Schaeffer's Trading Floor Blog

Analyst Upgrades: The Kroger Co., NetApp Inc., and Coach, Inc.

Analysts upwardly revised their ratings on KR, NTAP, and COH

by 7/10/2013 9:23 AM
Stocks quoted in this article:

Analysts are weighing in today on grocery store chain The Kroger Co. (NYSE:KR), data storage provider NetApp Inc. (NASDAQ:NTAP), and fine accessories designer Coach, Inc. (NYSE:COH). Here's a quick roundup of today's bullish brokerage notes.

  • Up roughly 64% on year-over-year basis to perch at $37.15, KR saw its price target lifted to $42 from $35 at Guggenheim today, following yesterday's acquisition news. In addition, Citigroup and Cantor Fitzgerald also upwardly revised their price targets. This optimism is prevalent in the short-term options pits, as well. The Schaeffer's put/call open interest ratio (SOIR) for The Kroger Co. checks in at 0.57, with calls almost doubling puts among the front three-months' series of options. This ratio hovers just 9 percentage points above a 12-month nadir, conveying near-term traders have rarely been more call-heavy toward the stock during the past year.

  • NTAP -- which has gained about 34% during the past year -- received a price-target hike to $44 from $42 at FBN Securities ahead of the opening bell. However, a number of covering analysts maintain a cautious attitude toward NetApp Inc. Only 11 brokerage firms have deemed the stock worthy of a "buy" or better rating, versus 13 lukewarm "holds" and two "sell" or worse recommendations. Also, the security's consensus 12-month price target of $41.42 denotes a premium of just over 7% to Monday's closing price of $38.67. This leaves some wiggle room for additional upgrades and/or price-target hikes, which could serve as tailwinds for the equity.

  • Analysts at BMO initiated coverage of COH with an "outperform" rating and a price target of $70 this morning, which could help add to the stock's modest year-to-date advance of 4.5%. Meanwhile, Coach, Inc. -- currently priced at $58.01 -- sports a 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 5.27, signaling traders have bought to open more than five puts for every call during the past two weeks. This ratio registers higher than 96% of comparable 52-week readings, confirming speculators have been picking up puts over calls at a near annual-high clip.

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