Schaeffer's Trading Floor Blog

Analyst Upgrades: Research In Motion, Nike, and VMware

Analysts upwardly revised their ratings on RIMM, NKE, and VMW

by 11/29/2012 9:07 AM
Stocks quoted in this article:

Analysts are weighing in today on BlackBerry maker Research In Motion Limited (USA) (NASDAQ:RIMM - 11.10), athletic shoe guru NIKE, Inc. (NYSE:NKE - 99.13), and software issue VMware, Inc. (NYSE:VMW - 92.68). Here's a quick roundup of today's bullish brokerage notes.

  • Up around 12% in pre-market trading, RIMM was upgraded to "buy" from "neutral" at Goldman Sachs this morning. Despite outperforming the broader S&P 500 Index (SPX) by more than 65 percentage points during the past three months, most analysts remain wary of RIMM. Currently, the stock boasts just three "buy" or better ratings, compared to 20 "holds" and 11 "sell" or worse suggestions. Meanwhile, short interest represents nearly a week's worth of pent-up buying demand, at the equity's average pace of trading. Should RIMM continue to outperform, additional upgrades or a short-squeeze situation could translate into contrarian tailwinds.

  • NKE was raised to "overweight" from "neutral," and saw its price target lifted to $112 from $101 at HSBC today, which could add to the stock's modest year-to-date gain of about 3%. Nevertheless, the equity's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio sits at 2.48, confirming speculators have bought to open 248 puts for every 100 calls during the last two weeks. This ratio ranks higher than 88% of other such readings taken within the past 12 months, signaling traders have been buying puts over calls at a faster-than-usual pace.

  • VMW -- which has advanced more than 11% so far this year -- was started with a "buy" recommendation at CLSA ahead of the open. The equity has also bested the broader SPX by roughly 10 percentage points over the past month, yet there is still plenty of bearish speculation surrounding VMW. Short interest on the security jumped by more than 15% during the past two reporting periods, and now accounts for about 13% of its available float. It would take more than a week to cover these shorted shares, at the stock's average daily trading volume.

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