Schaeffer's Trading Floor Blog

Analyst Upgrades: Sirius XM Holdings Inc., BlackBerry Ltd, and Walgreen Company

Analysts upwardly revised their ratings on SIRI, BBRY, and WAG

by 3/26/2014 9:20 AM
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Analysts are weighing in today on satellite radio pioneer Sirius XM Holdings Inc. (NASDAQ:SIRI), smartphone maker BlackBerry Ltd (NASDAQ:BBRY), and drugstore chain Walgreen Company (NYSE:WAG). Here's a quick roundup of today's bullish brokerage notes.

  • Barclays upgraded SIRI to "overweight" from "equal weight" this morning, though the shares have shed 12.2% so far this month to trade at $3.17. Meanwhile, in the options pits, speculators have bought to open SIRI calls over puts at a near-annual-high pace during the past two weeks, as the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 26.33 ranks 2 percentage points from a 12-month peak. Considering Sirius XM Holdings Inc.'s current price, it is likely that option players are turning to long calls, due to the limited profit potential of long puts.

  • Citigroup jumped on the bullish bandwagon for BBRY (which is up 25.8% year-to-date) this morning, lifting its price target to $8 from $4 (though maintaining a "sell" rating). There is still plenty of room for more upgrades and/or price-target hikes in the near term, as well, which BlackBerry Ltd shares could benefit from. As the company approaches its fourth-quarter earnings report Friday morning, 21 analysts maintain "hold" suggestions on the stock, while seven have dished out "sell" or worse recommendations, leaving zero "buy" ratings. Plus, the consensus 12-month price target of $9.23 denotes a discount to BBRY's current perch at $9.36.

  • In the wake of WAG's quarterly earnings report, Cowen and Company and BB&T increased their price targets on the stock to $74 and $72, respectively. (Macquarie, meanwhile, downgraded the equity to "neutral" from "outperform.") Since the start of the year, WAG shares have advanced 15.6% to trade at $66.42, yet options activity was bearishly skewed in the sessions leading up to Walgreen Company's fiscal second-quarter earnings report. The stock's 10-day ISE/CBOE/PHLX put/call volume ratio of 1.06 ranks in the 79th annual percentile, demonstrating puts have been bought to open over calls at a faster-than-usual rate of late.

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