Analyst Upgrades: Alcatel, Kinder Morgan, SodaStream

Analysts upwardly revised their ratings on Alcatel Lucent SA (ADR) (ALU), Kinder Morgan Inc (KMI), and SodaStream International Ltd (SODA)

Alex Eppstein
Jan 22, 2015 at 9:35 AM
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Analysts are weighing in today on French telecom Alcatel Lucent SA (ADR) (NYSE:ALU), energy transportation issue Kinder Morgan Inc (NYSE:KMI), and at-home carbonation specialist SodaStream International Ltd (NASDAQ:SODA). Here's a quick roundup of today's bullish brokerage notes on ALU, KMI, and SODA.

  • Despite being down 16.1% year-over-year to trade at $3.38, ALU was placed on Goldman Sachs' "conviction buy" list from "neutral." The brokerage firm also upped its price target to $4.80 from $4.10. As such, the shares are up 3.4% out of the gate. Meanwhile, bullish betting has picked up in recent months on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Alcatel Lucent SA's (ADR) 50-day ISE/CBOE/PHLX call/put volume ratio of 29.86 ranks in the 93rd percentile of its annual range.

  • KMI saw its price target boosted to $50 from $49 at Credit Suisse, which also restated its "outperform" opinion. It's no wonder, either -- the security has advanced more than 18% year-over-year to rest at $42.66, and touched a record high of $43.18 in late December. However, options traders have been relatively bearish on Kinder Morgan Inc recently, per its 10-day ISE/CBOE/PHLX put/call volume ratio of 0.66 -- higher than four-fifths of other readings from the last year. It's possible, though, that some of these put buyers are shareholders seeking a downside hedge on the technical outperformer. In other news, KMI reported a fourth-quarter revenue miss last night, as well as the impending departure of its CEO and the purchase of Bakken Shale assets for roughly $3 billion.

  • Finally, SODA was upgraded to "hold" from "sell" at Stifel, despite the stock's 50.7% year-over-year deficit to trade at $19. In fact, just last week, the equity hit an all-time low of $17.81. In options land, short-term traders have rarely been as put-skewed toward the equity as they are now, per its Schaeffer's put/call open interest ratio (SOIR) of 1.54 -- in the 99th annual percentile. The brokerage bunch is also skeptical of SodaStream International Ltd, doling out seven "holds" and one "strong sell," with not a single "buy" to be found.

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