Biggest stock movers Tuesday: TSLA, ZYME, EVGO, and more

Stock futures edged lower in Tuesday’s premarket session as investors weighed the possibility of the Fed delivering its final rate cut in 2024, with focus shifting to hints about the central bank’s outlook for 2025.

Here are some of Tuesday’s biggest stock movers:

Biggest stock gainers

• Zymeworks (ZYME) shares rose 5% in premarket trading after a 9% gain in the previous session, following JPMorgan’s upgrade to Overweight from Neutral. Analyst Brian Cheng, citing increased confidence after ZYME’s recent R&D event, highlighted the underappreciated value of its oncology and autoimmune disease pipeline, describing it as a “multiple shots on goal” story with strong upside potential. JPMorgan set a price target of $18, implying a 43% increase from the last close.
• Mitek Systems (MITK) shares surged 18% after delivering strong FQ4 results, surpassing consensus estimates on both top and bottom lines. GAAP operating margin improved to 18%, up from -9% a year ago, while non-GAAP operating margin jumped to 35% from 14%. CFO Dave Lyle attributed the performance to the team’s operational focus, emphasizing Y/Y revenue growth, profitability, and cash generation. He highlighted Mitek’s commitment to delivering customer value while driving efficient long-term revenue growth.
• Tesla (TSLA) shares gained up to 3% after Mizuho Securities upgraded the stock to Outperform from Neutral, citing a positive outlook under the new administration. Analyst Vijay Rakesh pointed out that Tesla is positioned favorably over the next few years, with potential tailwinds including a relaxation of autonomous driving regulations, which could boost the valuation of Full Self-Driving (FSD) and robotaxi technologies. Additionally, Rakesh highlighted that new policies under the Trump administration, such as the repeal of consumer EV tax credits, could give Tesla a competitive edge with its lower EV cost structure compared to peers. Mizuho set a price target of $515, which implies an 11% upside from the last close.

Biggest stock losers

• EVgo (EVGO) shares tumbled over 15% after the company announced that EVgo Holdings, LLC, an affiliate of LS Power Equity Partners, plans to sell 23M shares of Class A common stock in a public secondary offering. LS Power will also grant underwriters a 30-day option to purchase an additional 3.45M Class A shares. EVgo clarified that no shares are being sold by the company, and it will not receive any proceeds, as LS Power retains all the proceeds from the sale.
• Red Cat Holdings (RCAT) shares plunged 11% after reporting disappointing FQ2 earnings, with a 61% Y/Y revenue decline. This downturn follows a 27% gain in the prior session, fueled by a strategic partnership with Palantir Technologies (PLTR) to integrate its visual navigation and AI technologies into Red Cat’s Black Widow drones, enhancing their capabilities for military applications.