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Aether Systems (AETH – 144), a maker of software for wireless devices, was rated a "buy" in new coverage this morning by an analyst at Lehman Brothers Holdings (LEH – 149-1/4). The broker expects AETH to reach 210 in a year.
On Thursday, the stock stepped up by more than six points, or nearly five percent, using the sturdy support of its ascending 10-day moving average. However, the shares remain beneath their intermediate-term trendlines as well as their 10-month moving average. That may change today, though, as the security is poised to gap over four points, or greater than three percent, higher at this morning's opening bell.
AETH has not received much attention from the options crowd. For example, the September 130 call is the site of peak front-month call open interest at a mere 410 contracts. If the equity remains in its recent upward trajectory, we believe that this complacency could be a bullish omen for AETH's near-term prospects.