AT&T shares rise after Raymond James upgrades, says stock cheap compared to Verizon

Telecommunications giant AT&T rose 0.7 percent in the premarket Friday after an analyst at Raymond James upgraded the stock, noting it trades at a more attractive valuation than rival Verizon. “The outlook for positive earnings growth combined with a strong de-levering story are likely to drive the shares to outperform,” Louthan wrote in a note to clients. “AT&T trades at a discount to Verizon of ~3.5x turns of EPS and FCF, with 250 bp higher dividend yield. We believe that the combination of po


Telecommunications giant AT&T rose 0.7 percent in the premarket Friday after an analyst at Raymond James upgraded the stock, noting it trades at a more attractive valuation than rival Verizon. “The outlook for positive earnings growth combined with a strong de-levering story are likely to drive the shares to outperform,” Louthan wrote in a note to clients. “AT&T trades at a discount to Verizon of ~3.5x turns of EPS and FCF, with 250 bp higher dividend yield. We believe that the combination of po
AT&T shares rise after Raymond James upgrades, says stock cheap compared to Verizon Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: fred imbert, janhvi bhojwani
Keywords: news, cnbc, companies, trades, quarter, service, louthan, company, shares, raymond, verizon, rise, outperform, earnings, stock, compared, cheap, growth, james, upgrades, att


AT&T shares rise after Raymond James upgrades, says stock cheap compared to Verizon

Telecommunications giant AT&T rose 0.7 percent in the premarket Friday after an analyst at Raymond James upgraded the stock, noting it trades at a more attractive valuation than rival Verizon.

Analyst Frank Louthan raised his rating on AT&T to outperform from market perform. He also issued a price target of $34 per share, which represents a 12.3 percent upside over the next 12 months.

“The outlook for positive earnings growth combined with a strong de-levering story are likely to drive the shares to outperform,” Louthan wrote in a note to clients. “AT&T trades at a discount to Verizon of ~3.5x turns of EPS and FCF, with 250 bp higher dividend yield. We believe that the combination of positive earnings growth and delivering over the course of the year will being investors back to AT&T.”

AT&T shares slumped in the last 12 months, falling more than 18 percent in that time period. Verizon, meanwhile, is up about 20 percent.

AT&T was under pressure as it faced legal hurdles to close an $85.4 billion merger with Time Warner.

The company also dealt with slowing customer growth. In the fourth quarter, the company added a net 134,000 phone subscribers who pay a monthly bill, well below estimates. AT&T’s churn rate also rose to 1 percent last quarter from 0.89 percent in the year-earlier period.

AT&T’s streaming service, DirecTV Now, lost 267,000 subscribers in the fourth quarter, more than was expected. The company said the attrition rate was mostly due to people leaving the service after their discounted offers ran out.

Moving forward, profits from DirecTV Now should increase, Louthan said:

First, profitability of DIRECTVNOW should increase as costs are eliminated. Second, the product is now less attractive to a wider audience with limited content. While current users are able to keep the 105 channel package, it could be harder to attract new customers. We expect AT&T to offset this with a more complete lineup of channels from its delayed DTV OTT offering and its enhanced streaming service (likely bolted onto HBO GO), both expected later in 2019.

He also said AT&T could outperform the broader telecom sector this year, with his earnings per share estimate for 2019 implying a return of 18 percent from current levels.

“Where we could be wrong is if investors focus more on the subscriber metrics as they report over the course of the year (regardless of the EPS and FCF impact) and trade off that,” Louthan said.

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Company: cnbc, Activity: cnbc, Date: 2019-03-15  Authors: fred imbert, janhvi bhojwani
Keywords: news, cnbc, companies, trades, quarter, service, louthan, company, shares, raymond, verizon, rise, outperform, earnings, stock, compared, cheap, growth, james, upgrades, att


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Snap shares surge 10% after longtime skeptic upgrades to buy

Shares of social media company Snap rallied more than 10 percent Thursday after one longtime skeptic upgraded the stock and told clients that it’s set for outperformance thanks to better advertising sales. BTIG analyst Richard Greenfield now recommends investors buy the beat-up equity and thinks that the media-sharing platform could see its shares soar 50 percent over the next 12 months. “Performance advertisers are laser focused on return on investment and spend (and spend more) where they see


