Check out the companies making headlines before the market opens. Morphic Holding — Shares soared more than 75% on news that Eli Lilly and Company will acquire the biotech pharmaceutical company in a $3.2 billion deal. The deal will give Eli Lilly access to a portfolio of treatments Morphic is developing, such as drugs to treat ulcerative colitis and Crohn’s disease. Eli Lilly’s stock price rose slightly by 0.2% on this news. Shares of Paramount Worldwide rose 2% on Sunday after the media and entertainment company announced a merger agreement with Skydance Media. SolarEdge — Shares of SolarEdge rose 5% after Bank of America upgraded the stock to neutral from underperform, citing an attractive entry point for investors. However, the company said it was seeking a “more tangible” recovery in margins and cash flow. ServiceNow – The cloud computing stock fell 3% after Guggenheim downgraded ServiceNow to sell from neutral, casting doubt on whether the company’s generative artificial intelligence business will see growth. “Our work on the ground suggests this is unlikely to materialize until 2025, if at all,” said analyst John DiFucci. Domino’s Pizza – In Baird ) rose more than 1% in premarket trading after upgrading the stock to outperform. The Wall Street firm said the company’s strong fundamentals have significantly bolstered investor confidence and belief. Baird highlighted Domino’s Pizza’s advertising approach, product line, operations, rising penetration and improved relative value proposition. Gilead — Shares of the biotech stock rose more than 2% after Raymond James upgraded the biotech stock to outperform from market rating. The investment firm said Gilead has two strong drug candidates in development that could deliver significant revenue growth over the next five years. PNC — Shares of the regional bank rose 1% after UBS upgraded its rating to buy from neutral. UBS sees upside potential for PNC stock as loan demand improves. KeyCorp — Shares fell 1% after UBS downgraded the stock to neutral from buy. UBS said there are “currently no catalysts” for KeyCorp and its shares look quite reasonable. Columbia Sportswear — The stock rose 2.1% after Stifel upgraded the stock to buy from hold. The company believes that as the outdoor leisure trend grows, there is potential for positive changes in revenue. —CNBC’s Sarah Min, Jesse Pound, Michelle Fox and Yun Li contributed to the paper
