Volatile trade continued on U.S. markets as investors digested remarks from Federal Reserve Chair Janet Yellen testimony before Congress on the state of the economy. Among the equities in focus today are micro-blogging giant Twitter Inc (NYSE:TWTR), cybersecurity software maker FireEye Inc (NASDAQ:FEYE), and biopharmaceutical firm Arrowhead Research Corp (NASDAQ:ARWR). Here’s a quick roundup of today’s brokerage notes on TWTR, FEYE, and ARWR.
With Twitter preparing to release earnings this evening, Cowen analyst John Blackledge reiterated a Market Perform rating on the stock, while reducing the price target to $17 (from $26), which implies an upside of 12% from current levels.
Blackledge commented, “Our ’16/’17 revenue forecast goes to $2.86 billion/$3.56 billion from $2.83 billion/$3.52 billion; for EBITDA, our forecast goes to $674MM/$871MM from $784MM/$1.08 billion, due mostly to higher R&D expense which we think will be necessary to improve the product. We introduce new 2016 quarterly estimates and extend our model to 2021. With our lower EBITDA forecasts, our long term FCF estimates also decline taking our DCF to $17. Therefore, we take our target price to $17, from prior $26, maintain Market Perform rating.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Blackledge has a yearly average return of -4.7% and a 39% success rate. Blackledge has a 7.1% average return when recommending TWTR, and is ranked #2961 out of 3560 analysts.
Out of the 20 analysts polled by TipRanks in the past 3 months, 9 rate Twitter stock a Buy, 8 rate the stock a Hold and 3 recommend a Sell. With a return potential of nearly 76%, the stock’s consensus target price stands at $26.42.
BTIG analyst Joel Fishbein was out pounding the table on FireEye Wednesday, reiterating a Buy rating and price target of $15, which implies an upside of 16% from current levels.
Fishbein wrote, “For much of its time as a public company, the FEYE story has been about growth. Judging the stock through this lens primarily explains how it doubled from June ’14 to June ’15 (when billings growth averaged >100% y/y), to its decline since. A big investor question in recent days centers on whether we think growth has “bottomed” and if the company can scale its previous heights. We believe this question, though, misses the bigger picture around FEYE as focus within the company shifts from “growth at all costs” in favor of greater stability and (more importantly) generating free cash flow.”
“Therefore, we believe the company is on the cusp of giving investors more of what they’re looking for in this environment: better revenue visibility, tighter cost control, and positive cash flow. The story is switching, and given that sentiment continues to be negative, we think current trading levels are a good entry point for FEYE shares,” the analyst concluded.
According to TipRanks.com, analyst Joel Fishbein has a yearly average return of 13.5% and a 645% success rate. Fishbein is ranked #267 out of 3560 analysts.
As of this writing, out of the 15 analysts polled by TipRanks in the last 3 months, 10 are bullish on FireEye stock, while 5 remain sidelined. With a return potential of 110%, the stock’s consensus target price stands at $26.40.
Arrowhead Research Corp
Finally, Piper Jaffray analyst Edward Tenthoff reiterated an Overweight rating on shares of Arrowhead Research, while reducing the price target to $13 (from $20), after the company released its fiscal first-quarter results yesterday after market close.
Tenthoff noted, “Arrowhead ended FY1Q:16 with cash and equivalents of $77 million. The company has begun the adaptive design MONARCH trial of ARC-520 in HBV with 6 initial cohorts that will begin to report data later this year. Arrowhead expects to complete enrollment in the HEPARC2001 extension trial, as well as the HEPARC 2002, 2003 and 2004 trials. Arrowhead also intends to report Phase Ib data for ARC-AAT and begin additional trials in PiZZ AATD patients. Arrowhead plans to file an IND for follow-on ARC-521 for HBV mid’16. We reiterate our Overweight rating, however, are lowering our price target to $13 from $20.”
According to TipRanks.com, analyst Edward Tenthoff has a yearly average return of -12.8% and a 25.0% success rate. Tenthoff has a -56.1% average return when recommending ARWR, and is ranked #3434 out of 3560 analysts.
Out of the 4 analysts polled by TipRanks, 2 rate Arrowhead stock a Buy, while 2 rate the stock a Hold. With a return potential of 235%, the stock’s consensus target price stands at $11.50.