Schaeffer's Trading Floor Blog

Analyst Update: Wynn Resorts, Riverbed Technology, and Dunkin Brands

Analysts adjusted their positions on WYNN, RVBD, and DNKN

by 12/4/2012 11:05 AM
Stocks quoted in this article:

Early trading on Wall Street hasn't garnered much activity from investors, as stocks waver around the breakeven mark. Here's a quick update on today's latest brokerage notes, including adjustments for casino owner/operator Wynn Resorts, Limited (NASDAQ:WYNN - 110.19), information technology solutions provider Riverbed Technology, Inc. (NASDAQ:RVBD 17.55), and coffee and pastries specialist Dunkin Brands Group Inc (NASDAQ:DNKN - 31.23).

  • WYNN has taken a 2.5% hit so far today, on word that Chinese officials are upping their scrutiny of casinos in mainland China and Macau. Despite this news, Craig-Hallum initiated coverage on WYNN with a "buy" rating. The analyst crowd is mostly upbeat toward the gambling concern, doling out nine "buy" or better endorsements, versus eight "hold" suggestions. But the options pits are skeptically aligned, as the Schaeffer's put/call open interest ratio (SOIR) checks in at 1.72, conveying that puts overshadow calls among options expiring within three months. This ratio registers in the 94th percentile of its annual range, suggesting that near-term options players have been more put-heavy toward WYNN just 6% of the time during the last year.

  • Earlier today, analysts at Mizuho Securities boosted their price target on RVBD to $32 from $27, while maintaining a "buy" rating. Mizuho's target sits about eight points higher than an already optimistic average 12-month price target of $24.19, which signifies a 37% premium to Monday's $17.66 settlement. Considering the stock's 2012 deficit of 25%, it's surprising to see just how many fans RVBD has in the brokerage space. Currently, there are 12 "strong buys," one "buy," compared to 15 middling "holds," and one "sell" recommendation.

  • Although DNKN was started with a "buy" at Longbow Research, the stock has pulled back about 1% this morning, biting into its 26% year-to-date gain. Elsewhere on the Street, DNKN's 10-day call/put volume ratio sits at 5.01 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), while the SOIR of 0.33 resides three percentage points away from an annual low -- suggesting that near-term options players have been more call-heavy only 3% of the time during the past year. It's possible, however, that a portion of the this call volume could be linked to hedging activity by the shorts, as short interest accounts for a healthy 9.6% of the security's available float.


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