Analyst Upgrades: F5 Networks, Inc., RF Micro Devices, Inc., and Take-Two Interactive Software, Inc.

Analysts upwardly revised their ratings on FFIV, RFMD, and TTWO

by Karee Venema

Published on Oct 30, 2014 at 9:35 AM
Updated on Apr 20, 2015 at 5:10 PM

Analysts are weighing in today on IT issue F5 Networks, Inc. (NASDAQ:FFIV), radio frequency solutions specialist RF Micro Devices, Inc. (NASDAQ:RFMD), and video game maker Take-Two Interactive Software, Inc. (NASDAQ:TTWO). Here's a quick roundup of today's bullish brokerage notes on FFIV, RFMD, and TTWO.

  • A rash of brokerage firms weighed in on FFIV this morning, after the company posted fiscal fourth-quarter earnings and revenue that exceeded estimates, and announced the retirement of CEO John McAdam. The most optimistic of outlooks came from Pacific Crest, which raised its price target to $153 from $151 -- and underscored its "outperform" rating -- representing expected upside of 30.6% to last night's closing price of $117.12. On the sentiment front, option traders displayed a slight bearish bias toward F5 Networks, Inc. in the weeks leading up to last night's results. 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 of 0.83 ranks in the 66th percentile of its annual range.

  • RFMD received no fewer than four price-target hikes after unveiling its fiscal second-quarter earnings report, including one from Canaccord Genuity. Specifically, the brokerage firm upped its price target to $16 from $12.50, and raised its outlook to "buy" from "hold." The shares have more than doubled in value on a year-to-date basis, and closed last night at $12.05. In the options pits, traders have been scooping up bullish bets in a flurry, as evidenced by the equity's 10-day ISE/CBOE/PHLX call/put volume ratio of 97.09, which ranks higher than 92% of similar readings taken in the past year. With 24.2% of RFMD's float sold short, though, a portion of this call buying could be at the hands of shorts hedging their bearish bets against any post-earnings upside. In early trading, RF Micro Devices, Inc. is up about 1%.

  • TTWO popped 5% out of the gate to explore six-year highs near $24.50. Take-Two Interactive Software, Inc. last night reported a narrower-than-expected fiscal second-quarter loss, and lifted its fiscal-year outlook. No fewer than 10 brokerage firms hiked their price targets on TTWO, with the most ambitious being MKM, which lifted its target to $30 from $27 -- representing expected upside of 31.6% to the stock's Wednesday close at $22.80, and in record-high territory. In addition, Brean upgraded its opinion to "buy" from "hold." One group not celebrating TTWO's earnings victory? Short sellers. Short interest accounts for 18.7% of the stock's total available float, representing nearly eight sessions' worth of pent-up buying demand, at the stock's average pace of trading -- plenty of fuel for a short-covering rally.

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