Schaeffer's Trading Floor Blog

Analyst Upgrades: Zynga Inc, Intel Corporation, and Take-Two Interactive Software, Inc.

Analysts upwardly revised their ratings on ZNGA, INTC, and TTWO

by 4/11/2014 9:28 AM
Stocks quoted in this article:

Analysts are weighing in today on online gaming expert Zynga Inc (NASDAQ:ZNGA), tech giant Intel Corporation (NASDAQ:INTC), and video game maker Take-Two Interactive Software, Inc. (NASDAQ:TTWO). Here's a quick roundup of today's bullish brokerage notes.

  • Morgan Stanley upgraded ZNGA to "equal weight" from "underweight," after the company appointed former Best Buy Co., Inc. (NYSE:BBY) executive David Lee as its new chief financial officer. On the charts, Zynga Inc has tumbled nearly 31% from its March 11 annual high of $5.89 to trade at $4.07. However, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.37 ranks lower than 86% of similar readings from the past year, indicating that short-term option traders have rarely been more call-heavy toward ZNGA as they are now.

  • INTC -- which is up 12.4% from its Feb. 5 year-to-date low of $23.50 to trade at $26.42 -- received a price-target lift to $30 from $28 at Stifel this morning. Meanwhile, on Main Street, the amount of short interest on Intel Corporation represents seven sessions' worth of pent-up buying demand, meaning there is a healthy amount of cash sitting on the sidelines. As such -- should Intel continue to trek higher -- the equity may experience a short-squeeze scenario in the near term, which could create additional technical tailwinds. Of note, INTC is scheduled to step up to the earnings plate after the close on Tuesday, April 15.

  • Up about 17% year-to-date to trade at $20.33, TTWO saw its price target increased to $20 from $19 at Cowen and Company earlier today. In the options pits, meanwhile, speculators have been particularly bearish toward Take-Two Interactive Software, Inc. during the past two weeks. 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 is at a 12-month high of 1.37, demonstrating puts have been bought to open over calls at an annual-high rate recently.

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