Schaeffer's Trading Floor Blog

Analyst Upgrades: T-Mobile US, Inc., Marvell Technology Group Ltd., and Alcatel Lucent SA (ADR)

Analysts upwardly revised their ratings on TMUS, MRVL, and ALU

by 6/17/2013 9:01 AM
Stocks quoted in this article:

Analysts are weighing in today on wireless services provider T-Mobile US, Inc. (NYSE:TMUS), semiconductor name Marvell Technology Group Ltd. (NASDAQ:MRVL), and tech concern Alcatel Lucent SA (ADR) (NYSE:ALU). Here's a quick roundup of today's bullish brokerage notes.

  • TMUS -- which has bested the broader S&P 500 Index (SPX) by 14 percentage points during the past month and is priced at $22.16 -- scored a price-target hike to $26 from $23 at Macquarie today. Meanwhile, Baird initiated coverage of the stock with a "neutral" rating and a price target of $22. Elsewhere, short-term traders have been bullishly biased toward T-Mobile US, Inc. The equity's Schaeffer's put/call open interest ratio (SOIR) sits at 0.19, confirming calls outpace puts by a margin of more than 5-to-1 among options expiring in the next three months. This ratio is just 4 percentage points above a yearly nadir, meaning near-term options players have rarely been more call-heavy toward the security during the past year.

  • Up roughly 52% year-to-date to trade at $11.01, MRVL was upgraded to "positive" from "neutral," and saw its price target lifted to $14 from $10 at Susquehanna this morning. The brokerage firm noted, "After a long wait, we think MRVL is finally beginning to see some traction in their wireless business and we don't think this is reflected in Street estimates or in investor sentiment." Meanwhile, 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 22.34 for Marvell Technology Group Ltd., indicating traders have bought to open more than 22 calls for every put during the past two weeks. This ratio ranks higher than 79% of similar annual readings, reflecting a healthier-than-usual appetite for calls over puts.

  • Analysts at Citigroup raised their price target for ALU to 1.45 euros from 1.20 euros ahead of the opening bell. Technically speaking, Alcatel Lucent SA (ADR) has gained more than 35% so far this year, yet the sentiment scales among the brokerage bunch remain bearishly tipped. Only three analysts have offered up "buy" or better endorsements, compared to two "holds" and three "sell" or worse suggestions. Even more telling, Thomson Reuters shows an average 12-month price target of $1.74 for the stock, denoting a discount to Friday's closing price of $1.88. In other words, further upgrades and/or price-target hikes could be on the horizon for ALU, which could propel the security higher.

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