Shares of cybersecurity concern Identiv Inc (NASDAQ:INVE) are higher this afternoon, after analysts at Imperial Capital initiated coverage with an "outperform" endorsement. In addition, the brokerage firm set an $8.75 price target -- representing about 75% upside from Thursday's close of $4.98, and territory INVE hasn't charted in four years.

INVE stock skyrocketed to start the year, nearly doubling from its Dec. 26 low of $3.34 to its March high of $6.38. Since then, however, the equity has been relatively range-bound, trading between support at its 320-day moving average and resistance around $5.70. At last check, the equity was up 4.6% to trade at $5.21.

However, Identiv is no stranger to upbeat analyst attention. In fact, all five of the brokerage firms following the shares already sport "strong buy" opinions. Plus, the consensus 12-month price target of $9 represents a premium of 73% to the equity's current perch.

Should the equity finally break out of its recent range, though, a short squeeze could add fuel to INVE's fire. Short interest represents nearly a week's worth of pent-up buying demand, at the stock's average pace of trading.

Luxury retailer Canada Goose Holdings Inc (NYSE:GOOS) received new coverage on Wall Street this morning, with HSBC setting a "buy" rating and $62 price target. The analyst note discussed the possibility for strong growth over the next three years, given the company's store count and potential expansion outside North America. However, the firm did say that GOOS will need to diversify its designs to maintain its brand loyalty.

The stock closed last week trading at $48.32, bouncing around the $50 level for several weeks now. This is also near the site of a huge bull gap from last June, while the 200-day moving average acted as stiff resistance earlier this month. Still, most analysts are bullish on the security, judging by six "strong buy" recommendations on the Street, compared to two "holds" and zero "sells."

However, GOOS isn't universally loved. Short interest is high, accounting for 13.5% of the float, putting 5.7 days' worth of buying power into the hands of these bears, going by the average daily trading volume. That's enough for a potential short-squeeze situation.

As for options data, Canada Goose right now has a Schaeffer's Volatility Index (SVI) of 63%, which ranks in the bottom third of its annual range. So it would appear near-term options premiums are relatively attractive right now.

Several retail names step into the earnings confessional this week, including Target Corporation (NYSE:TGT), set to report on Wednesday, May 22, before the open. Ahead of the event, Morgan Stanley upped its rating on Target to "equal-weight" from "underweight," the analyst seeing the company's margin risk as already priced into its valuation. 

At last check, Target stock was up 0.7% to trade at $71.31. The shares have shed 11% this quarter, but last week appear to have found a floor at the round $70 level. Plus, TGT's 14-day Relative Strength Index (RSI) was docked at 25 at Friday's closing bell -- well into oversold territory, indicating today's bounce could have already been in the cards. 

Today's bull note runs counter to the overall analyst setup. Of the 20 brokerages covering the equity, 12 rate it a "hold" or "strong sell." However, the stock's average 12-month price target of $86.60 is a 22.2% premium to Friday's closing perch of $70.89.

The retailer has a mixed earnings history lately, closing higher the day after reporting in four of the last eight quarters -- including a 4.6% climb in March. On average, the shares have moved 5.4% in the session subsequent to earnings, regardless of direction, going back two years, with the options market pricing in a larger-than-usual 8.7% swing this time around.

TGT options traders have been loading up on puts. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 10-day put/call volume ratio sits at 1.58 and ranks one percentage point from an annual high, meaning puts have been bought to open over calls at a quicker-than-usual clip.

William Blair initiated coverage on Zoom Video Communications Inc (NASDAQ:ZM) with an "outperform" rating, citing "compelling growth drivers," including "industry-leading revenue growth rates." The brokerage firm joined four others in its bullish outlook on the new Wall Street stock, while six others currently maintain tepid "hold" ratings.

The San Jose-based cloud concern went public on April 18, the same day as Pinterest (PINS), and similar to the social media stock, opened well above its initial public offering price (IPO) of $36 per share. This momentum has continued, with Zoom stock hitting a record high of $90.28 on Friday. Today, the shares are down 4.7% at $85.74 amid tech sector headwinds, but considering ZM's 14-day Relative Strength Index (RSI) closed last week at 72 -- in overbought territory -- a near-term pullback may have been in the cards.

Options traders have shown a preference for puts over calls. Currently, 16,251 puts are open on Zoom Video, compared to 13,957 calls. Not all of the activity is bearish, though, with the June 70 put home to peak open interest of 2,695 contracts, and data from Trade-Alert signaling sell-to-open activity here.

Data suggests put writers have also targeted the June 75 and 85 puts. If this is the case, those selling the puts expect Zoom Video to stay above the respective strikes through front-month options expiration at the close on Friday, June 21.

BofA-Merrill Lynch double-downgraded Eaton Vance Corp (NYSE:EV) to "underperform" from "buy," and slashed its price target to $37 from $45. The analyst in coverage said the lowered outlook comes amid slowing flow trends and expectations for margin pressures for the investment firm.

Jefferies also chimed in on EV stock over the weekend, cutting its price target by $1 to $40, while J.P. Morgan Securities last night upped its target price to $40 from $39. Overall, most analysts are skeptical of Eaton Vance, with five of six maintaining a "hold" or worse recommendation at last Friday's close.

This skepticism is seen elsewhere on Wall Street. Short interest has more than tripled since mid-October, with 5.8 million EV shares currently dedicated to these bearish bets. While this represents a low 5.5% of the stock's available float, it would still take shorts a notably 7.4 days to cover, at the average pace of trading.

Looking at the charts, EV stock bounced off its late-December lows near $32, but have struggled to surmount the $42 level throughout 2019 -- a roughly 50% Fibonacci retracement of its fourth-quarter sell-off. The equity most recently retreated from here in late April, and has since dropped 10.4% to trade at $37.29.

More losses could be ahead, if history is any guide. Eaton Vance is expected to report fiscal second-quarter earnings ahead of the open tomorrow, May 21. EV stock has closed lower in the session subsequent to earnings in six of the past eight quarters, averaging a one-day loss of 1.9%.

 

This morning, Morgan Stanley weighed in on the airline sector, and its reviews weren't exactly glowing. The brokerage firm sees inconsistencies in cost approaches for "legacy" airliners, and thinks expectations should be reset. More specifically, American Airlines Group Inc (NASDAQ:AAL) saw its rating cut to "underweight" from "equal-weight," and its price target slashed to $26 from $40. The analyst in coverage anticipates downside thanks to higher labor costs and rising jet fuel prices.

In response, American Airlines stock is down 3% to trade at $30.71 today. AAL has now shed 10% in May after running up to a historically bearish 160-day trendline in late April, and in the last two days has breached its year-to-date breakeven level. However, today's pullback has found support at the $30 level, an area that acted as a floor back in March. 

The new price target from Morgan Stanley sits in territory not seen in three years. However, most analysts remain bullish on the airline stock. Of the 15 brokerages covering AAL, 11 rate it a "buy" or better, with zero "sells" on the books. Plus, the average 12-month price target of $40.78 is a 32.6% premium from last night's closing perch at $31.74.

It's an opportune time to speculate on the security with near-term options. AAL's Schaeffer's Volatility Index (SVI) of 32% registers in just the 13th percentile of its annual range. In other words, the stock's short-term options are pricing in relatively modest volatility expectations for the shares.

Morgan Stanley slashed its bear forecast on Tesla Inc (NASDAQ:TSLA) to $10 from $97, saying the downwardly revised worst-case scenario assumes a major miss for "Chinese volume forecast ... to account for the highly volatile trade situation in the region, particularly around areas of technology, which we believe run a high and increasing risk of government/regulatory attention." However, analyst Adam Jonas maintained his $230 price target for Tesla -- a nearly 12% premium to last night's close at $205.36.

Baird also chimed in on Tesla overnight, cutting its target price for the stock to $340 from $400, still in territory not charted since late January. In reaction, TSLA shares are down 2.9% in electronic trading, set to open the session below the $200 mark.

