In a report released this week, analysts at JP Morgan reiterated their Overweight ratings on the stocks of LinkedIn Corp LNKD 2.56%, Twitter Inc TWTR 1.33% and Pandora Media Inc P 0.59%. All three companies are expected to release 4Q14 earnings numbers this week.
Analysts like LinkedIn’s limited direct competition in a rapidly-growing space. They are forecasting strong earnings from the company for the quarter. Analysts predict 40 percent year-over-year growth in Talent Solutions revenue on a 33 percent increase in corporate customers. In addition, they are forecasting a 36 percent year-over-year increase in Marketing Solutions revenue on the strength of 28 percent year-over-year page view growth. Analysts see 33 percent overall revenue growth in 2015.
JP Morgan has a $253 price target on the stock.
Analysts see a compelling risk/reward scenario in the current pricing of Twitter shares. They list several potential catalysts for the stock in 2015. “We believe new product enhancements including video, While You Were Away, direct messaging and efforts to streamline the sign-up process are likely to improve [monthly active users] growth over the next several quarters.”
Analysts are predicting strong revenue growth from Twitter and see the company as a “primary beneficiary” of the increasingly-mobile advertising environment.
JP Morgan has a $64 price target on Twitter.
Related Link: Short Squeeze On Twitter Ahead Of Earnings
Pandora
Analysts praise Pandora’s leadership position in online music streaming and see strength in the company’s ad growth numbers. Local ad revenue grew by 118 percent year-over-year in 3Q14, and analysts see continued strength in mobile ad growth as well. In addition, the report lists improving industry relationships, increasing in-car usage and potential for international expansion as reasons to like the stock.
JP Morgan has a $34 price target for Pandora.
Investors in these three companies will not have to wait long to see if their Q4 performance lives up to JP Morgan’s high expectations. All three companies release earnings on February 5.
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