Schaeffer's Trading Floor Blog

Analyst Update: SUPERVALU, ON Semiconductor, and Coca-Cola

Analysts adjusted their positions on SVU, ONNN, and KO

by 1/11/2013 11:07 AM
Stocks quoted in this article:

Stocks are slightly lower this morning, as major market indexes battle to keep their heads above water for the week. Here's a quick update on some of the latest brokerage notes, including adjustments for grocery store chain SUPERVALU INC. (NYSE:SVU - 3.46), tech issue ON Semiconductor Corp. (NASDAQ:ONNN - 7.62), and beverage behemoth The Coca-Cola Company (NYSE:KO - 36.56).

  • BMO this morning lifted its price target for SVU by $2 to $4. But the stock has retreated in early trading, cutting into its impressive 39% year-to-date rally much of which stemmed from its recently announced $3.3 billion deal with Cerberus Capital Management. SVU's technical makeup reveals a deeper predicament is at hand, as the shares have declined 53% over the past 52 weeks. At last check, the stock is off about 0.5%, and is battling with its downtrending 200-day trendline, which has acted as resistance for more than a year. Meanwhile, the rest of the analyst crowd appears to be taking a wait-and-see approach to SVU, as 10 out of the 12 covering analysts have handed out middling "hold" suggestions.

  • ONNN is faltering below breakeven today, unable to capitalize on a pair of price-target hikes from Wedbush (to $9 from $8) and Raymond James (to $8.50 from $7). However, the stock has enjoyed a nice boost on the charts recently, adding 7.5% in 2013, and outpacing the broader S&P 500 Index (SPX) by more than 26 percentage points during the past 60 sessions. As a result of this upswing, ONNN's Relative Strength Index (RSI) now sits in overbought territory at the 75 level, suggesting a pullback could be in store for the shares.

  • Bernstein weighed in on KO this morning, cutting its price target by $1 to $43. Investors sold on the news, knocking the shares down more than 1% at last look. This newly reduced target resides just above the average 12-month price target of $42.38, which represents a 16% premium to KO's current trading price. Furthermore, the blue chip issue hasn't traveled the $42 neighborhood since back in July 1998.

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