Schaeffer's Trading Floor Blog

Analyst Upgrades: Advanced Micro Devices, Inc., Netflix, Inc., and Sprint Corporation

Analysts upwardly revised their ratings on AMD, NFLX, and S

by 6/10/2014 9:11 AM
Stocks quoted in this article:

Analysts have issued votes of confidence today on semiconductor issue Advanced Micro Devices, Inc. (NYSE:AMD), streaming video giant Netflix, Inc. (NASDAQ:NFLX), and wireless services provider Sprint Corporation (NYSE:S). Here's a quick roundup of today's bullish brokerage notes.

  • AMD was a popular target on Wall Street overnight, as Imperial Capital and Canaccord Genuity initiated coverage on the stock with an "outperform" and a "buy" rating, respetively. The shares have been range-bound for a while -- up 5.2% in 2014 and virtually flat over the last 12 months at $4.07 -- but have nevertheless been eyed by bullish options traders of late. AMD's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 23.70 stands 5 percentage points shy of an annual peak. In short, demand for Advanced Micro Devices, Inc. long calls (versus long puts) has ramped up during the past two weeks.

  • Yesterday evening, Evercore adjusted its rating on NFLX to "overweight" and lifted its price target by $100 to $500. The ratings change followed news that Netflix will stop publishing messages that attribute slow streaming to Verizon Communications Inc.'s (NYSE:VZ) broadband service. Wall Street remains relatively mixed on the stock, awarding 13 "buy" or better ratings, 12 "holds," and four "sell" or worse designations. Meanwhile, the consensus 12-month price target of $418.22 is actually below the stock's current price. On the charts, Netflix, Inc. has rallied more than 41% since hitting a year-to-date low of $299.50 on April 28. Perched at $423.09, the shares are now less than 10% shy of their all-time high of $458.

  • As speculation continues to build over a likely merger with T-Mobile US Inc (NYSE:TMUS), S scored an upgrade to "outperform" and a price-target hike to $10.18 from $9.75 at Macquarie this morning. Year-to-date, the stock is off 18.4% to $8.77, which has prompted some interest among short sellers. There are more than 77 million Sprint Corporation shares sold short, amounting to 9.8% of the stock's float. At Sprint's average daily volume, it would take five days to cover these bearish bets, should the stock spike on confirmed merger news (or any other developments).

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