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Keep an Eye Out for Analyst Upgrades on Twitter
After taking a shellacking, Twitter may be reaching a price level where analysts are willing to issue a buy recommendation.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Twitter (NYSE:TWTR) is having its sixth busiest day in terms of volume, and it's a little after noon.

The bulls may make the case that higher prices await Twitter because there won't be many folks left to sell after this shellacking, while the bears will point to the still-high valuation to defend their position.

I would watch for analyst upgrades based on the price action.

Twitter has by far the most bearish coverage among social media stocks on Wall Street. The current distribution is seven buys, 13 holds, and 11 sells.

For comparison, Facebook (NASDAQ:FB) has 37 buys, seven holds, and zero sells.

LinkedIn (NYSE:LNKD) has 25 buys, 12 holds, and zero sells.

Yelp (NYSE:YELP) has 21 buys, 11 holds, and zero sells.

And finally, Pandora (NYSE:P) has 20 buys, nine holds, and a mere two sells.

The chart below shows the distribution of analyst ratings among the aforementioned social media stocks.

http://image.minyanville.com/assets/buzzbanter/charts/original/050614/SocialStockDist_1399387407.JPG
Click to enlarge

Analysts at firms like RW Baird and SunTrust (NYSE:STI) have Neutral ratings and $50 target prices, implying a 44% expected return from here. There are also some firms with sell ratings that could come up to Hold/Neutral, like UBS (NYSE:UBS), which has a $35 target price, and Wunderlich, which has a $38 target price.

It will be interesting to see if any firm is willing to make a stand here with the stock in uncharted territory.


Twitter: @MichaelComeau
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No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Keep an Eye Out for Analyst Upgrades on Twitter
After taking a shellacking, Twitter may be reaching a price level where analysts are willing to issue a buy recommendation.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Twitter (NYSE:TWTR) is having its sixth busiest day in terms of volume, and it's a little after noon.

The bulls may make the case that higher prices await Twitter because there won't be many folks left to sell after this shellacking, while the bears will point to the still-high valuation to defend their position.

I would watch for analyst upgrades based on the price action.

Twitter has by far the most bearish coverage among social media stocks on Wall Street. The current distribution is seven buys, 13 holds, and 11 sells.

For comparison, Facebook (NASDAQ:FB) has 37 buys, seven holds, and zero sells.

LinkedIn (NYSE:LNKD) has 25 buys, 12 holds, and zero sells.

Yelp (NYSE:YELP) has 21 buys, 11 holds, and zero sells.

And finally, Pandora (NYSE:P) has 20 buys, nine holds, and a mere two sells.

The chart below shows the distribution of analyst ratings among the aforementioned social media stocks.

http://image.minyanville.com/assets/buzzbanter/charts/original/050614/SocialStockDist_1399387407.JPG
Click to enlarge

Analysts at firms like RW Baird and SunTrust (NYSE:STI) have Neutral ratings and $50 target prices, implying a 44% expected return from here. There are also some firms with sell ratings that could come up to Hold/Neutral, like UBS (NYSE:UBS), which has a $35 target price, and Wunderlich, which has a $38 target price.

It will be interesting to see if any firm is willing to make a stand here with the stock in uncharted territory.


Twitter: @MichaelComeau
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
Daily Recap
Keep an Eye Out for Analyst Upgrades on Twitter
After taking a shellacking, Twitter may be reaching a price level where analysts are willing to issue a buy recommendation.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Twitter (NYSE:TWTR) is having its sixth busiest day in terms of volume, and it's a little after noon.

The bulls may make the case that higher prices await Twitter because there won't be many folks left to sell after this shellacking, while the bears will point to the still-high valuation to defend their position.

I would watch for analyst upgrades based on the price action.

Twitter has by far the most bearish coverage among social media stocks on Wall Street. The current distribution is seven buys, 13 holds, and 11 sells.

For comparison, Facebook (NASDAQ:FB) has 37 buys, seven holds, and zero sells.

LinkedIn (NYSE:LNKD) has 25 buys, 12 holds, and zero sells.

Yelp (NYSE:YELP) has 21 buys, 11 holds, and zero sells.

And finally, Pandora (NYSE:P) has 20 buys, nine holds, and a mere two sells.

The chart below shows the distribution of analyst ratings among the aforementioned social media stocks.

http://image.minyanville.com/assets/buzzbanter/charts/original/050614/SocialStockDist_1399387407.JPG
Click to enlarge

Analysts at firms like RW Baird and SunTrust (NYSE:STI) have Neutral ratings and $50 target prices, implying a 44% expected return from here. There are also some firms with sell ratings that could come up to Hold/Neutral, like UBS (NYSE:UBS), which has a $35 target price, and Wunderlich, which has a $38 target price.

It will be interesting to see if any firm is willing to make a stand here with the stock in uncharted territory.


Twitter: @MichaelComeau
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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