Yahoo Finance Trending tickers: Wizz Air | Persimmon | Dunelm | Rivian
The latest investor updates on stocks that are trending on Tuesday
Wizz Air (WIZZ.L)
Wizz Air saw shares rise as the low cost carrier reported a 23% year-on-year boost in passenger numbers over June.
Wizz Air carried 5.3 million passengers over the month, up from 4 million on the previous year and marking a strong start to what is expected to be a booming period for London-listed budget airlines.
The improved carryings at Wizz Air came in a month when the eastern and central European low cost airline forecast that its entire fleet of aircraft based at Luton airport would be new generation Airbus A321neos by 2025.
Wizz Air also announced 10 new winter routes from Tirana in Albania including to Birmingham, Edinburgh and Liverpool.
Read more: LIVE: FTSE muted as UK banks summoned by FCA
The network expansion amounts to nearly 100 extra weekly flights scheduled for this winter.
AJ Bell investment director Russ Mould, said: “Low-cost airlines are having a whale of a time thanks to the sharp rebound in travel demand. The decision to expand fleet capacity during the cost of living crisis was a calculated risk and the move is now paying off.
“Strike action remains the key hurdle to clear, particularly over the all-important summer period. Air traffic controllers downing tools caused 160,000 Ryanair (RYA.IR) customers to suffer from cancelled flights in June and further ATC strikes are planned in July. There are additional airport and airline-related strikes threatened for the coming months which could see big delays or cancellations, causing further mayhem.”
Persimmon (PSN.L)
Persimmon shares took a hit on Tuesday as JPMorgan Cazenove downgraded the housebuilder as it reiterated its cautious stance on the UK housebuilding sector.
“Potential softening in sales rates from here, given the uncertainty on rates, puts the 2024E volume recovery in jeopardy while scope for affordability-led average selling price declines still remain,” JPMorgan said.
The bank has downgraded Persimmon to ‘neutral’ from ‘overweight’ and cut the price target to 1,090p from 1,600p, as said its previously expected volume recovery in 2024 could now prove vulnerable. JPMorgan said its price target implies only 6% upside potential.
JPM said overweight-rated Berkeley Group (BKG.L) remains its preferred quality name in the sector.
Dunelm (DNLM.L)
Dunelm shares tumbled after RBC Capital Markets downgraded the homeware retailer to ‘underperform’ from ‘sector perform’ and slashed the price target to 1,000p from 1,300p.
”With cost of living pressures persisting, unfavourable movements in the UK housing market and only a moderate store expansion story, we think that growth will be more difficult to come by now,” the broker said.
“As such, we see greater upside potential in travel (SSP (SSPG.L), WH Smith (SMWH.L) and Dufry (0QK3.IL)) and Discount (AB Foods (ABF.L), B&M Value Retail (BME.L)) given strong topline momentum and meaningful expansion for these names.“
RBC still views Dunelm “as a well-managed business with a strong position in the UK homewares market.”
Rivian (RIVN)
Shares in US electric vehicle startup Rivian Automotive surged in after-hours trading after it revealed stronger-than-expected production figures.
Rivian made 13,992 vehicles at its facility in Normal, Illinois, during the second quarter, topping analyst expectations of 11,000 vehicles, according to estimates compiled by FactSet.
The car manufacturer, which makes electric R1T pickups and R1S SUVs, also reiterated its annual production target of 50,000 units.
Read more: Stocks that are trending today
"All auto makers had supply chain issues in 2021 and 2022, but Rivian appears to be turning a corner and their 50,000 production goal for this year looks highly achievable post the Q2 number," Needham analyst Chris Pierce said.
The stock is up about 5% in 2023.
Danni Hewson, head of financial analysis at AJ Bell, said: "These figures suggest Rivian might just have what it takes to stick it out."
Watch: Wall St. up slightly in shortened session, Tesla jumps
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