Schaeffer's Trading Floor Blog

Analyst Upgrades: Netflix, Inc. (NFLX), Nokia Corporation (ADR) (NOK), and Yelp Inc (YELP)

Analysts upwardly revised their ratings on NFLX, NOK, and YELP

by 10/1/2013 9:19 AM
Stocks quoted in this article:

Analysts are weighing in today on streaming video service Netflix, Inc. (NASDAQ:NFLX), telecom concern Nokia Corporation (ADR) (NYSE:NOK), and online review forum Yelp Inc (NYSE:YELP). Here's a quick roundup of today's bullish brokerage notes.

  • NFLX -- which has skyrocketed roughly 452% during the past year to perch at $309.21 -- received a price-target boost to $370 from $285 at MKM Partners this morning. Netflix, Inc. has outpaced the broader S&P 500 Index (SPX) by north of 29 percentage points during the past three months, yet the stock's Schaeffer's put/call open interest ratio (SOIR) sits at 1.38, confirming puts outstrip calls among options expiring in the next three months. This ratio ranks in the 83rd annual percentile, signaling near-term traders have been more put-focused toward the security just 17% of the time during the past year.

  • Up nearly 136% on a year-over-year basis, NOK saw its price target raised to 6.20 euros from 5.30 euros at Societe Generale, while BofA-Merrill Lynch added the stock to its "Top 10 EMEA Ideas List." Still, sentiment among the analyst crowd remains bearishly skewed toward Nokia Corporation (ADR). Only three brokerage firms have handed out "buy" or better endorsements, compared to 16 tepid "hold" suggestions. Also, the stock's average 12-month price target of $5.71 reflects a discount to yesterday's closing price of $6.51. This leaves the door wide open for a round of upgrades and/or additional price-target hikes, which could help push the shares higher.

  • YELP scored a price-target hike to $80 from $60 at Cowen and Company ahead of the opening bell, which could help add to the stock's year-to-date gain of about 251%. Nevertheless, Yelp Inc -- currently docked at $66.18 -- continues to attract skeptics. In fact, short interest ramped up by 11.5% during the most recent reporting period, and now these bearish bets represent a lofty 17.2% of the equity's available float. With more than 6.5 million shares currently sold short, Yelp Inc could end up benefiting from a short-covering rally down the road, should the security continue along its upward trajectory.

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