Schaeffer's Trading Floor Blog

Analyst Upgrades: Tesla Motors Inc (TSLA), J.C. Penney Company, Inc., and Netflix, Inc.

Analysts upwardly revised their ratings on TSLA, JCP, and NFLX

by 2/27/2014 9:30 AM
Stocks quoted in this article:

Analysts are weighing in today on electric car manufacturer Tesla Motors Inc (NASDAQ:TSLA), department store chain J.C. Penney Company, Inc. (NYSE:JCP), and streaming video concern Netflix, Inc. (NASDAQ:NFLX). Here's a quick roundup of today's bullish brokerage notes.

  • Goldman Sachs and Wedbush raised their price targets on TSLA to $170 from $118, and to $295 from $225, respectively, after the electric car manufacturer announced more information about its plans for a Gigafactory. This week, Tesla Motors Inc took its long-term technical strength to the next level -- the shares have spiked more than 16% over the past two sessions to perch at $253.00, and tapped a fresh all-time high of $265.00 along the way (thanks to a round of positive brokerage notes). Elsewhere, a healthy chunk of TSLA investors remain bearish, as short interest accounts for a whopping 40.6% of the stock's available float. This is equivalent to 29.6 million shares sold short.

  • JCP has tacked on about 14% over the past two sessions to perch at $5.96, and is currently poised for even more impressive gains in today's session, after providing a strong 2014 sales forecast last night. In response, Citigroup upped its price target to $7.50 from $6.50 this morning, while Wells Fargo upgraded the stock to "market perform" from "underperform." Buckingham and Baird also increased their respective price targets. Heading into J.C. Penney Company, Inc.'s quarterly event, the majority of the brokerage crew was skeptical, with 17 of the 20 covering analysts dishing out "hold" or worse ratings. On the flip side, the average 12-month price target comes in at $7.86, representing expected upside of nearly 32% from the shares' current price.

  • NFLX -- which has tacked on 143.5% over the past 12 months to trade at $448.79 -- received a price-target hike to $260 from $220 at Bernstein this morning. (Though even post-hike, this is a notably lackluster outlook given the stock's current price.) Meanwhile, over the past two weeks, options traders have been relatively bearish toward Netflix, Inc. In fact, the stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.14 ranks higher than 95% of similar readings taken over the last year. In other words, speculators have bought to open puts over calls at a near-annual-high rate recently.

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