Schaeffer's Trading Floor Blog

Analyst Upgrades: Tesla Motors, Bloomin' Brands, and Arch Coal

Analysts waxed optimistic on TSLA, BLMN, and ACI

by 9/17/2012 9:09 AM
Stocks quoted in this article:

Analysts are weighing in today on automaker Tesla Motors Inc (NASDAQ:TSLA - 30.39), Wall Street freshman Bloomin' Brands Inc (NASDAQ:BLMN - 14.40), and commodity concern Arch Coal Inc. (NYSE:ACI - 7.91). Here's a quick roundup of today's bullish brokerage notes.

  • Morgan Stanley weighed in on TSLA this morning, upgrading the stock to "overweight" from "underweight" and lifting its price target by $5 to $50. The brokerage firm said analysts' overall expectations have been dampened by delivery delays, leaving the door wide open for TSLA to outperform. "We expect the Model S to be a commercially successful product that can trigger even greater volumes of Model X and its derivatives," Morgan Stanley wrote. However, analysts aren't the only group wary of TSLA. Short interest accounts for nearly 44% of the stock's total available float, and would take roughly 30 sessions to unwind, at the equity's average pace of trading. Ahead of the bell, TSLA is pointed 7.9% higher.

  • In the wake of its early August initial public offering (IPO), Outback Steakhouse parent BLMN has been bombarded with fresh analyst attention -- all of the bullish variety. Jefferies, Goldman Sachs, and BofA-Merrill Lynch initiated coverage with "buy" ratings, Raymond James and Wells Fargo launched "outperform" recommendations, and JPMorgan and Morgan Stanley offered "overweight" endorsements. Most of the firms – many of which are BLMN underwriters -- are waxing optimistic on Outback's international growth prospects, as well as its Bonefish Grill and Carrabba's chains. Since its IPO price of $11, BLMN has tacked on roughly 31%.

  • The shares of ACI finished at their highest price since mid-May last week, capturing the attention of analysts at Dahlman Rose. Specifically, the brokerage firm this morning lifted its price target to $10 from $9, and reiterated its "buy" recommendation on the coal concern. From a broader sentiment perspective, there could be more upbeat analyst attention on the horizon. Despite outperforming the broader S&P 500 Index (SPX) by 19 percentage points during the past 40 sessions, just nine out of 20 analysts have doled out "buy" or better endorsements. However, regardless of Dahlman's bullish note, the shares of ACI are pointed 2.7% lower in pre-market action.

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