Investors have rekindled their love affair with Facebook.
Shares of the controversial social media pioneer surged more
than 9 percent on Thursday, to close at $174.16, after the
company reported very strong quarterly results and announced a
$9 billion stock buyback. In response, Credit Suisse raised its
price target on the most popular hedge fund stock, from $230 to
$240. It also raised its earnings estimate.
"Sky begins to clear and the comeback begins," the
investment bank proclaimed in a note. It also retained its
outperform rating, asserting that its "thesis remains." It
added that Wall Street earnings models "continue to
underestimate the long-term monetization potential of upcoming
new products." For its part, UBS trimmed its price target from
$214 to $212 but maintained its buy rating. "We think this
earnings report should continue the climb of the wall of
worry," the bank stated in its note.
What a day for Chipotle Mexican Grill, the activist target
of Bill Ackman’s Pershing Square Capital
Management. Shares of the casual dining chain surged nearly 25
percent on Thursday, to close at $422.50, after the company
reported quarterly earnings that blew away consensus forecasts
on revenues that roughly met expectations. The stock is now up
about 46 percent for the year alone and 66 percent from its
February 12 low. Investors are very excited about the
company’s prospects under its new chief executive
officer, Brian Niccol.
Wall Street’s analyst community was less
ebullient. For example, UBS raised its price target from $275
to $300 but maintained its sell recommendation. Barclays raised
its price target from $305 to $320 but maintained its neutral
rating. "While there are lots of sales driving initiatives
being considered, it’s more evolution than
revolution," it tells clients in a note. "We found the CEO
enthusiasm contagious, though execution will prove more
difficult, especially as competition further intensifies."
Saba Capital Management cut its stake in Credit Suisse Asset
Management Income Fund to about 3.7 million shares, or 7.08
percent of the closed-end mutual fund.