Analyst Ups AOL Rating Citing Stock Declines, Business Upside
NEW YORK -- Miller Tabak analyst David Joyce on Thursday upgraded his rating on AOL shares, saying they "could be an intriguing buy for those with a contrarian bent and a long time horizon."
He raised his rating on the stock from "neutral" to "buy" and reiterated his $25 short-term price target, highlighting a recent decline in AOL shares, particularly since the announcement of the Huffington Post acquisition. He also argued that restructuring efforts at the company should yield results in the back half of the year.
"The stock has fallen to a point where there is 30% potential upside to our short-term target of $25, which we are not changing," Joyce said.
Earlier in the day, AOL chairman and CEO had detailed job cuts as part of a restructuring.
AOL shares were down 0.5% at $19.25 as of 12:50am ET.