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Senad Karametovich
Wells Fargo analysts have added Spotify (NYSE:SPOT) and Paramount (NASDAQ:PARA) to their list of tactical ideas for the second quarter of 2023.
Such behavior usually resembles an analyst’s belief that a company’s stock will outperform the market in the short term.
They reiterated their overweight rating and target price of $180 per share on SPOT shares, which implies up to 35% upside potential.
“We expect SPOT to outpace our expectations of margin expansion within the next 18 months. We’ll be the buyer if ‘sells the news’,” the analyst wrote in a client note.
On the other hand, we reaffirmed our underweight rating on PARA shares, as a price target of $11 per share represents about 50% downside risk.
“PARA is in the crosshairs of media sector challenges. Positive FCF guidance looks tough next year but sees risks of correction. High, PARA is trading at a premium over WBD,” the analyst added.
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