Schaeffer's Trading Floor Blog

Analyst Upgrades: Advanced Micro Devices, Inc., Under Armour Inc, and Chipotle Mexican Grill, Inc.

Analysts upwardly revised their ratings on AMD, UA, and CMG

by 4/21/2014 9:22 AM
Stocks quoted in this article:

Analysts are weighing in today on semiconductor concern Advanced Micro Devices, Inc. (NYSE:AMD), athletic apparel name Under Armour Inc (NYSE:UA), and burrito expert Chipotle Mexican Grill, Inc. (NYSE:CMG). Here's a quick roundup of today's bullish brokerage notes.

  • AMD reported positive first-quarter earnings and an encouraging sales forecast for the current quarter Thursday evening, leading Bernstein and FBR to lift their price targets on the stock by $0.50 to $3 and $6, respectively. Heading into the quarterly event, short-term call open interest (relative to put open interest) was at a near-annual-high level. This is evidenced by the fact that the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.88 ranks in the 92nd percentile of its 12-month range. While Advanced Micro Devices, Inc. is down 10.4% from its April 2 month-to-date high of $4.12 to trade at $3.69, the stock is poised to regain much of these losses in today's session.

  • UA -- which is set to enter the earnings confessional Thursday morning -- received a price-target hike to $50 from $48 at Susquehanna this morning. For comparison, the average 12-month price target among analysts is $52.83, representing a slim discount to the equity's current price of $53.06. Furthermore, Under Armour Inc maintains 18 "hold" or worse suggestions, compared to eight "strong buy" recommendations from its covering analysts. Considering the shares are up 29.4% on a three-month basis, more upgrades and/or price-target boosts may be in the cards, which could add more contrarian fuel to UA's fire.

  • While CMG's first-quarter earnings results -- announced Thursday morning -- missed analysts' estimates, they still showed an increase over last year's figures. Subsequently, J.P. Morgan Securities upgraded the stock to "overweight" from "neutral." Technically speaking, Chipotle Mexican Grill, Inc. has shed 9.8% over the past month to trade at $519.61. However, the equity's SOIR of 0.88 ranks lower than all other comparable readings from the past year, demonstrating short-term speculators' preference for calls over puts is higher now than it has been at any time during the previous 12 months.

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