Schaeffer's Trading Floor Blog

Analyst Update: ARM Holdings plc (ADR), AOL, Inc., and T-Mobile US Inc

Analysts offered their two cents on ARMH, AOL, and TMUS

by 8/7/2014 2:40 PM
Stocks quoted in this article:

U.S. stocks are lower this afternoon, as tensions in Eastern Europe overshadow a drop in domestic jobless claims. Meanwhile, among the equities in focus are tech issue ARM Holdings plc (ADR) (NASDAQ:ARMH), Internet concern AOL, Inc. (NYSE:AOL), and telecom firm T-Mobile US Inc (NYSE:TMUS), which have all attracted analyst attention.

  • ARMH has taken the positive road less traveled, up 0.5% at $43.66. Bolstering the stock was an upgrade to "buy" from "hold" at Benchmark, which also lifted its price target on ARMH by $2 to $49. While the majority of covering analysts are already in the bulls' camp -- six out of 10 offer up "buy" or better ratings -- not everyone is so optimistic. Short interest jumped 10.6% during the most recent reporting period, and now represents more than a week's worth of pent-up buying demand, at ARM Holdings plc's (ADR) average daily trading volume.

  • AOL continues to bask in its post-earnings glory, with a slew of analysts upping their opinions. Among them, JMP Securities hiked its price target to $55 from $53, and reiterated its "market outperform" rating, while Cantor upgraded the stock to "buy" and upped its price target by $3 to $50. Should short sellers hit the bricks, AOL, Inc. could extend its upward momentum. Roughly 5.3 million AOL shares are sold short, and would take about a week to buy back, at the equity's average pace of trading. At last check, AOL has advanced 1.7% to wink at $42.64.

  • Finally, TMUS is living up to its reputation as an August laggard, with the shares down 3.4% at $30. The M&A drama has continued for T-Mobile US Inc; just yesterday, Sprint Corporation (NYSE:S) abandoned its bid for the firm, and today Deutsche Telekom rejected French firm Iliad's offer for TMUS. Meanwhile, Macquarie cut its price target on the stock to $33 from $38, and underscored its "neutral" rating. There could be more negative analyst attention on the horizon for TMUS, should the stock continue to struggle. Currently, 10 out of 16 brokerage firms consider the security worthy of a "buy" or better recommendation, and not one has deemed TMUS a "sell."

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