by more than 100,000. Markets are overacting since hurricanes Helene and Milton led to a 10,000 subscriber broadband loss. On the content front, the firm will enhance its offering through a deal with Warner Bros. Discovery (WBD).
Applovin (APP) gave back 14.68% yesterday, closing at $342.54. This could set a snap back to $400. Last Friday, analysts at Citi raised their price target to $460, up from $335.
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