Analyst Upgrades: Apple, Amazon.com, Best Buy Co

Analysts upwardly revised their ratings on Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), and Best Buy Co Inc (BBY)

Jan 13, 2015 at 9:59 AM
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Analysts are weighing in today on iPhone parent Apple Inc. (NASDAQ:AAPL), online marketplace Amazon.com, Inc. (NASDAQ:AMZN), and big box retailer Best Buy Co Inc (NYSE:BBY). Here's a quick roundup of today's bullish brokerage notes on AAPL, AMZN, and BBY.

  • AAPL is 2.3% higher this morning, after Credit Suisse raised its outlook on the equity to "outperform" from "neutral," and boosted its price target by $20 to $130 -- representing expected upside of 16.3% to the stock's current price of $111.81, as well as a move into territory yet to be charted. Technically speaking, Apple Inc. has been a standout, rallying more than 43% over the last 52 weeks. Not surprisingly, sentiment is tilted toward the bullish side. In the options pits, for example, AAPL's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.41 ranks higher than 74% of similar readings taken in the past year. Elsewhere, 81% of covering analysts maintain a "buy" or better rating, with not a single "sell" to be found.

  • Citigroup upped its forecast for AMZN to "buy" from "neutral," and increased its price target to $354 from $325 -- roughly in line with the consensus 12-month price target of $356.89. Technically speaking, AMZN has done little to warrant such optimism, with the shares off 25% year-over-year to trade at $297.36. However, Citi said it doesn't "expect the multiple factors that came into play in 2014 to worsen in 2015," and predicted rising margins this year. The optimism is shared elsewhere on the Street, as evidenced by the equity's 50-day ISE/CBOE/PHLX call/put volume ratio of 1.35, which ranks just 1 percentage point from an annual bullish peak. On the fundamental front, Amazon.com, Inc. announced it added 6,000 new permanent positions in Europe last year amid rising demand. Additionally, in the wake of winning its inaugural Golden Globe for its show Transparent, the company announced it has inked a deal with Woody Allen to write and direct his first-ever television series. At last check, AMZN is 2% higher.

  • BBY has jumped nearly 2% out of the gate to trade at $39.78, after Goldman Sachs upped its rating on the shares to "buy" from "neutral," and raised its price target by $7 to $45. This echoes a recent Barron's article, which said the equity could rise as much as 20% this year on increasing consumer demand for AAPL's iPhone 6 and new televisions. The stock has been making its way higher since taking a sharp bounce off its 160-day moving average in mid-October, up 31%. Options traders have responded positively to this momentum, per Best Buy Co Inc's 50-day ISE/CBOE/PHLX call/put volume ratio of 3.15, which ranks in the 88th annual percentile. With more than 9% of the stock's float sold short, though, a portion of this call buying may have been at the hands of short sellers hedging against any additional upside.

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