Schaeffer's Trading Floor Blog

Analyst Upgrades: Google Inc, Zynga Inc, and Broadcom Corporation

Analysts upwardly revised their ratings on GOOG, ZNGA, and BRCM

by 1/31/2014 9:26 AM
Stocks quoted in this article:

Analysts are weighing in today on search engine name Google Inc (NASDAQ:GOOG), online gaming concern Zynga Inc (NASDAQ:ZNGA), and semiconductor specialist Broadcom Corporation (NASDAQ:BRCM). Here's a quick roundup of today's bullish brokerage notes.

  • More than a dozen brokerage firms weighed in on GOOG's fourth-quarter earnings results, posted yesterday evening. Almost all of these firms upwardly adjusted their outlooks, including Goldman Sachs and J.P. Morgan Securities, which upped their price targets to $1,200 from $1,125, and to $1,325 from $1,305, respectively. For comparison, the consensus 12-month price target currently stands at $1,209.63, which denotes a slim 6.5% premium to Google Inc's current price of $1,135.39. Meanwhile, 24 out of the 29 covering analysts have deemed the stock -- which is up 50.2% year-over-year -- worthy of a "buy" or better endorsement.

  • ZNGA received a number of positive brokerage notes, following last night's turn in the earnings confessional. Included in the mix were Piper Jaffray and Barclays, which both increased their respective price targets to $4.50 from $4 this morning. Heading into the scheduled event, Zynga Inc maintained an average 12-month price target of $3.73, and 18 "hold" or worse ratings (compared to just one "strong buy"). As such, Zynga Inc could see more upgrades and/or price-target hikes in the near term, considering its 31.4% year-over-year climb and looming price spike (ZNGA is positioned more than 18% higher ahead of the market's open).

  • BRCM's fourth-quarter earnings report was also well received among the brokerage bunch. Among the firms that upwardly revised their outlooks were Jefferies and Evercore, which both raised their price targets by $1 to $37 and $35, respectively. Technically speaking, Broadcom Corporation has been in a rut for quite some time, dropping close to 10% on a year-over-year basis to perch at $29.21. With that being said, short-term option traders have been more put-heavy than usual toward the equity recently, as the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.63 ranks higher than 68% of comparable readings from the past year.

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