Schaeffer's Trading Floor Blog

Analyst Upgrades: JDS Uniphase, Atmel, and IMAX

Analysts upwardly revised their ratings on JDSU, ATML, and IMAX

by 2/15/2013 9:02 AM
Stocks quoted in this article:

Analysts are weighing in today on optical products maker JDS Uniphase Corp (NASDAQ:JDSU - 15.48) , microcontroller supplier Atmel Corporation (NASDAQ:ATML - 7.14), and large-screen theater system IMAX Corporation (USA) (NYSE:IMAX - 25.62). Here's a quick roundup of today's bullish brokerage notes.

  • Up roughly 15% so far this year, JDSU scored price-target hikes at MKM Partners (to $18 from $17) and Stifel Nicolaus (to $18 from $16) this morning. However, sentiment in the options pits is bearishly skewed. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day put/call volume ratio of 1.58 for JDSU, confirming puts bought to open have easily outstripped calls during the last couple of weeks. This ratio ranks higher than 88% of similar readings taken within the past year, meaning traders have been scooping up puts over calls at a faster-than-usual pace.

  • ATML -- which sits on a year-to-date gain of about 9% -- was upgraded to "buy" from "hold" at Craig Hallum ahead of the opening bell. This optimism toward the stock is prevalent among the near-term options crowd, as well. Schaeffer's put/call open interest ratio (SOIR) for ATML checks in at 0.19, indicating calls outnumber puts by a margin of more than 5-to-1 among options scheduled to expire in the next three months. This ratio is docked in the 32nd percentile of its annual range, signaling short-term speculators have rarely been more call-heavy toward the security during the last 12 months.

  • As IMAX prepares to report quarterly earnings next week, the stock received a price-target boost to $29 from $27 at MKM Partners today. The equity has climbed nearly 14% in 2013 -- while also besting the broader S&P 500 Index (SPX) by north of 12 percentage points during the last 40 sessions -- yet skeptics remain undaunted. Short interest on the stock rose by almost 6% during the past two reporting periods, and now these bearish bets account for a formidable 26% of IMAX's available float. It would take more than 19 days to cover these shorted shares, at the security's average pace of trading.

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