FBR upgrades Pandora to “outperform”

Shares of Pandora (P) rose 10% on February 17, 2016, following an upgrade by FBR Capital. FBR Capital upgraded the stock to “outperform” from “market perform” and maintained its target price of $16. Pandora is expected to invest $345 million in 2016 to scale up infrastructure and build new business lines.

Why Pandora, Frontier Communications, and Brocade Have Soared

Pandora’s management believes that the company will be able to build a subscription business worth $1.3 billion in the next five years based on a customer conversion rate of 10% and 81.1 million listeners at the end of 4Q15.

Pandora’s shares rose 19.8% in the trailing-five-day period ending February 23, 2016. The stock fell 17% after Pandora announced its 4Q15 results earlier this month.

Impressive 4Q15 results drive shares of Frontier Communications

On February 23, 2016, shares of Frontier Communications (FTR) rose 12.6% to $5.08 as the company reported net income growth of 55.6% YoY (year-over-year). Revenues for FTR rose 6% YoY from $1.3 billion in 4Q14 to $1.4 billion in 4Q15. Net income rose from $36 million in 4Q14 to $56 million in 4Q15, whereas earnings per share rose to $0.05 from $0.04.

FTR has risen 19.5% in the trailing-five-day period ending February 23.

Brocade Communications Systems beat analysts’ estimates

On February 18, 2016, shares of Brocade Communications Systems (BRCD) rose by over 10% as the company beat analysts’ estimates for revenues and earnings in fiscal 1Q16. BRCD reported revenue of $574 million, which was 0.35% lower than revenue in fiscal 1Q15 but $13 million higher than analysts’ estimates. Weak demand for embedded and fixed configuration Fibre Channel switches resulted in a decline of 2% for BRCD’s SAN product revenues.

IP networking product revenue rose 1% YoY to $134 million due to strong demand from enterprise customers. Shares of the firm rose 19.3% in the trailing-five-day period ending February 23.

Pandora accounts for 0.2% of the Vanguard Information Technology ETF (VGT). The top holdings of the ETF include Apple (AAPL), Microsoft (MSFT), and Facebook (FB), which constitute 15.5%, 8.3%, and 4.7%, respectively, of VGT.

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