Analyst Update: Best Buy, Garmin, Jack in the Box

Analysts adjusted their ratings on Best Buy Co Inc (BBY), Garmin Ltd. (GRMN), and Jack in the Box Inc. (JACK)

Jan 7, 2015 at 11:50 AM
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Analysts are weighing in today on electronics retailer Best Buy Co Inc (NYSE:BBY), navigational device maker Garmin Ltd. (NASDAQ:GRMN), and restaurant chain Jack in the Box Inc. (NASDAQ:JACK). Here's a quick look at today's brokerage notes on BBY, GRMN, and JACK.

  • BBY was one of several retailers that Jefferies weighed in on this morning, seeing its price target lifted to $46, while its rating remained a "buy." The equity has outperformed the broader S&P 500 Index (SPX) by nearly 17 percentage points during the past 60 sessions, and options traders have taken a bullish stance in response. Best Buy Co Inc's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio shows that traders have bought to open roughly three calls for every put in the past several weeks. What's more, this ratio ranks higher than 88% of similar readings taken in the past year. However, with the company scheduled to unveil its holiday sales figures next week, BBY's short-term options are more expensive than at any point in the past year on a volatility basis, according to its Schaeffer's Volatility Index (SVI) of 81%. The stock was last seen 3% higher at $38.60.

  • Morgan Stanley raised its price target on GRMN by $2 to $47, and upgraded it to "equal weight" from "underweight," sending the shares 2.4% higher today to $51.72. Many traders are likely displeased with this news, since 15.6% of GRMN's float is sold short, representing over three weeks' worth of buying power, at the stock's average daily pace of trading. (The stock could also be getting a boost from the buzz over the new product it revealed at the Consumer Electronics Show.) However, with Garmin Ltd. sitting in oversold territory at Tuesday's close -- according to its 14-day Relative Strength Index (RSI) of 29 -- an upward move may have been in the cards, regardless.

  • JACK continued its pursuit of all-time highs today, after KeyBanc increased its price target to $90 from $82, and reaffirmed its "buy" recommendation. The stock touched a record peak of $83.48, but was last seen 2.8% higher at $81.84. JACK's year-over-year gain is closing in on 68%, and could go even higher in the event of additional price-target hikes and/or upgrades. Jack in the Box Inc.'s consensus 12-month price target of $79.69 is below current trading levels. Plus, half of the brokerage firms covering the stock maintain tepid "hold" recommendations, despite its strong technical performance.

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