One analyst poured cold water on expectations of a big premium for Twitter (TWTR) in a potential takeover. Disney (DIS) shares were downgraded, while a host of analysts updated their views of Marriott International (MAR) after its recent merger. Analysts supported Oshkosh (OSK) after the heavy truck manufacturer sold off on its earnings guidance.
Oppenheimer downgraded the social media shares to underperform with a 17 target, after shares spiked on reports that Alphabet (GOOGL) property Google and Salesforce (CRM) were both in talks to buy the company.
Analyst Jason Helfstein sees the likely buyer as a media company and doesn't expect an elevated valuation given slowing user growth and decreasing user engagement. He said he doesn't expect an Twitter buyer to pay "meaningfully more" than the 17 price target.
Twitter shares reversed higher to close up 3.3% at 23.37 on the stock market today, on reports that Disney is weighing a possible bid for Twitter.
Disney
Drexel Hamilton downgraded the media and entertainment conglomerate to hold from buy, cutting its price target to 102 from 112. The research firm lowered its subscriber targets, citing threats to the "traditional ecosystem" as video programming distributors integrate more content options.
Meanwhile, Disney faces tough comparison to beat in its prior studio results and faces a 190% jump in its new NBA deal that's about to take effect.
Disney shares slipped 1.4% to end at 91.96 Monday.
Marriott
Analysts think it's a better time to check into the hotel chain after completion of its $13 billion merger with Starwood last week. Morgan Stanley upgraded Marriott to overweight from equal weight, Goldman gave it a buy with an 81 target in new coverage, while Stifel kept a hold but bumped its target to 66 from 65.
Marriott fell 1.9% to 67.15.
IBD'S TAKE: Analyst ratings and price target changes sometimes move a stock or might be lagging indicators. It's worth considering what research firms have to say, but stock-chart analysis and an understanding of the market's trend give you the best chance to succeed. For a primer, visit IBD University and read IBD's Big Picture every day.
Oshkosh
JPMorgan Chase analysts upgraded Oshkosh to overweight from neutral, while Credit Suisse raised its rating to neutral with a 54 price target.
Shares sank 10% on Friday after Oshkosh offered 2017 earnings guidance that was below analysts' estimates. On Monday, shares rose 3% to 52.42.