Shares of social media company Snap rallied more than 10 percent Thursday after one longtime skeptic upgraded the stock and told clients that it’s set for outperformance thanks to better advertising sales. BTIG analyst Richard Greenfield now recommends investors buy the beat-up equity and thinks that the media-sharing platform could see its shares soar 50 percent over the next 12 months. “Performance advertisers are laser focused on return on investment and spend (and spend more) where they see
Snap shares surge 10% after longtime skeptic upgrades to buy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: thomas franck
Keywords: news, cnbc, companies, buy, upgrades, longtime, public, wrong, past, snap, greenfield, performance, shares, advertising, spend, surge, skeptic, snapchat


Snap shares surge 10% after longtime skeptic upgrades to buy

Shares of social media company Snap rallied more than 10 percent Thursday after one longtime skeptic upgraded the stock and told clients that it’s set for outperformance thanks to better advertising sales.

BTIG analyst Richard Greenfield now recommends investors buy the beat-up equity and thinks that the media-sharing platform could see its shares soar 50 percent over the next 12 months.

“Your initial reaction is likely why now and what changed, as virtually everything that could go wrong for Snapchat over the past couple years since going public has gone wrong,” Greenfield began. “Performance advertisers are laser focused on return on investment and spend (and spend more) where they see a compelling return.”

“We are increasingly confident that overseas direct response/performance advertisers are taking advantage of low relative bid prices on ad inventory in the U.S.,” he added.

Revived advertising spend would likely come as a welcome reprieve for Snap investors, who’ve seen their shares sink as much as 70 percent from their IPO price within the past year before rebounding to $10.05. Greenfield has never had a buy rating on the shares, which went public in March 2017 at $17.

“The good news for Snapchat is that performance advertising can scale rapidly enabling meaningful revenue beats,” Greenfield added. “It is critical for Snapchat to convince higher quality brands of the performance ROI that can be found on the platform.”

Disclosure: CNBC parent NBCUniversal is an investor in Snap .


Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: thomas franck
Keywords: news, cnbc, companies, buy, upgrades, longtime, public, wrong, past, snap, greenfield, performance, shares, advertising, spend, surge, skeptic, snapchat


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Intel shares jump after Morgan Stanley upgrades the stock and predicts a big rally

Investors should buy Intel shares as they could get a boost from CEO Bob Swan’s leadership, a Morgan Stanley analyst said Friday. Analyst Joseph Moore upgraded Intel to overweight from equal weight and hiked his price target on the stock to $64 per share from $55. “We think that Intel can rerate higher around a more financially oriented CEO,” Moore said in a note to clients. Intel shares are up 9.55 percent this year through Thursday’s close but are lagging competitors like Nvidia and Advanced M


Investors should buy Intel shares as they could get a boost from CEO Bob Swan’s leadership, a Morgan Stanley analyst said Friday. Analyst Joseph Moore upgraded Intel to overweight from equal weight and hiked his price target on the stock to $64 per share from $55. “We think that Intel can rerate higher around a more financially oriented CEO,” Moore said in a note to clients. Intel shares are up 9.55 percent this year through Thursday’s close but are lagging competitors like Nvidia and Advanced M
Intel shares jump after Morgan Stanley upgrades the stock and predicts a big rally Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: fred imbert, samyukta lakshmi, bloomberg, getty images
Keywords: news, cnbc, companies, think, thursdays, predicts, ceo, rally, higher, upgrades, shares, target, stock, intels, jump, morgan, technology, moore, intel, stanley, big


Intel shares jump after Morgan Stanley upgrades the stock and predicts a big rally

Investors should buy Intel shares as they could get a boost from CEO Bob Swan’s leadership, a Morgan Stanley analyst said Friday.

Analyst Joseph Moore upgraded Intel to overweight from equal weight and hiked his price target on the stock to $64 per share from $55. Moore’s new price target represents 24 percent upside from Thursday’s close of $51.41 per share. Intel traded about 3 percent higher in the premarket Friday.

“We think that Intel can rerate higher around a more financially oriented CEO,” Moore said in a note to clients. “While some investors wanted someone with more of a technology background, we think that one of Intel’s biggest challenges in recent years has been its tendency to become enamored with technology over economics.”

