Schaeffer's Trading Floor Blog

Analyst Update: Facebook Inc (FB), Yahoo!, and General Motors

Analysts upwardly revised their ratings on FB, YHOO, and GM

by 12/24/2012 8:34 AM
Stocks quoted in this article:

Analysts are weighing in today on social networking site Facebook Inc (NASDAQ:FB - 26.26), Internet giant Yahoo! Inc. (NASDAQ:YHOO - 19.35), and auto manufacturer General Motors Company (NYSE:GM - 27.32). Here's a quick roundup of today's bullish brokerage notes.

  • FB -- which has bested the broader S&P 500 Index (SPX) by roughly 28 percentage points during the past three months -- scored a price-target hike to $33 from $25 at Needham ahead of the open. In addition, the brokerage firm lifted its 2013 forecast for the company, and expects FB to top current consensus revenue estimates next year. However, not all of the covering analysts have given the security the stamp of approval. Although FB boasts 20 "buy" or better endorsements, it also sports nine "hold" or worse suggestions. This leaves plenty of room for future upgrades, which could push the shares even higher.

  • Up almost 20% so far this year, YHOO also received an upward price-target adjustment from Needham this morning, to $26 from $19. Meanwhile, bearish speculation has been heating up on the security lately. Short interest on YHOO jumped by more than 17% during the past two reporting periods, and now accounts for a respectable 3% of the equity's available float. From a contrarian perspective, the shares could end up reaping the benefits of short-covering activity down the road.

  • GM was resumed with a "buy" rating and a price target of $35 at Goldman Sachs today, which could help add to the stock's year-to-date gain of nearly 35%. Given this display of technical prowess, it's no surprise that short-term bulls have been converging on the equity. GM's Schaeffer's put/call open interest ratio (SOIR) sits at 0.33, with calls more than tripling puts among options expiring in the next three months. This ratio arrives in the 15th annual percentile, meaning near-term traders have rarely been more call-heavy toward the security during the past year.

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