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Analyst Upgrades: Apple Inc. (AAPL), Twitter Inc, and Lululemon Athletica inc.

Analysts upwardly revised their ratings on AAPL, TWTR, and LULU

by 6/5/2014 9:17 AM
Stocks quoted in this article:

Analysts are weighing in today on technology guru Apple Inc. (NASDAQ:AAPL), microblogging site Twitter Inc (NYSE:TWTR), and yoga apparel maker Lululemon Athletica inc. (NASDAQ:LULU). Here's a quick roundup of today's bullish brokerage notes.

  • AAPL continued its trek into annual-high territory yesterday -- reaching an intraday peak of $647.89 -- and at its closing price of $644.82, the equity stands nearly 23% above its April 23 pre-earnings closing price of $524.75. Furthermore, last night, Apple Inc. saw its price target lifted to $685 from $610 at BMO. Meanwhile, in the stock's options pits, long calls have been scooped up at a faster-than-usual pace (compared to puts) during the past two weeks, as evidenced by AAPL's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.96, which ranks higher than 77% of similar readings from the past year. AAPL is scheduled to split its stock 7-for-1 at tomorrow's close, and will begin trading on a split-adjusted basis on Monday.

  • This morning, Pacific Crest initiated an "outperform" rating and a $45 price target on TWTR, which is considering acquisitions in the online music industry. On the charts, Twitter Inc has rebounded 11.5% since bottoming at a record low of $29.51 on May 7 to trade at $32.90 (but still remains 48.3% below its year-to-date flat line). With that being said, 18 of the 24 analysts covering the equity maintain "hold" or "strong sell" suggestions, while the average 12-month price target of $43.73 represents expected upside of 32.9% from the shares' current perch.

  • Although LULU is down 27.2% year-to-date to trade at $42.98, Sterne Agee upgraded the stock to "neutral" from "underperform" earlier today. Elsewhere, Lululemon Athletica inc. has a heavy amount of short interest stacked up against it. Currently, 18.31% of the stock's float is sold short, which is equivalent to 10.9 sessions' worth of pent-up buying demand, at the shares' average daily volume. On a fundamental note, LULU is slated to tell all in the earnings confessional ahead of the open on Thursday, June 12.
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