Swan was Intel’s interim CEO for seven months after Brian Krzanich was ousted last year for having a “consensual relationship” with an employee. Prior to that, Swan had been Intel’s CFO since 2016.

Intel shares are up 9.55 percent this year through Thursday’s close but are lagging competitors like Nvidia and Advanced Micro Devices. Nvidia’s stock is up more than 16 percent in 2019 while AMD has surged nearly 30 percent.

“With a better portfolio optimization process, framing those technology issues around business risk/reward, a mindset of optimizing free cash flow more than earnings, and a higher standard of M&A accretion, we see the multiple expanding from 12x to 14x in our base case,” Moore said. “While we are cautious on semiconductors, and Intel is not immune, these idiosyncratic opportunities set them apart.”

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Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: fred imbert, samyukta lakshmi, bloomberg, getty images
Keywords: news, cnbc, companies, think, thursdays, predicts, ceo, rally, higher, upgrades, shares, target, stock, intels, jump, morgan, technology, moore, intel, stanley, big


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PG&E shares jump 12% after Citi upgrades, says the stock could double despite bankruptcy

Investors should buy shares of embattled utility PG&E as California lawmakers work to broker a deal with the state’s electric and gas providers, Citigroup told clients Tuesday. Citi upgraded the stock to a buy rating based on those deliberations, which could result in reduced wildfire liabilities for California utilities in the future, analyst Praful Mehta said. “We rate the stock a buy as we believe that it is pricing in larger dollar liabilities than what PG&E will likely need to bear.” While


Investors should buy shares of embattled utility PG&E as California lawmakers work to broker a deal with the state’s electric and gas providers, Citigroup told clients Tuesday. Citi upgraded the stock to a buy rating based on those deliberations, which could result in reduced wildfire liabilities for California utilities in the future, analyst Praful Mehta said. “We rate the stock a buy as we believe that it is pricing in larger dollar liabilities than what PG&E will likely need to bear.” While
PG&E shares jump 12% after Citi upgrades, says the stock could double despite bankruptcy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: thomas franck, carolyn cole, los angeles times, getty images
Keywords: news, cnbc, companies, state, wildfire, pge, mehta, double, price, 12, liability, utility, despite, bankruptcy, upgrades, investors, citi, jump, shares, states, stock


PG&E shares jump 12% after Citi upgrades, says the stock could double despite bankruptcy

Investors should buy shares of embattled utility PG&E as California lawmakers work to broker a deal with the state’s electric and gas providers, Citigroup told clients Tuesday.

Citi upgraded the stock to a buy rating based on those deliberations, which could result in reduced wildfire liabilities for California utilities in the future, analyst Praful Mehta said. Shares rallied as much as 10 percent by 10:38 a.m. ET. The bank’s $33 price target is more than double the stock’s closing price Friday.

“Public comments by the Governor and recent conversations with teams in Sacramento suggest that legislation to limit future wildfire risk could be passed in 60-90 days,” Mehta wrote. “We rate the stock a buy as we believe that it is pricing in larger dollar liabilities than what PG&E will likely need to bear.”

Gov. Gavin Newsom said last week the Golden State has given its team of bankruptcy attorneys and financial specialists 60 days to craft a plan to both keep the lights on and grant justice to those impacted by the historic wildfires. The most recent natural disaster — the fast-moving 2018 Camp Fire that killed at least 86 people and destroyed about 14,000 homes — was the state’s deadliest.

Though responsibility for the Camp Fire has yet to be determined, state investigators cleared the utility company of liability in the October 2017 Tubbs Fire, the largest wildfire that year. While a small victory for the company, that finding comes after state investigators determined that PG&E’s equipment was liable in at least 17 major wildfires in 2017.

Despite PG&E’s liability for any fires in 2017 or 2018, Citi believes California’s legislature may move to curb potential losses for its utility companies to help ensure consistent service to the state’s residents.

“With path to legislation limiting future wildfire liabilities getting clearer, current price offers a great entry opportunity with upcoming catalyst,” Mehta said.

California’s biggest utility filed for Chapter 11 bankruptcy protection last month, citing at least $30 billion or more in potential liability from fires in 2017 and 2018. While such financial troubles have sent PG&E shares down more than 60 percent over the past 12 months, some investors are buying the beat-up equity.

