Dutch Bros (BROS)

Newbie stock Dutch Bros (BROS) was the top trending ticker ahead of the US opening bell this Monday, with shares of the Oregon-founded coffee shop just entering correction territory after surging over the past week.

Behind the surge over what some investors are calling the new Starbucks (SBUX) was UBS’ positive take on the company.

The investment bank upgraded Dutch Bros to Buy from Neutral, and set a target price of $39, a 30% upside from Wednesday’s closing price.

“We believe shares to re-rate higher with [same store sales] strengthening into 2025 and as new unit growth remains at least mid-teens for next year,” UBS analyst Dennis Geiger said, adding that the shares’ current valuation of 21x 2025 EBITDA represents an attractive buying opportunity," UBS said.

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The US drive through coffee chain reported 31% year-on-year sales growth in the 12 months ending 31 December 2023 to reach $966m (£744m). Dutch Bros forecasts total 2024 revenues will reach $1.2bn.

Dutch Bros is currently the fourth largest branded coffee chain in the US by outlets behind Starbucks, Dunkin’ and Panera Bread.

fuboTV (FUBO)

Shares in the American streaming service surged over 11% during pre-market trading and more than 17% on Friday on news that a federal judge granted FuboTV’s injunction blocking the planned debut of Venu Sports, the streaming alliance involving Disney (DIS), Fox (FOX), and Warner Bros Discovery (WBD).

Venu Sports was expected to be released by this fall and cost $42.99 per month. It would be a “skinny” bundle of ESPN, Fox Sports, the SEC Network and other premium sports channels plus some mainstream channels like ABC, Fox and TNT that carry sports.

US district judge Margaret M Garnett in New York said in her 69-page ruling that Fubo was likely to be successful in proving during a trial that the joint venture would violate antitrust laws, and Fubo and consumers would “face irreparable harm in the absence of an injunction”.

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In a statement, Disney, Fox and Warner Bros said it will appeal the order.

“We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction,” the group added. “Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options.”

7-Eleven (3382.T)

Seven & i, the owner of convenience store chain 7-Eleven, has received a buyout offer from Canadian rival Alimentation Couche-Tard (ATD.TO).

Tokyo-based Seven & i saw shares jump by more than 20% on the news, giving the firm a stock market valuation of around 5.6tn yen (£29.7bn/$38.5bn).

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Alimentation Couche-Tard, which operates Circle-K convenience stores, is valued at roughly $58bn.

A deal for the whole company would be the largest ever buyout of a Japanese firm by an overseas company.

7-Eleven was first brought to Japan from the US in 1974 by retail tycoon Masatoshi Ito. 7-Eleven has 85,000 outlets worldwide in 20 countries and territories and has a large footprint in Asia.

The retailer said an independent committee and the board of directors would scrutinise the offer and were yet to make a decision.

Barratt Developments (BDEV.L)

The £2.5bn merger between UK housebuilders Barratt Developments and rival Redrow (RDW.L) has been given the go ahead after Barratt agreed to address concerns raised by the competition regulator.

The Competition and Markets Authority (CMA) had said earlier this month that the acquisition could lead to higher prices and lower quality homes in one area — in and around Whitchurch, Shropshire.

Barratt said the watchdog had given it the green light to continue with the merger after the companies agreed to the sale of the homes in question. It added that it now expected the deal to complete within 18 months.

Anthony Codling, managing director of RBC Capital Markets, said: "It is good for Barratt, Redrow and homebuyers in general that Barratt has chosen to push ahead with its proposed merger with Redrow despite the small issue raised by the CMA.

"We view the CMA's issue as a minor one that can be easily resolved and not an issue big enough to stand in the way of the planned combination of Barratt and Redrow.

"The sooner the merger is completed the sooner homebuyers can benefit from a larger choice of homes offered for sale by the newly formed combined group."

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