Analysts Weigh In on Two Rising Stocks: Genworth Financial Inc (GNW), Pandora Media Inc (P)

Genworth Financial Inc

Genworth Financial Inc (NYSE:GNW) shareholders celebrate a 14% gain in the stock, after the insurance firm reported strong first-quarter results yesterday after the market close. The company reported 1Q16 operating earnings per share of $0.21, beating the consensus estimate of $0.13.

BTIG analyst Mark Palmer was the first to comment: “Such positive results may help to ease the path for the company’s operational restructuring, the first part of which is to separate and isolate its troubled long term care (LTC) insurance business from its life insurance and annuity businesses. While GNW remains a long way from being able to again access the capital markets at reasonable rates, the strong print also puts GNW a step closer to being able to address its $595mm debt maturity in May 2018 without having to use expensive, alternative measures to do so.”

Palmer reiterated a Buy rating on Genworth Financial shares, with a price target of $5, which implies an upside of 75% from current levels.

Based on TipRanks‘ statistics, out of the 8 analysts who cover the stock in the past 12 months, 3 rate Genworth stock a Buy, 4 rate the stock a Hold and 1 recommends a Sell. With a return potential of 140%, the stock’s consensus target price stands at $6.88.

Pandora Media Inc

Pandora Media Inc (NYSE:P) shares are up 6.5% after the internet radio leader released its first-quarter results, which were better than expected. Pandora reported revenue of $297 million (up 29% Y/Y), ahead of consensus estimates of $286 million. The company also slightly increased FY16 guidance on both revenue (brackets the Street) and EBITDA.

RBC Capital analyst Mark Mahaney commented: “Pandora continues to improve its monetization, marginally increasing its engagement levels (Hours per User), gaining share vs. total U.S. Radio Hours (now over 10%), has moved past CRB, and is looking to new products ahead. The big offsetting negative, however, is that Pandora’s User base growth continues to languish (likely due to competition from Spotify and Apple Music). So Pandora is undergoing a dramatic growth investment phase (Marketing & Product Development) to protect and grow its core ad-supported music streaming business while spending $120MM to develop an on-demand music service—a tough challenge. Visibility into the success of these investments is very low, though Pandora does start off with an established brand and nearly 80MM Users. We also continue to see Pandora as having significant strategic value.”

Mahaney reiterated a Sector Perform rating on Pandora shares with a price target of $13, which implies an upside of 22% from current levels.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mahaney has a yearly average return of 17.8% and a 61% success rate. Mahaney has a -19.6% average return when recommending P, and is ranked #10 out of 3913 analysts.

Out of the 34 analysts polled by TipRanks, 20 rate Pandora  stock a Hold, while 14 rate the stock a Buy. With a return potential of 44%, the stock’s consensus target price stands at $15.30.

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