Monday’s Market Insights: Twitter Inc (TWTR), Seadrill Ltd (SDRL), EMC Corporation (EMC)
Twitter Inc (NYSE:TWTR) slipped 2.27% in pre-market trading to $30.15 as the company is expected to announce layoffs this week. A report citing multiple, though anonymous, sources revealed that Jack Dorsey’s first order of business as the company’s permanent CEO will be layoffs and restructuring. Although it is unclear how many employees will be shown the door, sources say it will impact all departments including engineers as the company is in the process of streamlining its engineering department. According to the 28 analysts polled by TipRanks in the last 3 months, 14 are bullish on the social media company; 13 are neutral; and 1 is bearish. The average 12-month price target between these 28 analysts is $38.67, marking a 25% potential upside from current levels.
Seadrill Ltd (NYSE:SDRL) is up 2.46% in pre-market trading up to $7.91 after improved sentiment triggered an increase in oil prices. The Oil Minister of Kuwait announced that he foresees an increase in oil demand thanks to the country’s efforts to remove high-cost oil producers. He also commented, “There are signs that world economic growth could improve by the start of 2016 and this would also add to the improvement in oil prices.” Sentiments surrounding the potential rebound of oil prices were also boosted by Qatar’s energy minister when he announced that oil prices have hit a low point, leaving oil prices to increase in the future. Most analysts have shied away from the energy sector since the commodity began to plummet last summer. According to the 3 analysts polled by TipRanks in the last 3 months, 1 analyst is neutral on Seadrill and 2 are bearish. The average 12-month price target is $9, marking a 16% potential upside from current prices.
EMC Corporation (NYSE:EMC) spiked 5.24% to $29.32 after the company announced that it will be acquired by privately-held Dell for $67 billion, or about $33.15 per share. This price tag is making headlines as the largest acquisition ever in the technology sector. VMware, a subsidiary of EMC, will remain an independently publicly traded company. However not everyone is excited about the deal’s implications for EMC as Jefferies analyst James Kisner downgraded the stock from Buy to Hold with a $29 price target in light of the takeover. Kisner has “lingering concerns about the size of the debt raise” from the acquisition. He continues, “We believe EMC shares now reflect some probability of an acquisition by Dell, and we see limited upside; we also see modest downside risk should the deal not be consummated.” As of this writing, 16 analysts on TipRanks have rated EMC in the last 3 months. Of these analysts, 11 are bullish on the company and 5 are staying on the sidelines. The average 12-month price target for the stock is $29.33, marking a 5% potential upside from where the stock last closed.
Click here to see James Kisner’s past ratings and performance history.