It's already been a rough stretch for the equity, which has closed lower in nine of the past 10 sessions -- due in part to a series of fundamental follies, including CEO Elon Musk's cash flow warning and Autopilot issues -- and bottomed at a two-year low of $195.25 yesterday. Year-to-date, TSLA is down 38.3%.

As such, the car stock is at risk of more price-target cuts. While, the majority of the 23 analysts covering TSLA maintain a "hold" or worse rating on the equity, the average 12-month price target sits all the way up at $277.75.

Options traders would certainly welcome more downside. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TSLA's 10-day put/call volume ratio of 1.21 ranks in the 84th annual percentile, meaning puts have been bought to open over calls at a quicker-than-usual clip.

Deckers Outdoor Corp (NYSE:DECK) is trading up 3.6% at $144.20, after BofA-Merrill Lynch upgraded the retail stock to "buy" from "neutral," and boosted its price target by $30 to a Street-high $180. Not only is this new target price a 26% premium to last night's close, but it's the highest on Wall Street.

The brokerage firm said, "Despite the significant appreciation in DECK shares over the last two years, we still see upside risk to consensus [earnings per share] EPS and an attractive valuation." Additionally, BAML believes the retailer will beat the per-share consensus estimate by 20 cents when it unveils its fiscal fourth-quarter results after the market closes this Thursday, May 23.

This bullish outlook runs counter to the overall outlook held among analysts, with the majority of the eight in coverage maintaining a lukewarm "hold" rating. Plus, the average 12-month price target of $149.75 is a slim 1.5% premium to DECK stock's current price.

The retail shares are heavily shorted, too. Although short interest declined 5.6% in the most recent reporting period, the 3.1 million shares still sold short account for 10.8% of the stock's available float. It would take more than eight days to cover these bearish bets, at Deckers Outdoors' average pace of trading.

It's somewhat surprising to see so much skepticism priced into a stock that's put in an impressive performance on the charts. DECK shares are boasting a 41% year-over-year lead, bouncing higher atop their 100-day and 200-day moving averages. The former trendline is currently housed in the $140 region, home to an early February post-earnings bull gap and Deckers' fourth-quarter highs.

Plus, Deckers Outdoors has a history of positive earnings reactions, having closed higher the day after earnings in seven of the past eight quarters. In addition to a 10.5% single-day surge on Feb. 1, the shares jumped 18.8% the day after the retailer reported earnings in May 2017. Another post-earnings pop could spark a fresh round of bullish brokerage notes for DECK, or have shorts continuing to cover.

Lowe's Companies, Inc. (NYSE:LOW) is set for a large sell-off after the company reported quarterly earnings that were below analysts' expectations. On top of that, the retailer lowered its full-year profit forecast. Shortly before the open, LOW shares were down 8.5%, which would put them at $101.68, back below the 200-day moving average.

The options market was pricing in a 7.4% swing for Lowe's today, with traders building large positions at the weekly 111-strike call over the past 10 days. Taking a broader view, peak open interest of 20,131 resides at the October 100 call, compared to just 4,191 contracts at the second most popular contract.

Meanwhile, Wall Street continues to weigh in on LOW rival Home Depot Inc (NYSE:HD), after the company's disappointing same-store sales update on Tuesday. RBC cut its price target to $213 from $217, and J.P. Morgan Securities edged its price target up to $204 from $203. The average price target among the brokerage crowd stands at $206.90.

Despite the weak start to yesterday's session, HD shares actually closed in positive territory near intraday highs, seeming to find support at the 200-day moving average to close at $191.45. As for options activity, near-term speculators moved in on the retailer during yesterday's volatility, with new positions opening at the weekly 5/24 185 and 190 puts.

 

The shares of Urban Outfitters, Inc. (NASDAQ:URBN) are slipping today, after the retailer reported slower growth for its first quarter. Specifically, the firm posted per-share earnings that beat analysts' estimates, but came in 7 cents lower than last year's results, as well as weakening sales and shrinking gross margins -- mostly due to underwhelming women's apparel performance in its Anthropologie and Urban Outfitters brands. The stock is fresh off a new 18-month low of $25.06 as a result -- last seen down 6.9% at $25.15. 

