Analysts are weighing in on the fitness wearables company Fitbit Inc (NYSE:FIT), natural gas company Chesapeake Energy Corporation (NYSE:CHK), and online radio Pandora Media Inc (NYSE:P). Here’s a quick roundup of today’s brokerage notes on FIT, CHK and P.
In a research report issued Thursday, Piper Jaffray analyst Erinn Murphy reiterated an Overweight rating on shares of Fitbit, with a price target of $60, after hosting two days of investor meetings with CFO Bill Zerella and VP of IR Brad Samson in NYC.
Murphy stated, “While there continues to be a lot of concern in the market place on the longevity of Fitbit, we believe the brand is strong, the international growth opportunity is real & the long-term vectors into health care all support upside to shares. Management was positive on their 2016 product pipeline and we would anticipate to see notable launches next year. Management was optimistic on the pimproved gross margin profile for new products. We believe FIT’s platform offers better engagement vs. their peers. As it relates to cororate wellness (<10% of sales), not only is the margin profile more attractive but engagement levels run higher vs. the consumer side of the business.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Erinn Murphy has a total average return of -7.8% and a 31.8% success rate. Murphy has a -18.2% average return when recommending FIT, and is ranked #3549 out of 3642 analysts.
Out of the 12 analysts polled by TipRanks in the last 3 months, 9 rate Fitbit stock a Buy, while 3 rate the stock a Hold. With a return potential of nearly 64%, the stock’s consensus target price stands at $49.50.
Chesapeake Energy Corporation
Chesapeake Energy shares tumbled in a brutal selloff Thursday, after the company announced that it is offering to exchange up to $1.5 billion of new 8% Senior Secured Second Lien notes due in 2022 for certain outstanding unsecured notes.
Subsequently, Sterne Agee analyst Tim Rezvan reiterated a Neutral rating on Chesapeake shares, without providing a price target.
Rezvan commented, “In our recent downgrade of CHK shares, we cited this as a negative near-term catalyst, given the stigma of secured debt as a last-resort funding source for highly levered E&Ps. So we expect underperformance, especially as investors realize the tiering process for exchange offers prioritizes near-term maturities trading closer to par, which minimizes the aggregate debt reduction from this exercise, unlike recent reductions achieved by other highly-levered E&Ps. The exchange may effectively refinance near-term maturities, but at a cost.”
According to TipRanks.com, analyst Tim Rezvan has a total average return of 14% and a 61.5% success rate. Rezvan has a -14.5% average return when recommending CHK, and is ranked #439 out of 3642 analysts.
Most of the analysts covering Chesapeake Energy remain neutral on the company’s stock. A total of 16 analysts currently provide ratings; 3 of them suggest a Buy, 8 recommend a Hold rating, while 5 suggest to Sell. The 12-month consensus mean price target for the stock is $12.79, reflecting a 162.5% upside over yesterday’s closing price.
Pandora Media Inc
In a research report released Thursday, BMO Capital analyst Daniel Salmon initiated coverage on shares of Pandora Media, with a Market Perform rating and price target of $14, which implies an upside of 11% from current levels.
In explaining his neutral stance, Salmon wrote, “Pandora is entering a transformative period for three reasons: 1) the company is shifting its music licensing arrangements to direct deals with labels in order to build a framework for global expansion. But before that will be the Copyright Royalty Board (CRB) ruling (expected in mid-December) which will set 2016 rates (multiple scenario analyses within); 2) the acquisition of Ticketfly and the expansion of the Artist Management Platform (AMP) analytics services. A lower margin business, we believe it will ultimately have to prove its success by helping Pandora build deeper relationships with artists and labels via ticket sales and listener analytics; 3) this comes as there is increasing competition from Apple and YouTube, as well as the continued growth of Spotify, all of which offer on-demand services.” However, “We believe investors can be patient and allow the strategy to unfold further before getting involved. We’d look for more direct label deals and details to emerge regarding the 2H16 launch of the on-demand product to get more productive on the stock, all else equal.”
According to TipRanks.com, analyst Daniel Salmon has a total average return of 8.5% and a 65.3% success rate. Salmon is ranked #589 out of 3642 analysts.
Out of the 31 analysts polled by TipRanks, 16 rate Pandora Media stock a Buy, 13 rate the stock a Hold and 2 recommend a Sell. With a return potential of 55.5%, the stock’s consensus target price stands at $19.64.