Alphabet, Microsoft Are Winners, Analysts Say; Pandora Downgraded
In Friday's Analysts' Actions, Alphabet (GOOGL) and Microsoft (MSFT) got a round of applause from analysts, while one Wall Street firm wasn’t too happy about Pandora Media (P). Alphabet's price target got a boost at KeyBanc Capital Markets to $820 from $745. The firm maintained its OVERWEIGHT rating. This comes after the tech giant posted solid third quarter earnings on Thursday that beat analysts' estimates on both the top and bottom line. This report immediately sent shares soaring. Analysts are also bullish on the news that the company will buy back up to $5.1 billion of its shares. Microsoft is another positive story. Bank of America Merrill Lynch upgraded the company to BUY from NEUTRAL and lifted its price target to $63 from $46. Its latest quarterly results, reported Thursday, exceeded analysts' forecasts on the top and bottom line. Analysts said this is great news as operating income is turning the corner and headed for growth. Overall, they like what they see. In another note, analysts are bearish on Pandora Media. MKM Partners downgraded the company to NEUTRAL from BUY with a $14 price target. On Thursday, the music streaming service reported its latest quarterly earnings. Profits and revenue both missed forecasts. As a result, analysts are not so optimistic since they're seeing a slowing audience growth and monetization miss. They no longer recommend buying the stock at this time. TheStreet's U-Jin Lee reports in New York.
