Wednesday, May 25

BARRON’S ROUNDUP: Gas Prices Surge; Uber Versus Lyft; Yum China


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(Bloomberg) — Russia’s invasion of Ukraine sent commodity prices soaring, and as the violence continues, so too will higher prices on everything from gas to wheat. The war, along with sanctions on Russia, will create “lasting costs for businesses and governments throughout the world,” Barron’s writes in its March 12 issue.

Equinor (EQNR), the second-largest provider of natural gas in Europe behind Russia’s Gazprom, stands to gain as the EU reduces its reliance on Russian energy products. The Norwegian state-controlled company is one of “the best-kept secrets” in the oil and gas industry, Barron’s says. Higher food prices could boost FMC Corp. (FMC). The pesticide maker should benefit from its low valuation and focus on sustainable farming, Barron’s writes. The stock could jump 10% this year, says Fermium Research analyst Frank Mitsch, who rates it a Hold. Uber Technologies (UBER) is a better bet than its ride-hailing competitors, says Deutsche Bank analyst Benjamin Black. He rates the shares a Buy with a target of $50, saying revenue should triple between now and 2024. Black rates Lyft (LYFT) a Hold, with a price target of $43. Jamf Holding (JAMF), which helps businesses and educational institutions manage and connect Apple products, tumbled when Apple (AAPL) said in November it was rolling out a competitiv e offering. Still, there are signs Apple sees Jamf as a “partner” and not competition, Barron’s says, and its stock looks like a good buy now. The SEC has warned that five Chinese firms must comply with audit requirements or face delisting from Wall Street: Yum China (YUMC), which controls KFC, Taco Bell and Pizza Hut in China; BeiGene (BGNE), Yum China (YUMC), Zai Lab (ZLAB), ACM Research (ACMR), and Hutchmed (HCM). More announcements are probably coming, says Barron’s.

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