Analyst Update: Alibaba, Panera Bread, SolarWinds

Analysts offered their two cents on BABA, PNRA, and SWI

Oct 29, 2014 at 2:55 PM
facebook X logo linkedin


U.S. stocks have taken a decisive turn lower this afternoon, as Wall Street weighs the Federal Open Market Committee's (FOMC) vote to end "QE3." Among equities attracting the attention of analysts are Chinese e-commerce concern Alibaba Group Holding Ltd (NYSE:BABA), fast-casual restaurateur Panera Bread Co (NASDAQ:PNRA), and tech issue SolarWinds Inc (NYSE:SWI).

  • After touching a record high in triple-digit territory on Tuesday, BABA is down 1% at $98.67. Following the end of the Wall Street freshman's "quiet period," a slew of analysts offered their two cents on Alibaba Group Holding Ltd. While most BABA underwriters initiated coverage with a "buy" or equivalent rating, Goldman Sachs took the road less traveled, offering up a "hold" suggestion and $102 price target. Meanwhile, BABA's short-term options remain popular ahead of the firm's inaugural public earnings report, slated for Tuesday morning, as the equity's 30-day at-the-money implied volatility continues to assail new heights.

  • PNRA is down 4.8% at $162.85, as traders pan the company's downwardly revised earnings guidance (subscription required). As a result, Piper Jaffray cut its price target on the stock to $125 from $135, and reiterated an "underweight" rating. The negative note is relatively rare for Panera Bread Co, which sports 11 "strong buys," compared to five lukewarm "holds" and three "strong sell" suggestions. In the options pits, meanwhile, short-term speculators have rarely been more put-biased during the past year, as PNRA's Schaeffer's put/call open interest ratio (SOIR) of 1.75 sits just 6 percentage points from an annual high.

  • Finally, SWI is up 11.7% to $47.56, and earlier notched a new annual high of $49.11, thanks to a stronger-than-expected third-quarter earnings report. Plus, Cowen and Co upped its price target on the security to $53 from $49, and said the firm is well-positioned for growth. SolarWinds Inc could benefit from a short squeeze, too, as short interest represents more than a week's worth of pent-up buying demand, at SWI's average pace of trading. Likewise, a mass exodus of option bears could add fuel to the equity's fire; the stock's SOIR of 2.04 stands higher than 97% of all other readings from the past year.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI