Time Warner shares gain the most in five weeks on Monday, UBS upgrades the stock from “Neutral” to “Buy”

March 13, 2018 8:39 am

UBS reportedly upgraded Time Warner to “Buy” from “Neutral” previously, while also keeping its price target on the stock without change at $108.

Time Warner shares closed higher for a second consecutive trading session on Monday. It has also been the sharpest daily surge since February 1st. The stock went up 1.56% ($1.49) to $96.75, after touching an intraday high at $97.02, or a price level not seen since February 5th ($97.50).

In the week ended on March 11th the shares of the multinational entertainment company added 1.80% to their market value compared to a week ago, which marked the first gain out of three weeks.

The stock has extended its advance to 4.09% so far during the current month, following a 2.51% slump in February. The latter has been the fourth drop out of five months.

For the entire past year, Time Warner shares fell 5.24% following a 49.27% surge in 2016.

Although UBS analyst John Hodulik expects Time Warner’s acquisition by AT&T to be approved by regulatory authorities, he also notes that Time Warner’s assets may turn out to be “highly attractive” to other media companies and online-based rivals, in case the arrangement is blocked.

The UBS move comes after AT&T, Time Warner and the US Justice Department filed pre-trial motions.

The UBS analyst also projects an “attractive 4-1 risk reward” for Time Warner shares, thefly.com reported.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Time Warner’s stock price, have a median target of $105.00, with a high estimate of $114.00 and a low estimate of $90.00. The median estimate is an 8.53% surge compared to the closing price of $96.75 on March 12th.

The same media also reported that 19 out of 24 surveyed investment analysts had rated Time Warner’s stock as “Hold”, while 5 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Time Warner stock are presented as follows:

R1 – $96.88
R2 – $97.01
R3 (Range Resistance – Sell) – $97.14
R4 (Long Breakout) – $97.54
R5 (Breakout Target 1) – $98.00
R6 (Breakout Target 2) – $98.20

S1 – $96.62
S2 – $96.49
S3 (Range Support – Buy) – $96.36
S4 (Short Breakout) – $95.96
S5 (Breakout Target 1) – $95.50
S6 (Breakout Target 2) – $95.30

By using the traditional method of calculation, the weekly levels of importance for Time Warner Inc (TWX) are presented as follows:

Central Pivot Point – $94.58
R1 – $95.97
R2 – $96.69
R3 – $98.08
R4 – $99.48

S1 – $93.86
S2 – $92.47
S3 – $91.75
S4 – $91.04

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