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Analysts are weighing in today on daily deals-website Groupon Inc (NASDAQ:GRPN), streaming-video service Netflix, Inc. (NASDAQ:NFLX), and java giant Starbucks Corporation (NASDAQ:SBUX). Here's a quick roundup of today's bullish brokerage notes.
- GRPN -- which has more than doubled in value so far this year to trade at $10.30 -- was upgraded to "overweight" from "equal weight" at Morgan Stanley, ahead of the opening bell. Nevertheless, the sentiment scales among the brokerage bunch remain bearishly tipped toward the security. Only three analysts have deemed Groupon Inc worthy of a "strong buy" endorsement, compared to 17 "holds" and one "strong sell" suggestion. This leaves the door wide open for further upgrades, which could help boost the shares even higher.
- Up 432% on a year-over-year basis to perch at $292.43, NFLX scored a price-target hike to $330 from $280 at RBC today. However, there is still plenty of skepticism levied against Netflix, Inc. Short interest rose by 5.3% during the most recent reporting period, and now accounts for a lofty 13.8% of the equity's available float. It would take nearly three sessions to cover these shorted shares, at the stock's average daily trading volume. Should the equity continue along its upward trajectory, NFLX could end up benefiting from modest short-covering activity.
- Wedbush Securities started coverage of SBUX with an "outperform" rating and a price target of $80, which could help add to the stock's year-to-date gain of 34.5%. Meanwhile, Starbucks Corporation -- currently docked at $72.14 -- has been a favorite among near-term put players lately. In fact, the September 70 strike and October 70 strike hold open interest of nearly 5,900 contracts, collectively. An unwinding of these out-of-the-money positions could end up serving as a contrarian tailwind for the security over the next several weeks.