Longtime investors including such as Seth Klarman’s $30 billion hedge fund The Baupost Group and David Tepper’s $14 billion Appaloosa Management have build sizable and complex stakes in the California utility. While Klarman has spoken to multiple insurance companies about buying their claims against PG&E, Appaloosa actually increased its PCG holdings in the fourth quarter despite the sell-off.

Such investors may be betting on a lighter-than-expected penalty for PG&E or find the security cheap following the months of declining prices.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: thomas franck, carolyn cole, los angeles times, getty images
Keywords: news, cnbc, companies, state, wildfire, pge, mehta, double, price, 12, liability, utility, despite, bankruptcy, upgrades, investors, citi, jump, shares, states, stock


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European markets mixed amid US-China trade deal hopes; Wirecard shares jump 12%

Europe’s telecom stocks led the gains on Monday, up around 0.7 percent amid a flurry of rating upgrades. Switzerland’s Sunrise was among the top performers after Berenberg upgraded the stock to “buy” from “hold.” Shares of the company rose more than 2 percent. Looking at individual stocks, Germany’s Wirecard surged to the top of the European benchmark after financial watchdog BaFin issued a ban against establishing or increasing short positions in the company’s stock. Shares of the London-listed


Europe’s telecom stocks led the gains on Monday, up around 0.7 percent amid a flurry of rating upgrades. Switzerland’s Sunrise was among the top performers after Berenberg upgraded the stock to “buy” from “hold.” Shares of the company rose more than 2 percent. Looking at individual stocks, Germany’s Wirecard surged to the top of the European benchmark after financial watchdog BaFin issued a ban against establishing or increasing short positions in the company’s stock. Shares of the London-listed
European markets mixed amid US-China trade deal hopes; Wirecard shares jump 12% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: sam meredith
Keywords: news, cnbc, companies, buy, uschina, stocks, stock, deal, wirecard, trade, company, million, value, jump, shares, mixed, watchdog, upgrades, hopes, markets, european


European markets mixed amid US-China trade deal hopes; Wirecard shares jump 12%

Europe’s telecom stocks led the gains on Monday, up around 0.7 percent amid a flurry of rating upgrades. Switzerland’s Sunrise was among the top performers after Berenberg upgraded the stock to “buy” from “hold.” Shares of the company rose more than 2 percent.

Looking at individual stocks, Germany’s Wirecard surged to the top of the European benchmark after financial watchdog BaFin issued a ban against establishing or increasing short positions in the company’s stock. Shares of the firm jumped 12 percent on the news.

Meanwhile, soft drink bottler Coca-Cola HBC tumbled toward the bottom of the index. It comes after the company announced on Monday it would buy Serbian biscuit and confectionery maker Bambi for an enterprise value of 260 million euros ($294 million). Shares of the London-listed stock were under pressure during mid-morning deals.


Company: cnbc, Activity: cnbc, Date: 2019-02-18  Authors: sam meredith
Keywords: news, cnbc, companies, buy, uschina, stocks, stock, deal, wirecard, trade, company, million, value, jump, shares, mixed, watchdog, upgrades, hopes, markets, european


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Tesla shares jump after Canaccord Genuity upgrades the stock and predicts 40% rally from here

Canaccord upgraded Tesla to buy from hold and raised its 12-month price target to $450 from $330. “The EV penetration story is underappreciated by the Street,” wrote analyst Jed Dorsheimer in a note to clients Monday. Canaccord’s new 12-month price target represents a gain of 47 percent from here. The stock jumped 2 percent in premarket trading Monday amid the Canaccord call. The shares fell at the end of January after the company posted a fourth-quarter profit that fell short of Wall Street exp


Canaccord upgraded Tesla to buy from hold and raised its 12-month price target to $450 from $330. “The EV penetration story is underappreciated by the Street,” wrote analyst Jed Dorsheimer in a note to clients Monday. Canaccord’s new 12-month price target represents a gain of 47 percent from here. The stock jumped 2 percent in premarket trading Monday amid the Canaccord call. The shares fell at the end of January after the company posted a fourth-quarter profit that fell short of Wall Street exp
Tesla shares jump after Canaccord Genuity upgrades the stock and predicts 40% rally from here Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: john melloy, aly song
Keywords: news, cnbc, companies, rally, jump, target, street, canaccord, upgrades, genuity, cash, concerns, shares, predicts, price, company, view, 40, stock, tesla, upgraded


Tesla shares jump after Canaccord Genuity upgrades the stock and predicts 40% rally from here

Tesla shares got off to the week with a good start after Canaccord Genuity upgraded the stock and predicted a monster rally from here as electric vehicle penetration improves and the company gets closer to building a car that is affordable for the masses.

