Plantronic's shares jump following upgrade

Plantronic's shares soar after JP Morgan upgrades rating

Associated Press

Plantronics Inc.'s shares jumped in trading Thursday after a J.P. Morgan analyst upgraded his rating on the headset maker's stock given a recent decline in its price and its new products.

THE SPARK: J.P. Morgan analyst Paul Coster upgrading his rating on the company's shares to "Overweight" from "Neutral" and raised his earnings estimates for the company, based on recent trading and new products. He also raised his price target from $39.50 to $41.

THE BIG PICTURE: Plantronics, based in Santa Cruz, Calif., makes products ranging from telephone headsets to telephones for the hearing repaired.

THE ANALYSIS: Plantronics shares have fallen nearly 18 percent since this spring. The analyst said that with the recent decline, the risk versus the reward is favorable for investors.

As a result, Coster upgrading his rating to "Overweight" after nearly two years at a "Neutral" rating. He said that he believes that some of the company's new products should prove popular, which should help protect its margins and increase its revenue.

SHARE ACTION: Shares rose 5 percent to $34.46 in afternoon trading. Its shares have traded between $28.76 and $40.82 in the past 52 weeks.

Rates

View Comments (0)