The clothing company's results have analysts paying attention. At least 11 brokerages cut their URBN price targets, including Wells Fargo, Jefferies, and J.P. Morgan Securities, which slashed its target price all the way down to $25 -- the lowest estimate of the bunch. There's still room for more bear notes, with five analysts giving the equity a "buy" or better rating, and the consensus 12-month target price of $32.88 representing a roughly 31% premium to current levels.

URBN stock has seen a steep descent since spiking at an all-time high of $52.50 last August. The security attempted to rebound off the $28 area earlier this year, but a swift rejection at its 120-day moving average sent the shares even lower. The stock has lost 38% year-over-year.

It's recent negative price action may have been impacted by a steady stream of short selling. In the past two reporting periods, URBN short interest shot up 36.9%. The 10.87 million shares sold short would take a little less than four days to cover, at the stock's average pace of trading, and represents a whopping 14.2% of URBN's available float. 

 

Pure Storage Inc (NYSE:PSTG) stock is down 21% at $16.28 -- sinking back toward its late-December lows, and pacing toward its worst day ever. Last night, the data storage name reported a wider-than-anticipated adjusted first-quarter loss of 11 cents per share on $326.7 million in revenue, less than analysts were expecting. PSTG also gave weak revenue guidance for the current quarter and full year.

Analysts have been quick to chime in, with at least six brokerages cutting their PSTG price targets, including Credit Suisse and Susquehanna to $18.  Lake Street Capital, meanwhile, dropped its target price to $22, but maintained its "buy" rating, calling Pure Storage a "good growth story," and saying "savvy growth investors should be buying shares."

Overall, most analysts are bullish on PSTG stock, with 10 of 14 in coverage maintaining a "strong buy" rating, and not a single "sell" on the books. Plus, the average 12-month price target of $22.68 is a nearly 40% premium to current trading levels.

Elsewhere on Wall Street, the tech stock has been a popular target of short sellers. Short interest rose 5.2% in the most recent reporting period to 16.69 million shares. This represents a healthy 8.1% of the equity's available float, or 6.7 times the average daily trading volume.

Amid today's bear gap, PSTG stock is on the short-sale restricted list, which may be sparking accelerated put trading on the equity this morning. At last check, 1,164 put options were on the the tape -- 41 times what's typically seen at this point. Most active is the June 15 put, where most of the contracts have crossed at the bid price.

Software stocks Atlassian Corporation PLC (NASDAQ:TEAM) and VMware, Inc. (NYSE:VMW) have outperformed on the charts over the past year, and analysts are expecting more upside. Below is a look at this morning's Wall Street coverage on the shares of TEAM and VMW.

Atlassian was upgraded to "equal-weight" from "underweight" at Morgan Stanley, which moved its price target up to $145 from $99. The stock closed Wednesday at $126.25, up more than 100% in the past year, and it touched an all-time high of $131.99 on May 17. There's room for more bull notes to lift TEAM higher, since half those in coverage have just "hold" or "sell" ratings on the security.

Bullish betting has been building in the options pits, where more than 6,804 calls were bought to open in the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), compared to just 2,655 puts. The September 130 and June 140 calls saw the largest increases in open interest during that time.

Turning to VMW, Citigroup raised its price target to $235 from $201, calling for the shares to extend their almost 49% year-to-date advance. The stock settled at $203.72 on Wednesday, right below last week's record peak of $206.80. While the majority of brokerage firms recommend buying VMware, there are still eight bearish "hold" or "strong sell" recommendations on the books.

Near-term options traders are also positioned very bearishly, based on the Schaeffer's put/call volume ratio (SOIR) of 3.41, ranking in the 93rd annual percentile. This means traders targeting options expiring within three months are unusually put-heavy, and a gradual unwind of these positions could support VMW stock on the charts.