Schaeffer's Trading Floor Blog

Analyst Update: GameStop, SINA Corp, and Autodesk

Analysts adjusted their positions on GME, SINA, and ADS

by 11/16/2012 12:02 PM
Stocks quoted in this article:

As the bulls appear to be at the helm on Wall Street around lunchtime, here is quick update to today's latest brokerage notes, including adjustments for video game vendor GameStop Corp. (NYSE:GME - 25.18), Chinese online media outfit SINA Corp (NASDAQ:SINA 44.86), and software designer Autodesk, Inc. (NASDAQ:ADSK - 31.03).

  • On the heels of Thursday's stronger-than-anticipated third-quarter showing, GME enjoyed props from Janney Capital in the form of a price-target hike. Specifically, the firm lifted its target by $5 to $32. While the shares have only recently climbed above breakeven for the year, there could be more upside in store, especially if the holiday season is kind to the gaming retailer. The sentiment backdrop reveals a skeptically skewed brokerage bunch, as 10 out of 17 analysts consider it a "hold" or worse rating. Plus, the consensus 12-month price target of $25.12 is a slim premium to yesterday's closing price of $24.50.

  • In more earnings-related news, Chinese Internet company SINA said its fourth-quarter sales will be lower than expected due to a sluggish economy. Showing distaste for the news, Citigroup cut its rating on the stock to "sell" from "buy," while Stifel lowered its price target to $70 from $80. And there could be additional negative notes in store, as the security has burned off more than 15% so far today, exacerbating its 29% year-over-year drop. The average 12-month price target sits at $76.67, which represents a 44% premium to Thursday's $53.10 settlement. Meanwhile, there are 11 "strong buys" and one "buy" endorsement, compared to two middling "holds," and not a single "sell" suggestion.

  • Also getting in on the earnings action, ADSK announced a consensus-topping third-quarter profit, but still grabbed a pair of downbeat brokerage notes. Credit Suisse knocked its price target down by $2.50 to $32.50, while Barclays dropped its target by $2 to $36. Ahead of ADSK's quarterly reveal, options traders upped their positions on the stock. During the past 10 days, speculators on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open 1.36 calls for every put on the stock. Elsewhere on the Street, short interest on the equity advanced 7.3% during the past month, suggesting the recent acceleration in call buying could be related to hedging activity by the shorts. However, the bearish bandwagon is far from crowded, as it would take just two sessions for these pessimistic positions to unwind.

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