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

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 Warners acquisition by AT&T to be approved by regulatory authorities, he also notes that Time Warners 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, todays 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