There has been a lot of action on Wall Street this week with new earnings reports and events. Here are the latest analyst news on the internet radio giant Pandora Media Inc (NYSE:P) and 3D printing giant Stratasys, Ltd.(NASDAQ:SSYS), as both companies released disappointing earnings results and hit their 52-week low.
Pandora Media Inc
In a research report released Friday, Canaccord analyst Michael Graham reiterated a Buy rating on shares of Pandora Media, while reducing the price target to $24 (from $26), as the company’s third-quarter results and guidance contained several weak points. While the Q3 results were mixed, the Q4 outlook was weaker than expected due to increased competition in the space from the likes of Apple and Spotify.
Graham wrote, “We acknowledge this quarter’s setbacks, and this does challenge some of our bullishness. However, we note the potential for several things to change quickly, including: 1) CRB certainty; 2) easing of current competitive climate as promotional activity wanes; 3) likely international expansion that could shift some of the listener growth burden outside the U.S.; 4) potential for ticketing to emerge as a growth tailwind. Therefore, we are more inclined to buy the stock on the weakness related to Q3 results.”
“We are lowering our revenue and EPS estimates to reflect slower listener growth and slightly more marketing spend. Our FY15 and FY16 non-GAAP EPS estimates go from $0.19 and $0.49 to $0.10 and $0.38,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Graham has a total average return of 14.9% and a 55.2% success rate. Graham has a 21.5% average return when recommending P, and is ranked #97 out of 3801 analysts.
Out of the 31 analysts polled by TipRanks, 21 rate Pandora Media Inc stock a Buy, 9 rate the stock a Hold and 1 recommends Sell. With a return potential of 85.9%, the stock’s consensus target price stands at $23.80.
Canaccord analyst Robert Burleson weighed in today with his views on Stratasys, after the company reported disappointing preliminary third-quarter results, with revenue and EPS well below the consensus estimate. The analyst reiterated a Hold rating on the stock, while reducing the price target to $26 (from $35).
Burleson noted, “We remain HOLD rated on SSYS following its preannouncement. The combination of excess capacity at customers, an uncertain macro, and looming competition are depressing revenues and earnings. We could get more constructive with a meaningful cost reduction or signs of a better demand.”
“The challenged Q3 results reflect continued macro challenges and in particular weak capital equipment investing by customers in key verticals. The economic headwinds faced in the third quarter were a continuation of challenges experienced in the first half of 2015,” the analyst continued.
According to TipRanks.com, analyst Robert Burleson has a total average return of 1.2% and a 43.6% success rate. Burleson has a -28.2% average return when recommending SSYS, and is ranked #1663 out of 3801 analysts.
Out of the 22 analysts polled by TipRanks, 11 rate Stratasys stock a Buy, 10 rate the stock a Hold and 1 recommends a Sell. With a return potential of 60%, the stock’s consensus target price stands at $43.47.