Schaeffer's Trading Floor Blog

Analyst Upgrades: eBay Inc (EBAY), Zynga Inc (ZNGA), and Delta Air Lines, Inc.

Analysts upwardly revised their ratings on EBAY, ZNGA, and DAL

by 4/24/2013 9:29 AM
Stocks quoted in this article:

Analysts are weighing in today on Internet auctioneer eBay Inc (NASDAQ:EBAY), online game guru Zynga Inc (NASDAQ:ZNGA), and airline giant Delta Air Lines, Inc. (NYSE:DAL). Here's a quick roundup of today's bullish brokerage notes.

  • EBAY -- which has trekked around 34% higher on a year-over-year basis and is docked at $52.49 -- was upgraded to "outperform" from "market perform" at Wells Fargo this morning. Meanwhile, the short-term options crowd seems to share this optimistic attitude toward eBay Inc. The stock's Schaeffer's put/call open interest ratio (SOIR) checks in at 0.52, confirming calls almost double puts among options scheduled to expire within the next three months. In fact, this ratio ranks lower than all other readings taken over the last 52 weeks, conveying near-term options players are more call-heavy toward the equity now than at any other time during the past year.

  • As ZNGA prepares to report quarterly earnings after today's close, the stock received a price-target hike to $3.35 from $2.70 at Evercore Partners today. Zynga Inc has climbed almost 35% year-to-date to trade at $3.18, which could explain the bevy of call-buying activity in the options pits. The security's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio stands at 8.01, indicating traders have bought to open more than eight calls for every put during the past two weeks. This ratio registers higher than 78% of comparable 52-week readings, meaning speculators have been scooping up calls over puts at an accelerated clip.

  • Up nearly 41% so far this year, DAL scored an upward price-target adjustment to $22 from $21 at Sterne Agee ahead of the opening bell. However, this upbeat outlook among the brokerage bunch is nothing new for Delta Air Lines, Inc. The security -- which has also outperformed the broader S&P 500 Index (SPX) on a relative-strength basis during the past two months -- boasts 10 "strong buy" endorsements, compared to just two "hold" or worse suggestions. What's more, Thomson Reuters pegs the stock's average 12-month price target at $19, which represents expected upside of about 13.6% to Tuesday's closing price of $16.72.

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