Pandora, Diplomat Pharmacy, Marriott Upgraded

Pandora, Diplomat Pharmacy, and Marriott stocks are on analysts' bullish radar today

May 9, 2017 at 9:51 AM
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Analysts are weighing in on streaming music stock Pandora Media Inc (NYSE:P), drug distributor Diplomat Pharmacy Inc (NYSE:DPLO), and hotel chain Marriott International Inc (NASDAQ:MAR). Here's a quick roundup of today's bullish brokerage notes on shares of P, DPLO, and MAR.

Pandora Stock Jumps After Earnings, Board Shake-Up

P stock is trading up 1.4% at $10.40 amid an onslaught of headlines this morning. Specifically, KKR will invest $150 million in Pandora Media Inc in exchange for new shares of preferred stock. The hedge fund will also gain a seat on the board, while two other board members, James Feuille and Peter Gotcher, will resign. The company said it is still exploring strategic alternatives -- including a possible sale -- after reporting mixed earnings results last night, and a decline in its active users. Nevertheless, William Blair said "there's more value in the ... active listeners than the market is ascribing," and notes "there is a potential midteens bid for Pandora."

Wells Fargo also had upbeat comments for Pandora, saying that while it's a "show-me stock ... patient investors will be rewarded," with the brokerage firm reiterating its "outperform" rating and $15 price target. Not all the post-earnings attention has been positive, though, with the stock receiving price-target cuts from at least four firms. Plus, today's pop does little to dent P stock's long-term deficit, with the shares off more than 24% from their mid-February high of $13.72. As such, short interest on P stock is at a record high, with nearly 40% of its float wrapped up in these bearish bets.

Diplomat Pharmacy Stock Attempts a Post-Earnings Breakout

DPLO stock saw its price target raised at Leerink (to $16), Cowen and Company (to $17), and Barclays (to $20), after the company's first-quarter earnings came in above the consensus estimate. DPLO shares are up 2.8% in early trading at $16.79, attempting to break out above the $16.00-$16.30 region that has contained the stock since an early November bear gap. Diplomat Pharmacy Inc is now up almost 30% year-to-date, and continued short covering could translate into stronger tailwinds. Though short interest dropped 7.5% in the most recent reporting period, it still accounts for 19.4% of DPLO's available float, or 12.1 times the stock's average pace of trading.

Marriott Stock at Record High After Earnings

MAR stock tapped a record high of $101.85 out of the gate, last seen trading up 5.7% at $101.45. Boosting the shares is Marriott International Inc's stronger-than-expected earnings report, as well as a price-target hike to $95 from $87 at Stifel. This is just more of the same for a stock that was up nearly 17% year-to-date heading into today's trading, yet analysts have largely been sitting on the sidelines. Despite MAR stock's outperformance, 10 of 16 brokerages maintain a tepid "hold" recommendation. A round of well-deserved upgrades could draw a fresh batch of buyers to MAR's table.


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