Schaeffer's Trading Floor Blog

Analyst Update: Research In Motion, Cablevision, and Virgin Media

Analysts revised their ratings on RIMM, CVC, and VMED

by 11/23/2012 9:11 AM
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Analysts are weighing in today on BlackBerry maker Research In Motion Limited (USA) (NASDAQ:RIMM - 10.26), TV titan Cablevision Systems Corporation (NYSE:CVC - 14.06), and entertainment concern Virgin Media Inc (NASDAQ:VMED - 33.72). Here's a quick roundup of today's notable brokerage notes.

  • National Bank analyst Kris Thompson upped his price target on RIMM to $15 from $12, citing optimism ahead of the early 2013 debut of the BlackBerry 10. Since tagging a multi-year low of $6.22 in late September, the stock has advanced roughly 65%, finishing Wednesday in double-digit territory for the first time since June. Furthermore, RIMM conquered its 200-day moving average for the first time since April 2011. Should the BlackBerry 10 live up to expectations, there could be more upbeat analyst attention on the horizon. Currently, RIMM has earned just three "buy" or better endorsements, compared to 19 "holds" and 12 "sell" or "strong sell" recommendations.

  • Wunderlich Securities cut its price target on CVC to $20 from $25, but maintained a "buy" endorsement on the shares. Most analysts are wary when it comes to the stock, which boasts just three "buy" or better ratings, compared to 10 "hold" or worse suggestions. On the other hand, short-term options traders remain optimistic, despite the equity's month-to-date drop of nearly 20%. The stock's Schaeffer's put/call open interest ratio (SOIR) stands at 0.31, indicating that calls more than triple puts among options with a shelf-life of three months or less. What's more, this ratio ranks in the 32nd percentile of its annual range, implying a bigger-than-usual call bias among near-term options players.

  • Finally, Credit Suisse lifted its price target on VMED to $38 from $32, and reiterated its "outperform" recommendation on the stock. The majority of brokerage firms are already in the bullish camp, with VMED harboring twice as many "strong buys" as "hold" or worse ratings. However, despite outperforming the broader S&P 500 Index (SPX) by about 27 percentage points during the past three months, not everyone on Wall Street is a fan of the equity. The stock's SOIR of 1.21 stands just nine percentage points from an annual pessimistic peak, and short interest represents more than seven sessions' worth of pent-up buying demand, at VMED's average pace of trading. Should the shares add to their year-to-date advance of more than 57%, a reversal in sentiment could translate into a contrarian tailwind.

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