Analyst Upgrades: American Airlines, VMware, First Solar

Analysts upwardly revised their ratings and price targets on American Airlines Group Inc (NASDAQ:AAL), VMware, Inc. (NYSE:VMW), and First Solar, Inc. (NASDAQ:FSLR)

Josh Selway

Sep 1, 2015 at 9:14 AM

Analysts are weighing in today on airliner American Airlines Group Inc (NASDAQ:AAL), software firm VMware, Inc. (NYSE:VMW), and alternative energy stock First Solar, Inc. (NASDAQ:FSLR). Here's a quick roundup of today's bullish brokerage notes on AAL, VMW, and FSLR.

AAL looks ready to drop 1.6% at the open, despite an upgrade to "buy" from "hold" at Deutsche Bank. The shares are already more than 27% lower this year -- last seen at $38.98 -- yet options traders continue to prefer long calls over puts. This is clear from American Airlines Group Inc's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.54 -- in the 69th annual percentile. In other words, 3.54 calls have been bought to open for every put during the past 10 weeks. If these bulls start hitting the exits, it could hurt AAL on the charts.

Baird raised its opinion on VMW to "outperform," saying the stock is better positioned than any of its peers in the sector. Elsewhere, though, Mizuho Securities cut its price target by $5 to $95, but kept its "buy" assessment. In the end, VMware, Inc. is set to open 1.7% lower, which would add to its nearly 20% drop from this time last year. Much of the Street has a favorable outlook on the stock, which boasts 15 "buy" or better ratings, 11 "holds," and no "sells." VMW closed Monday at $79.15.

FSLR is 3.3% lower in electronic trading, even after Barclays initiated coverage with an "overweight" rating, and a $71 price target. This price target represents a 48% premium to Monday's close at $47.84 and sits just below the stock's annual high of $73.78, reached last September. Additionally, the brokerage firm initiated coverage of the U.S. alternative energy industry as a whole with a "neutral" rating. On the charts, First Solar, Inc. has picked up the pace recently, outperforming the S&P 500 Index (SPX) by more than 14 percentage points in the past month. This price action coincides with an 11% drop in short interest during the two most recent reporting periods.

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