Canaccord upgraded Tesla to buy from hold and raised its 12-month price target to $450 from $330.

“The EV penetration story is underappreciated by the Street,” wrote analyst Jed Dorsheimer in a note to clients Monday. “We see a more stable 2019 with far fewer concerns for investors in the company.”

Tesla closed Friday at $305.80, down 8 percent for the year. Canaccord’s new 12-month price target represents a gain of 47 percent from here. The stock jumped 2 percent in premarket trading Monday amid the Canaccord call.

The shares fell at the end of January after the company posted a fourth-quarter profit that fell short of Wall Street expectations. The Elon Musk-led company said it would focus on reducing costs in 2019 and also said its cash position improved to $3.7 billion.

“We view the recent string of price cuts as further proof that the cost cutting and right sizing that the company has undertaken are resulting in concrete movement towards the ultimate goal of an affordable $35,000 Model 3,” added Dorsheimer. “With the strong operating cash flow generation of $1.23B and cash on the balance sheet of $3.7B, the liquidity concerns and convertible note repayment are no longer valid concerns in our view.”

— With reporting by Michael Bloom.


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: john melloy, aly song
Keywords: news, cnbc, companies, rally, jump, target, street, canaccord, upgrades, genuity, cash, concerns, shares, predicts, price, company, view, 40, stock, tesla, upgraded


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Jefferies upgrades BlackRock to buy, says valuation is most attractive in four years

Jefferies upgraded BlackRock to buy from hold on Tuesday, saying its valuation provides a “rare” entry point. The bank said BlackRock’s risk reward is the most attractive in four years after the asset manager posted a record level of inflows into its exchange-traded funds in the fourth quarter.


Jefferies upgraded BlackRock to buy from hold on Tuesday, saying its valuation provides a “rare” entry point. The bank said BlackRock’s risk reward is the most attractive in four years after the asset manager posted a record level of inflows into its exchange-traded funds in the fourth quarter.
Jefferies upgrades BlackRock to buy, says valuation is most attractive in four years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: yun li, drew angerer, getty images, david paul morris, bloomberg, patrick t fallon, tom strickland, scott mlyn, chip chipman, victor j blue
Keywords: news, cnbc, companies, rare, upgrades, quarter, provides, posted, saying, attractive, jefferies, upgraded, risk, reward, blackrock, valuation, record, buy


Jefferies upgrades BlackRock to buy, says valuation is most attractive in four years

Jefferies upgraded BlackRock to buy from hold on Tuesday, saying its valuation provides a “rare” entry point.

The bank said BlackRock’s risk reward is the most attractive in four years after the asset manager posted a record level of inflows into its exchange-traded funds in the fourth quarter.


Company: cnbc, Activity: cnbc, Date: 2019-01-29  Authors: yun li, drew angerer, getty images, david paul morris, bloomberg, patrick t fallon, tom strickland, scott mlyn, chip chipman, victor j blue
Keywords: news, cnbc, companies, rare, upgrades, quarter, provides, posted, saying, attractive, jefferies, upgraded, risk, reward, blackrock, valuation, record, buy


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European shares move slightly higher with Brexit, Fed in focus; UK GDP due

Construction and materials were leading the gains in early deals, with Lafargeholcim up by 2 percent. The stock was upgraded to buy from underperform by Bank of America. There was also some momentum in personal and household goods due to stock upgrades. The U.K. housebuilder Taylor Wimpey rose 3.4 percent and led the gains across Europe. Renault shares were under the flatline too after news that former Nissan Motor Chairman Carlos Ghosn was indicted on two new charges of financial misconduct.


