Schaeffer's Trading Floor Blog

Analyst Upgrades: Facebook Inc (FB), Netflix, Inc., and SunPower Corporation

Analysts upwardly revised their ratings on FB, NFLX, and SPWR

by 4/22/2014 9:20 AM
Stocks quoted in this article:

Analysts are weighing in today on social media giant Facebook Inc (NASDAQ:FB), streaming entertainment provider Netflix, Inc. (NASDAQ:NFLX), and solar power concern SunPower Corporation (NASDAQ:SPWR). Here's a quick roundup of today's bullish brokerage notes.

  • Credit Suisse upgraded FB to "outperform" from "neutral," and lifted its price target to $87 from $65, ahead of the social media company's first-quarter earnings report tomorrow evening. In the options pits, meanwhile, speculators have upped the bearish ante on Facebook Inc, which is sitting 15.6% below its March 11 record high of $72.59 to trade at $61.24. The equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.48 ranks just 3 percentage points from a 12-month peak, indicating puts have been bought to open, relative to calls, at a near-annual-high rate during the past 10 weeks.

  • Nearly a dozen brokerage firms weighed in on NFLX this morning, after the company reported upbeat first-quarter earnings results following last night's closing bell. Evercore and BMO were among the bullish crowd on Wall Street, upping their price targets to $400 from $350 and $370, respectively; plus Raymond James raised its rating to "outperform" from "market perform." (CRT Capital, meanwhile, lowered its price target by $20.) Although Netflix, Inc. has shed 23.9% from its March 6 all-time high of $458.00 to trade at $348.49, option traders have placed bullish bets over bearish at a near-extreme pace during the past two weeks. This is evidenced by the fact that the equity's 10-day ISE/CBOE/PHLX call/put volume ratio of 1.35 ranks higher than 99% of comparable readings taken during the past 12 months.

  • Brean Capital initiated coverage on SPWR with a "buy" rating and a price target of $32, just in time for the solar power company's first-quarter earnings report Thursday evening. On the charts, SunPower Corporation's short-term performance fares similarly to FB's and NFLX's, as the shares are currently down 25.9% from their March 5 five-year high of $37.14 to trade at $27.52. As such, option traders have shown a greater-than-usual preference for long puts (relative to calls) recently, as the stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 0.62 ranks in the 92nd percentile of its annual range.

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