Schaeffer's Trading Floor Blog

Analyst Upgrades: Twitter Inc, Netflix, Inc., and VMware, Inc.

Analysts upwardly revised their ratings on TWTR, NFLX, and VMW

by 1/23/2014 9:24 AM
Stocks quoted in this article:

Analysts are weighing in today on microblogging site Twitter Inc (NYSE:TWTR), streaming entertainment giant Netflix, Inc. (NASDAQ:NFLX), and IT services provider VMware, Inc. (NYSE:VMW). Here's a quick roundup of today's bullish brokerage notes.

  • TWTR received a price-target hike to $34 from $30 at Pivotal Research this morning. However, the firm's new price target still stands at a steep discount to the equity's current perch at $62.44. For comparison's sake, analysts' consensus 12-month price target comes in at $47.50, which also demonstrates expected downside for the shares. Furthermore, 18 of the 22 analysts weighing in on Twitter Inc currently maintain "hold" or worse ratings. Given that the stock has tacked on more than 39% since its Nov. 7 stock-market debut, the door is wide open for more upgrades and/or price-target hikes in the near term, which could boost the shares' value.

  • NFLX's impressive fourth-quarter earnings report caused a heap of bullish brokerage activity this morning. J.P Morgan Securities and Citigroup upped their price targets to $500 from $460, and to $410 from $390, respectively, while CRT Capital upgraded the stock to "buy" from "fair value." Other firms that upwardly adjusted their price targets include Wedbush, Goldman Sachs, Cantor Fitzgerald, Jefferies, FBR, Credit Suisse, and Nomura. (Oppenheimer, conversely, reduced its price target by $15.) During the past 10 trading days, Netflix, Inc.'s International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.03 registered in the 68th percentile of its annual range, showing that option traders bought to open puts over calls at an accelerated pace heading into the quarterly announcement. Netflix, Inc. is poised to spike 16.5% out of the gate after closing at $333.73 on Wednesday.

  • Finally, Pacific Crest and Raymond James raised their respective price targets on VMW to $115 from $105, and to $109 from $98. Baird also lifted its price target by $10. So far this year, VMware, Inc. has tacked on 9.8% to perch at $98.51. However, short interest still makes up 15.3% of the stock's available float, and it would take more than seven sessions to cover these bearish bets, at VMW's average rate of trading.

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