Construction and materials were leading the gains in early deals, with Lafargeholcim up by 2 percent. The stock was upgraded to buy from underperform by Bank of America. There was also some momentum in personal and household goods due to stock upgrades. The U.K. housebuilder Taylor Wimpey rose 3.4 percent and led the gains across Europe. Renault shares were under the flatline too after news that former Nissan Motor Chairman Carlos Ghosn was indicted on two new charges of financial misconduct.
European shares move slightly higher with Brexit, Fed in focus; UK GDP due Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: silvia amaro
Keywords: news, cnbc, companies, virgin, wimpey, brexit, higher, stock, slightly, shares, buy, upgraded, uk, gains, fed, company, european, upgrades, focus, yield, gdp, wants


European shares move slightly higher with Brexit, Fed in focus; UK GDP due

The pan-European Stoxx 600 was 0.2 percent with almost every sector in positive territory. Construction and materials were leading the gains in early deals, with Lafargeholcim up by 2 percent. The stock was upgraded to buy from underperform by Bank of America.

There was also some momentum in personal and household goods due to stock upgrades. The U.K. housebuilder Taylor Wimpey rose 3.4 percent and led the gains across Europe.

The Swiss company Straumann was also among the top gainers, after its CEO said that it wants to increase sales five-fold within a decade, Reuters reported.

On the other hand, Orion dropped more than 6 percent after Jefferies cut its grade on the pharma company. The research firm argued that the current 4.5 percent dividend yield is not enough to support the share price, Reuters reported.

Furthermore, Flybe fell as much as 90 percent after a consortium of Virgin Atlantic Ltd, Stobart Group and Cyrus Capital Partners agreed to buy the low-cost airline.

Renault shares were under the flatline too after news that former Nissan Motor Chairman Carlos Ghosn was indicted on two new charges of financial misconduct.


Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: silvia amaro
Keywords: news, cnbc, companies, virgin, wimpey, brexit, higher, stock, slightly, shares, buy, upgraded, uk, gains, fed, company, european, upgrades, focus, yield, gdp, wants


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Netflix shares gain after multiple upgrades, bullish commentary from Wall Street

Netflix shares jumped as much as 3 percent in Friday’s premarket after multiple analysts upgraded the video-streaming giant. Raymond James’ Justin Patterson upgraded the stock to strong buy from outperform. He also hiked his price target on Netflix to $450 per share from $435, implying a 38 percent surge from Thursday’s close. “After six months of stock underperformance & key debates emerging about competition, margins & [free cash flow], we think these debates are better understood by investors


Netflix shares jumped as much as 3 percent in Friday’s premarket after multiple analysts upgraded the video-streaming giant. Raymond James’ Justin Patterson upgraded the stock to strong buy from outperform. He also hiked his price target on Netflix to $450 per share from $435, implying a 38 percent surge from Thursday’s close. “After six months of stock underperformance & key debates emerging about competition, margins & [free cash flow], we think these debates are better understood by investors
Netflix shares gain after multiple upgrades, bullish commentary from Wall Street Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: fred imbert, philippe huguen, afp, getty images
Keywords: news, cnbc, companies, shares, upgraded, netflix, sheridan, bullish, believe, global, patterson, gain, upgrades, commentary, wall, underperformance, street, stock, price, multiple, share


Netflix shares gain after multiple upgrades, bullish commentary from Wall Street

Netflix shares jumped as much as 3 percent in Friday’s premarket after multiple analysts upgraded the video-streaming giant.

An hour before Friday’s opening bell, the stock was up 2 percent.

Raymond James’ Justin Patterson upgraded the stock to strong buy from outperform. He also hiked his price target on Netflix to $450 per share from $435, implying a 38 percent surge from Thursday’s close.

“Netflix is approaching a profit inflection,” Patterson said in a note Friday. “Coupled with positive app/search data and a solid content slate, we believe there is an upward bias to 2020E Revenue and EPS.”

“Given underperformance in 2H18, vs. traditional media, we believe the combination of positive revisions and emerging signs of long-term profit potential will yield share price outperformance,” Patterson added. He also noted the high viewer numbers from the movie “Bird Box,” and pointed to “Netflix’s advantages in film; convenience, cost, and global distribution.”

Netflix also received an upgrade at UBS after the bell on Thursday, with analyst Eric Sheridan hiking his rating on the stock to buy from neutral. Sheridan also raised his price target on the stock to $410 from $400, implying a 26 percent upside.

