Schaeffer's Trading Floor Blog

Analyst Upgrades: Hewlett-Packard Company, Best Buy Co Inc, and Marvell Technology Group Ltd.

Analysts upwardly revised their ratings on HPQ, BBY, and MRVL

by 5/23/2014 9:08 AM
Stocks quoted in this article:

Analysts have issued votes of confidence today on computer hardware heavyweight Hewlett-Packard Company (NYSE:HPQ), electronics retailer Best Buy Co Inc (NYSE:BBY), and semiconductor name Marvell Technology Group Ltd. (NASDAQ:MRVL). Here's a quick roundup of today's bullish brokerage notes.

  • Following a premature earnings announcement late yesterday, HPQ also announced another round of pending job cuts, which will potentially trim the workforce by up to 16,000 employees. In the wake of these reports, the stock saw no fewer than four price-target hikes, including one from J.P. Morgan Securities, which lifted its outlook to $38 from $35. Hewlett-Packard Company is sitting 13.6% higher year-to-date at $31.78, but analysts have been slow to board the bullish bandwagon. Of the 21 brokerage firms following the shares, 10 have offered up tepid "hold" ratings, while two consider HPQ an outright "sell" or worse. Should the stock continue to mount an advance, additional positive attention from Wall Street could be in the cards.

  • BBY zoomed higher in early trading yesterday after its own first-quarter earnings report, but had given back the bulk of these gains by the close. On the charts, the stock is perched at $26.22, having dropped more than 34% in 2014 -- the lion's share of which was surrendered on Jan. 16, following the retailer's holiday sales results. Since this gap lower more than four months ago, the stock has struggled to make headway. Nevertheless, both RBC and J.P. Morgan Securities increased their price targets by $1 this morning to $34 and $35, respectively. Elsewhere, the options crowd continues to wave the bullish flag. During the last 10 days, Best Buy Co Inc has racked up a call/put volume ratio of 1.73 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), a reading that stands in the 73rd annual percentile. If BBY continues to exhibit sluggish price action, some of these speculative bulls could start to head for the exits.

  • Also fresh from a visit to the earnings confessional, MRVL collected a handful of price-target hikes early this morning. Among them, both Stifel and Raymond James upped their outlooks by $1 to $18. Year-over-year, the shares have gained nearly 38% to rest at $15.59, prompting a preference for calls among the options crowd. Schaeffer's put/call open interest ratio (SOIR) for Marvell Technology Group Ltd. stands at 0.72, which ranks in the 39th annual percentile. Also, the stock has racked up a 20-day ISE/CBOE/PHLX call/put volume ratio of 1.29, signifying that long calls have been in greater demand, relative to puts, during the last month.
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