Schaeffer's Trading Floor Blog

Analyst Upgrades: Cisco Systems, Inc., SunPower Corporation, and NVIDIA Corporation

Analysts upwardly revised their ratings on CSCO, SPWR, and NVDA

by 2/13/2014 9:29 AM
Stocks quoted in this article:

Analysts are weighing in today on IT services expert Cisco Systems, Inc. (NASDAQ:CSCO), alternative energy concern SunPower Corporation (NASDAQ:SPWR), and chip maker NVIDIA Corporation (NASDAQ:NVDA). Here's a quick roundup of today's bullish brokerage notes.

  • Cantor and MKM Partners increased their price targets on CSCO to $27.50 from $26, and to $24 from $20, respectively, following last night's mixed fiscal second-quarter earnings announcement. (Meanwhile, Pacific Crest lowered its price target.) On the charts, Cisco Systems, Inc. has seen modest gains this month, as the stock is up 6.8% from its Feb. 4 intraday low of $21.40 to perch at $22.85. Nevertheless, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.48 ranks the highest of all comparable readings from the past year, meaning speculators have placed bearish bets over bullish at an annual-high pace during the past two weeks.

  • Goldman Sachs and RBC applauded SPWR's stronger-than-expected fourth-quarter earnings report by lifting their price targets to $32 from $31, and to $35 from $30, respectively. Elsewhere, however, activity is more bearishly skewed. Short interest grew 13.6 % over the last two reporting periods, now accounting for almost 35% of SunPower Corporation's available float. Should its longer-term upward trajectory continue -- the equity has tacked on an impressive 219.1% over the past 12 months to trade at $31.62 -- the stock may end up benefiting from short-covering activity in the near term, which could propel the shares further north.

  • Roughly a dozen brokerage firms responded enthusiastically to NVDA's upbeat fiscal fourth-quarter earnings report and current-quarter revenue guidance. Included in the bunch were Barclays and J.P. Morgan Securities, which both upped their price targets by $2 to $15 and $18, respectively. Technically speaking, NVIDIA Corporation has had an outstanding run over the past five sessions, jumping 9% to perch at $16.83. Plus, the stock hit a new two-year high of $16.95 yesterday. Regardless, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.21 is just 7 percentage points from a 12-month peak, indicating short-term speculators have been very put-heavy toward NVDA of late.

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