“After six months of stock underperformance & key debates emerging about competition, margins & [free cash flow], we think these debates are better understood by investors and reflected in the current stock price,” Sheridan said in a note. “With content spend now at a scale of the major media companies and titles continuing to demonstrate outsized marketplace success, we see the moat around NFLX’s global positioning widening and its long-term secular winner status remaining intact.”

The upgrades from Raymond James and UBS come after a massive surge in Netflix. Since Dec. 24, the stock is up more than 38 percent.

Netflix has also outperformed the other members of the popular “FAANG” trade, which is made up of Facebook, Amazon, Apple, Netflix and Alphabet. Facebook is up more than 16 percent since Christmas Eve, while Amazon is up 23 percent. Apple and Alphabet, meanwhile, are up less than 10 percent in that time.

Benjamin Swinburne, a Morgan Stanley analyst with an overweight rating on Netflix, said share prices should continue to rise as the company keeps growing in overseas subscribers. “We believe Netflix’s opportunity comes from the nearly $500bn global TV market, of which total subscription OTT still represents less than 5% of revenues,” he said.

Swinburne added: “The shift toward life as a vertically integrated streaming business is accelerating, evident in a declining level of licensing obligations to 3rd parties and a ramp in spending on originals.This should translate into 1) a deeper moat, 2) greater operating leverage, and 3) meaningful FCF long-term.”

—CNBC’s Michael Bloom contributed to this report.

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Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: fred imbert, philippe huguen, afp, getty images
Keywords: news, cnbc, companies, shares, upgraded, netflix, sheridan, bullish, believe, global, patterson, gain, upgrades, commentary, wall, underperformance, street, stock, price, multiple, share


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Twitter shares pop after Bank of America upgrades to buy and says younger demo is using platform

Twitter shares jumped on Thursday after Bank of America Merrill Lynch upgrade the stock, citing increased usage by younger people and more engagement by its current users. Bank of America raised the stock to buy from neutral and took the firm’s price target to $39 from $31. “Nine percent of users indicated they planned to user Twitter more next year, up from 6 percent in our 2Q survey.” “If Twitter can continue to improve engagement and targeting and build out its direct response advertiser base


Twitter shares jumped on Thursday after Bank of America Merrill Lynch upgrade the stock, citing increased usage by younger people and more engagement by its current users. Bank of America raised the stock to buy from neutral and took the firm’s price target to $39 from $31. “Nine percent of users indicated they planned to user Twitter more next year, up from 6 percent in our 2Q survey.” “If Twitter can continue to improve engagement and targeting and build out its direct response advertiser base
Twitter shares pop after Bank of America upgrades to buy and says younger demo is using platform Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: john melloy, anushree fadnavis
Keywords: news, cnbc, companies, strong, shares, platform, arpu, users, significantly, bank, younger, user, facebook, using, pop, stock, twitter, upgrades, buy, suggest, demo


Twitter shares pop after Bank of America upgrades to buy and says younger demo is using platform

Twitter shares jumped on Thursday after Bank of America Merrill Lynch upgrade the stock, citing increased usage by younger people and more engagement by its current users.

Bank of America raised the stock to buy from neutral and took the firm’s price target to $39 from $31. The stock was up by more than 3 percent in after hours trading Thursday to $33.45.

“Churn remains elevated, but improving metrics in the 18-29 demographic suggest more younger users are turning to Twitter,” stated the Thursday note to clients, which cited a social media user survey by the firm. “Nine percent of users indicated they planned to user Twitter more next year, up from 6 percent in our 2Q survey.”

Twitter closed Wednesday at $32.25, up more than 30 percent over the last 12 months. Facebook is down more than 20 percent over that same period.

“While Twitter has significantly less time spent per user than Facebook, monetization is also significantly lower than the $25 ARPU Facebook will generate globally in 2018, and $108 in the U.S.,” the note said. “If Twitter can continue to improve engagement and targeting and build out its direct response advertiser base, comps suggest opportunities for significant ARPU increases.” (ARPU is average revenue per user.)

Along with the strong user data, the firm also believes Twitter will be a “strong play” as more advertising dollars go to video ads online.

— With reporting by Michael Bloom


Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: john melloy, anushree fadnavis
Keywords: news, cnbc, companies, strong, shares, platform, arpu, users, significantly, bank, younger, user, facebook, using, pop, stock, twitter, upgrades, buy, suggest, demo


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