Buyout Talks and Analyst Upgrades Drive Stock Moves

Option Care Health (OPCH) shares surged about 24% in premarket trading on Tuesday following reports that McKesson (MCK) and private equity firm Clayton Dubilier & Rice were close to a $5 billion buyout deal, including debt. The advanced talks could finalize as soon as Tuesday, though no agreement has been signed yet. Under the proposed terms, Clayton Dubilier & Rice would own 51% of the company through a joint venture, while McKesson would hold the remaining 49%, with an option to buy the stake later.

Constellation Energy (CEG) rose over 3% after announcing a long-term nuclear power partnership with Google (GOOG, GOOGL). The 20-year agreement involves Google supporting 890 MW of new nuclear capacity across Constellation’s plants, with over $4.3 billion in new investment. Additionally, a 15-year agreement covers 2,700 MW from Constellation’s existing PJM fleet, and a five-year technology partnership will use Google Cloud and Gemini Enterprise to improve power generation and grid reliability.

Corteva (CTVA) gained around 3.3% after JPMorgan upgraded the stock to Overweight from Neutral, citing undervaluation in the crop chemicals business following its seed business spin-off. JPMorgan set a $19 price target, suggesting the crop chemicals business could be worth about 10 times 2027 EBITDA, or $21 per share, excluding environmental liabilities.

Nike (NKE) fell about 1.3% after Berenberg downgraded the stock to Sell from Hold and cut its price target to $27.50 from $49. Berenberg noted that Nike appears to have accepted a smaller role in sportswear, with its performance business working but its larger, less-differentiated sportswear category struggling in fiscal Q1. The firm expects Nike’s revenue to remain under pressure through fiscal 2028.