Schaeffer's Trading Floor Blog

Analyst Upgrades: Netflix, Inc. (NFLX), NIKE, Inc., and Under Armour Inc

Analysts upwardly revised their ratings on NFLX, NKE, and UA

by 4/22/2013 9:10 AM
Stocks quoted in this article:

Analysts are weighing in today on streaming video service Netflix, Inc. (NASDAQ:NFLX), along with athletic apparel manufacturers NIKE, Inc. (NYSE:NKE) and Under Armour Inc (NYSE:UA). Here's a quick roundup of today's bullish brokerage notes.

  • NFLX -- which is on tap to report first-quarter earnings after the close -- was upgraded to "neutral" from "sell" at B. Riley & Co. this morning. The stock has climbed more than 76% in 2013 and is currently perched at $163.37, which could explain the preference for calls over puts lately. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day call/put volume ratio of 1.36 for Netflix, Inc., confirming calls bought to open have outstripped puts during the past two weeks. This ratio ranks higher than 72% of similar annual readings, meaning traders have been scooping up calls over puts at an accelerated clip.

  • Up about 18% so far this year, NKE scored a price-target hike to $68 from $63 at UBS today. However, most of the covering analysts maintain an air of caution toward NIKE, Inc. Only six analysts have deemed the stock worthy of a "strong buy" endorsement, compared to 11 "holds" and zero "sell" suggestions. What's more, the security's average 12-month price target of $62.26 reflects expected upside of just 2.2% to Friday's closing price of $60.92. This leaves plenty of room for future upgrades and/or price-target boosts, which could serve as tailwinds for the equity.

  • UA -- which has advanced more than 16% year-to-date to hover at $56.41 -- saw its price target lifted to $60 from $56 at Janney ahead of the opening bell, on the heels of Friday's better-than-expected quarterly earnings report. Meanwhile, Schaeffer's put/call open interest ratio (SOIR) for Under Armour Inc checks in at 1.48, with puts outweighing calls among options scheduled to expire within the next three months. This ratio arrives in the 78th percentile of its annual range, indicating near-term options players are more put-heavy toward the stock than usual.

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