Schaeffer's Trading Floor Blog

Analyst Upgrades: Intuitive Surgical, Inc., GrubHub Inc, and The Coca-Cola Company

Analysts upwardly revised their ratings on ISRG, GRUB, and KO

by 4/29/2014 9:27 AM
Stocks quoted in this article:

Analysts are weighing in today on medical robot manufacturer Intuitive Surgical, Inc. (NASDAQ:ISRG), mobile takeout service GrubHub Inc (NYSE:GRUB) and soft drink concern The Coca-Cola Company (NYSE:KO). Here's a quick roundup of today's bullish brokerage notes.

  • Sterne Agee upgraded ISRG to "neutral" from "underperform" this morning, despite the shares' 32% plunge from their April 3 annual high of $541.23 to trade at $367.80. In the options pits, meanwhile, Intuitive Surgical, Inc. sports a Schaeffer's put/call open interest ratio (SOIR) of 0.76, with call open interest easily outpacing put open interest among options expiring within the next three months. What's more, this ratio ranks just 6 percentage points from a 12-month low, insinuating the current amount of short-term call open interest (relative to put open interest) is nearing annual-high levels.

  • This morning, a handful of brokerage firms initiated bullish coverage on GRUB -- which has shed 18.4% since debuting for public trading at $40 on April 4 to sit at $32.64. The analysts weighing in include Canaccord Genuity and Citigroup, which each initiated a "buy" rating and a price target of $40 on the stock. (Meanwhile, Morgan Stanley began coverage with a tepid "equal weight" rating.) Elsewhere, on the options front, short-term put open interest on GrubHub Inc outnumbers call open interest by a nearly 2-to-1 margin, resulting in a SOIR of 1.80.

  • Finally, Nomura started KO with a "buy" recommendation this morning, which isn't surprising, considering the shares have advanced more than 11% from their Feb. 20 year-to-date low to perch at $41.03. In the options pits, however, activity has been bearishly skewed toward the Coca-Cola Company. In fact, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.05 ranks higher than 98% of comparable readings taken during the past year, meaning puts have been bought to open over calls at a near-extreme pace during the past two weeks. A continuation of KO's upward trajectory may cause these bearish bettors to hit the exits in the near term, which could give the stock an extra boost on the charts.

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